Real Estate Investment

The Secret to Scaling Your Real Estate Portfolio (Without Doing It All Yourself)

mara@themichaelblank.com — Thu, 26 Jun 2025 06:00:00 -0400

If you’re like I am, you’re probably smart, capable, and driven. So much so that you’re on the fence about transitioning from single-family rentals to multifamily apartments.

And if we’re alike, you might be trying to do or figure everything out yourself – especially if you come from the single-family world. That “do-it-yourself” mindset might’ve worked with flips or rentals. But with multifamily, it could slow you down or stop you altogether.

In today’s post, I’ll show you why you don’t have to handle the full weight of multifamily investing on only your shoulders. I’ll show you the 3 parts of a successful multifamily investing team, how to build one, and easy steps you can take right now to start finding team members.

Let’s do this.

The Three-Part Secret to Scaling: Your Team

There are three key types of people you need to build your team and scale with apartments. Let’s walk through them.

1. A Team of Professionals

When I first called brokers trying to land my first deal, they all asked me: What’s your track record? My answer? “Uh… I’ve flipped a few houses.” Brokers want to know that you can close a deal so that they can get paid. This is where experience plays a big role.

See, brokers, lenders, and investors want to work with people who know what they’re doing. But here’s the good news: you can borrow experience. All you need is a professional team behind you.

You say, “I’m working with Bill at XYZ Property Management—he manages 5,000 units,” or “Sam from XYZ Lending—he closed over a billion dollars in loans last year.” Suddenly, you’re not just some newbie. You’re part of a real team – or you’re at least working with someone who has the track record you don’t.

When you build a team of professionals—property managers, brokers, attorneys, lenders—you instantly boost your credibility. And that’s the key to getting in the door with deals, money, and opportunities.

2. A Strategic Partner

A second part of a team is almost equally as important, and that’s partnerships. In apartment syndications, there are typically two roles: the deal finder and the capital raiser.

Deal finders love spreadsheets, numbers, and managing the details.
Capital raisers love people, building relationships, and sharing the vision.

Chances are, you’re more naturally wired toward one than the other. That’s great. But don’t try to do both. Even if you can, you shouldn’t.

If you’ve only got five hours a week to work on your investing business, use those hours on what you’re great at—and bring in someone to cover the other half. That’s what real scaling looks like.

When you joint venture, you each get to focus on your strengths. And together, you can do deals neither of you could pull off alone.

3. An Experienced Advisor

This one could’ve saved me a lot of pain on my first deal.

In 2011, I bought a 12-unit building in Washington, D.C. I figured that since I’ve already got “real estate experience,” I could handle it. Turned out … I couldn’t. At least not at first.

I made three major mistakes:

I bought in a tenant-friendly area without knowing what that meant.
I inherited a professional tenant—someone who knew the law better than I did and used it to avoid paying rent.
I had the wrong property manager—they didn’t know how to handle Section 8 or tenants like this.

It was a disaster. I spent 18 months in court, missed rents, and went through months of stress.

Eventually, I found the right manager and stabilized the property… but I’d already burned through my construction budget and lost a ton of time and money.

An experienced advisor could’ve helped me avoid all of that.

Whether it’s a mentor, coach, or someone you pay for guidance, having someone in your corner who’s been there before is game-changing. They’ll help you avoid the wrong deals, pick the right team, and stop making it up as you go.

4 Steps to Help You Start Building Your Team

Now that you know the three keys to scaling, here’s how to get started:

List out your current team (or lack thereof). Do you have a broker? A lender? A property manager with multifamily experience? Any potential partners?
Decide which role fits you best—deal finder or capital raiser. Be honest. You’ll go further, faster by focusing on your strength.
Start networking for your missing pieces. If you’re a deal finder, start connecting with capital raisers. If you’re a capital raiser, start meeting deal finders.

If you’re looking for a Property Manager, tell people! And be specific. Say something like, “I’m looking for a PM who manages 5,000 units and operates in the Metro Atlanta area.” The more specific you can be, the easier someone can point you to the right person.

Find a mentor or join a program. Don’t wing it. Get plugged into a system with people who’ve done what you’re trying to do.

Final Thoughts

If you’re feeling stuck, it’s not because you’re not smart enough or experienced enough. It’s because you’re trying to do it all yourself. Don’t. Build your team.

Build your credibility by surrounding yourself with professionals. Team up with someone who complements your strengths. And work with someone who’s already been down the road you’re on.

That’s the real secret to scaling your real estate portfolio.

To your success,

Michael Blank

The post The Secret to Scaling Your Real Estate Portfolio (Without Doing It All Yourself) first appeared on Apartment Building Investing with Michael Blank.

MB 477: From House Hack to 350 Units: How to Achieve Financial Freedom in a Tenant Friendly State – With Andrew Freed

MB Digital Team — Mon, 23 Jun 2025 14:27:40 -0400

SHOW NOTES

How do you scale to 350 multifamily units in a high-regulation, tenant-friendly market like Massachusetts—starting with a single house hack and a HELOC?

In this episode, Andrew Freed breaks down how he did exactly that. He shares how he transitioned from a high-paying W-2 to full-time real estate investor, why he leaned into a market most investors avoid, and how strategic partnerships and capital raising unlocked serious growth. You’ll learn what actually worked, what didn’t, and how Andrew built a business that now self-manages 250+ units—all without starting rich or flashy.

If you're serious about scaling and want a real-world blueprint from someone who's done it in a tough market, this one's worth your time.

Key Takeaways

Turning a W-2 Into a Real Estate Exit Plan

Why Andrew stayed at his W-2 way longer than he needed to
The mastermind moment that finally pushed him to quit
How he 5X’d his income after going all-in

How to Go from One House Hack to Hundreds of Units

The simple playbook he used to scale with zero previous experience
Why he ditched the “one duplex a year” plan and went big
How small, boring properties (2–30 units) became his superpower

Raising Capital Without Feeling Salesy or Sleazy

How Andrew raised over $20M—even as an introvert
The mindset shift that made all the difference
What NOT to do when asking people to invest

Investing Where No One Else Wants To

Why he’s buying in Massachusetts—and crushing it
How Section 8 became a secret weapon
His strategy for thriving in “landlord-unfriendly” markets

Partnering the Right Way (So You Don’t Get Burned)

How to structure roles, control the money, and build trust
Why partnerships skyrocketed his growth—and what to watch out for
His “video game” approach to business (seriously)

Connect with Andrew

https://freedommanagement.net/

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Empowering Female Business Owners on Their Path to Aligned Ambition appeared first on RISMedia.

3 Reasons I Quit Flipping Houses (and What I Do Instead)

MB Digital Team — Thu, 19 Jun 2025 13:16:24 -0400

Back when I was flipping houses, I ran into a few big problems. We were doing about a dozen flips a year—pretty good numbers—but it wasn’t scalable. It wasn’t passive. And honestly, it felt like a full-time job with a ton of risk.

If you’ve been flipping or thinking about single-family rentals, I get it. But I want to show you there’s a better way. Today, I own over $300 million in apartment real estate, I’ve got true passive income, and I’m financially free. And I didn’t get here by flipping more houses—I got here by investing smarter.

The Problem With Flipping (And Rentals)

Let’s start with flipping. You can make $50K on a flip and that’s great, until you realize most people can only handle one or two flips at a time. That caps your income. Let’s say you do two flips a year and make $100,000.

Awesome, but what if you want to scale that to a million? Suddenly, you need to do 20 flips a year, which means a full team, lots of risk, and zero time off. Plus, if you’re not actively buying, fixing, and selling, you’re not making money.

Then I thought, what if I hold on to some of these houses and rent them out? That’s got to be more passive, right? Well, not quite.

To make $10,000 a month in passive income, you’d need around 50 rentals that each bring in $200/month. That means 50 transactions, 50 properties to manage, 50 furnaces, and 50 sets of tenants.

Why I Turned to Multifamily

Then the 2008 crash hit. I saw investors lose everything they spent years building, just gone overnight. Their entire portfolios were wiped out, and that scared me. I realized single-family real estate wasn’t just unscalable and not passive—it was also risky. I needed a better path.

That’s when multifamily found me.

In 2011, one of my wholesalers brought me a 12-unit apartment building in Washington, D.C. I gave it a shot. It was rough at first—a professional tenant made my life miserable for 18 months. But once things stabilized, that property sent me $1,500/month in true mailbox money. That’s when the lightbulb went off.

One deal, 12 units. Not 12 houses. One building. One closing. One set of paperwork.

And better yet? I could hand it off to a professional property manager. I didn’t have to fix toilets or chase rent. That changed everything.

Why Multifamily Makes More Sense

Here’s what I realized:

It’s scalable – You can go from 12 units to 24 to 100+ without doing 50 separate deals. Just one transaction gives you a whole bunch of doors.
It’s more passive – Multifamily properties are big enough to hand off to full-time, experienced managers. That means you can focus on growing instead of grinding.
It’s less risky – When the market crashes, single-family homes get hit hard. In 2008, 4% of homes went into foreclosure. For multifamily? Just 0.4%. Why? Because with a house, one vacancy means zero income. With an apartment, you can still cash flow with a few empty units.

Multifamily gives you stability, bigger numbers, and the freedom actually to enjoy your life. You can scale without burning out. You can take a vacation and not worry about losing income. And when things go wrong, it’s not game over.

The Shortcut I Wish I Had

Looking back, I flipped three dozen houses before I figured this out. I wish I had skipped all that and gone straight into apartments. That’s why I created a course called Apartments 101. It breaks everything down—the basics of multifamily, what a syndication is, how to raise money, and how to find good deals.

You don’t need years of experience to get started. You don’t need to flip houses first. You just need to understand that single-family real estate will take too long, cost too much, and stress you out before it frees you.

Multifamily investing changed everything for me, and it can do the same for you.

Want to Learn More?

If you’re tired of flipping houses or juggling rentals and want to scale smarter, check out Apartments 101. It’s designed to help you skip the pain and go straight to passive income, financial freedom, and scalable wealth.

Click the link here and get started today.

Let’s do this.

The post 3 Reasons I Quit Flipping Houses (and What I Do Instead) first appeared on Apartment Building Investing with Michael Blank.

MB476: The Capital Raising Playbook: How Marcin Drozdz Raised $100M+ to Scale Multifamily with Other People’s Money in Tough Markets – With Marcin Drozdz

MB Digital Team — Mon, 16 Jun 2025 09:40:54 -0400

SHOW NOTES

In this episode of The Financial Freedom with Real Estate Investing podcast, Marcin Drozdz breaks down the exact playbook he used to raise over $100M for multifamily deals—even in challenging market conditions. He shares why multifamily remains the smartest path to financial freedom, how to raise capital without prior experience, and what new investors must focus on to close their first (or next) deal faster. If you want to scale with other people’s money and build lasting wealth, this episode gives you the blueprint.

Key Takeaways

How Marcin Built a $100M+ Capital Raising Machine

Focused on relationships, trust, and long-term partnerships—not flashy sales pitches.
Built credibility without relying on a massive personal portfolio upfront.
Scaled by consistently delivering value to investors first.

Why Multifamily Beats Other Real Estate Strategies

Offers superior scalability compared to flips, single-family rentals, and STRs.
Combines cash flow, appreciation, and tax advantages into one asset.
Remains resilient through recessions and high-interest rate cycles.

How to Raise Capital Without a Track Record

You don’t need your own cash—you need the right frameworks for raising it.
Start building soft commitments from investors before your first deal.
How to position yourself confidently even as a newer operator.

Avoiding the Biggest Mistakes New Investors Make

Why waiting for the “perfect deal” or “perfect timing” is a recipe for failure.
The danger of trying to figure it out alone without mentorship or a proven system.
How successful investors create momentum by taking imperfect action.

Marcin’s Advice for Scaling a Real Estate Portfolio

Focus on building a strong personal brand and investor network early.
Surround yourself with experienced operators and communities that accelerate your learning.
Play the long game: Reputation and relationships compound faster than anything else.

How to Escape the Rat Race Without Managing a Massive Real Estate Portfolio

MB Digital Team — Thu, 12 Jun 2025 09:35:47 -0400

If you’ve been investing in real estate—or thinking about it—you’ve probably asked yourself a question that many high-income earners face: “How can I use real estate to leave my job without managing properties for the next 10 years?”

This is a real challenge for busy professionals who already earn a good living but want more control over their time. You may have read Rich Dad Poor Dad, done a few flips, or bought a rental or two.

But something still doesn’t feel scalable. You’re working hard, but financial freedom feels far away. That’s exactly what I faced, and in this post, I’ll walk you through what I discovered—what really made the difference—and how you can use it to reach your goals faster.

Your Real Estate Is Moving Too Slowly

Many investors start with single-family homes—either flipping them or renting them out. The strategy makes sense. The entry point feels manageable, and you can earn good money along the way.

But after doing several deals, a pattern starts to emerge. Flipping takes time. Each project demands your attention and involvement, and you only get paid when the property sells. Rentals provide monthly cash flow, but if each one nets just $200 per month, you’d need around 50 of them to replace a $10,000 monthly income. That doesn’t include repairs, vacancies, or tenant issues.

At some point, you realize that while real estate is powerful, the way you’re using it won’t get you to freedom quickly unless you manage a large portfolio. That can take a decade or more. So, what’s the alternative?

How One Painful Apartment Deal Opened the Door to Monthly Passive Income

I started my journey with a software job I didn’t hate, but didn’t want to keep for 30 more years. I got into house flipping and eventually completed over 30 deals in three years. It was a big operation—and it wasn’t passive.

Eventually, I bought a 12-unit apartment building. The first year and a half was tough, but once it stabilized, it started generating $1,500 a month in cash flow. That was the first time I saw what steady, passive income from one property could really look like.

That experience changed how I thought about financial freedom. I realized I didn’t need to spend years building up a massive portfolio. I just needed to understand how to make apartment investing work.

The Real Estate Strategy Most People Overlook

When most people think about investing in apartments, they imagine it’s something they can “graduate” into after they build enough experience and save enough money. But that approach takes years—and for many, it delays the freedom they’re working so hard for.

The truth is, you don’t have to wait.

Even if you’ve never bought an apartment building before, you can learn how to get started within 30 to 60 days. It begins with understanding two key ideas:

1. You can build credibility fast by leveraging the track record of your team.

You just need a team that brings the experience. For example, if your property manager has managed 5,000 units, your lender has originated a billion dollars in loans, and your attorney specializes in SEC law, then your team has credibility. When a broker asks about your experience, you can talk about the strength of your team.

2. You can learn to raise money in 30-60 days.

Many people believe you need to use your own money to get started. But what actually gets you into your first deal is knowing how to speak with investors. You can learn what to say, how to build trust, and where to find investors—sometimes in less than a month. Once you know how to raise capital, you don’t have to wait until you save enough to invest.

This approach—building a strong team and raising money the right way—is what makes apartment investing more accessible than most people think. It’s not about managing a giant portfolio or spending a decade doing deals. It’s about taking smart, focused steps now that can move you toward financial freedom faster.

3 Clear Steps to Start Escaping the Rat Race Now

If you want to leave your job through real estate but don’t want to wait ten years or manage dozens of properties, apartment investing may offer a more direct path. Here are a few simple steps to explore:

Learn about multifamily investing. Understand the basics so you can speak confidently with brokers and investors.
Build a team. Partner with professionals who already have experience. Their track record becomes part of yours.
Practice raising capital. Talk to people you know. Share what you’re working on. Focus on building relationships first.

With the right knowledge and support, you can begin making offers and raising money within a few months—even if you’re starting fresh.

In my full video on this topic on YouTube, I walk through each of these steps and everything else in more detail. I also share stories from my journey.

MB475: The One Strategy That Quietly Built Generational Wealth – With Ben Reinberg

MB Digital Team — Mon, 09 Jun 2025 11:28:35 -0400

SHOW NOTES

In this powerful episode, Michael Blank sits down with Ben Reinberg, founder of Alliance CGC, to break down how he built a $500M+ commercial real estate portfolio—starting with a 95,000 sq. ft. industrial building at just 23 years old. Ben shares how he raised capital with no track record, the key mindset shifts that fueled his growth, and why personal development is the hidden engine behind building wealth.

You’ll also learn why commercial real estate—not single-family rentals—is the path most millionaires quietly use to generate generational wealth, and how to shift your focus (and comfort zone) to play a much bigger game.

Key Takeaways

Study Wealth, Not Just Real Estate: Ben skipped the rental game by studying how wealthy people actually build wealth—with hard assets like commercial real estate.
You Don’t Need to Know Everything—Just Build the Right Team: From asset management to SEC compliance, syndication is a team sport. You can go bigger by not going solo.
Raising Capital Is Not About Sales—It’s About Value & Relationships: Ben started with no fear, built credibility through transparency and strong returns, and gave away the lion’s share of the deal early on to build trust.
Personal Growth = Business Growth: Meditation, mentors, and emotional intelligence aren't optional—they're what allow you to lead, communicate better, and scale sustainably.
Hard Assets Win Long-Term: Whether it's medical office, multifamily, or industrial, Ben believes investing in tangible assets is the key to recession-resistance and generational wealth.

Connect with Ben Reinberg

Website: AllianceCGC.com – Learn about his company and accredited investment opportunities
Personal Site: BenReinberg.com – Buy his book “Hard Assets for Hard Times”, explore wealth-building courses, and watch his TV show Obsessed
Instagram, YouTube, LinkedIn: Just search Ben Reinberg on your favorite platform
Book: Hard Assets for Hard Times – A visual, actionable blueprint to start building your own real estate empire

Connect with Michael

Resources

TheFreedomPodcast.com

Access the #1 FREE Apartment Investing Course (Apartments 101)

Schedule a Free Strategy Session with Michael's Team of Advisors

Explore Michael’s Mentoring Program

Join the Nighthawk Equity Investor Club

Review the Podcast on Apple Podcasts

Syndicated Deal Analyzer

Get the Book, Financial Freedom with Real Estate Investing by Michael Blank

The post MB475: The One Strategy That Quietly Built Generational Wealth – With Ben Reinberg first appeared on Apartment Building Investing with Michael Blank.

What I Learned About Multifamily Real Estate (After Flipping 36 Houses)

MB Digital Team — Wed, 04 Jun 2025 07:16:00 -0400

If you're investing or buying real estate right now, chances are you’re working toward some version of financial freedom.

Maybe you’ve flipped a few houses. Maybe you’ve got some single-family rentals or you’ve tried short-term rentals like Airbnbs. You also might just be getting started. That’s where I was years ago – flipping houses, buying rentals, and trying to figure out the best way to scale.

In this post, I want to talk you through what I discovered about multifamily after flipping 3 dozen houses. I’ll share with you what I learned going through a deal by myself, the mistakes I made, and how multifamily works as a model.

I Flipped 12 Houses a Year

I used to flip houses. I got really good at it and I ended up flipping 36 homes over 3 years. It was good money. But what I started noticing was how active it was. If I wasn’t buying, fixing, and selling, I wasn’t making anything.

I wanted mailbox money. I wanted passive income like Robert Kiyosaki talked about in his book.

I thought, “Maybe I should build a rental portfolio instead.” So I ran the numbers and back then, one single-family house gave roughly $200/month in cash flow. If I wanted to replace what I was making with the house flipping, I’d need 40-50 houses to hit $10K/month in income. That’s a lot of houses, loans, and property management.

But then how were these other investors making so much money in real estate if they weren’t doing rentals and flips?

The First Multifamily Deal

I kept running into the same pain point: how do I grow my real estate without burning out? It was a question of scale. I kept asking myself that question until 2011 when one of my wholesalers sent me a 12-unit multifamily property.

I’d never bought a multifamily building before, but I’d been to a few conferences so I said, “Sure, let’s try it.” I did it all on my own. No partners. No mentor. I figured, “I’ve flipped dozens of houses—I’ve got this.”

Turns out, I didn’t.

I bought in Washington, D.C. — a very tenant-friendly area. I didn’t know the market well, and my property manager didn’t have experience with Section 8 tenants. It took me 18 months of trial and error (and time in court) to stabilize the property.

But then the property settled down. I started getting $1,500/month in passive income. That’s when it hit me: This is real cash flow—and I didn’t have to own 50 properties to get it.

What I Learned About Multifamily

After that deal, I started studying how multifamily really works. It turns out, it’s a different game than flipping or buying rentals one at a time. Here’s what I learned:

1. How Multifamily Generates Income

Multifamily offers multiple “profit centers.” In a typical syndication (a group investment where a few people do the work and others provide the capital), you get paid in four different ways if you’re on the general partner (GP) side:

Acquisition Fee: This is a fee you get at closing for putting the deal together—usually 3% of the purchase price. On a $4 million deal, that’s $120,000. That gets split among the GP team.
Cash Flow: After operating expenses and the investors get their preferred return, the GP shares in the ongoing monthly or quarterly profits.
Equity at Sale: When the property sells (typically after 3–5 years), the GP team also shares in the profit—usually 20–30% of what’s left after paying investors back.
Asset Management Fees: For overseeing operations, the GP earns an annual fee—say $12,000 per year on a property like this.

So on one $4 million deal, the total income to the GP team could look like this:

$120,000 acquisition fee
$200,000 cash flow over 5 years
$200,000 profit from the sale
$60,000 in asset management fees

That’s $580,000–600,000 from one deal—spread out over a few years.

2. You Don’t Need to Do It Alone

I say “team” because you don’t have to fund or find the deal by yourself. You can partner with someone who can raise money, and you bring the deal, or vice versa. This was a hard lesson for me. My first multifamily deal went sideways because I tried to do it all myself. But this model is built around partnerships.

Some people are great at finding deals. Others are good at raising capital. Some know how to manage properties or underwrite deals. Multifamily lets you team up and divide the work.

You can also leverage other people’s experience and track record. If you’re new, you don’t have to wait ten years to build a resume. You can partner with experienced operators and add value in other ways.

3. Why Property Management Works Better at Scale

Managing a single-family rental is tough. Most people can’t afford a full-time property manager, so they either hire part-time agents (who take a big cut) or do it themselves.

But with multifamily, the rent roll is high enough to bring in a professional management company. You’re not on call for leaky faucets or missed rent checks. And that’s what makes it more passive—not because it’s totally hands-off, but because you’re managing the manager, not each tenant.

My point in writing this isn’t to convince you to switch strategies. It’s just to show you how multifamily works and what it looks like behind the scenes.

If you’re flipping, doing the BRRRR method, or managing rentals – that experience is valuable. You’ve already learned how real estate works. Multifamily uses lots of the same principles but just in a different way.

For me, switching from flips to owning multifamily opened up a new level of freedom.

If you want to go deeper into this topic, I walk through everything in the full video—from my first deal to the profit centers to how syndications are structured.

SHOW NOTES

Rob Beardsley didn’t flip houses. He didn’t save up for years. Instead, he went straight from college to commercial real estate—and scaled to $750M in acquisitions in just seven years. In this episode, Rob breaks down how he used partnerships, mindset, and relentless focus to overcome limited capital, lack of experience, and a steep learning curve. You'll learn what it really takes to scale a multifamily business from zero, how to raise capital without a track record, and why operating in today’s market is the ultimate advantage. If you’re serious about building a business—not just doing deals—this is a can’t-miss episode.

Key Takeaways

From College Kid to $750M Operator

Why Rob skipped flipping and went straight to syndications
How growing up in a struggling real estate household shaped his long-term mindset
What triggered his obsession with scaling—before he ever bought a deal

How to Raise Capital Without a Track Record

Why being naïve can actually help early investors take action
The moment Rob realized capital raising is sales and marketing
How he overcame his fear of “selling” and built a system for trust and credibility

The Power of Partnerships in Multifamily

Why going it alone almost never works—and what to do instead
How Rob structured his first deals with more experienced partners
The myth of “less equity” when you partner—and how the pie gets bigger

What Most Investors Get Wrong About Scaling

The difference between doing deals and building a real business
How Rob built Lone Star Capital from a two-man shop to a vertically integrated firm
The right first hire if you want to get out of spreadsheets and grow

Lessons from $750M in Deals (and What Rob Would Do Differently)

The #1 thing he wishes he knew before his first deal
Why he avoids C-class properties despite their “better returns” on paper
How less leverage and better locations create more stability—and scale

What It Takes to Succeed in Today’s Market

Why flat or down markets are the ultimate test of operational excellence
How Rob stayed active—even without new acquisitions—by doubling down on systems and team
The creative strategies he uses to stay top-of-mind with investors between deals

Connect with Rob

https://lscre.com/

Connect with Michael

Resources

TheFreedomPodcast.com

Access the #1 FREE Apartment Investing Course (Apartments 101)

Schedule a Free Strategy Session with Michael's Team of Advisors

Explore Michael’s Mentoring Program

Join the Nighthawk Equity Investor Club

Review the Podcast on Apple Podcasts

Syndicated Deal Analyzer

Get the Book, Financial Freedom with Real Estate Investing by Michael Blank

The post MB474: Turning a $50K Investment into $750M in Acquisitions in 7 Years – With Rob Beardsley first appeared on Apartment Building Investing with Michael Blank.

“I Didn’t Raise Capital for 7 Years” – 5 Lessons From an Investor About Multifamily

MB Digital Team — Wed, 28 May 2025 06:44:00 -0400

If you're investing in real estate, you've probably wondered: How do I actually grow this into something that gives me freedom? You might have a few rentals or flips under your belt. Maybe you’re doing well, but it still feels like you’re pushing a boulder uphill every time you want to take the next step.

I recently had the opportunity to interview Phil Moeller about his experience buying multifamily real estate.

Phil is a real estate investor with over 10 years of experience, having acquired and managed 430+ units across 40+ transactions. He has a background in executive leadership at a Fortune 150 company and holds an engineering degree from Ohio State and an MBA from the University of Dayton.

Here are the five biggest lessons Phil learned from his early multifamily deals—lessons that can save other investors years of trial and error.

5 Lessons Phil Moeller Learned on His Path to Multifamily

Here are the five biggest lessons Phil learned from his early multifamily deals.

1. Start Small… But Don’t Stay Small

Phil’s first multifamily deal was a 48-unit property. It wasn’t in a great market, and it definitely wasn’t flashy. But it was a start. He and his partner brought 25% down, handled the renovation budget, and made it work without raising capital. That deal gave them confidence—and a direction.

From there, they moved into a 72-unit property using a 1031 exchange, and then later added a 16-unit on the side. Each deal stacked on the last one, teaching them the fundamentals of how multifamily works.

The most crazy thing about his first deals is that he didn’t raise any money for any of them. Him and his partners brought all the capital they needed. The key takeaway? You don’t need to jump from zero to 100 units right away.

You can grow from a duplex to a 16-unit to a 48-unit, building confidence and systems along the way. But staying small too long limits your learning curve and delays your financial freedom.

2. Understand the Power of Value-Add

One of the major breakthroughs for Phil came when he truly grasped the “value-add” model.

“Value-add” is a very popular and effective strategy for almost every type of real estate investing. It involves buying an undervalued or distressed piece of real estate in a good area(in this case, multifamily) renovating and improving it to increase its value and rent.

That’s the core of house flips, the BRRRR method, and it’s my strategy for buying and holding apartments.

Once that clicked for Phil, everything changed. Phil and his partners began converting their single-family investments into multifamily assets through 1031 exchanges and cash-outs. They also used tax strategies like cost segregation to reposition their portfolios for better returns.

3. You Need the Right Foundation to Raise Capital

Like I said earlier, Phil didn’t raise capital on any of his early deals. In fact, it took him nearly seven years before he did his first private capital raise. But when he finally did—after building experience, building his network, and investing passively in a few deals himself—it came together surprisingly fast. By that point, he had the credibility, the track record, and most importantly, the confidence.

You don’t need to wait that long to raise money. You can start raising capital from investors as early as right now, but you need the right foundation first. That foundation consists of education and an investing team.

4. Your Network Is a Growth Multiplier

Your network is a huge piece of real estate. One of Phil’s biggest reflections was that he waited too long to surround himself with experienced people. Early on, he tried to figure everything out on his own. Like many self-starters, he thought intelligence and work ethic were enough.

Eventually, he realized that growth accelerates when you plug into the right community — coaches, mentors, peer groups, and partners. These people help you avoid costly mistakes, see around corners, and stay accountable.

That shift led Phil to create a simple success framework called P.E.A.C.E.:

Purpose
Education
Association (networking and mentorship)
Courage (to take action)
Example (to lead others)

When you have purpose and education, backed by strong association, you gain the courage to act. And through action, you become an example others want to follow. That’s how you create real impact—and peace—in your journey.

5. Pace Yourself, But Push Forward

During the interview, Phil joked that he was a “slow learner” — but he doesn’t regret the pace of his journey. Looking back, he realized that some lessons needed time to unfold. If he had rushed into raising capital too soon or scaled without the right systems, it could’ve backfired.

That said, he does acknowledge that moving a little faster—especially into multifamily—would have pushed his financial timeline forward by years.

So respect your pace, but don’t stay comfortable. If you’ve done a few deals, start looking at what’s next. Can you scale your model? Can you learn to raise capital? Can you invest in your network? Growth doesn’t have to be rushed—but it does have to be intentional.

Phil’s story is a great reminder that everyone starts somewhere. The path to success in multifamily isn’t about skipping steps—it’s about stacking the right ones, learning from each deal, and building momentum with clarity and purpose.

If you’re ready to take the next step in your real estate journey—or just want to hear more about how Phil navigated his—you’ll want to watch the full conversation.

Beyond the Specs: Crafting Property Descriptions That Sell appeared first on RISMedia.

Unlocking the Power of Coaching

Devin Meenan — Fri, 25 Apr 2025 11:47:22 -0400

Above: Tomie Fox If there’s one truth real estate professionals can agree on, it’s the fact that the industry is constantly evolving—underscoring the vital role that coaching plays in setting the stage for a successful career, no matter the market. Tomie Fox—team leader of Fox Real Estate Group and broker associate with Parker Properties—is a…

The post Unlocking the Power of Coaching appeared first on RISMedia.

Buffini Continues New Virtual Live Coaching Series

Claudia Larsen — Mon, 24 Mar 2025 12:23:50 -0400

The second session in Buffini & Company’s new virtual coaching series to help real estate professionals sharpen their skills in a competitive marketplace is fast approaching. Registration is currently open for “Motivate,” broadcasting live on Wednesday, April 30 at 9 a.m. PST/12 p.m. EST. The “Buffini Coaching LIVE” series features a powerhouse virtual professional growth…

The post Buffini Continues New Virtual Live Coaching Series appeared first on RISMedia.

New ‘Buffini Coaching Summit’ Series Coming Soon Across North America

Claudia Larsen — Thu, 13 Mar 2025 13:01:17 -0400

Buffini & Company has launched its new “Buffini Coaching Summit” series, an innovative, immersive training and networking experience designed to transform how real estate professionals scale their business growth. This event series brings Buffini & Company’s renowned coaching strategies directly to real estate professionals in three North American locations: Toronto in April 2025; Washington, D.C.,…

The post New ‘Buffini Coaching Summit’ Series Coming Soon Across North America appeared first on RISMedia.

Darryl Davis: Leading the Year of the Skilled Agent in 2025

Devin Meenan — Fri, 24 Jan 2025 13:22:19 -0500

Above: A force in real estate for over 40 years, Davis is on a mission to elevate an entire industry. When Darryl Davis steps into the spotlight—whether on a conference stage for a client event, on one of his Monday Motivation coaching calls, or hosting his free Wednesday training sessions that are open to all…

The post Darryl Davis: Leading the Year of the Skilled Agent in 2025 appeared first on RISMedia.

Buffini & Company’s New CFSP Designation Attracts Over 6,500 Real Estate Professionals

Claudia Larsen — Tue, 03 Dec 2024 13:18:18 -0500

Buffini & Company announced it has seen explosive growth in demand for its new Certified Full-Service Professional (CFSP) designation, with more than 6,500 participants signed up to gain certification since its August launch. Buffini stated that the CFSP designation has raised the bar in real estate professionalism and excellence. The program equips real estate professionals…

The post Buffini & Company’s New CFSP Designation Attracts Over 6,500 Real Estate Professionals appeared first on RISMedia.

Building Meaningful Relationships and Driving Success

Claudia Larsen — Wed, 27 Nov 2024 10:45:32 -0500

Dane Ramsden knew early on that he wanted a career that could both provide for his family and make a meaningful impact on others. At just 18, he took his Michigan Real Estate Salesperson pre-licensure class, igniting a passion for real estate that has only grown stronger over nearly two decades. Now the CEO of…

The post Building Meaningful Relationships and Driving Success appeared first on RISMedia.

Real Estate and Technology Industry Veterans Launch The Helm

Claudia Larsen — Wed, 30 Oct 2024 12:56:14 -0400

Real estate and technology industry veterans Danielle Wilkie and Heather Frick have announced the launch of The Helm—a coaching platform powered by trusted female minds in real estate. The Helm addresses a need for a more distinct coaching platform tailored to fit the occupational needs of seasoned female professionals within the real estate industry, as…

The post Real Estate and Technology Industry Veterans Launch The Helm appeared first on RISMedia.

Pushing to the Finish Line: Strategies for a Productive Fourth Quarter

Devin Meenan — Thu, 17 Oct 2024 10:33:49 -0400

As we kick off the fourth quarter of 2024, it’s more critical than ever for real estate professionals not to take their foot off the gas and coast through the remaining weeks of the year. With so much noise in today’s post-settlement world, those prepared and running alongside the change will be the ones ahead…

The post Pushing to the Finish Line: Strategies for a Productive Fourth Quarter appeared first on RISMedia.

188: Branding Your Flipping Business with Stace Caseria

Danny Johnson — Tue, 20 Oct 2020 14:55:10 -0400

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Show Notes

On this podcast, Danny interviews branding expert Stace Caseria. Tough questions are asked on both sides to understand why branding is sooooo important for real estate investors and how to go about properly branding your business. Enjoy the show!

The 4 pillars Stace mentions are necessary to build trust are:

Credibility
Track Record
Empathy
Alignment of Interest

Find out how to achieve these in this episode! It could be the difference in you landing that deal from the motivated seller over your competition!

Be sure to subscribe to the podcast! Click here to subscribe on Itunes link will open in new window

Links to materials discussed in this episode

>Come and join us in the FlippingJunkie Group on Facebook!

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Contact Stace at Trust Deep Agency

Please Rate and Review

This is my simple request: If you enjoy the podcast and look forward to hearing a lot more episodes, I would be very grateful, happy, beholden and otherwise indebted to you to rate and review the podcast on iTunes.

It’s your choice and I do not want you to feel at all obligated. But I’d love it if you would subscribe and leave a rating and review.

Ratings and reviews allow the podcast to be seen by more people, which will help me achieve my goal of helping as many others as we can to get started in the house flipping business and change their lives.

Click here to rate and review our podcast!

187: Follow Along Week 8 Prospecting

Danny Johnson — Tue, 22 Sep 2020 12:50:55 -0400

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Show Notes

I took a week off to visit Zion National Park as well as Bryce Canyon National Park in Utah. It was amazing!! I had a very good time. The weather was perfect! We hiked about 40 miles in 4 days.

I got back and have been playing catch up. Listen to this week’s episode to find out what I’ve been up to. I’d love to hear what you do to prospect for leads. Please let me know in the comments!

Get your ticket now and take advantage of this offer to get all previous recordings from 2016 on FOR FREE. >> Click here for your Flip Hacking Live 2020 Tickets (make sure to enter promo code ‘DANNY’ to get the recordings)

Be sure to subscribe to the podcast! Click here to subscribe on Itunes link will open in new window

Links to materials discussed in this episode

>Come and join us in the FlippingJunkie Group on Facebook!

Get Your Free FlipPilot Account!

Please Rate and Review

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186: FHL 2020 What and Why with Mike Simmons

Danny Johnson — Mon, 21 Sep 2020 13:48:00 -0400

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In this special episode I talk with my good friend, Mike Simmons, about Flip Hacking Live 2020. Make sure to listen all the way through (or at least skip to the end) because I share with you how to get tickets for dirt cheap AND GET ALL PREVIOUS FLIP HACKING LIVE RECORDINGS SINCE 2016 AS A BONUS. We discuss the power of this transformative event. You do not want to miss it!

Be sure to subscribe to the podcast! Click here to subscribe on Itunes link will open in new window

Links to materials discussed in this episode

>Come and join us in the FlippingJunkie Group on Facebook!

Get Your Free FlipPilot Account!

Please Rate and Review

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Click here to rate and review our podcast!

Episode 185: Follow Along Week 6 Hiring and Progress

Danny Johnson — Mon, 31 Aug 2020 17:05:30 -0400

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Another installment on the follow along journey where Danny is documenting the building up of his house buying business. This week he talks about making a hire for someone to do lead management (cold calls, inbound calls, lead intake, research, direct mail management). He also discusses his story of getting started and how it wasn’t an easy thing to do. Check it out in this week’s episode!

Be sure to subscribe to the podcast! Click here to subscribe on Itunes link will open in new window

Links to materials discussed in this episode

>Come and join us in the FlippingJunkie Group on Facebook!

Get Your Free FlipPilot Account!

Please Rate and Review

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Click here to rate and review our podcast!

Episode 184: Follow Along Week 5 Move The Needle

Danny Johnson — Mon, 24 Aug 2020 17:26:19 -0400

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Danny shares what’s happened over the last week in his getting back into buying houses. Issues with closing prevented him from getting the deal wrapped up that he put under contract several weeks ago. He also discusses how easy it is to procrastinate and do things within our comfort zone rather than doing the things that are going to move the needle the most. It’s a quick episode but with a powerful message. Enjoy!

Be sure to subscribe to the podcast! Click here to subscribe on Itunes link will open in new window

Links to materials discussed in this episode

>Come and join us in the FlippingJunkie Group on Facebook!

Get Your Free FlipPilot Account!

Please Rate and Review

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Click here to rate and review our podcast!

Episode 183: [Follow Along Week 4] Patience and Deal Control

Danny Johnson — Mon, 17 Aug 2020 17:06:20 -0400

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In this week’s episode I share a couple stories related to maintaining control over a deal when necessary. I also share what it means to have patience and belief that deals will come. Forcing things to happen rather than allowing things to happen is the opposite of what we want. Make sense of that!

Episode 182: Deals from Auction Websites, MLS, Wholesalers with Paul Lizell

Danny Johnson — Wed, 12 Aug 2020 09:31:18 -0400

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https://youtu.be/hPREejqWGXo

Show Notes

Paul Lizell has been buying houses nationwide and coaching for years. He knows this industry inside and out. In this episode, Paul shares his incredibly creative auction website buying strategy. He also shares how he routinely buys from real estate wholesalers and off the MLS. Two things I always believed were too competitive to buy from these days. Not true!!! Paul is buying from these sources often. He shares how in today’s episode!

Paul Lizell’s Bio:

Founder of JP Homes Inc. and HouseDealsAmerica.com, Paul has been a successful real estate investor since the late 1990s. He has bought and sold hundreds of properties nationwide during his investing career. Paul enjoys being able to help home sellers and home buyers, as well as improve communities as it is extremely rewarding experience. Building long term relationship with our customers and creating wow experiences is our daily goal. As a graduate of Drexel University, Paul attributes his success in business and investing to coaching, education and systems.

Be sure to subscribe to the podcast! Click here to subscribe on Itunes link will open in new window

Links to materials discussed in this episode

Paul’s other episode on the flipping junkie podcast: https://flippingjunkie.com/episode-62-marketing-online-auction-house-deals-with-paul-lizell/

>Come and join us in the FlippingJunkie Group on Facebook!

Get Your Free FlipPilot Account!

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Click here to rate and review our podcast!

Episode 181: [Follow Along Week 3] Driving For Dollars Prospecting

Danny Johnson — Mon, 10 Aug 2020 16:41:57 -0400

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Yo! Follow Along (https://flippingjunkie.com/followalong) and see how week 3 went. I report on my KPI’s and about the house I put under contract. I also go into showing how I’m finding owners’ of vacant houses phone numbers and entering them into FlipPilot to help me manage my prospecting.Be sure to subscribe to the podcast! Click here to subscribe on Itunes link will open in new window

Links to materials discussed in this episode

AdvancedBackgroundChecks.com

>Come and join us in the FlippingJunkie Group on Facebook!

Get Your Free FlipPilot Account!

Please Rate and Review

It’s your choice and I do not want you to feel at all obligated. But I’d love it if you would subscribe and leave a rating and review.

Click here to rate and review our podcast!

Episode 180: [Follow Along Week 2] 2 Leads 1 Deal

Danny Johnson — Mon, 03 Aug 2020 17:01:43 -0400

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https://youtu.be/pYfCXpZG_y0

Show Notes

Got my marketing processes in place and ready to start skip tracing and calling probate and driving for dollars prospects that I’ve put into FlipPilot.

This week I got 2 motivated seller leads from my LeadPropeller website. 1 didn’t have enough equity and the other…that one accepted my offer! The numbers work out better to fix and flip this one.

I’ll let you know more details after I close on it!

Follow along by visiting: https://flippingjunkie.com/followalong

Links to materials discussed in this episode

Find out how to get FlipPilot 2.0 for free by listening to the replay of our Launch Zoom Call: https://flippilot.com/demo

>>Come and join us in the FlippingJunkie Group on Facebook!

Please Rate and Review

It’s your choice and I do not want you to feel at all obligated. But I’d love it if you would subscribe and leave a rating and review.

Click here to rate and review our podcast!

RET006: Callie Built a Full-Time Income in 11 Months. Here’s How She Did It…

Seth Williams — Mon, 15 Jan 2018 06:00:44 -0500

In this episode, I talk with Callie McGraw about her experience in the land investing business. In less than one year, she managed to generate the equivalent of a full time income while flipping land on the side.

She has … Read More

The post RET006: Callie Built a Full-Time Income in 11 Months. Here’s How She Did It… appeared first on REtipster.com.

Real Estate Basics: How Rental Properties Make Money

Guest Contributor — Mon, 08 Jan 2018 06:00:11 -0500

I often get asked about buying investment properties, and what kind of property should be bought. Many ask how they can make money owning rental property.

It is no secret that well located, reasonably priced real estate investments have historically … Read More

The post Real Estate Basics: How Rental Properties Make Money appeared first on REtipster.com.

The REtipster Podcast is LIVE!

Seth Williams — Tue, 02 Jan 2018 06:00:20 -0500

The day has finally arrived! On this day, January 2, 2018 – the REtipster Blog is jumping into an exciting new adventure in the world of podcasting.

You can check out the podcast here in iTunes.

Or, here … Read More

The post The REtipster Podcast is LIVE! appeared first on REtipster.com.

RET005: YouTube for Real Estate Investors

Seth Williams — Tue, 02 Jan 2018 05:00:58 -0500

In this episode of the REtipster Podcast, I dive into the details of how I use YouTube in my business, and how you can use it in your business too.

I wouldn't say YouTube is a “must” at this … Read More

The post RET005: YouTube for Real Estate Investors appeared first on REtipster.com.

RET004: How to Be the CEO of Your Own Business

Seth Williams — Tue, 02 Jan 2018 04:00:17 -0500

In this episode, I'll talk with you about some ideas and high-level concepts centered around how to be the CEO of your own business.

What activities matter?
What metrics should you pay attention to?
How do you know if

The post RET004: How to Be the CEO of Your Own Business appeared first on REtipster.com.

RET003: Finding Your Groove As A Land Investor – A Conversation With Karl James

Seth Williams — Tue, 02 Jan 2018 03:00:34 -0500

In this episode, we're going to listen in on a recorded conversation I had with my friend Karl James back in 2016 (this is actually one of the first recorded interviews I ever did).

Karl is a land investor who … Read More

The post RET003: Finding Your Groove As A Land Investor – A Conversation With Karl James appeared first on REtipster.com.

RET002: Why I Invest In Land

Seth Williams — Tue, 02 Jan 2018 02:00:04 -0500

What's the big deal with land investing? Why would anyone focus on such a boring type of property?

If you've followed me for any length of time, you probably know that my primary focus in the real estate business is … Read More

The post RET002: Why I Invest In Land appeared first on REtipster.com.

RET001: An Introduction to the REtipster Podcast

Seth Williams — Tue, 02 Jan 2018 01:00:34 -0500

What We Cover in This Episode

In this show (the first episode EVER of the REtipster Podcast), we're going to cover the ground rules and discuss what you can expect from this show.

I'm also going to cover a little … Read More

The post RET001: An Introduction to the REtipster Podcast appeared first on REtipster.com.

TENANT PROOF: How to Make Your Rentals Indestructible

Guest Contributor — Tue, 26 Dec 2017 06:00:06 -0500

Grab five random landlords off the street and ask them:

“Who is harder on their homes, renters or homeowners?”

To say that the poll results would be predictable and one-sided would be a gross understatement.

Tenants simply have less invested … Read More

The post TENANT PROOF: How to Make Your Rentals Indestructible appeared first on REtipster.com.

The Real Estate Investor’s Quick Start Action Guide

Seth Williams — Mon, 18 Dec 2017 10:31:34 -0500

The journey of a thousand miles begins with one step. ~ Lao Tzu

When you think about what it takes to start a new business, it's easy to feel overwhelmed, and even easier to give up before you even get … Read More

The post The Real Estate Investor’s Quick Start Action Guide appeared first on REtipster.com.

What’s In Store For Investors In 2018?

Thu, 07 Dec 2017 13:14:50 -0500

What’s In Store For Investors In 2018? is available on MPG Deals Investment Property Blog

It's hard to believe that 2017 is almost over. It's December and 2018 is knocking on the door. So what do the experts have to say about what will happen with the housing market in 2018? That's what we will look at in this write up.

New Homes And Their Impact On Flippers

It seems that the stock market likes the new President and all the talk of tax reform, but has the housing market liked it as much? It looks like new home building still hasn't really broke loose yet to keep up with buyer demand and home prices will continue to rise because of the short fall of new homes.

Suzanne De Vita has a post on RisMedia that gives some good insight:

Analysts are expecting even higher home prices in 2018 than originally projected, according to new research.

Zillow’s 2017 Q4 Home Price Expectations Survey reveals experts are anticipating a 4.1 percent hike in the new year, up from the 3 percent they forecasted a year ago. Over 100 experts, including economists, participated in the survey.

Their reasoning? Home-building has not panned out as planned—yet.

“The American labor market is stronger than it’s been in decades, and Americans, particularly young Americans, are increasingly feeling confident enough to buy homes,” says Aaron Terrazas, senior economist at Zillow. “Home-building has not kept pace with this surge in demand and remains well below historical norms. We don’t expect that these demand-supply imbalances will fundamentally shift in 2018. Demand will continue to grow and, though supply should increase somewhat, we still won’t build enough new homes to meet this demand, contributing to higher prices.”

Less than 20 percent of experts forecast home-building to pick up next year, the survey shows. Approximately 313,000 new homes were on the market in October, representing 4.9 months supply, according to the U.S. Census Bureau. Entry-level homes, especially, are scarce—down 20.4 percent year-over-year over the summer, reports Trulia.

Continue Reading Suzanne's Full Article "Housing in 2018: Where Are Home Values Headed?"

So it looks like there will still be a greater demand than supply for new houses next year. This is both good news and bad news for flippers. The good, investors will still be able to quickly sell their freshly renovated properties for a good price. The bad, it will remain difficult to find good properties at a low enough price to turn a profit, unless you have access to a good Atlanta area real estate wholesaler :)

What's Coming For Rentals In 2018?

In our article "Should You Start With Fix And Flips Or Buy And Holds?", we preached the fact that new investors should be starting with fix and flips. However for those of you that are already in buy and holds what will your market look like in 2018? With new housing at a premium, what is in store for the rental market? Carole VanSickle Ellis has a write up on Think Realty that gives some good insight:

More Households Opt to Rent, not Buy

Blomquist observed, “Younger generations of new households are forming and entering the market. But they value mobility and the wages are not there to enable them to buy [a home].” Cisterna added, “The bottom one percent of mortgages are going to people with credit scores around 620, whereas historically those mortgages went to people with scores in the mid-500s. Millions of people do not have a choice [but must rent rather than own].” Markets in which the demand for rental housing is present along with affordable sales prices for investors represent ideal targets for SFR investors in 2018.

Markets with a population of Baby Boomers who are selling their homes often represent good potential investment locations for SFR investors. Because those homes are often outdated, needing updates and repairs before retail buyers would be interested in purchasing them, observed Vaidya. Thanks, in part, to Boomers opting to remain in their homes longer than most analysts expected, there is a limited inventory of move-in-ready properties both attractive and affordable to first-time buyers. Investors who purchase these properties and upgrade them often find themselves ideally situated to either rent or sell at retail once the rehab is complete.

Finish Reading Carole's Post "For Single-Family Rentals, Things Look Bright in 2018"

That's pretty much all good news for investors looking to grow their portfolio, as well as keeping renters in the properties they already have. She actually gives both flippers and landlords a great demographic to target in your marketing efforts - Baby Boomers who have been in their properties for a long period of time.

Summing It Up

We think that things are looking up for 2018. The only way we see that there could be a downside is if there were to be something major happening GLOBALLY. As much as people don't like to admit it or push it under the carpet, we are in a global market and crazy things happening around the world can affect us. However we feel it should be a good year for both flippers and landlords alike.

Is That Investment Property All That It Appears To Be?

Fri, 24 Nov 2017 11:39:49 -0500

The following article Is That Investment Property All That It Appears To Be? is republished from MPG Deals LLC

Happy Friday All! Hope you had an awesome day with friends and family yesterday and had your fill of turkey :) . I myself was super busy all week getting ready for family coming into town and wasn't able to post earlier this week and wanted to make sure I got something out before next week.

What I want to cover today is really all about hidden issues with distressed properties. No one likes it when they purchase a property and then find that there are foundation issues, mold or something else lurking that has the potential to cost you thousands of dollars, taking away from your bottom dollar when selling the property.

Hidden Issues with Investment Properties

Chris Clothier put up a post recently that covers some of the pitfalls when investing in distressed properties:

Hidden issues may be lurking

People who are selling distressed properties know that their properties have issues. They know that you know that their properties have issues. What they might, in some cases, be banking on, is that you might be so focused on seeing certain obvious issues that you don’t see the less obvious issues that they tried to cover up, so you paid a higher price for the property than you should have.

Hidden issues are not uncommon in distressed properties. Sometimes no one knew about them, sometimes the previous owner tried to cover them up. Some of the more common problems are electrical (re-wiring an entire property? An easy $10,000), mold (check out any fresh paint), and water damage. Check for caulking issues, like dry or cracking caulk, lots of caulk in one area, or peeling as indications of water damage.

If you miss something in your initial budget, it could turn a profitable investment into a lemon in a flash. Investing in distressed properties, especially if you’re inexperienced, is always somewhat of a gamble.

Read the full article "3 Pitfalls in Investing in Distressed Properties"

We totally agree with Chris in his final statement in that clip. Investing in real estate is always somewhat of a risk. However, a good investors knows the risks and actually hedges their bets on calculated risks. It is extremely important to conduct inspections before purchasing a property, whether it's from the MLS, a wholesaler or something that you found through your own marketing efforts. Also, the 3 things that Chris lists, electrical, mold and water damage are among the most costly and overlooked inspection items. I encourage you to read the rest of the article, and I think where they have "face-paced" at the beginning was suppose to be "fast-paced" :)

Do Your Due Diligence With Inspections

Ken Meyer actually wrote an article that has something to say about all 3 potential money sucking issues including:

Water Leaks

Look at the caulking around the bathroom tub. Lots of caulking could mean repeated attempts at stopping water from running behind the top. Caulking that is dry, cracked and peeling can indicate a long-term leak that may have rotted wood in the walls and floor joists around the tub. Check around the tub for other signs of water stains or soft wood. If you can get under the house, check the joists for rot.

There is a lot of money to be made in distressed properties. But if you miss a repair or two in your initial budgeting, it will end up costing you much more money than you expected and could turn into a money-loser just as easily. The trick is to not rush your inspection. Take the time to look at everything carefully and don’t cut corners.

Read more about what Ken has to say about electrical and mold issues "3 Hidden Issues Found In Distressed Property For Purchase"

I decided to include his bit about water leaks because in our experience they can be the most expensive and hide the most damage, including MOLD!

It's important to find the source of the leak. Years ago homes here in the Southeast were plumbed using something called polybutylene. Over time not only the joints would fail, but also anywhere in the pipe where it was bent to go around duct work or made a sharp curve to go up to a bathroom or kitchen. Repeated breaks could leave a home with mold growing in all kinds of locations, and not just localized. Again, Ken gives great advice at the end of the article and is what we recommend, complete and perform extensive inspections.

Summing It Up

The most important thing you can do to help eliminate as much risk when investing in real estate is to complete a thorough inspection.

Here at MPG Deals, we aim to find and disclose every issue that we find with every wholesale real estate investment that we offer. However, we do advise all of our end buyers to perform their own due diligence to insure they are buying a property without any hidden issues. Until next time, and enjoy your holiday weekend and we wish the best to you and your family!

Getting Started With Your First Rental Property

Tue, 14 Nov 2017 11:11:27 -0500

The article Getting Started With Your First Rental Property Find more on: MPG Deals Of Atlanta

Ready to start you rental portfolio? Have you done enough research to know what you are doing so that your first investment property is a winner? In our article "Should You Start With Fix And Flips Or Buy And Holds?" we covered the fact that you should start with fix and flips and build some cash before jumping into rentals. Here are a few tips to make sure that your first rental property turns into a good cash flow property and not a nightmare that bleeds you dry.

Rental properties are a great way to add some additional cash flow every month, as well as creating generational wealth for your children and grand children. However there are a few things that you MUST do to make sure that you are making a good investment. Not every property is a good candidate for becoming a rental property.

Run The Numbers On The Property

This by far is probably the most important aspect. You must take into consideration how much you are paying for the property, what the note is (if you're not paying cash) and how much you can rent the property for. You also have to calculate in things like insurance and HOA dues.

Kayleigh Kulp had a bit to say about this back in August:

Run the numbers, then run them again. It's important to treat each rental property like its own business to serve as a good investment.

"The most important consideration for prospective landlords is to accurately estimate rental income and the costs associated with leasing," says Lucas Machado, president of House Heroes, a South Florida real estate investment company. "Until a landlord has a precise grip on these issues, they risk owning a property that – rather than a profitable investment – is a net loss every month."

Betting on appreciation alone is not a good idea.

"Rental purchases should have positive cash flow and good rate of return," Machado says. That could be anywhere from 8 to 15 percent in a residential market. Investment real estate is often valued by its capitalization (cap) rate, which is computed by taking the net operating income divided by the going cap rate in the neighborhood to come to an appropriate price.

Your monthly expenses will include the mortgage or debt service, taxes, insurance, lawn and pool maintenance, property management (optional) and insurance. At least 20 percent down payment will likely be required if financing the purchase.

Vacancy, turnover and eviction are realities of leasing any property, so wise landlords must assume at least a month's rent loss annually, Machado said.

Read The Full Article Here"A guide for investing in rental property"

Besides making sure that your property is in a decent neighborhood and that you will be able to rent it, running the numbers is the most important thing. In a later article we will dive more into calculating cap rate (capitalization rate).

Rental Amenities

So the numbers work on the property, now onto renting the property. One mistake that some first time land lords do is over update or flat out just make to many improvements to the property for tenants. In fact there are some things that you really shouldn't have at a rental property.

Chris Deziel wrote about a few things that you definitely don't want at your rental property:

4. Garbage disposal

Garbage disposals are useful, and they aren’t that expensive to repair or replace, but they may be behind more maintenance calls than any other appliance. Think carefully before supplying one at your rental, especially if children live there.

5. Trampolines

Some parents won’t even let their children play on a trampoline, but those that do should buy their own. Even that small trampoline you use to tighten your abs is a potential hazard for kids. Take it out of the garage or basement, and put it in storage or donate it to your local gym before renters move in.

6. Swing sets

Kids love swings, but it’s safer for you if they use the ones at the local park. The possibility of injuries is your main concern, but you should also think about how difficult it is to maintain the lawn around a swing set. It’s best to avoid swinging chairs on the porch as well. They can break.

7. Pools

Inflatable pools need to be refilled often, or they quickly become unsanitary. It takes 810 gallons of water to fill a 6-by-6-foot wading pool to a depth of 3 feet. That’s roughly the amount of water the average household uses in 10 days.

A note about in-ground pools: If your rental property already has a pool, you probably aren’t going to take it out. You might consider covering it and keeping the gate locked, however, for the following reasons:

Maintenance is expensive, and the pool pump uses energy.

A poorly-maintained pool is unsanitary. It’s an eyesore and could earn you a visit from the local health authorities.

Pools are hazardous for small children.

Continue Reading "10 things you shouldn’t have at your rental property"

Those are 4 things you really don't want at your property!

First, the garbage disposal - tenants may tend to use this for a garbage can! And if your property is on a septic tank, you are probably going to end up pumping it sooner than if you didn't have a garbage disposal.

Trampolines -really? You are just asking for a law suit when a tenants child or one of their friends bounces off and breaks one of their legs in multiple places.

Swing sets - this is one that we sometimes let slide depending on the building materials and how well it's anchored. Metal swing sets we always remove. However if it's a nice pressure treated swing set that has a little fort and so on we may leave.

Lastly a pool. Whenever we consider purchasing a property for rental OR fix and flip and it has an in ground pool, the first thing we ask ourselves is "where are we going to get enough dirt to fill that in?". Pools are extremely dangerous for small children! The risk of a child drowning is too great, much less the possible law suits.

Summing It Up

As we stated earlier, a rental can add some great cash flow to your monthly income. However you have to run the numbers and make sure that it's going to cash flow. And lastly, be careful about what amenities you provide or leave on the property when renting it.

Lastly, be sure and check us out for investment properties for sale in Atlanta GA!

What Is A Hard Money Loan

Fri, 10 Nov 2017 11:38:06 -0500

What Is A Hard Money Loan is available on MPG Deals

If you are new to real estate investing you may or may not have heard of a hard money loan. You may want to start flipping houses, but don't have all of the cash necessary to complete the transaction. This is where a hard money loan might come in handy for you. In this short article we will cover what a hard money loan is and when to use them in your real estate investing business.

What Is A Hard Money Loan?

Joshua Dorkin wrote a post on Bigger Pockets that explains what a hard money loan is:

Hard money lenders (HMLs) are typically private individuals or small groups that lend money (Hard money) based on the property you are buying, and not on your credit score. Usually these loans cost (percentage-wise) much more then an average mortgage, often times up to twice what a regular mortgage does, plus high origination fees....

Hard money loans are easily accessed and cut through the red tape. If you can develop a relationship with a LOCAL hard money lender, you can get funds within a couple days, and sometimes with no appraisal or other costs (except for origination fees of course).

Read Joshua's Full Article "Hard Money: What Is It and How Do Hard Money Loans Work?"

We thought that was a perfect explanation of what a hard money loan is, which is why we included it.

Usually it's flippers (quick turn for retail sale) that want to use hard money loans because the cost of using this money is so high that it doesn't make sense to use it for a rental property. However we have come across some larger hard money lenders that can do a hard money loan on a property to complete renovations and get a property ready to rent, then convert the hard money loan to a conventional 30 year mortgage once the repairs are completed and the property is rented, thus bringing down the costs of borrowing the money and making more sense for the investor.

Advantages and Disadvantages of using Hard Money

Rebecca Lake wrote an article on Investopedia that explains in great detail the Pros and Cons of using hard money loans to finance your investment property:

The Cons

Hard money loans aren’t a perfect financing solution. There are two primary drawbacks to consider:

Cost – Hard money loans are convenient, but investors pay a price for borrowing this way. The rate can be up to 10 percentage points higher than for a conventional loan. Origination fees, loan-servicing fees, and closing costs are also likely to cost investors more. (See also: The Complete Guide to Financing an Investment Property.)

Shorter repayment period – The purpose of a hard money loan is to allow an investor to get a property ready to go on the market as quickly as possible. As a result, these loans feature much shorter repayment terms than traditional mortgage loans. When choosing a hard money lender, it’s important to have a clear idea of how soon the property will become profitable to ensure that you’ll be able to repay the loan in a timely manner. (See also: How to Calculate ROI for Real Estate Investments.)

The Pros

There are several good reasons to consider getting a hard money loan instead of a conventional mortgage from a bank. Here are the main benefits this lending option offers to investors:

Convenience – Applying for a mortgage is time-consuming, particularly thanks to new regulations on mortgage lending implemented as part of the Dodd-Frank Act. It can take months to close on a loan, which puts investors at risk of losing out on a particular investment property. With a hard money loan, it’s possible to get funding in a matter of weeks. That’s important if you’re funding a large-scale development project and can’t afford deviations from the timeline to completion.

Flexible terms – Because hard money loans are offered by private lenders, it’s possible for investors to have more room for negotiation of the loan terms. You may be able to tailor the repayment schedule to your needs or get certain fees, such as the origination fee, reduced or eliminated during the underwriting process.

Collateral – With a hard money loan, the property itself usually serves as collateral for the loan. But again, lenders may allow investors a bit of leeway here. Some lenders, for instance, may allow you to secure the loan using personal assets, such as a retirement account or a residential property you own.

Read Rebecca's Full Article "Using Hard Money Loans for Real Estate Investments"

Really good comparison from Rebecca. One point that we really like about using hard money loans that she points out is that the subject property is collateral. This can be very beneficial for investors who have bad credit. This means that the lender is actually lending you money based on the numbers of the property. However, most of the time you will have to have some money to put down or use for repairs because these lenders want you to "have some skin in the game", otherwise the risk of you walking away maybe to high for them.

Summing It Up

Hard money loans can be very beneficial to investors. If you don't have enough cash to buy and repair a property to sell it retail a hard money loan maybe just what you need. Shop around, find the best deal you can and visit REIA's and connect with other investors and find out who their favorites are.

If you are an investor looking for Atlanta wholesale deals for fix and flip, be sure and check us out!

Selling Your Renovated Property

Tue, 07 Nov 2017 16:06:53 -0500

The blog post Selling Your Renovated Property See more on: www.MPGDeals.com

So you purchased a fix and flip to sell retail. It can be an exciting and stressful time all at once. But when is the best time to actually start marketing the property? How do you know when it is actually ready to go on the market and pass inspections? These are the questions we will answer in this short article.

Marketing Your Property

When should you start marketing your property to get it sold quickly? We all know that the longer you hold onto a property the more it will cost you in holding costs. Insurance, HOA dues, utilities and if you used hard money can add up quickly cutting into your bottom line.

If you ask most investors and realtors they will tell you that you start marketing the property once it is completely finished and staged, if you are going to lightly furnish the property for showings. We don't subscribe to that train of thought 100%. Let me tell you why.

A few years ago we renovated a condo in a high rise. From day one the neighbors were curious about what upgrades we were making. We also ran into several real estate agents that were showing other condos in the building. After introducing ourselves we were often asked by these realtors if they could see the property, sometimes even when they had a client with them that were there to see another unit.

Almost all of the realtors asked to be notified of when the property was completed, so we did. We actually notified them about 1 week before we were ready to go on the market. One of the realtors we had meet actually made an appointment to show the property the day it was ready. We hadn't even listed it with a realtor. He brought in a client and they put it under contract and closed within 2 weeks. We were extremely happy, being that the HOA alone on the property was $400 a month, and we only had the one realtor to pay!

We found an article that helps explain in more depth the Pros and Cons of marketing your property before it's completed on Connected Investors blog:

Realtors are normally decidedly for beginning active advertising and offering showings only after the property is 100% polished, cleaned, and even staged. Of course, this is in the agent’s favor as it theoretically makes it a lot easier to sell at top dollar. That means more profit and commission for real estate agents and the house flipper alike.

However, every day a property isn’t sold bleeds money and profit because of mounting holding costs. Some savvy rehabbers choose begin marketing the opportunity from day one of acquisition. Some may even market before that. The less you have to put in, and the less time it takes to resell, the lower the risk, and the higher the profit potential. In many cases this may also be the ideal scenario for the buyer. Some buyers would rather complete improvements to their own tastes. This kind of scenario is the exception rather than the rule, as most house flippers don’t want buyers on an active job site.

The downside of beginning to market too early is that some buyers just may not have the imagination to envision the end product and value and are scared away from an unfinished project. It depends on the buyer and how you are able to present the property. If you can afford it, test out these options.

Read The Full Article "How to Sell Fix and Flip Property"

Good advice. The one thing that you really need to take into consideration is how many contractors are on the job site that day, not only for staying out of their way, but for safety reasons as well.

Ready To List Your Property?

Okay, so everything seems to be done, or at least your GC tells you it's ready. Do you take their word for it? We don't. We always do a walk through and check every little thing. Just a few things wrong here and there can totally blow a sale to a potential buyer, thinking that if they see these little things wrong, how much more is wrong that they can't see.

Danny Johnson put up some great info on the Flipping Junkie blog about performing a punch list before listing:

It really comes down to the details. When I’m doing a rehab punch list I inspect everything from the texture on the walls, to if the paint has an even coat. Then, beyond the obvious cosmetic issues, I look at the elements that are going to be covered when the house gets inspected.

Important aspects of a house that are looked at during an inspection are:

Trees rubbing against the roof

The water heater raised 18 inches off the floor

Weather strips on the doors and windows

Hand railing on stair caseses (both inside and outside)

There are a lot of little things as far as safety goes that can be over looked. Especially when you have something like a deck at one of your properties, you always want to make sure there’s no structural damage. For instance, this house had that great big deck in the back yard, but it was a two story deck. Not only did we have to make sure the stairs on the deck were safe, with the appropriate hand railing, but we also needed to double check the safety of the railings and banisters were safe on the top section of the deck.

Always, always, always make sure your doors are sealed. That’s such an easy thing to fix, and just as easy to over look. You never want to miss the weather stripping on your doors. A good way to tell if a door needs a new seal is just to close it from the inside and see if there’s any light showing through from the outside. If there is, then you’re going to have to replace it.

The same goes for your windows. In fact, we had a house where we upgraded the windows to ones that open from side to side, but were installed opening up and down. Always make sure your new additions to the house are installed correctly!

Read The Full Article "Rehab Punch List – Getting Ready for Market"

You need to read the full article. He gives a lot of good info. Home inspectors can be a huge pain, and can "ding" you on the smallest stuff. Before you know it they have a huge list with little stuff that looks like a mountain to a potential buyer when in reality it's only a mole hill.

Summing It Up

It's really up to you and the project you are working on when you will start marketing the property. Just bear in mind that not all potential buyers will be able to invision the finished product. Then when the property is ready to be listed, be sure and do a thorough walk through paying attention to detail on every little thing.

As always, if you are looking for the best off market properties in Atlanta, sign up on our site.

Real Estate Investment

The Secret to Scaling Your Real Estate Portfolio (Without Doing It All Yourself)

The Three-Part Secret to Scaling: Your Team

1. A Team of Professionals

2. A Strategic Partner

3. An Experienced Advisor

4 Steps to Help You Start Building Your Team

Final Thoughts

MB 477: From House Hack to 350 Units: How to Achieve Financial Freedom in a Tenant Friendly State – With Andrew Freed

SHOW NOTES

Key Takeaways

Turning a W-2 Into a Real Estate Exit Plan

How to Go from One House Hack to Hundreds of Units

Raising Capital Without Feeling Salesy or Sleazy

Investing Where No One Else Wants To

Partnering the Right Way (So You Don’t Get Burned)

Connect with Michael

3 Reasons I Quit Flipping Houses (and What I Do Instead)

The Problem With Flipping (And Rentals)

Why I Turned to Multifamily

Why Multifamily Makes More Sense

The Shortcut I Wish I Had

Want to Learn More?

MB476: The Capital Raising Playbook: How Marcin Drozdz Raised $100M+ to Scale Multifamily with Other People’s Money in Tough Markets – With Marcin Drozdz

SHOW NOTES

Key Takeaways

How Marcin Built a $100M+ Capital Raising Machine

Why Multifamily Beats Other Real Estate Strategies

How to Raise Capital Without a Track Record

Avoiding the Biggest Mistakes New Investors Make

Marcin’s Advice for Scaling a Real Estate Portfolio

Connect with Marcin

Connect with Michael

Resources

How to Escape the Rat Race Without Managing a Massive Real Estate Portfolio

Your Real Estate Is Moving Too Slowly

How One Painful Apartment Deal Opened the Door to Monthly Passive Income

The Real Estate Strategy Most People Overlook

1. You can build credibility fast by leveraging the track record of your team.

2. You can learn to raise money in 30-60 days.

3 Clear Steps to Start Escaping the Rat Race Now

MB475: The One Strategy That Quietly Built Generational Wealth – With Ben Reinberg

SHOW NOTES

Connect with Michael

Resources

What I Learned About Multifamily Real Estate (After Flipping 36 Houses)

I Flipped 12 Houses a Year

The First Multifamily Deal

What I Learned About Multifamily

1. How Multifamily Generates Income

2. You Don’t Need to Do It Alone

3. Why Property Management Works Better at Scale

SHOW NOTES

Key Takeaways

Connect with Rob

Connect with Michael

Resources

“I Didn’t Raise Capital for 7 Years” – 5 Lessons From an Investor About Multifamily

5 Lessons Phil Moeller Learned on His Path to Multifamily

1. Start Small… But Don’t Stay Small

2. Understand the Power of Value-Add

3. You Need the Right Foundation to Raise Capital

4. Your Network Is a Growth Multiplier

5. Pace Yourself, But Push Forward

Unlocking the Power of Coaching

Buffini Continues New Virtual Live Coaching Series

New ‘Buffini Coaching Summit’ Series Coming Soon Across North America

Darryl Davis: Leading the Year of the Skilled Agent in 2025

Buffini & Company’s New CFSP Designation Attracts Over 6,500 Real Estate Professionals

Building Meaningful Relationships and Driving Success

Real Estate and Technology Industry Veterans Launch The Helm

Pushing to the Finish Line: Strategies for a Productive Fourth Quarter

188: Branding Your Flipping Business with Stace Caseria

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Listen

Watch

Show Notes

Links to materials discussed in this episode

187: Follow Along Week 8 Prospecting

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