Disclaimer: Transcripts were generated automatically and may contain inaccuracies and errors.
Hi everybody. And thank you so much for coming to Myers methods presents making the leap, how taking the red pill allow me to exit the matrix. This presentation is how I was able to go step by step from being somebody who was working in corporate America and pretty fed up and dissatisfied with my life to a successful real estate entrepreneur.
So we’re going to dive into a number of different topics. First, we’re going to talk about the challenges of getting into multifamily we’ll peel back and explain the truth about the American dream. We’re going to discuss how we exited the matrix. I’m going to break down the red pill. Talk about scaling the portfolio.
Explain to you why I started speaking, offer you a 50% off multi-family investing course, and then dive into some Q and A. So let’s get started. We have a problem. There’s a lot of people who want, want to be profitable, multifamily investors, but they don’t have access to the knowledge deal, flow experience, or capital that they need in order to get their deal done, leads to a tremendous amount of frustration.
And that frustration often causes people to make decisions that hinder them from getting their deal done are significantly slows their progress. This is something that I’ve wanted to combat. And it’s something that I’ve experienced myself. A lot of people will say, just take action, just start doing whatever you can to move towards that goal.
And I think that people who do that are chasing their tail, they’re just running around in circles, trying to get things done. And in that they are totally thrown off base and then chasing their tail, they get frustrated. And often give up because they just don’t feel like they’re getting the attraction that they need in order to move.
And I’ll be honest with you. I didn’t know what I was doing. Was I successful at doing my first deal? The way that I wanted to do it, I would have went bankrupt. I made a ton of mistakes on underwriting. I underestimated things that needed to be done for the project. And just overall, I just didn’t have the experience to be successful on the project that I wanted to do and to add a skill to it.
Right. There were just so many things that I didn’t know that I didn’t know. Right. You feel smart. You feel like, you know what you need to know in order to be successful. But the reality was I was destined to fail in the model that I had. I just had such limited knowledge. I thought I knew more than actually did.
And I realized in hindsight that there was so much more that I didn’t know that I didn’t know, that would have tripped me up along the way and potentially put me in. It really, really tough spot. Well, before we dive into multi-family, let me tell you how I got there. I fell for the American dream. I got good grades.
I went to a great university. I got a good job. And by 26 I was making six figures and I was on that path to work another 40 years until I could retire and spend a few years trying to enjoy the wealth that I accumulated over my career. Did you fall into this too? Did they trick you? Did they get you with this?
If so, drop some ones in the chat guys. I mean, I, I don’t want to be the only person that feels this way, but I really just felt like they got over on me. Right. It was this fairy tale where you got the white picket fence and the house. And everything’s great with your two weeks off, but deep down inside, I started asking those contrarian questions I started to ask, is that right?
What else could I do? What else could I be? But boy, did it look good on Instagram? You know, I had a huge house. I was driving a GTR. My kids were super amazing. I was a high performing six figure earner. I was traveling internationally, no debt. And I was lending money privately in this image. I was at the grand canyon and I was getting ready to hop in the helicopter to take a trip down to the bottom.
You know, if you would’ve told me some of this stuff that I was able to do at this point in my life as a child, I would’ve told you that I couldn’t do those things, but my career was going well. And because of that, I had the ability to do some pretty amazing things. You know, I was young, wealthy, and. And I think that’s what a lot of people are striving for.
I felt them fixable. It was like, nothing could stop me. I just built a $20 million division for a fortune five 50. We had 30% profit margins. What happened? $6 million over 175 employees was phenomenal. And the icing on the cake, I had a brand new company truck. I was executing at a super high level. But just like in this image where Connor is showing it off, and Floyd is in the back with a straight face, that ego, that braggadocious, that, that pride was my downfall.
So on Christmas Eve, I got a phone call. My supervisor wanted to let me know that we needed to lay folks off. The year I spent building this huge division for this company was going to end. With us making $6 million in profit and laying off about half of the workforce that we’d hired over the course of the year.
It was extremely frustrating and disappointing for me. I didn’t want to be the ax man, but I was becoming the ax man, and it wasn’t on my own volition. Right. Somebody was dictating to me what had to happen. That was when I realized that I wasn’t actually in control of things. So from Christmas, To new years, I spent time picking the team that was going to continue.
I decided the lessons that I learned on the kickball field as a kid was what I needed to apply in this situation. If you can pick your own team that you pick your own team, right. Instead of having somebody else pick them for you, you want to be the person that picks you. And so that’s what I did, but I promised myself that I would never be in a situation where I had to do it again.
Then you fast forward to the day before Thanksgiving break of the next year. And I’m telling people, Hey, don’t spend too much on black Friday. We don’t know what’s going to happen after the holidays. So we really want you to be cautious and conscientious of your spending. And this was when I realized I was stuck in the matrix and something had to change.
Right. I was being told what was going to happen. I was just a character in somebody else’s story, and I wanted it to be the person that was controlling my destiny. And so, while I was going through this situation, I realized that I put a dream on the shelf when I was in college. See me and my buddy Darren were sitting on the stoop doing math because that’s what engineering students do in their free time.
I was paying 3 95. I had two roommates doing the same thing and he had the same situation going on downstairs. We multiply that out across the entire complex. The person who owned the complex was making 700 grand a year, $700,000 a year. And for me, that was the number that I couldn’t even count to. I was just so impressed by person making that type of revenue that we never seen.
We never talked to. And for the life of us, we couldn’t figure out how he was able to do something like that. And so we said, because we had that gap in knowledge and lack of network. Then we would just finish our degrees, start working, get some credit score, net worth and liquidity. And we come back to it at another point in time.
And this was the perfect opportunity for me to start to follow my passion and live that life that I dreamed of as a college student. So here I was presented with this magical money. I just want to take a moment and show you guys this clip from the matrix. It’s one of my favorite movies and it’s when the guide Morpheus presents Neo with two choices on how to proceed in his life.
I see you guys in a couple of minutes. Do you want to know what it is?
The matrix is everywhere. It is all around us, even now in this very room. You can see it. When you look out your window or when you turned on your television, you can feel it. When you go to work. When you go to church, when you pay your taxes, it is the world that has been pulled over your eyes to blind you from the truth.
That you are a slave Neo, like everyone else, you were born into bondage, born into a prison that you cannot smell or taste or touch a prison for your mind.
unfortunately, no one can be tow. What the matrix.
You have to see it for yourself.
This is your last chance after this. There is no turning. You take the blue pill, the story ends. You wake up in your bed and believe whatever you want to believe. You take the red pill. You stay in Wonderland and I show you how deep the rabbit
remember. All I’m offering is the truth. Nothing more.
So there you have it. I had to take the rep. Right. I wanted my truth. I wanted to live on that next level. See, I needed a new model. I had to be, be true to my morals and values. I wanted to stop chasing work-life balance. I no longer wanted to say the shareholders, so that could maximize profit often at the expense of seeing people’s humanity.
I needed more control. I wanted to pick the people I worked with. I wanted to live, like the guy that owned that complex in college. If you feel me, I need you guys to drop one in the chat, right? If you’re looking for a new model, if you want to get in alignment with your morals and values, if you tired of trying to figure out how to get work, life balance, drop that one in the chat.
I see. This is awesome, guys. I really appreciate your support for a minute there. I was wondering if I was the only person that felt this way. I wanted to take the chance out of it, right? I wanted to create change. And so over the years, we’ve developed a framework that allows you to gain the knowledge you need to find profitable deals.
Is it okay if I walked through my experience? Is it okay if I tell you the exact steps that I use to move from somebody who was thinking about this and this connected from what I felt like was my mission here on earth to get into the place where I get to walk in that light every day. I appreciate those yeses in the chat guys.
I really do because this was life changing for me. Extremely transformation. So here’s our model. It’s a model for the center life. Also known as the red pill. You have to take the red pill change starts from within, and then it radiates outward. This allows you to create your optimal. What does that mean?
There’s no more mass. You don’t have the internal conflicts. You stop doing the destructive behavior to make yourself feel better. There’s more prosperity, more joy, more peace. And at the pinnacle there’s more success. See the model for a center life works from the inside out, starting with yourself image, then moving to relationships, career health, prosperity and significance.
We’ll walk through each one of these steps and I’ll show you how it showed up in my life so that you can see how it can apply to yours. And so I took that pill. I took that leap of faith, and I’m going to show you what it felt like after I tuck it. Here’s another quick clip from the movie, the matrix
You have to let it all go to you. Fear, doubt, and disbelief free your mind.
I think everybody. Has those falls at some point, see, I traded their truck in from my home. A lot of people would say I went backwards cause I had a brand new 2015 F-150 with all the buttons and bells and whistles. And I went backwards and grabbed my own little Chevy. Right. But it was mine. And I believe ownership is the only way to build true wealth.
As you saw with the job that Neo made in the movie. That first time, it didn’t really feel like anything was working. It just seems so easy when the guy went across. But when I came behind, I fell and I fell hard. I didn’t want to admit that I was lost in the sauce. I was trying to accomplish something and I didn’t know how to do it.
I was scared to make a mistake and I wasn’t getting the traction that I wanted. If I’m completely honest with you guys, I was filled with doubt. And on the inside, I was miserable. I’m starting to see someone’s coming. Keep them coming in. Guys. The only me I’m here by myself. I’m being extremely vulnerable with you right now.
I had no fulfillment. I didn’t have any influence. I was unhappy. I was uninspired, but the worst part of it all is that it really feel like I had purpose. Right. Have you ever been there where you didn’t feel like he was actually making a difference? See, I was trying to start this endeavor. That I envisioned as a college student, but because I wasn’t getting the attraction that I wanted, I began to question whether or not I actually was working in my purpose.
And I can tell you that it was a super frustrating, I can smile and laugh about it now, but back then it was all consuming. There was rejection and self doubt everywhere. I went to 10 different banks and they all told me, no, they told me I didn’t have any experience. I looked at them frequently and said, what do you mean?
I don’t have any experience. I’ve got an MBA. I’m a professional engineer. I had a six Sigma master black belt. Like, what is it that you need for experience? And the question they always responded with was have you bought a deal of similar size and executed the business? And my answer to that question was always a resounding no, in addition to that, when they looked at my underwriting, they told me you’re too aggressive.
You can’t actually perform the business plan that you’ve laid out. And so what I realized is I didn’t actually have a deal. Right. I had a lead leads and deals have the same letters, but they aren’t the same thing. And so here I was walking around with the lead that I thought was a deal and embarrassing myself with the people who are looking to invest in my project.
So I began adopting limiting beliefs and started telling myself I can’t find a deal. I don’t know the right people. My friends don’t have money. And so how can I possibly be successful if I don’t have access to those? So I decided to start fixing and flipping, and I was working harder than I did before.
I still remember getting them four o’clock in the morning to go over to one of my flip projects to work on the landscaping before it got too hot on a summer day. And just felt like it was ridiculous. I was mad. I was frustrated. I was tired, but I wanted to keep making progress towards something because I didn’t want to be a complete failure.
And on top of all of that, all my money and time was going the wrong way. I was committing more time to the projects. I was spending more money on the projects and they weren’t returning anything on that effort. At least not immediately. Have you ever been in the gym? It doesn’t set up some and start looking for abs.
I know I have, every time I do a crunch, I kind of pull up my shirt and peak down there and see if something’s changed. The reality was got, I hadn’t done the work necessary in order to be successful in this space yet. I realized that I needed to reprogram. So I started self-educating podcasts books, YouTube, my local.
The local REIA is kind of laughable because they never talked about multi-family investing. I was spending about 40 hours a week consuming different content related to multi-family investing. I wanted to learn as much as I could as quickly as I could, but this by far was my biggest mistake. Why was it my biggest mistake because I was listening to the person from the Northeast and the Midwest and the south and the far west, trying to get their perspective on what I should be doing and how it should be doing it.
The reality of the situation was everybody had a different approach. And by me, trying to apply all their approaches, I ended up confused. Overwhelmed overconfident frustrated. And I was making a massive time investment, but still had gaps in my knowledge. And in addition to that, there was diminishing returns every week I was listening to 40 hours.
I would hear things that I heard before. And so there was some reinforcement, but I wasn’t gaining any new knowledge or expertise that I needed to answer the question. That I had for the things that I was working on. And so what do you do? Why, why didn’t I have somebody to curate the content for me so that I could have gone further, faster?
We’ll talk about that in a little while. And then I thought it was happening. I was sitting on the stupid one of my fix and flip properties. And I had a fellow pull up in a white Dodge Ram and he said, Hey, let me check out your finishes. Let me check out what you guys have going on. We’ve got a property going on down the street, and I really want to make sure that we match the finishes.
I want to know what we’re getting ourselves into before we start our price. And he walks in. He says, oh, you took that wall out. That looks amazing. Look at that historic back door. That’s gorgeous. You guys really picked the nice granite. This house is going to be phenomenal. And of course I’m there beaming with pride.
And then this magical moment, he turns and looks at me and says, Hey, do you know anything about that property in Churchill behind the trombone mark? I was like, yeah, I do. Actually. I tried to buy that. By myself earlier this year, four or five months ago, it didn’t work out for me though. He said, well, I’m getting ready to make an offer on it.
I was like, man, you’re the guy been looking for? You said, I am. I said, yeah, you must have experience. You must have done a deal like this before the base must be excited to lend to you. He said, well, yeah, we have done the deal. I feel like, man, this is phenomenal. You, you you’re absolutely. The guy I’ve been looking for, please don’t leave me out of this deal.
You’re the experienced partner that I needed to get my deal done. And so now this one can be hours. He said, well, what are you going to bring to the deal? And I just kind of stared at it. What do you mean? What am I going to it? Doesn’t, we’ll figure it out. Like you just need to bring me in as a partner.
And he kind of smiles. I here. Okay. How much money are you going to bring? I said, I don’t know. We’ll figure it out. Just bring me into the deal. And so we shook hands and without a commitment, he walked out. You guys remember this? So, you know, I’ve been working on my knowledge. I, I had a lead that could be a deal if it was bought at the right price, but I was lacking the experience in the capital to get the deal done.
Right. And so my experience partner walked in. So I was getting that next thing taken care of. I was getting the experience box checked. At least I thought I was, he wouldn’t have made the offer without me. And I was crushed. Right. I thought that everything was working out for my good, I thought that he was just coming in to help me bridge that gap so that I can reach my goal of buying my first apartment building, but I couldn’t articulate what I could bring to the table.
And so why would he bring me to the deal if he had the top two pieces of the pyramid experience and capital. And he had a deal. He didn’t mean me to get the thing done. So I was blown. I was totally frustrated, but you never know when seeds will sprout. And so I’ve been working really hard. I’ve been working on myself.
I’ve been working on the projects that I could do without the experience. And what happened was the guys offered, it didn’t get accepted. And so he went and talked to him. Somebody that I’ve been lending money to back when I was in corporate America about the bill. And he said, oh yeah, Jerome brought that deal to me four or five months ago.
And we decided that we weren’t going to do it. But if you’re interested in doing the deal, I’m interested, but only if Jerome is a part of the deal. Right. And so I’m here to tell you if you’ve been planting those seeds and haven’t been able to get the traction that you wanted. If things seem not to be working out the way that you want them to work out, I want you to keep planting those seeds because you never know when they’re going to come up.
Guys a really, really, really want to emphasize that point. You can’t decide when your seeds are going to sprout. So plant them anyway. And so then it happened, we got the deal closed, rehabbing Ralph for Churchill townhomes. And this was the first sentence of the article, a rising player in Richmond’s real estate scene has teamed up with a group of local investors on its first multifamily project, a townhouse complex rehab and church.
And they got even better. You see, there was a full ride up. We use a big brokerage house for the purchase and they always do press around their deals. And so I was interviewed by the reporter because I was sitting in the seat as the asset manager and he quoted me a few times in an article. And the one thing that has now become our niche was buying properties that were dilapidated and growing areas and fixing them up.
Right. And so here he is quoting me. Glenwood has been kind of an eyesore it’s dilapidated. We’re looking to clean that up and that’s been our mantra ever since this first project of going into places and grabbing those properties that aren’t in great condition and bringing them up to the standards of the rest of the community.
And as soon as that thing hit the paper guests who started calling me that’s right. The bank. They wanted to know what else I had in the pipeline. They told me they would love to partner with me. They wanted to know when we could meet to discuss their products that would allow us to either refi or take down new deals when the time was right.
See the tables that turned my career now had tractors. I was making progress towards those goals that I put on the shelf. A number of years ago, over a decade, it was happening guys. It was really happening. And I was so excited. I couldn’t believe that the things that I’ve been working so hard for and trying to force in the past were coming together for me at this point.
Now I had a solid core C I’d worked on myself and yeah. I built some relationships to help take me to the next level my career was working and other people were finding out about it. And in that I was attracting people to me to do even more, but I knew it was time to build on it. And so I delve into level four of the red pill.
Health. And so I changed my morning routine. I started exercising, reading, journaling, listening to things that were going to improve me as a person. I was meditating and I was working on a foreign language and I was doing this aggressively. See the investment in yourself has the greatest return on investment.
And I don’t think many people value it as much as they absolutely should. Right. This is the gas on the fire. The more I invested in myself, the more attracted to me. See it was coming from the inside out. I was having those changes on the inside, radiate out into the universe and make a positive impact on those around me.
And that positive impact was attracting the right people to me. And then it started happening. You remember what my landlord was making in college? That’s 700 grand, well luck as we get to the, the right side of the chart, we’re making over $60,000. Well, that’s your calculator. Multiply that by 12. And tell me how much that is guys.
Yes, we done it. We did it and we keep doing it every time you see a step on this graph, it’s either New York. Coming out of rehab or as buying a new property and turning on more cashflow. And this is just the beginning. We’re only about 10% of the way to our goal. And so I just wanted to share this, not to brag to you, but to try to inspire you and let you know, regardless of what you’re going through, where you started and where you want to go.
It’s totally possible. I didn’t do anything special. I just kept going. And so I realized that we had a repeatable four step process. We were able to grow that collected rent by following our Meyer’s methods of multifamily investing, we will finding deals, funding them, fixing them and flipping them. And we just kept going through that process.
And over and over again, each time we went through, we added more. And we’ll continue to do that until we reach our goal of a thousand doors. And so what is Myers methods outside of this four-step process? Well, it’s a coined term by Dr. James Bryant. He’s a great friend, coach, mentor, and confidant, and we base it on three pillars.
Of investment. The first one is preservation of capital. The second asymmetrical returns final is community improvement. Preservation of capital is the most important thing that you can do as an investor. It doesn’t matter how much you can make, if you have the opportunity to lose it. Yeah. And this goes into our second point, which is the asymmetrical returns.
So we’re always looking for ways to mitigate the risk out of the deal so that we can preserve that capital for our partners. And community improvement is probably the most important one. And so maybe you could say, I saved the best for last James decided to stop paying off his home so that he could create more capital to invest in multi-family.
He wanted to have his investments make an impact. He wanted to see the community landscape change through direct investment of his dollars. And I. He’s got a focus and desire to positively impact the lives of 500 families over the course of five years. Through this impact investing, we’re doing good for ourselves by making profits, but we’re also doing well for the community by making those improvements in the end, the game.
To focus on creating thought time and location freedom. You’re here. Tim Ferriss only talk about time and location freedom and his book, the four hour workweek, but we also incorporate freedom where you free from worry, which allows you to be more creative and really invest and work on the things you’re most passionate about.
And so now we’re moving into the final phase where you start to look back and reach for others to help them along the way. See before may of 2019, I was a coast. You aren’t going to find any online photos, no real social media presence. And my website was all about the brand. I didn’t even have a picture of myself or my bio on the website.
And by being invisible, I realized I was part of a bigger problem. See, back when I worked in corporate America, we have one African-American executive in a company of 17,000 employees. And I used to tell Craig all the time, Hey, you’re a light for everybody out there who aspires to be in a position like yours, but just doesn’t see anybody that looks like them and is wondering if somebody that looks like them can be successful here in this space.
But I wasn’t doing that for anybody. I had the amazing career where I was built this huge business that was super profitable. I was making great strides and multifamily investing, but I wasn’t sharing my story with anybody so that potentially I could inspire them as well. And when I was thought back to all the podcasts, I was listening to YouTube videos I was watching.
I just never really saw anybody it’s like me. And I’ll never forget when I got a message on Instagram, after doing a few podcasts from a guy who said, When I heard you on Michael blanks podcast, I realized that I could do it too. The first time it happened, it was surreal. It was like, I show somebody that it can happen for them.
But now that it’s happened so frequently, I realized that I was being selfish by not sharing my story with other people. And so now guys, I’m back to offer you an opportunity. Just like Neo was offered towards the beginning of this presentation. See, I’ve already made the mistakes and I’m willing to share my mistakes to you.
So you don’t have to. I’m giving you the opportunity to choose between the red and the blue pill. I’m giving you the opportunity to find the truth to live the life of your dreams, because I know that I can guide you to that new place that you desire. I took the red pill. The question is, will you, will you commit to doing the work on yourself, image, auditing your relationships, improving your influence so that you can grow your career, do the work on your health so you can begin attracting those people that you need in order to move to that next.
And will you attract those people to you begin to grow your prosperity and then move to the top layer, which is significance the place that I’m working in today. So again, I asked you, will you take the red pill?
See, I came back to guide you guys. We’ve put together an 11 week virtual course. In that course, you get a new module each week. It’s a drip campaign. So you get one, we give you homework to tie all the lessons together, and then you get a new one the next week so that you’re not drinking water through a fire hose.
You’ll get access to me and our weekly group call. And we’ll also give you six free months to a close Facebook group. Now I don’t just want her to come from me about how great this course is. So some of the folks who came through the course that has success were willing to give us a feedback on what it meant for them.
Oh, it worked. And so the first one is the Myer’s methods courses, high quality education, no content born from the real-world experience of a seasoned operator, no fluff, no pitches, just an actionable approach to becoming and multi-family greater or investor. This guy just closed a 50 unit deal. No longer am I just a spectator?
The self-development real life. Examples in depth, education and mentorship received through this course has truly increased my confidence as an investor. This course is not an easy way. Get ready to get real with yourself. Get real with your goals and get to work. And this is from somebody I went to college with.
We lived on the same hall, our freshman year, who she works in commercial real estate, but is learning about multifamily investing so that she can build her own portfolio of commercial, the real estate. And then this one is the one that is probably my favorite because she fought with me through the whole course.
But in the end, she was one of the top student. This class is truly in depth, like no fluff at all. It’s valuable learning even when Jerome tries to stay at a high level, it peels back the layers. So you can truly understand the intricacies. If you want to get into multi-family and become an expert. This is a really, really good product.
I really enjoyed it. And the time commitment is a necessary part of the process. Vaya did an amazing job in the course. And I’m looking forward to continuing to work with her over the course of the next few years. Here’s the reality of the situation. Guys, a lot of people want to be profitable multifamily operators, but they lack the knowledge deal, flow experience, and capital to be successful.
They often try to overcome these challenges. Slowing or eliminating their ability to get their next deal done. We have developed a framework that allows them to gain the knowledge they need to find profitable deals when they do. They create the time and location freedom, as well as the generational wealth, they desire for their family.
The Myers methods of multifamily investing have proved to be the fastest way to establish your credibility and profitably grow an apartment portfolio. I want you to take action. I want you to hop over to www.myersmethods.com for slash multifamily investors. And there you can grab your course. You got to take action.
Now, though, in the court, we go through orientation, gaining a firmer understanding of what you want, the foundational concepts in multi-family investing, finding your next step. Funny, your deal is broken down into four parts. Then we get into a fix it phase, wrap everything up with the flip-up phase, and then we do a module or hidden in the ground running so that you can make that sprint the first 90 days and maximize the value of the quarter.
So again, I really appreciate you coming out today to this webinar. And I know that you’re going to get tremendous value from the Myers methods and multifamily investing course. And I look forward to seeing you in our weekly sessions on Friday, and we’ll just dive into some Q and a to allow people to ask questions about the journey or the course, whichever is most interesting to them.
And Leslie, I can’t see the chat, so I need your help with that. If you don’t mind. Absolutely Jerome, man. Thank you so very much for this great presentation, uh, highlights there. I think you hit right there. The, the power of that self image of changing their self image that that helps you to take action and move forward.
So I also like to congratulate everyone. That is on this call tonight for taking that action and joining and taking time off instead of sitting and watching new cycles, you are here having this conversation. So, uh, I am very grateful for Jerome for the values. So I have two questions so far and it looks like, uh, uh, more keeps coming in.
So, um, number one question is, do you recommend becoming a limited partner? Uh, in other nuts, make mistakes, or just jump in instead of doing your own deals. I do not recommend being a limited partner. If you want to be an operator, it is often recommended that you do that by people who are syndicating, but I don’t recommend that.
And I’m probably one of the few people who actually say that. I don’t have anything to benefit from that. I don’t take passive investors into my deals. If a person wants to be an operator, I think they should go learn how to be an operator. Right? If you don’t, then you can be a passive in the deal, but that doesn’t actually get you the experience that you need in order to be super successful in this face.
Being a passive investor, we’ll get you some reports on a monthly basis, and you’ll see how to go through the investor report. Uh, But outside of that, you’re not getting the actual operating experience that a lot of people desire. And so what I encourage people to do is just go in, find people to partner with.
And in that partnering, you can get what you actually want, which is the experience. Absolutely. It definitely depends on your goals. I agree on that. If you’re trying to be an operator, just work towards it. Um, it’s like, I’m not, it’s, it’s the same thing that people ask sometimes with like, um, should I buy a single family first before by multifamily?
And I usually say if your end goal is multifamily, why not spend all your energy? Moving towards that goal instead of taking like additional steps or moving on that level. So, yeah. Uh, thanks for that answer. And I think, um, she was asked another question related to the LP, which was what percentage is a reasonable it’s reasonable for a limited partner to invest on a deal.
Um, and I did respond to that message. Typically on syndication deals, limited partners invest like 50 to a hundred thousand dollars per deal. It depends on what your goal is at and what you’re looking to accomplish. So, and Jerome, uh, Cisco ads, uh, from my understanding you do more joint ventures, why joint ventures and not syndications.
I want to own more of the deal. I didn’t want to build out what it took to manage all the passive investors that you need in order to do a deal. And I wanted to build a core portfolio. Create a track record that I could present to folks prior to going to raise for somebody else’s deal or trying to bring them into a deal that I couldn’t fix myself.
If you go the syndication route more often than not, you’re doing the deal bigger than what you can do on your own. And so if you bring a bunch of people into it and you make a mistake along the way, you’ve got to do one or two things, let it go on the trash or, um, hold on one second.
Let it go in the trash or, um, come back and get, uh, come back, come back and ask your investors for more money. And a lot of operators will just pay it themselves so that they don’t have to ask them investors for more money. And so the whole point of syndication is the scale. If you get experienced as in a joint venture, when you do that joint venture, you’re getting the general partnership experience that goes with it.
The syndication. And so once you have that experience, you can bring in limited partners on the backside, but it’s more difficult to go from being a limited partner to a general partner. And so I want operators to get general partnership experience and you can accomplish that through a JV. Great. And a follow-up question to that is, uh, do you find you need to bring more capital to a deal with, and if you syndicated and if so, uh, does that limit the size of the dose?
You do. It’s a function of your partners, right? If you find the deal, you’re going to get some equity. If you structure it that way from finding the deal. But yeah, you will have to bring more money, but don’t you want to, I mean, don’t, you want to own as much of the deal as you possibly can, and if you really believe in it, then why wouldn’t you want to put your money in the deal?
That’s just my thought process. If capital is a constraint for you. By finding the deal and being the person that’s leading the deal. That’s where you are able to asymmetrically increase your wealth, right? You get some equity for being in the deal and finding it. You get some equity for leading the deal, signing the bank loan.
And then the other money that comes into the deal, uh, is, can be brought by your partners. It can be brought from a number of different places. And part of that, those places are the bank. And so. Again, I can’t emphasize it enough. If you have the deal, then you’ll have equity in the deal and you can build from that.
Perfect. And please ask more questions and feel free to unmute yourself and ask your question directly. We don’t want to type.
Yeah, man. This was really good, man. Yeah, you you’ve kind of hit a lot of the angles that, you know, what it takes to actually succeed in this arena, um, that personal development believing in yourself and then taking action. Um, yeah, I really enjoyed it, man. Thank you very, very much. Um, for, for coming up and, uh, sharing this information with everybody here.
Appreciate you have a new brother. Yeah, let’s see. I was supposed to do networking nets or. Yes, we are. There’s more questions coming in here. It says, um, um, mezzanine, mezzanine loans only for big shots. Do you recommend them? Jerome? I don’t recommend it. If you haven’t done the deal before, because you don’t know how you’re going to perform, right.
You want to have a well-oiled machine before you add that type of time pressure on your deal. And so what does that mean, mezzanine? That is usually for something that’s not performing. It’s probably interest only in the beginning. And then once you get to the backside, you will end up, um, going into a penalty period, if you aren’t able to refinance out.
And so for those folks who were in the middle of those types of projects, when COVID happened, as soon as their collections dip below 90%, They were out if they were expecting to go into an agency loan. And what does that mean? Well, now you’re paying, let’s say you were paying 8% interest before for the mezzanine that you go to the penalty period.
You could be paying 15 or 20% depending on how aggressive they were with their terms. And you can’t do that for long before the deal fail. And so there’s some companies out there that are, whether they’re mezzanine or bridge, they loan their own. So they want to see you fail. They want to see that the project doesn’t work because they get to buy it at a discount and then they can either finish the business plan and sell it at market, or they can sell it with your equity being the difference that they’re putting in their pocket.
Great. Um, and the other question is who would join ventures? What’s your exit strategy at these acquisitions long-term goals or five-year hold, for example, it depends on the property. Right. But the great thing about a joint ventures is. With our partnership, we can just get on the phone and say, Hey, we want to sell this.
And this literally happened this year. I got on the line and I said, Hey guys, what is the minimum that you’d be willing to take for this property? If I could find a buyer like, oh yeah, it’s this. Or it’s that. Now we can go make a pivot on a business plan because we think the market is ripe for us to be successful at getting a really, really nice multiple owners.
Right. All right. And there’s a question here. Um, this is, uh, a little bit, a little personal. She asks I have about 106 K in a self-directed IRA. Once you transfer it to a Roth IRA and begin a real estate investing, what do you think I should invest in first? Aye. So with the IRAs, you aren’t able to take down.
On those proceeds, if you can’t take that, that you’re signing for on those proceeds. And there’s a ton of rules around that. I’m not a CPA, not an attorney. Well, what I would say is the more of that money that you can get unrestricted. The more freedom. You have to go do your own bills. If you don’t want to be an active operator and you want to do some passive stuff, then you can allocate that across indications.
I know Leslie and antennae do syndication and you can put money in their deals. I assume that you guys aren’t related. And so you can go do that, but if you want to be an operator, you want to go do your own deals. Then you got to figure out how to get that money out of the IRA and get it in position where you can use it today.
Perfect. Um, more questions coming in here, what’s your advice to those who are scared to put themselves out there? What is, uh, what is. Uh, why is it essential that they build their voice in brand? I think it’s essential because body who’s counting on you to do the thing that you’re supposed to do and be the example.
And you’re hiding from him, right? For you. There’s somebody out there that inspired you to go do it. What if they said they were scared or they weren’t comfortable with their, what, what would you do then? Would you be able to be in a place that you are. And so the next thing I would say is become the person that you have to become to be comfortable sharing yourself with the world.
Right? There may be some, a lack of confidence. There may be a desire to be private. There may be whatever, but there are a bunch of people that are coming behind you. Who are looking for you to be the person that shows them what’s possible. And so that’s why I felt like in the, and I don’t know anything about your situation.
I’ll just talk about me on the backside of 2019. And I had the realization earlier this year. I realized that I was being selfish. I wanted my comfort. I wanted to put my comfort in front of potentially inspiring somebody to take action and create generational wealth for their family and making a positive impact in the community.
There were people out there who didn’t see anybody who looked like them to go do this. And whether it’s a man woman, the whole mantra is, is only white men. And there. Late thirties to early fifties that do this business and it’s just not true. And so once I started building my platform, the whole goal was to open the door and give people opportunities, speak who might not be seen.
And so when you look at our podcasts, you’ll see all kinds of diversity, people from all different backgrounds, with the hope that somebody will identify with a person that looks like them, or has a story similar to them. That gets them that push right. Gives them that red pill. I’ll never forget. There’s a guy in Maryland named Marty is pretty aggressive on Instagram.
He was like, when I heard you on Michael blank, it made it real for me that I could go do this business too. I still get chills to think that somebody felt that way about it. But now that I’ve done more and more stuff, I know that it’s true because it’s something that I hear regularly. And so that’s why that’s part of the call to action.
It doesn’t matter how big or small your success is. You’re ahead of some people on their journey and you’re behind others on their journey. And if you can pull those that are behind you forward, you’re doing something good. Hey, you’re putting that good karma out there into the space that may have somebody else pull you along the way.
And, uh, to add to that, man, um, you know, this is, this is very important, especially for us because. Uh, like Jerome said, putting himself out there makes this real for, for a lot of us. This is something that I struggled too with like doing this because we used to get, he gets so used to accustomed to doing things your own way and doing it.
Then a lot of times when you fear putting yourself out there, because that self image is not big enough yet you’re struggling with something. There’s something that you fear within you, you know, or maybe you do not fully believe in this business that you’re in. The business of mortar family is a great business.
It’s a great space to be in. So let’s share that information with our community, share with everybody that’s around us and tell them that these opportunities are available for them to take advantage of. So, um, but it takes time. It takes daily action. Don’t just, just challenge those fears on a daily basis.
Keep going. And you’re going to see it’s going to become real to you and you’re your to. How much value you bring it to other people. And to add one more thing, just educate yourself as much as possible. Listen to a lot of podcasts with books, you get confidence. Once you get the confidence. If you have to come out and do whatever you want to do, because a lot of times where people don’t want to speak louder, if they feel like they don’t have enough information to share or to present themselves, Of course, it has to know everything to come out to speak.
But if you educate yourself enough, you have that used to having that confidence to be able to come out and the things that you fear the most, sometimes, oftentimes those are the things you’re good at. So whatever you fear, just challenge it. You see yourself doing it.
And then it gets better, man. So I, the other question was in your JV is how active is every partner. Well, activists, they want to be right. Some people have more capacity than others. I do this business full time. So what I tell people who come into the deals is I’m willing to do everything. How can we develop the skills that you want to get sharper?
So that you can get what you want, but you know, they’re participating in the thing. There’s a ton of stuff that happens, whether it’s upfront, when you’re putting the deal together, all the due diligence stuff to reporting, to meeting with property managers. I mean, there’s just so much work that can actually be divvied up and split out.
And then when you get to. The flip it phase, right? When you’re ready to cash out, either going through the process with the bank, making sure everybody’s got their documents and, um, or if you’re going to sell it, getting everything, situated with the broker and whatever engagement that you need to have along the way to get information when people are interested in the property, um, making sure all of those things happen.
So I don’t have a specific task list. Every deal is different. Every deal needs something different, but the expectation is that you are active in some capacity and it it’s along the way. There’s just so many different things you can do. But if you are the operator, if you’re the asset manager, you gotta be willing to do whatever it takes in order to make sure that you guys have a successful project.
And so some people may sign up for things and maybe they don’t do everything that you want them to do. That’s just part of it. Right. You got to work through the partnership and there’s some give and take. All right. And the final question, before we go into our breakout rooms is have you done a JV with a general partner who syndicated the deal with LP capital as syndicators open series a to that arrangement?
That’s not. Okay. You can’t do that. If you have a jet, you’re doing the JV. Yeah. Right. Well, you can do that. If that partner does things the way they’re supposed to, right. They got to go through and do the disclosures and so on and so forth. So I need you to take action. Now. I need you to jump over to Myers methods.com for slash multifamily investing.
So you can grab your 11 week virtual course. Here’s the reality of the situation. Guys, a lot of people want to be profitable multifamily operators, but they 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 have developed a framework that allows him to gain the knowledge. They need to find profitable deals when they do, they create the time and location freedom, as well as the generational wealth, they desire for their fans. The Myers’ methods of multifamily investing have proved to be the fastest way to establish your credibility and profitably.
Grow an apartment portfolio. Jump over to www.myersmethods.com/multifamilyinvesting to get your virtual. 11 week multifamily investing course.