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The only thing I have done, which I think lends me to it. It’s just reading a lot of books on how to. No broker deal. Hi, to find out which one is profitable, you know, creating, um, spreadsheets to kind of like plug and play the numbers to see if the deal makes sense. Um, that’s the extent of what I’m doing right now as an operator.
I know other investors are romanticizing, multifamily investing, and I’m looking to learn from other investors. I know you are too. You found the right place. Welcome to Myers methods. Presents multifamily missteps.
Hey everybody. And welcome to the next episode. I’m your host Jerome. And I’ve got the pleasure of having Mo with me today. Well, I don’t know how to say your last name, so I’m not even going to try to mess it up. My brother’s super excited that you jumped on with me the day. We’ve got the grand fortune of having you on and talk a little bit about jump-starting your multifamily investing journey.
So if you don’t mind tell the listeners a little bit about yourself. And then we can just dive in and we can do some rapid fire questions to see if I can get you moving. Sure. Um, started real estate investment. I want to say early two thousands. Um, computer programmer by trade. Um, Get a buddy of mine who was actually moving to Atlanta, was selling his duplex.
I’m going to take a look at it, get it for a good price. Um, stay upstairs, running out the downstairs. Um, that was, you know, very lucrative. So I look into, um, other duplexes for a total of five, um, purchase additional five. But now I’m trying to get into the multifamily space and then run into some, um, some difficulty.
So that’s when I reached out to you. Um, and then you said, you know, you can, you can have me on the podcast to try to help me out. Um, because like I said, you know, all these seminars, um, no, some people learn best by doing the seminars. I’m just, uh, you know, jump both jumped in with both feet kind of, kind of guy and learn that way.
So here I am. I respect it, man. So you did, it sounds like you got like 10 to 15 units in a portfolio already. Am I understanding that correctly at, at one time I ended up selling some cause it was just too good to pass up. So, um, now I’m down to two duplexes, but trying to get into the Multi in the multifamily space, commercial real estate yourself.
Okay. So just to break it down for the listeners, when you say multifamily, you’re thinking. More along the lines of above five units on one particular property, right? Yes. Perfect. Perfect. Perfect. Okay. And so that requires a different type of loan. You won’t be able to do the residential 30 year deal. You have to do something else.
And so I sort of listeners know what market are you interested in buying it? Um, the MOC and I am a Milwaukee market and all the suburbs. So. Around Milwaukee, Wisconsin. Okay. So that’s a little pricey up there, but I respect it, man. I want to buy your own backyard. There’s nothing wrong with that. Okay. So you said you you’re jammed up, you having a few challenges.
Let’s talk a little bit about that. What’s in a way, like what, what are you trying to get to? And maybe we can connect the dots for you. Well, And something that I didn’t think I would have an issue with is trying to get, um, a commercial loan. Um, just trying to sit down with those guys, get commercial loan.
I was thinking about, um, because I was getting, getting such a hard time. I mean, nothing’s wrong with my credit? You know, I had the, I had the capital. Um, so I was thinking about hard money, but you know, you talking about, you know, 15%. And then, you know, you got to do it for a while before you refinance it to a more favorable rate.
That’s where I’m running into the issue is in addition to, you know, just, you know, getting, getting deals, like how, uh, how to go about getting on deals or most such as yourself, a seasoned investor deals come to you, just trying to get on that level. Yeah. He thought a close, a few to give people to bring to you.
Um, and so, you know, we, we talk about the same four things more often than not when we have these calls, this knowledge deal, flow experience in capital. And so what happened for you is you went to the bank and they’d probably said you don’t have any experience on commercial loans. So they didn’t want to lend to you.
Yes. All right. And so we could come and down the pole, right? So now there’s still flow experience capital. You want the capital is like, yeah, you don’t have experience. So now you got to come back to experience and one or two ways that happens. You either partner with somebody that’s done it before, or your net worth is just so extreme in comparison to the amount of money that you’re borrowing, that the bank doesn’t care because you can write a check to fix it.
Most people aren’t in that position. So they got to find somebody that’s experienced a partner with, well, how do you get somebody that has experienced the want to partner with you need that deal? Right. And with the next thing you said was, well, I’m struggling with the deal flow piece. And I always come back to knowledge when people say, Hey, I don’t have the deals put together.
And I say that because you know, the different tactics tools, techniques that you can use to get access to those deals is all wrapped up in the knowledge. And so if you can find something. That makes sense as a deal when you present that to somebody who has experienced. And as we talked, I don’t remember if it was it or LinkedIn or wherever, but my comment to you was, you know, I asked you if you were coming to conference and you’re like, no, I’ve spent a bunch of money on seminars.
That doesn’t make sense for me, but you are looking for people to partner. And the place where the majority of people are hanging out that are doing deals are either at conferences or in some type of multifamily investment group. And I would, I’ve seen a lot of folks do, and I did it when I started, was trying to do this from behind a computer, right.
Where we’re just spending time. Talking to people kind of one-to-one, but get in a group environment, get in a group setting where there’s a lot of people. I highly increases the likelihood that you’ll find people that you can probably do something with later. And I’m not saying that you’ll do a deal immediately after going to a conference and meeting somebody.
But I am saying that it’ll expand your network expansion. A network is the most important thing that I think you can do when you’re trying to make a transition from where you are to where you want to go. Right? The people that you probably hang out with right now, don’t do multi-family deals, right? Your statement exact same way, right?
I’m the son of a soldier and a stay at home mom. And so nobody that I knew. Oh, multi-family and I went and started. My corporate job did that for over a decade. And then when I came out inside, I was still wanted to do multi-phase. I realized that I still had an improved my network in a way that I needed to improve my network, which would allow me to partner with somebody so that I could go to the bank and get that loan as you’re talking about.
And so my question back to you is what are you doing right now to expand a network, to get around more like-minded individuals and people who are either interested in investing in a multifamily. Or already invested in a multi-family. So, um, in Milwaukee to have this, uh, his name is Tom Daikin. He reports on everyone.
Who’s doing no commercial real estate, um, you know, multifamily development. So got a few names from there and just started emailing, um, people introducing myself. Um, let me know my interests and see if we can go from there. But, and in addition to going to the local REIA meetings and, um, pardon, um, introducing myself to people there to trying to get to know the players.
Okay. And so does your, REIA actually talk about multi-family cause mine never did. Well, there’s a lot of, so a little bit, they, you know, most of the time you just it’s, it’s obviously, you know, single family and duplexes, but it’s like, If the meeting is 45 minutes, they spend like five, 10 minutes talking about, uh, the multifamily.
Yep. That’s the way it goes. The most free it’s aren’t focused on multi-family. So you’ve got to go outside of your area. I think there’s a guy up there named Todd excimer. Who’s a really cool individual. I can connect you with him if you want. Yeah, he, uh, he does a fair number of deals. Here is the. Issue.
And I don’t even know is the issue, but that’s the best word that comes to mind right now with the, and it’s going to be this right. You’re sending these cold emails to people that you’ve never interacted with, telling them what you want to do. And they’re looking at you and you’re like, well, what are you going to do for me?
Right. This is marketing and sales 1 0 1. You have to leave with what is in it for the person that you’re talking to. Right. And so what value can you bring to the person when those articles hit? They get flooded with people that want to sell them things, people that want stuff for free people who probably don’t prize their value their time at all, and are looking for the person to reach down and help them.
Down or up, isn’t really a meaningful thing here, but they want somebody that they have people reaching out, asking them for things and not offering them anything. And so to make yourself stand out, if you’re trying to build these networks, if you don’t have a deal, it’s figuring out what problem you can solve for them without telling them or asking them, Hey, what problem can I solve?
Right. That’s how you really get somebody’s attention because everybody that’s doing these deals has whatever problems. The thing that they’re most interested in though, is deal flow that comes to them that they don’t have to work. Right. And so if you know what market they’re investing again, if you know what type of projects they’re looking for, and you can figure out some of that stuff from the press release and go into the website and doing some background, potentially searching and doing some listening to podcasts or watching some videos that they’ve done on you tube that will give you an end to figuring out who the person is and what they yeah.
That makes that first interaction really meaningful. What you want the person to do is say, man, you really did your research, or I appreciate you taking the time to actually learn about me or who I am before getting on the line and saying, Hey, tell me about yourself. Right? Like people will reach out to me and say, Hey, tell me about yourself.
I redirect and say, Hey, there’s 200 podcasts plus out there, like you can into one of those and find out a tremendous amount about me. Way more than you find out in a five or 10 minute phone conversation. I’d much rather spend the time talking about something meaningful. That’s going to help the person get to the new space.
If we get on the phone, which I don’t understand that option too, everybody. Um, rather than introducing myself to them. When we hop on. So the other thing that’s really probably impactful or meaningful for a lot of the folks who are growing a personal brand is following them on social media and are engaging on their content.
Right? So search amount on LinkedIn, Instagram, Twitter, wherever you are and see if they are there. And if they are then just hit that follow or subscribe button, like if they’re on YouTube, right. And then start commenting and showing them that you’re. In the area and you’re paying attention to what they’re doing.
A lot of, if people want to be profitable, multifamily operators, but lack the knowledge deal, flow experience, and capital, or 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 profitable.
When they do, they create the time and location as well as the generational wealth, they desire for the dynamic. The Myers methods of multifamily investing have proved to be the fastest way to Savage, credibility and properly grow an apartment portfolio. If you want to know more about our four-step process, jump over to Myersmethods.com to get free, four steps out.
Let’s get back to them. Calculating the numbers in the right way. How do you know that you’re making the right assumptions when you put your model together? Like how, what, what gives you that confidence outside of your background in programming that, you know, your, your proforma, your financial model is of are close enough, the right to make an investment of a half a million.
Yeah, the, I mean, the, the best way to answer that, which may not be an answer to all is, you know, judging by these books. At one time I read was Peter Conti, um, you know, commercial realist, no commercial real estate investment. Um, he’s pretty much in the book. He gave a performer of what he used to make his first deal.
I know it works. Um, as far as probably being a little bit outdated, it is, but those are the numbers that I’m using to see if the deal is correct.
The other thing that I recommend to most people who are doing this is to have somebody look over your shoulder. I treat it like driver’s ed. Right? And so when you get into the space, there’s just so much that you don’t know, I call it unconsciously incompetent or right. And so you, you get into this. And you put enough money out there.
And I was the prime victim of this. Right. I wanted to do a deal. It was a million, 2 million, three, and all the banks told me, no, just like you, I went to 10 of them and everybody you. Yeah, no, I say, well, what do you mean? I got all the experience, right? And so fast forward. And we get into the deal, found some partners with trying to get the deal done.
And I realized that I underestimated the construction budget, right. I put a half a million net. We spent a whole lot more than that. And the thing that was really sobering for me was realizing that I would have went bankrupt and I’ve been in the deal by myself because I didn’t have enough money in for the rehab.
And so what typically happens on your first project is you’re doing something that other people don’t want to do. And that’s why you have the opportunity to close it deal, right? If it’s a slam dunk, if it’s a home run, if he’s easy peasy, then other folks are going to take that deal off the table before you see it, because they’re already networked, they’re already engaged.
So when it comes to you as a newer investor, just know that it’s going to be literate with challenges. And if you don’t know about those challenges, that you can’t put a financial plan together in. To make sure that that project goes through the way that you desire for it to go through. That’s a real risk.
So how did you end up paying back those investors? So, because you’re saying you would have been broken, you went by yourself, did the deal actually make money or didn’t make money? We still have the deal and yeah, we’re going to double the money and then some that was put into the deal, but I mean, we’re still in it.
Okay. We’re still in this one. Yeah. But, you know, had I done the deal by myself and, you know, our approach is, you know, you use the word invest. I’m very sensitive about words. We do joint ventures. And so are the people that are partners in our deals are actually partners. They’re not just investors. You know, when I think of an investor, somebody who just puts money in and they’re letting the other person take the whole thing, we have meetings, people vote, people have different responsibilities and the expectation is everybody’s active.
And so there’s a syndication model and then just joint venture model. Uh, we spend a majority of our time in the joint venture model. So how does one get a part of that model or getting included? Or with our community or Myers about this. Yeah, man. So, I mean, there’s a couple of different ways. Um, I think the first thing is just making sure we’re speaking the same language, right.
And that goes into our education program. So we got 11 week education program that we offer to folks. We do a live course as well as. Self-paced digital version of somebody wants to just do it on their own. Uh, and then we have a Facebook group that has like a weekly mastermind call at noon, Eastern standard times on Fridays where people just come in, hang out.
And start building the relationships, right? But once we start building the relationships, really get to know people who they are at their core and understand what they actually understand related to multifamily investment. Then we potentially do deals together and you know, if they still need to get over the education hurdle, then we encourage them.
Even if they don’t do it with us to do some type of education with somebody. And the whole idea with that education pieces, we want you to find your own. You bring your deal to the pack and then the whole pack eats, right? Because we’ll bring the experience. We bring the capital and allows you to do a monster deal.
If you aren’t able to hunt that you’re reliant on the community and that’s okay for some people, but usually those people just want to be passive investors. They’re just going to work their job. But my goal is to help people get financially free. Right? And so in order for a person to get out of their job, they’re going to have to do something now.
Right. And usually it’s finding a deal. And by doing that over again, over and over again, you can get access to your income now, instead of paddling it up until you’re 60 or 65 and taking it out of your retirement account and you know, you flip enough of those stills, you, you create as well, that will take care of your lifestyle.
Yeah. I think a lot of people who are trying to get free, you’re looking to replace their income. I don’t ever talk about that. I talk about paying for the lifestyle, because if you’re living financially fit, then your income will far exceed your expenses. Right? And so then we just need to replace your expenses are paid for your expenses out of your investments.
And then you’re free to go do what you want. And whether that’s doubling down on their investments or doing something that pays less or even doing something that pays more, whatever it is, but we want to get that baseline and get your S your expenses taken care of through the investments that you all.
And so that’s, that’s kind of the path and the process, man. And then for a very, very, very small group, we do some one-on-one coaching to help people figure out how to put that plan together because it’s one thing to have the investing education is something totally different to have somebody be what I call a tour guide.
Go on the path with you and, you know, pointed things out that may catch up with you. I think a lot of folks get trapped or I won’t call it a trap. Bye. Oh, well, are you going to be a multimillionaire? And you’re going to have all this money and they miss all of the other stuff. There’s the red pill that we talk about pretty regularly has, you know, six different levels.
Self-image relationships. Well, prosperity is significance. And so we, when we coach and work with our apex performers, we work in those six areas, just making sure that they are living a centered life, one where they don’t have to put on masks, they live life well, and they make a positive impact overall.
Yeah. I was wondering what you, a shirt, what your shirt meant, but you just explained it. Yeah, man. Yeah. So, you know, Yeah, I think we got time for maybe one more question, if you’re up for it. Um, now you, you, you pretty much answered all my, um, all my questions as far. Which, you know, I kind of figured I have to talking to you.
I was going to have a lot of homework to do so I do. And then, um, if you don’t mind, I’ll probably touch base with you, you know, probably in a, in a week or so just to give you like some progress and then whatever your next podcast is, I’m normal missteps, but I want to be on success. So your next podcast title be success.
I want to come back for that. Yeah. So, you know, Missteps has absolutely nothing to do with failures success. Right? Missteps is specifically for the place of learning from what other people are dealing with. Right? Right. The questions that you are having everybody else is dealing with the exact same thing.
And so instead of me doing 30 calls to talk about this as I, same thing, we can just put this episode together, share it with the world and then people. Which I’m going to give you opportunity. And a second, we’ll hear it and be able to reach out to you and say, Hey, Mo, how did those things work? How’d you actually implement against those ideas that Jerome share with you and now people are coming to you.
And then once you close that first deal, we’ll be more than glad to have you on Dreamcatchers podcast, where we talk about people who’ve exited the matrix. What? Yeah. The bolts can be reaching out to you because you’re a little further ahead on your journey than them, right there, there isn’t a place where it makes from my perspective makes sense for you to do media.
I think everybody can do media because you’re in a different place in a continuum. There’s people behind your does peoples ahead of you. And we want to be able to help both of those. So with that said, well, if the folks want to get in contact with you, what’s the best way for them to do that. They can either call or text me, um, area code 2 62.
4 5 8 4 0 0 8. Um, and also, um, I can be reached via email ciobo@hotmail.com. No, y’all glow him out. He gave you out a celly. He’s reached back out and say, man, I don’t want the phone number out there anymore. What can you do to get it off? But I bought thanks for jumping on with me until the next time listeners the pack is with you.
We’ll talk soon. Yeah, you made it to this juncture. So you really love what we shared on this episode of Meyer’s methods presents multi-family muster. Do us a favor, give us a five-star rating. Give us a review and share this with somebody who’s interested in and tell the next time.
