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I’m invested in Huntsville. And I love that market and my family and I traveled back there in September. And just because we know the power of boots on the ground and like, like we need to drive it. We need to see it. Our poor kids clocked so many car hours and audio books and everything, but all at the same week, we were going into tertiary markets, right.
This one market. I’m like, I just want to check this one and I’m not going to say it because I think it’s going to be a hot market. And I like have my little. As an operator. I know other investors are romanticized and multifamily investing, and I’m looking to learn from other investors mistakes. I know you are too.
You found the right place. Welcome to Myers methods presents multi-family missteps.
Hey everybody. And welcome to Myers Methods presents multifamily missteps. I’m your host Jerome. And I’ve got the pleasure of having my friend with me today. Julie, how are you? Oh, Jerome. I’ve been looking forward to this. Like I dunno since we scheduled it since he reached out to me. Thank you so much. Glad you are coming to hang out with me today in this multi-family kickstart stagnant.
And I feel like you’re just going to back me in a corner and beat me up with a bunch of questions, but I’m ready for it. So let’s well, first off, tell us a little bit about you you’ve been floating around for a while. Let’s take advantage of the opportunity.
I asked myself that question for quite some time. You’ve helped me figure out who I am, you know, through our little threads over on LinkedIn. So, um, I’m sure anyone listening to this is already over on LinkedIn following you, but if they’re not, you need to, so just make sure you’re doing that, but yeah, I’m Julie, Holly.
I finally figured out that I’m kind of like the everything girl. So I love real estate and I love serving people and. I have a background in education. And so after taking my robotics team to the world championship and kind of in a sense syndicated that I’m free. That really just like, just gave me this confidence, like I can do this.
I can totally do this and change lives and empower people. Um, and everybody can win. And so, yeah, that’s like everything about what I do is all is about like everybody winning and people serving each other really well. Yes. Yes. You gotta serve the people. And I think that is probably the thing that probably for me stands out the most is like just your heart for loving on and encouraging people on the way.
And I, I often asked myself, kiss, you really do this for everybody because it’s so intense. And so. For me, it would be so draining, but I know, you know what, here’s the thing I actually want to do mindset. So I’m also a podcast or, um, and I focus on multi-family and my mindset at ask me how I know. And if I were out at my studio, we’d have a virtual background, but my north Idaho internet gave me the boot.
Now I’m up in this little office of my husband’s and, but all this to say, I am going to do an episode on favorites. I think there’s room for everybody to have favorites, but I I’m just giving a teaser and letting you know that, like everybody has something so special about them. That is makes it easy to just like, be a magnet and drawn to them and just say like, oh my gosh, look, that’s your gift.
That’s your shininess. Like, it’s so cool. You have lots of shininess though.
That’s funny. All right. So it’s time for you to ask questions. I’m not, but we’re going to do it. Why didn’t you to come hang out? Yes. So ready? Okay. So I love this because you are really grounded. I think out of, um, the investor community. I think you’re one of the most grounded people that I know and.
You’re just not going to cave into a deal just to do a deal. So here’s the thing is that I just noticed that there’s, I’ve had to wrestle with my ego and say like, well, it’s great that you’re passively invested in that you are making this transition. But it really stinks to get rejected, to, you know, not have your LOI pan out and to have deals not come together.
And it can become very tempting because ego plays a role in life. It can be tempting to kind of start to like, well, maybe, maybe I don’t need the returns to be X, Y, or Z, or maybe we don’t need to blah, blah, blah. Now I’m a pretty reserved person. So, but I’m just thinking like, how do you. How do you stand your ground?
How do you stand your ground in stay a hundred percent zeroed in because you were committed? Like you have a goal on how you invest in, like you’re zeroed in, like, how do you keep that resolve? Yeah. I think for me, it’s probably the engineer, right? So every deal is a math problem and that is the kind of the end of it.
We let the emotions and all this stuff happen, but if the math problem isn’t solvable, Then none of the other stuff really matters. And so the other piece of it is I know that I’m not perfect in my operations, although I focus on numbers and I think we run our operating expenses really tight. Like we can run most buildings for less than 200 and twenty-five dollars a month.
But if. I buy a deal and there’s no cushion because, you know, I don’t need the double digit returns. I can do it on eight and then something happens. I could be at negative three, right. Or I could be at negative 30 and everybody who participated in a deal who trusted my model, who believed that I was the person that could asset manage the property to get them to double or triple their money over the course.
Five to seven years is going to be looking at me asking what happened. And I can say, oh, well, you know, I made this assumption and it wasn’t right. Or the market changed or, you know, inflation happened and cap rates went up. Like, you can come up with all this stuff, but nobody actually cares why they’re just asking so that they can figure out a way to get okay with what happened.
So the best way that I think that you can fix that is to make sure that it doesn’t happen. And that’s why buying a deal that you can make money. And so we live in this, what I consider pretty hyper, um, it’s not hypersensitive, but people are celebrating, buying a deal. As if the same as if it was like buying crypto.
Right? So if I post on LinkedIn that I bought $2,000 worth for XRP two weeks ago, nobody’s going to say, congratulations. I didn’t make any money. Right. But when I exit, or when I send distribution checks, I made money. And that’s the whole game with this investing stuff. First it’s not to lose money, which is why I don’t go into deals where it’s too tight, hoping that something happens.
The second is to make money and, you know, buying something hoping that the cap rate gets tighter is speculate. No, if ands or buts about it, you have to be able to figure out how to grow the net operating income. And this is the kind of the whole cohort facts of this business. You either increase the income decrease expenses.
One of those probably neither. One of those is actually something that, you know, you can do, you think you can do it, but you don’t know if the market’s going to bear the $50. Unless you’ve done enough research to say, Hey, this isn’t at market rent. Market rent is actually this. Then I had a weekly call with my property manager today and they rented something that we bought a couple of years ago.
It’ll be three years ago in July, where it was written in at four 15. We just rented that unit for six 50. Seriously. That was a number in my head. I was like, play the prices, right? Julie, come on, you can get it, but it doesn’t have six 50 on it anywhere. Right. I said, I could raise rents a hundred bucks.
Right. And then, you know, the 5% increase on $500 was going to be. Because I do 5%, cause I’m always chasing the market. I know everybody’s like, oh, that’s way too much. But if you’re chasing a market, you can do 5% pretty easy. So, you know, that would be 500, 5 25, 5 57 or 5 75, something like that. But six 50 was like your five, right?
And so we’re doing it before year three, but you can not assume that that’s going to happen. And that’s what people. And so what I can tell you, because I pride myself on being able to model right, is I can make the spreadsheet, say whatever I wanted to say. And it’s up to the people who are reviewing that to determine whether or not they agree with my assumptions, but, and this is the biggest, but most people aren’t actually sophisticated investors.
When it comes to multifamily investing, they can’t look at a model and tell if it was pencil. Right. They know, Hey, expenses should be 40% of the income and repairs and maintenance should be 10%. And the cap rate is whatever it is and that’s where it stops, but I can go in and do all kinds of things. And you have no idea.
All you see is cash on cash return in IRR. And you’re like, oh yeah, this is a great deal. And so. I could rant because this is one of my pet peeves, because yeah, people are putting money into deals. They’re not going to make any money. They don’t know that they’re not going to make any money. And then when they get to the end of the road, they’re going to bad mouth, the person who put the deal together.
But if you’re a passive and you put money in the deal and you didn’t look at the actual model and the assumptions that fed the model, you’re just as, at fault as the person who did the all. Right. That’s why they want you to be sophisticated when you invest. And most people have listened to a few podcasts and they feel like they’re able to run a very, very complicated.
And I, for me, it’s, it’s really frustrated and I see. And so, you know, that’s why we started the live course and that’s why we have the recorded course so that people can actually have a full framework to compare again. Because again, I can make a model, say whatever I wanted to say. And if you don’t know enough to question the numbers, all you see is the return and you smiling because, Hey, this is so much better than the stock market.
And it’s safer because it’s a real asset and I get tax benefits, but oh, by the way, if you’re not a real estate professional, you probably don’t get those tax benefits. And so people don’t tell the whole story. It’s frustrating for me, because I want people to actually be educated before they placed their 25 to $250,000 allocation.
Because for some people that I know that is their nest egg, and they’re trying to go through that next phase, but they’re doing it without the proper education. And so. In some ways shapes and forms, they actually ended up getting in and taking advantage of. And that’s the part that breaks my heart.
That’s, that’s a huge part right there. I, this is, so I’m just gonna throw this out there. I’m kind of learning this through, um, this, this concept firsthand through an alternative investment that I jumped in on and it was like, If you don’t know what you’re investing in, if you don’t know the behind the scenes and how it’s, how the operator is doing and this and that.
And the other thing, you end up with a lot of work on your hands, and it seems all great and people can present it. And who is it? I seen this floating around, out there and it says like, yeah, I’ve never met a pro forma. I didn’t look. Right. Like all the pro formas, I like, you know, appealing and it’s like, oh yeah, that’s great.
Or, you know, and, and the GP team can present an, a deal. That’s like, they’ve pulled all the different levers as you and I have been on the spreadsheets and it’s like, oh, well, what if we do this? What if we do that? What’s the relationship. How’s it? You don’t know what they’re, if you don’t know what they’re doing.
Dang. So I like this is really firsthand personal. I think this is also good. Like I kind of dabble into different things cause it keeps a lot of the feelings fresh of like, oh, I don’t want my passive investors to feel like that. Well, and, but you shouldn’t feel like that too. Right? So it’s on me though. I totally own that, but I have not completely on you though.
And this is the part where I get most frustrated about the space, right? The person who has the best marketing wins period. It doesn’t matter how good of operator you are. It doesn’t matter how good your deal is. If you aren’t a great marketer, people are going to pass on your deal. And that part is probably going to hit some people in the face, because if you’re side hustling to try to get into multi-family.
It’s hard for you to rationalize a thousand dollars for a pitch deck so that somebody can make the thing. And I will also go a step further and say, if you’re buying workforce housing and you put it on all these fancy buildings from a city into your document, and then you put a picture of your workforce housing in there, you’re going to end up in a place where it’s a mess, because they’re like, I, I want this thing.
I don’t want. You’re worried for his house. I want pride of ownership. I want the big shiny thing. Right? So putting that all together, showing who you truly are, because I mean, at the end of the day, the person’s betting on you, right? The investment is the horse, you’re the jockey, right. And it’s not just you as the property manager too, but between those two things, like you got the opportunity to actually make the business work.
Right. I’m not talking about the apartment, I’m talking about the actual business, right? How can you market it? How can you drive the revenue? How can you manage all the expenses that don’t need to be made and are your capital placements for, you know, and renovations and things to improve the longevity?
Are they well-placed and do you actually know about them going into the deal or are you just guessing, you know, if you don’t have any construction background. You’re totally relying on somebody else to tell you what the number’s going to be. Their only risk in telling you with the numbers going to be is being fired after the budget runs out, that is their own risk because nobody’s doing lump sum.
Everybody’s saying here’s the thing. And you know, we’ll kind of work our way through it, but once your budget runs out, they’re done. They’re going to go to the next thing and you can. So I’m pretty frustrated people on your hands because well, you can’t finish executing a business plan. So again, like you’ve got to make sure you’ve got the right skill sets and requisite knowledge.
Yeah. Most people wouldn’t go start a plumbing company without going to some form of trade school, but you’re going to own and operate a real estate business that is worth a few hundred thousand or a few million dollars after listening to podcasts or reading a book. In a lot of ways, it feels disrespectful.
It is, and it was just like you’re saying there’s such an art form to everything and we take it for granted. Eventually I just had that post, I put up on LinkedIn about like just the type of success that people can have. And so many people they want that, you know, um, It’s that Pius success is what I call it a little bit.
Self-righteous like, you know, they just want to like, well, I don’t want the dirty money from winning the lottery. I don’t want it, like in like, like I didn’t do anything to earn it because I’m a good person. So like, I just want to like work my butt off for six months and then like sky’s part and I get a pot of gold and it’s like, it doesn’t work that way.
People, it doesn’t work that way. You have to have the discipline and the like take the time. It, it can be frustrating, honestly, when you see some people seem on this surface level and I remind myself of this, like on the surface, it seems like they’re like scooting along really fast. And I’m like, they just jumped in this.
Like they don’t have anything. And I feel like I’m going like slow as a snail. And I’m like, I’ll just have, I want sustained success for forever. I want like. Solid success and, and listening to people like you and following you and like just tuck in all the pearls away. Well, and have you ever seen somebody speed pass you on a rainy day on the highway?
Two seconds? Oh yeah. That’s what it is. Right. And so being cautious, taking your time, making sure you have the appropriate knowledge for the thing that you’re doing keeps you from running off the road. Like there’s people who are going to run off the road and their career is going to be over because they were going fast and, and actually understand the landscape, understand the road, understand the way that their vehicle was going to operate within the road.
And it’s sad, but then there’s going to be people on the backside. No, what they’re doing, they’re going to pick up those properties. They’re going to buy them at the right price. They’re going to make money. And that person who had the people in the car and they were having fun and the music was loud and the windows were down and they were going faster than they should be going, are going to be there watching all bumps and bruises and saying this thing doesn’t work.
And I can’t believe that people are still putting their money in it. And they should be over here doing this thing at the end of the day. If you don’t have the knowledge and you’re dealing with, but you have money and you’re dealing with somebody who has the knowledge that person’s going to walk away with the knowledge and your money, and I’ve watched it happen over and over again.
And as the reason why I started this podcast, right? Because when you don’t know, and we’re not even competing, like there’s this very, very short window where people are competing on a date. And outside of that, there’s no reason to compete with anybody because the better they do the better you do and vice versa, especially if you’re in the same town, right.
If I’ve got a one bedroom, one bath unit that I’m renting for $415, and you’re renting yours for six 50. I want you to do more of that so I can use your cup for mine. If you’re running your building for $250 a unit, and I’m running mine for 400, I’m going to want to know what you’re doing so I can get down to that number and that’s going to balloon my NOI and then that’s going to balloon the value of the property.
I’m going to sell it. And we’re all going to smile, right? Because we made money and I’m not competing again. It’s just no competition, except for that very, very small window when something’s going to trade. And honestly, if it’s in competition, if there’s a bump of a bunch of people betting on it, I’m not going to win anyway.
Right. I want to be the only game in town when I’m trying to do a deal. I don’t buy from brokers unless they brought it to me and they haven’t shared it with others. And even if they have, I want to be the first to look at it, build my fence, see if I want it. And if I want it, then we buy it. But if not then off to the world.
And so, you know, I like to pick what people and hopefully some people will listen to this that want to buy in Greensboro. If you’re seeing the deal, I already looked at it.
That seems a little bit for some people, but I mean, I buy one market, right. There’s people who buy all over the country and I, I don’t, I want to be the guy in Greensboro. Right. And that allows me to quickly determine whether or not it’s the deal I want to buy. Somebody called me today. Hey, I’m looking at this.
Is this a comp to that? Whether the location is far superior, you’re going to be able to get an extra, a hundred dollars in rents there, blah, blah. I, I D he called that person to right. He’s right to the owner. I didn’t do the work to call that owner. It’s a smaller property, not one that went out to the portfolio, considering the other development stuff that we have going on this year.
So, you know, everybody’s got their space, but again, he and I aren’t competing. In fact, I want him to buy the deal because I think he’s going to take the property, make it better, improve the lives of the people there. And those are the type of operators I wanted in the community because there’s a bunch of people who just want to take money, right.
And not actually make any investment, but when there’s people who are doing the right things, and I think it makes a ton of sense to have them come through the community because it, again, elevates right. A lot of people want to be profitable, multifamily operators, but lack the knowledge deal, flow experience, and capital to be successful.
They often try to overcome these challenges out of order slowing or eliminating their ability to get their next deal done. We’ve developed a framework that allows them to gain the knowledge they need to find profits. When they do, they create the time and location as well as the generational wealth, they desire for the Myers methods of multifamily investment have proved to be the fastest way to Savage, credibility and properly grow in an apartment portfolio.
If you want to know more about our four step process, jump over to Midas methods.com to get our three, four steps to getting into multi family. It hurts my heart. When I, when I think of anyone not, um, operating an asset, well, it’s like, these are people’s lives. This is where people live. This is like, this affects the community and it, you see, you have, um, a lot.
So I want to ask you about that. Like you have, um, the way you invest in properties really does improve lives. From what I’ve seen. Can you give like, I don’t know, like the golden key, I, you know, like how would somebody what’s the most effective way because some people will go against that and say, well, you know what?
That it just can’t pencil out. It’s not going to work. You know, you won’t ever get your profits when you’re doing good work at the same time. I know it’s not true, but there’s nothing further from the truth there. The issue is you, it won’t pencil out. If you pay a price that doesn’t make sense. Right. The owner who has the property more often than not has deferred maintenance.
They didn’t do the deferred maintenance because the property isn’t functioning well, usually because they’re not charging enough in rent. Right? And so, because they’re not charging enough in rent, their net operating income is very, very slim that net operating income forces the value. So when people are buying things independent of the actual financials, they’re putting their selves in a position where they can actually make the improvements they need to.
So you have to buy off actuals. If you want to do the work necessary to fix the property in a way where it’s going to actually elevate the community and the owner of the property, shouldn’t be rewarded for work. They didn’t do. They didn’t create the net operating income, so they don’t get the multiple on that revenue.
And that’s just the way that we buy. Right. We buy based on what you actually did. I don’t know anywhere else. Where I’m going to get paid for something I didn’t do. I would love that right back to the dirty money. And that’s why I want the dirty money. Right. Give me the, just give it to me, but it doesn’t actually work out that way.
So I’m going to reward you for what you did. And when I buy it, that number there’s enough cushion built in for me to make the capital improvements then because I made those capital improvements. I’m able to grow. I mean, for instance, the property that we’ve the first property we bought, it was rented at 6 95.
We rent that property 1195 the day, right. We put in a ton of money in that property. We bought it for 1.3, we’re going to mark it and it’s going to be around $4 million for a tray price, but we put money into the property. And then in addition to that, we had the rents follow the investment that we made.
So absolutely can do that. It’s just, you’re paying too much for your property, right? Your cost basis is too high, so it’s not going to pencil. And if you’re getting all of your leads from brokers, well, their responsibility is to the owner. They’re not to you as the person who’s going to come in and actually do the work.
And so I guess kind of the final point on that for me is I don’t want to be the person who pays a five cap for a property. That’s a construction price. That doesn’t make sense to me. I, I, it, the mathematics doesn’t work and then hold that on the back end. The cap rates stay where they are. They’re not interest rates are going to go up.
So there’s no gap between the interest rates in the cap rate. And when that happens, you’ll have negative leverage and nothing works at that point. And oh, by the way, you may say, oh, well, I’m in the deal. But when you get ready to exit, you’re going to have the same issue. Because people aren’t going to be able to justify the cap rate.
And so, you know, we’re playing these games where I call it speculation, we’re rolling the dice and hoping that this or that works, but none of us actually have that crystal ball. And so what’s actually reasonable. What’s customary for that market. And can you live with those returns? Because if you can’t.
And back to right. Being able to make the model and say whatever I want to say, I can change that cap rate from 6.5 to six to get that little extra bump and then tell you, oh yeah, I mean, come on. Of course, don’t you see the market, if you ask me, but you probably don’t even know to ask me and you don’t know the questions that you don’t even know, you’re not sophisticated.
And this is why the education piece is so important. Why I’m kind of, well, no, I’m really frustrated with the space because no, I don’t, I’m not telling anybody to go spend $30,000. Right. I, I don’t know that when you’re getting into the space that you need to go drop to $30,000 on education, I just, I don’t think that’s true because your first deal, you’re not going to get an acquisition fee.
That’s anywhere close to that. Because if you look at what everybody does has done, that’s the educator, they’ve done a smaller deal on the front. They’ve done something usually less than 50, right? Most of them are less than 20 if you really listen to their story. And so that acquisition fee is three, $5,000.
Okay. Pay that right. And then build from there, but actually have some track record so that you can go buy the bigger deals. And for everybody that’s not sexy though, right back to your, your pious success. Right. Right. The pious success is I need the big one. I need that 250 to $300,000 acquisition fee.
And nobody actually peels back the layers. So you can see how the pie gets carved up because more often than not, people don’t have the net worth, they don’t have the liquidity to do the thing. And so those people who come in, they’re going to sit at the table and they’re going to have a feast. Right? You did all the work.
You found the deal, you put everything together, but you still have those missing pieces. And there’s a tax to bring those to the deal. So, yeah, man, I, I could go on a rant and I didn’t go on the rant I wanted to, but yeah, this is, this is me. It is major. It is super major. It’s interesting. Cause I’m just, um, I’m not an many driven purpose person.
I’m like very much purpose driven. And so like if I could see a purpose behind it is that like money is just one thing. It’s like one resource, it’s a tool. Exactly. It accomplishes things. Talent and time and energy I’ll accomplish things. So I’m like used well leveraged. Well, everything can accomplish so much.
So when people are looking at a price tag of like, gosh, you know, maybe I should take drums, you know, go through his classes and stuff. It’s like, you can’t look at a dollar sign and say, oh, well, I don’t want to pay X amount of dollars. Wait a second. I’m trading my it’s a trade I’m using that tool money to get this so that I can be successful with my time and energy as I pursue these other investments and strategically it’s like, yeah, I think of it more as insurance than anything else right there.
I can’t guarantee that anybody’s going to do a deal, but I can let a person know the things that they shouldn’t. To make sure that they don’t lose 10 times that. Right. And that’s what I see more often than not as, oh yeah. We’ll go to buy this deal. Okay. Did you do this, this and this? I talked to somebody earlier today and they did not verify the income.
Right? So the person sent them a certified rent roll. I have no idea what that means. Right. But they sent them a certified rent roll. Right. They didn’t even verify that the money was collected. And so they got a big old surprise when they close on the property and I mean, tens of thousands of dollars.
Right. So what do you do with that? Well, you don’t do anything with it because you didn’t have somebody tell you about it before to warn you. And then when you went through it, nobody looked over your shoulder and said, Hey, stop. Here’s a real opportunity for you to lose money or be surprised you might want to let Julia, we have driver’s ed, right?
Driver’s ed. It’s the thing, right? We don’t just give kids keys to cars and let them go. Somebody sits in the seat and helps them go do their thing. It’s a very, it can be a weapon if you’re not careful. Right. So what could be a weapon of destruction to your wealth creation? What’s the bigger one. A bad investment, right?
A bad investment or a partnership that goes sideways. You do those two things, everything that you built could be wiped away in a matter of months. And people are like, oh yeah, don’t worry about that. I’m not worried about the risk. Okay. Until it happens. And then they’re like, well, shoot, we should ask some questions.
We should’ve known better. Okay. Yeah, go ahead on a totally different topic that is money driven. I’m trying to go like be a little bit outside myself. Right. And that is, um, I love that you’re driving rents so powerfully and that you’re bullish to say like, no, I know my market. I know what I can do. I know I can do 5%.
So like, how did you get to that point? How did you position yourself looking at tons of deals, understanding the areas that are growing, looking at what’s happening in, around the property. Right? So, and having enough in the market and enough different places in a market that we know, kind of those sub markets within the city, You know, that part for us is like really assignment.
Like we bought one where rents were 500 or renting them for 700. Like we know what they need. They need gray floors. They need gray walls. They need new lights. They need vanities in the bathroom. They need countertops. Maybe they need white cabinets. If they don’t, if they’re brown, we paint them white. Like they, we know what type of appliances they need and we know what we have to do in the bathroom.
We know what that color. And I mean, you do the same thing over and over again, that part, the system, it says systemization of, it makes it really easy once you actually have a footprint, but standing all that up and deciding, Hey, here’s where I buy. And again, a lot of it’s because I buy one place. Right. I mean, to see the power of that, quite frankly.
And it just happens to be one of the market hottest markets, right? When you look at rent growth and you look at the laggers and I wish I was smart enough to say, I knew all that when I started, but I didn’t. Right. And things started to happen and Ms started to grow. And so, and we just happened to be here.
So, but you really, you really want to know your market, right? You can’t fix that piece. You, if. Some, this is my favorite thing. When somebody from California tells me about my market, this is my favorite part. Right. Because they have no idea. Right. Because all of the data that’s on the internet is stale.
Right. It happened whenever. It’s not like they’re running this monthly or daily or any of that, it’s old. And so, yeah. Having somebody in the market that really knows the market. If you’re going to invest in more than one market is the key, but they need to be an expert. You absolutely need to be in there.
That’s interesting. Um, I’m invested in, in Huntsville and I love that market and my family and I traveled back there in September. And just because we know the power of boots on the ground and like, like we need to drive it. We need to see it. Our poor kids clocked so many cars, ours and audio books and everything.
But all at the same time, we, we were going into tertiary markets and this one market I’m like, I just want to check this one and I’m not going to say it because I think it’s going to be a hot market. And I like have my little. Like on it or watching it, you know, anyhow, it looks like a nothing type place and all this stats on it.
Like just make it look like trash. And we drove around. We’ve lived in different parts. We’ve driven around and we’ve been in real estate and residential for, for years. So it’s like, you kind of have a way of like, just understanding, you know, a neighborhood and such. This is like the cutest little town. If you look at the stats on it, it would look like, you know, you’re going to get mugged around the corner or something.
It’s like, no, that’s not, this is, this is going to be great. This is going to work.
There is diversity of income, right? When you go to the smaller towns, because usually there’s one or two employees that control everything. And if they decide to pack up bags, like you’re seeing Tusla some of the other big companies do, you can be in real trouble and make sure that you understand crime and that you don’t buy any play area because crime is really hard to erratic.
You can’t, you can’t get around that. And so if you, from a location standpoint, if you can stay out of the crime areas, a main and main property, and one of those markets is always going to perform, right. And this is my belief, Julia, like I don’t care. Any of the thought leaders say, you can make money in every real estate market.
In fact, there’s somebody making money in every real estate market. You just have to know it well enough to know what to buy and what not to buy. And if you have those two things, right. And you know what the formula is, You can make money. It’s not, I, okay. Here’s the top 10 list I got to buy on the top 10.
That’s not real. You just have to know the market well enough in order to know what to buy within that market. Because again, people make money every single day in every way. Yeah, there’s, there’s something available. This is one thing that I thoroughly appreciate about you is that you, you don’t let any thought leaders kind of tell you what to think.
You really, you think for yourself. I mean that red pill kind of helps, but well, I mean, for them, right? Like I I’m, it’s, it’s really insane because I didn’t go through anybody’s course. I did it the wrong way. I did it. The heart rate, it was the most inefficient ineffective way. But by doing it that way, I learned how everybody was thinking about it.
Now did that stuff work for me? It didn’t because I didn’t understand kind of their full framework, but what it did do was give me perspective. Right. And that’s why nobody that is a thought leader actually talks about their start. Like they fast forward to their syndication builds right. All up. Talk about the first deal.
Absolutely. And they’ve always been there. Right. And I’m, I’m okay with that, but I want less sizzle, more steak. And I want people to be, because when you’re starting out, there is so much to figure out. I don’t want people to feel like they have to go there because the number of people who actually get there is so slow.
Right. It’s like going to the MBA literally. Right? You think about all the people who start out on this journey and they lose money. They quit because they can’t find a deal. Their spouse says they want to do something else, et cetera, et cetera. There’s all the reasons why not. And so the few people who actually get the deal done and get to the payday and get this, send the acquisition fee and then have the successful exit.
And they look like a genius and really the market. Just was doing really well. And there was cap rate compression, and you could have done anything in order to make money. You don’t actually know how to operate.
And, you know, at the end of the day, who am I to say, Hey, you know, I don’t know anything. Right. But what I do know is that most people aren’t actually running a business. They’re rolling the dice, they’re gambling, and they’re hoping that the market saves them. And I don’t want anybody, especially like if you’re first-generation wealth creator.
So get put in a situation where you are misled to believe that. One is commonplace to just put your money in. There’s no way it can go down three. You don’t actually have to understand what you’re doing in order to be successful. And, you know, I made it joke about crypto. Like I put my money in crypto and it went down.
Right. I have no idea. And then it went back up and I was like, wait, what happened? I have no understanding ending of how it actually works. My money shouldn’t be there. Right. But somebody told me, Hey, you need to do this because it’s going to create this crazy well for you. And that’s what’s happening. And multifamily is that it is actually a business where you can understand if you want.
How it works and actually make real money. So that’s my rant. I love it. It reminds me of, you know, 2000 5, 6, 7 in real estate when it was. You know, people could buy a home where they could fog a mirror, but I was in residential sales at that time. And it was like, you could just like, you saw so many sales agents out there and not everybody doing the right thing.
And it was so easy. And I’ve actually, in my mind, I look at the multifamily space in that way right now it’s like, well, multifamily, sexy. Like it’s the cool thing to do. And it seems easy because things have been so easy. So. I’m just watching this and drawing some parallels going. Hmm. This is going to be interesting.
It’s it’s extremely interesting. And I think interesting probably too kind of a word. I I’m worried that there’s going to be a bunch of wealth transfer for people who did not actually transfer from people who are new to wealth creation to people who already have. Because of people who didn’t, who were new, didn’t have the knowledge they needed in order to keep them well.
And that is absolutely terrifying. Yeah. I’m with you. And the other, the other one, the other repercussions that concerns me is how people have been view investing in real estate, apartment syndications. Oh, I can’t do that. Now. They told us that that was safe. You know, it wasn’t the same as single family homes, but now there’s a ripple effect.
There is. And, um, the people who actually live in the apartments are the ones that are probably going to be most adversely impact. Right because it’s their home and have an absentee owners from a standpoint of not being responsible approved, and it’s going to put them in a bad spot. So yeah, this was phenomenal as I thought it would be.
I’ve got to run. I could do this for a couple of hours. Um, well, so I have to have you, I, this is going to be so much fun. I’m going to have you come back. Is that okay? I’d love to, you know, I just, I love spinning space. I love conversing with you. And I just think the world of you like your funnel. For sure, man, for sure.
All right. So to the listeners and tell the next time the pack is with you, give us a five-star rating, give us a review and share this with somebody who’s interested in until the next time the package.