Disclaimer: Transcripts were generated automatically and may contain inaccuracies and errors.
This is with different, um, risk. So for me, I am able, because of this, uh, asset type, I am able to measure the risk in advance and present that risk for the more risky investor and the less risky investor. And that’s kind of, um, you know, I, I never thought about it like this when I started with it, then that’s fascinating.
That’s interesting. Yeah. Cause you have a different perspective on it and you’re giving those different perspectives. So that’s really interesting. Awesome. Well, uh, we’re coming close to the hour here. I see our, our very special guest speaker. The last minute guest speaker Jerome has joined us. So I really appreciate, uh, you on and joining us tonight and sharing some of your wisdom and.
And as, as people kind of filter in, I guess as the hours coming upon us, people start jumping and slowly, um, uh, just multitasking over here. Okay. Which we got now. Okay. We’re good to go. So, um, without further ado, I think as the hour is about to tick, one of everyone just put in the chat over there, where are you all?
Where are you all coming in from today? Cause I, I love the fact that we get people from all over, um, different places, recognize a lot of you. And thanks for calling back. I definitely, you know, it’s awesome to see the same people every week. We got a great presentation tonight to Jerome is setting the stage for a, for a great presentation.
I’m really excited about it. Uh, making the co-host so you can, you can share your screen with him. I’m sure he’ll do. Oh, we’ve got a lot of Texas in the house tonight. New Orleans. Right? Awesome. Boston KK, Fort Wayne. Jerome is outside the matrix, which basically means he’s like everywhere. Like me,
um, San Diego, Illinois, Florida, North Carolina, New Jersey. One of the things I love about this is little repeal from everywhere. We’ve act from the bay area. Beit Shemesh Israel, Jaco, Kennis. Oh yeah. In the house, Dallas, Texas, New York. Awesome. So I’m really excited for everyone to be joining us here. As I, as I said, we’ve got people trickling in, um, trickling in from all over.
I’ll just make a little, a quick introduction here. Um, and then we’ll, we’ll just get right into it because I think everyone’s excited. Everyone’s here for reasons. So let’s just get the show on the road. Um, as I said, you know, you guys probably know me. You want to Weiss, if you found this, somehow you found it on LinkedIn, maybe Jerome was promoting it a lot.
So that’s probably how you, how you heard about it. Um, and, uh, and yeah, we’re really excited about this presentation because it’s a little bit different than most as I’m sure you won’t, you’ll come to see. And I’m excited about it a little bit about me, for those of you joining, you want to widest, you may have found me on LinkedIn.
A lot of you guys are on my LinkedIn challenge. We’re doing a 10 day challenge right now. So you guys are awesome. Uh, I’m seeing tremendous amount of people are putting in crazy amounts of, uh, of time and energy into utilizing the, uh, the benefits of posting on LinkedIn regularly, which to me, a lot of people don’t even know what that is or the benefits of that.
But I think a lot of people that are doing that, get that. So I just want to give a quick shout out to all you guys who are on this call doing that. Good for you. Keep it out. You’ll see tremendous fruits from those labors. Again, my name is Yonah Weiss. I work during the day besides for spending time on LinkedIn.
I work for the biggest national conservation company. So I spend my time just helping people save income tax through this awesome tax strategy called conservation. If you want to hit me up on that later on, you know where to find me, um, I’m a host of the Weiss advice podcast. If you guys didn’t check that out or any, I would be very, very grateful.
Um, just using this opportunity here since we got all your here and, uh, you know, to maybe check that out. So I’m going to put that in the chat box over there. I would love them guys to check that out, leave a review rating if you like it, if you don’t don’t, but uh, I have to leave a bad review. Just need to do here.
Um, and, and Jerome check out, uh, Jerome’s episode was I think, episode number seven or eight or something right at the beginning of the month. So you can check out some more about what he’s going on. So without further ado, I’m gonna introduce. Um, he doesn’t need any introduction, but he’s very humble.
So he thinks he already doesn’t have a lot to offer, but we’ll see here, he’s the host of two or actually three podcasts, dream characters, the multifamily misstep. And I forgot the name of the third one, but it’s something about PTSD, um, right. Something like that for military people, he is an investor, right.
Has invested in a lot, a lot of real estate and he’s really favoring joint ventures over syndication. So we’re going to find out why, and Joel would love for you to give a little bit of more, uh, introduction background and without further ado. Thank you all for joining. Don’t forget that we have the zoom breakout rooms at the end.
So after the presentation is over, we’re all to split up into little groups of 2, 3, 4, um, maybe five. It gets a room, uh, just network a little more personally. So that’s a lot of. If you’re on the Facebook live, remember you click that link so you can get on the zoom to check this out. Jerome, the stage is yours.
Oh boy. Start in trouble. Now. Y’all know Sue eight, four to get the opportunity to share with the group. Can’t believe there’s 53 people on, but I guess you had taken you and me out. Cause we had to be here. Right? For everybody that’s here. I’d love to know where you are. So if you own under, if you haven’t bought anything yet, type one, if you have bought something less than 10 type two, if you are over 10, but less than 50 type three.
And if you’re over 50 type four, I appreciate all this engagement, Paul. I want to be like you when I grew up Andy and he’s on your end. He’s everywhere. I don’t know how he does that. This is awesome. So a lot of different levels, which I think is super awesome. I’m gonna try to talk to everybody tonight.
Um, if you don’t like something, I say it’s great. Let’s have a debate. And that’s what this is about. Um, I’m quite crunch contrarian when it comes to a lot of this stuff KK. I didn’t know you were on here, man. Hey, um, I hope you got it. Well, I’ll talk about KK later because he had an awesome presentation.
He made me want to quit. Oh, y’all know we’re almost at 60. Alright, so let me share screen and we’ll get started. Don’t go too far. Cause I’m going to ask guys for input along the way. All right. This is my mom and dad. Like they have no idea what I do, but driving around one Saturday morning and I was like, let me show you guys something.
And we pulled up at the complex and my dad kind of scratched his head. He was like, why, why does it say Myers? I said, cause we own this thing. And so this is our first deal that we bought in Greensboro, North Carolina. It’s a 20 unit building. And I was like, you guys got to go take a picture. And I also took one with my kids there too, but this is important for me because when I dropped out of corporate America, I, my mom freaked, she was like, what are you doing?
Like you got good grades, you got into a good school, you got a good job. Um, why would you leave corporate America to do this weird thing that other people are doing? And, you know, you might not ever have health insurance and some of the other stuff that she laid out for me. And so it was important for me to just kind of show him some of this stuff we were doing.
And so, you know, we bought this, it was like 20 units, $840,000 purchase price in Greensboro, North Carolina. So for tonight, I’ve got like 25 slides. I’m not going into presentation mode. Cause I want to be able to see the chat while we go through this thing. Um, And we are going to go through why I started speaking.
Cause I think it’s super important because I think there’s some people out there with some really inspiring stories and I don’t really feel like they share all that much. So I’m going to tell you guys a little bit about my background. I started speaking, dive into just some definitions, the differences between joint ventures and syndications, what I consider people having roadblocks to getting into multi-family because I see there’s a bunch of ones in here.
Um, and then I’m using myself as a case study show you guys how the joint venture worked for me to get into the game, um, lay out some of my biggest mistakes just because I feel like that’s the only way to be true to this audience. Um, offer us some free resources and then dive into Q and a. And I’m trying to land this plane with like two minutes left so that you can say nice things about me at the end.
And then we’ll go to the breakout sessions. Sound good type of a five. If it sounds good, anybody, somebody please? Yes. Perfect. All right. Disclaimer, I don’t know what I’m talking about. So don’t rely on anything that I say to make any investment decisions. I’m not a CPA, I’m not an attorney, but before we get into all that great stuff, I want to tell you my story.
So back in 20, before may of 2019, which is like, what 12, 15 months ago, you couldn’t find any pictures of me except one where I was on a new site because we lost a football game and they took a picture of me on a knee, basically crying. Cause we got blew out that game. And I was like, man, I did a pretty good job of staying off the radar.
And I thought that was amazing. And then what I realized is like I was a total ghost. I was having some success and by being a ghost, I was part of the problem because when you look at the. People who have platforms and who speak there. Isn’t a whole lot of diversity. There’s been more people that’s come on the same or more recently.
But when I was getting started back in 16, 17, like there wasn’t much diversity at all. And then even when you go around and you look at the conferences, like, and I, I encourage you guys to be cognizant of this when you’re making your buying decisions. When you go look at the big conferences, if there isn’t people that look like you, and I actually had to go through this this year speaking, you might want to ask the host, Hey, is there anybody that looks like me that can speak so that I can actually support the event and that will help get more people with more diverse stories, sharing them.
In addition to that, my challenge to you, if you’re here tonight and you’re having any success, you know, those twos, threes, and fours, I really want you to share your story. I’ve got two podcasts, more than willing to have you on. There’s a bunch of other people out there and. Hiding in the shadows. Doesn’t inspire anybody else to go do the thing.
And I think that where I really landed was we’re being super selfish when we don’t share what’s happening. It’s not about bragging. It’s not about boasting it’s about saying, Hey, I did it. You can do it too. And that’s what this conversation for me is about tonight. And so this was pictures from one speaker lineup, and I struggled with it cause it was like, wait, there’s nobody that looks like me here.
And so let me talk to you about what happened. So I was in my own little world before I left corporate America, I had the good fortune of building a $20 million division for a fortune five 500 company. I was employee number two. I was responsible for PNL and we were taking the overhead power lines, putting them on the ground while I was doing that, I was lending private money to fix and flippers.
And I was learning about rehabs by putting my money in their deals, through that, my reward from going from $0 when I showed up to 20 million in revenue and about $6 million in profit, that first year was laying about half of the 175 people that we hired off. And that was the first time I was asked, man, I felt really terrible about it.
In fact, I didn’t really eat or sleep between Christmas Eve and new year’s that year. I didn’t really know what to do with the situation and where I landed was, Hey, Jerome. Uh, somebody else can make these decisions for you, but you probably want to do it because you’ve got to run the team. And so I said, I’m gonna get through this, I’ll do it.
And then after we put Humpty Dumpty back together again, I said, I I’m never going to do this again. Fast forward to November. The next year I had to do the same thing. And I said, I’m dropping out. And so I started self-educating. I realized that my sophomore year in college, that I wanted to be a multi-family investor.
Um, me and my buddy Duran was sitting on the stoop. We did the math. When we found out the guy that owned the property was making $700,000 a year top-line revenue. We never seen him, we never talked to him, but we just didn’t know how to get to that place. And so I started doing this self-education after working in corporate America for a number of years.
And then I found my first deal and I went to the banks and I was like, Hey, I got this $1.3 million property don’t you guys want to fund me. And it kind of looked like, and scratch your head and then turn to the side. And it’s like, why would you, we knew that and said, well, I just built a $20 million business and we were profitable 30%.
Yeah. Okay. Uh, I’m a professional engineer. So what, uh, I got an MBA. Yeah. That’s not experienced. And they said, well, what’s experienced. They said, have you executed the business plan that you want to do on a building of similar size? I said, no. Oh, of course. Now this is my first one. They said, well, go get a partner, but I don’t know anybody.
And where that left me was I had to go fix and flip houses because I couldn’t get money to do my first apartment deal. Fortunately, I was sitting on the stoop of one of those buildings and one of my fix and flips and the guy pulled up. He said, let me check out your finishes. So I was like, whoa, okay.
Yeah. He was like, we’re doing one down the street. We’re going to try to make sure that we’re comparable. When it come to market. I said, oh man, that’s pretty cool. Then we kept talking. He he’s like, Hey, do you know anything about that building? I was like, yeah. I tried to buy that four or five months ago by myself.
He said, well, I’m getting ready to make an offer. I you’re the guy I’ve been looking for you, the experience guy that I needed. And he said, what are you going to bring to the deal? I said, I don’t know, like, we’ll figure it out, but don’t leave me out. I would want to do this. And you want to make the offer without, because I didn’t know what my value add was fast forward.
He went and it got rejected. He went and talked to one of the guys that I was investing with would probably have money. And he said, Hey, I want you to be the GC on my deal. He said, oh, that’s the one drawing was talking about. I’m only doing it. If he does it. It’s like, yes, he got me back in the deal. So I was fortunate enough to get in that first deal.
And we bought it from one of the bigger brokerage companies and they always do a press release when somebody closes and I was asset manager. So my name was in the paper. And guess who started calling. The banks. So now I had experienced, I had done a deal, even though we hadn’t actually executed the business plan, but because we had closed on the deal, it proves that I could close.
And so they were interested in lending to me. And so I took that, and that was the only contract that I’ve closed. It was the one where I didn’t write the contract and we came down to Greensboro and we started buying properties here in Greensboro. And so today, you know, we raised over a million, we’ve repositioned more properties.
This is an older slide. And we’re working on our first development deal, which is 120 units of workforce housing in the opportunity zone. And I think we’re going to break ground next spring again, I just want to drive this point home guys like diversity matters and not just like in people’s appearances, but in your approaches to buying multifamily.
And that is why I really beat this drum of like, there’s not just one way. There’s not just one thing. I will tell you that syndication is all the rage. I think there are a lot of people who are creating wealth and syndication, and I think there’s a whole lot of smoke and mirrors and syndication used as marketing in order to get people, to put their money in deals and not actually allow them to get to a place where they’re actually a deal lead or an operator, if that’s what they truly want to be.
And so I just want to show you guys another option and with I’ll take that point. It step further for a lot of people, this syndication approach isn’t working. Like I listened to a lot of people and they, and they end up coming to me after they’ve spent 25 to $50,000. And I say, Hey, Jerome, like, I’m not getting any traction with my mentorship program.
I thought I was going to buy a deal. I thought I was going to take one of these big ones down and I just haven’t had any success. How can you help? I was like, well, get some 200 a boat. And so with that, I want to roll into uncomfortable truth number one. And that is like most people who do these high ticket programs don’t ever become a DLT.
And I can say that with confidence because of the number of people that I hear complain about their high ticket experience and whether they ever do anything with me or ever do something on their own. The fact of the matter is the dream that they were sold. Hey, you’re going to go take down a $10 million deal, or are you going to take down a hundred unit deal?
Isn’t what actually happens when they get through their first year, their second year. And I’ve seen very few people do it. There are some people that I know, one of my favorites of the guys at four Oaks, particularly Brian Briscoe, cause that’s who I have the deepest relationship with. They have actually crushed it through their experience.
And so there are some people that are, but I will tell you that the vast majority of people who do it don’t and some of it is. The programs fault. A lot of it is the people who are in the programs fault, and there’s a whole lot of discussion that can go on through that uncomfortable number truth. Number two, um, you have a 95% of doing this alone in a company that you operate.
Like when you, I pull these statistics and it’s just like in the end, like you’re running a business. And so if you’re an operator and you’re, self-employed like the vast majority of those folks don’t have anybody working with. And just keep that in mind, because I, everybody says, oh, it’s a team sport. But then when they try to find partners, you’re like, oh, but nobody either wants to partner with me or I don’t know what I bring to the deal.
So why would anybody partner with me back to my mistake on the deal that I was trying to get into on the first one? The last one, a lot of people feel like, Hey, if I write this check is going to fix everything and the transaction doesn’t actually mean anything. What you do on the backside of the transaction is what makes everything happen.
And so be super resourceful, make sure that you’re being social in the places that you can be social and those things are, what’s going to make the biggest difference. Let’s see, you don’t know you’re going to have to help me on the chat. There’s a lot going on in there and I can’t keep up. All right. So let’s go see this thing from the purple book.
And I think he wrote another book about it, right? And so. I have a tweaked it a little bit, because I really think it drives the point home. So everybody wants to be an investor. Everybody wants to be in the I quadrant. And for a lot of people, they confuse being operated with being an investor. And so for me, I’m starting, I, because that’s, what’s so sexy, right?
Cause your money works for you. Limited partners or investors. They put their money in and then they’re out. If you’re still in the wealth building phase is probably not best for you to be here in investor because you can get a bigger return by investing in your own deal, being a joint venture partner or a business owner.
It’s always interesting when I have people who are running their own business and they say, Hey, I want to put money in your deal. I was like, well, how much do you have? Oh, I got 10 grand. Well, put that back in your business and then turn it into a hundred, then come back and do something. But we’re trying to be diversified and we’re trying to come up with these portfolios instead of betting on ourselves.
And so what I really encourage people to do is like, if you’re in the wealth building, You want to be a business owner so that you can pour, use your money to be fuel on your fire. Uh, moving back down the continuum, you know, being self-employed, those are the third party property management companies that the vast majority of operators use.
There’s some small groups that are vertically integrated and they’re able to do everything in house, but for me and the majority of people, I know there’s third party, property management. And for the most of those companies, it’s going to be something, somebody who is self-employed. So it’s like a husband and wife or a husband, and then they’ve got their company.
And within that company they’ll have a community manager. And so usually what happens is the employee and the business owner interface, and then the self employee or the property manager is kind of overseeing what’s happening for the community.
All right. So now let’s get into these definitely. What is the syndication? I like to describe it as an airplane, particularly a jumbo jet, right? So you’ve got the lady, he at the ticket counter, I hopefully everybody’s flown or knows what the process of flying is. So I’ll walk you out. So you get to the ticket.
Can you buy your ticket? You go through security, you get to the gate, you give the lady your ticket. She scans it. She’s getting paid to be. There you go down the walkway, you get on the plane, you’re greeted by a steward or stewardess. You wave at the pilot and the copilot and you go sit in your seat.
That’s what a LP does in a syndication. Right? And that person is just along for the ride. They don’t have a voice. They don’t do anything to make the thing, get better or go better or be better. They’re just there. And they paid to be on the other people are getting paid to get you safely from point a to point B those folks that are getting paid or in the general partnership, what does that mean?
DRO? Hey, if you put a dollar into a syndication, you’re getting something less than a dollar in equity. I’ve seen splits as high as 90 10. I’ve seen some people who take them down 65, 35, and that in this instance, the 35 is going to be what the sponsor of the deal or the general partnership is taking away from the deal.
So if you’re getting 65 cents of equity for every dollar that you put in, there’s nothing wrong with that. Those folks should absolutely absolutely be compensated for the work that they’re doing. But with that said, just know that if you’re on the limited partner side, you’re not maximizing where your dollars can go because you’re not participating in the work, the joint venture.
I like to classify it as a fighter jet. And from my perspective, Because I want to be a fighter jet pilot. When I was a kid, this is the coup de Gras, right? Everybody’s got an active role. Everybody’s getting experience, everybody’s got a voice and there’s a bunch of different roles and parts and pieces that people can play in these things.
And the deal is really only limited by the capacity of the partners in the deal. The one thing I will say is like, there really isn’t a difference between a joint venture and a syndication outside of the limited partners, right? The general partnership is a joint venture. And I don’t think anybody has this conversation because it’s not as sexy.
And so what I really see is, Hey, if you’ve got capacity and you have people in your network with capacity, the fewer people that are in the deal means you get to own more of the deal. And for me, that is what it’s truly about is the wealth building through the equity. Let’s do it side by side. I’m only going to talk about the pros and joint ventures.
And I’m only going to talk about the contents indication, but take a screenshot so that you have this and you can beat me up on it on LinkedIn or something later. So the pros that joint ventures, it’s easy to get that experience box checked, right? If everybody has an active role, why wouldn’t you want to sign the loan?
Because you know, if you want to go do your own deal and you want bank financing, they’re going to want to know that you own something already. Why wouldn’t you want voting rights? I think everybody wants voting rights. If you’re not in the general partnership in a syndication more often than not, you don’t have the ability to vote.
You’re in the deal. Once your money’s in, it’s in, you send out a wires over for you. Um, there’s more deals available. And this one is, um, really important for me. I think there are, you know, six, seven groups around the country that are all chasing a hundred deals with the upside. And I wish there was a broker on here so I could pick with them.
With upside and, you know, below market rents and operational inefficiencies guys, like in a growing market, like everybody’s looking for the same thing. What about all the deals that are less than a hundred units that aren’t as desirable air quotes? Like you can make monies with those and I’ll jump down to the last pro on a percent basis.
Like if you are able to improve the operational efficiencies in the business, I think you can absolutely get a higher percent basis increase even though the dollar amount might not be as big by doing a deal. That’s a little bit smaller. Um, I think the pro of the deal is experience being a little weaker or them being less experienced is important.
If you want to have a voice, if somebody has been doing this 25, 30, 40 50 deals and they have all the answers, when you come in. They might not be as open to hearing your ideas or suggestions or recommendations. And so, you know, having somebody who’s open and interested in partnering and getting the input from other people is like, for me, it’s super important because I like being heard.
Um, and the other thing with joint ventures is I’ve seen a lot of people with that do syndications, just say, Hey, we want to get max exposure. So we’re only going to deal with accredited investors. We’re going to do a C exemption so that we can advertise. And what that does is it leaves the sophisticated investors out.
And so a lot of joint ventures get done with sophisticated investors. And if you need to know the details on that, we can dive into the difference between sophisticated and accredited cons of syndication. Um, the, again, the lane towards accredited investor, I can’t emphasize this enough, no real voice or vote as a limited partner.
Um, if you’re an LP, there are some people who say, Hey, just passively, invest in a deal and you’ll get some experience. But from my perspective, are you going to get a summary report? Right. Like when you are a passenger. Yeah. Passive. If you want to be an active operator, you’ve got to get in the act of operator.
See? So that, that experience really does count. If you don’t sign along, the banks do not count that as experience. I can’t emphasize that enough. And I think there’s fewer deals available. Yeah. I did see that Alex, where they expanded the definition of what an accredited investor is. I don’t know what the details are, but I did see that.
So let’s use me as a case study and what I will say, this is price of, um, I think this is the order that you actually overcome and these challenges, if you want to get into multi-family investing for all those folks who hit the ones and even the twos, you know, if you’re looking to scale and go bigger, I think this is big for you.
The knowledge is foundational and I’m not gonna. Say that what I did was the right way to do it because I’m actually going to pick on myself in a second, but podcasts books and YouTube is not the answer. I can promise that deal flow. Um, once you have knowledge, you can apply that against your leads, your leads that actually pass your vetting criteria become deals.
And those deals are what you take, and this is your golden ticket. So one of the things that I promise on this top is I would tell you what your golden ticket is into a deal. Finding a deal is your golden ticket into getting a deal done. You take that deal and you go partner with an experienced operator, right?
That’s what I had to do. If you guys remember the story I opened up and that experience is going to draw capital and that in and of itself is how I think you’re able to get into it. So if you don’t have access to capital, that’s not a reason to get, not get started in a multi-family. A lot of people just want to go to the top of the pyramid and say, oh, well, I don’t have any money.
So I’m gonna spend all my time raising money, right? You’re not even credible because you don’t know what you’re talking about. Right. So get the knowledge, apply that against the leads. So, you know, what deals look like and then going to want to have an experienced operator on your team so that you can get the big money, which is usually the bank money.
And then you can get the risk money or the equity to come to the deal behind that. And I really think this is the formula people getting a deal done, especially that first one. So how did I get started? I started self-educating right. I had this huge knowledge gap. I was listening to 40 hours of content a week every week, and I still probably listened to 25 or 30 podcasts books.
YouTube. I would go to the review, but Maria never talked about multifamily. And so when I brought that in, we started having more and more conversations about it, but it wasn’t popular at all in the area that I was in. But most days I end up feeling. Really confused. Other times it was overwhelmed, uh, overconfident.
I really remember those days and then frustrated. Well, why do you feel those? Well, if I’m listening to the guy from the north and I’m listening to the guy from the west and then the guy from the Midwest and then the one from the Southeast, and they’re all telling me about how things are supposed to go and how things are supposed to be and how they’ve got this proprietary process, or you’re supposed to do this or property management.
And none of it actually fits with the ball that I’m playing with. It gets super frustrating. And so I didn’t know what to do. And I just knew that I didn’t actually have something that was concrete that would allow me to move to the next level. And so there were times where I just put my head down and said, I’ll try again tomorrow.
All right. Deal. This for me is again, that golden ticket. Right? And so the three things that we use most is LoopNet. I know people say that’s where deals go to die. I don’t agree with that at all. We’ve been able to buy at least two properties from them. And we were able to buy them at discount. So it made sense.
Um, we’ve bought deals through direct mail. Uh, when you think about, especially the properties that are under a hundred, you can actually get to the owner and I’ll combine that with a lot of the owners are older. And so they’re baby boomers. Some are even traditional this generation and in that they are ready to retire and they’re looking for a way out.
And so we’re super happy to let them come in and divest of the asset, bring our capital infusion, raise rents, uh, decrease expenses, all of the stuff that you’re hearing and all the great marketing material. And then networking is amazing for me. Right? So if somebody comes through our program or if somebody knows, Hey, um, that deals in Greensboro dealing with it up here in Northern Virginia, who do we know that is in that model?
Well, I’m in that market and it usually ends up coming to me. It’s very rare that a deal trays that I don’t actually get the opportunity to see, which I think is super awesome and why I like to invest in my own backyard. Um, the one thing about the smaller deals I would say is there’s less full-time competition.
And for me, this, I see as a real competitive advantage one, if there’s an attorney or a dentist or a doctor and their chair side or their bent side or whatever they’re doing, and they’re full-time, and the deal comes up, the agent gets a listing agreement, or we’re TA we’re hitting the phones and calling people we’re able to get to that deal first.
And for me, that gives us opportunity to build a fence around it and then slow down. So we’re really fast to get to the deal, get it under some form of contract or LOI, get it tied up. And then we really slow through our due diligence process to make sure that it’s something that we want to. Capitol. Yeah.
So I just tell you guys how I did it, right? Yeah. I had some savings outside of my 401k. I had access to credit lines. I had a whole life policy with some cash value in it, and then we were doing a recourse loan. So the banks were looking for W2’s. I used my last W2 in order to help qualify in addition with my partners.
In addition to that, I shared this opportunity with friends and family, and I had some guys from college, high school and people I met while I was out working, who were interested in participating as partners. They were all interested in this idea of our investment, making an impact. And so this is one of the things I’ll talk about a little bit later, but it’s not just about maximizing the profit that we can.
Um, and one thing that’s important for me is. You know, when I think of an accredited investor, I think about somebody who’s already wealthy. I want to open the door for multi-family and mid-size multifamily is what I’ll call it to people who aren’t already wealthy, because I think this is a true vehicle to grow their wealth.
Thanks experience. So I didn’t even know about these things, like what we’re doing tonight, where, you know, there’s these meetups or groups and social media courses, conferences. I guess I knew that from a professional standpoint, but I didn’t know that people would like fly to another city to meet with other people who are interested in the same thing and they spend a weekend doing it.
Like that was kind of foreign to me. And so I really wish I would’ve done those things before I got into the game, kudos to you guys for spending your evening or late afternoon with me listening to me ramble about this stuff. But the more of this you can do, the more you can grow your network, the better off you’ll be, because you’ll know more people in the space and who knows, who’s going to be able to make that connection for you.
Um, experience. I just want to hammer this point home because I don’t think people hear it. If you haven’t signed a loan, you don’t have experience and that’s a full sentence. Right? Um, so I tried to get a loan. The banks told me no, we talked about that. I also tried to talk to hard money people because I was like, oh yeah, well, that’ll work.
Right. Cause that’s what we do for fix and flip. It’s not a great way to buy stuff, which is, if you haven’t done a deal, I don’t encourage bridge that just so you guys know. Um, but the hard money guys, like, yeah, there’s not enough meat on the bone. Hey, you don’t have any experience. Like what do you mean? I don’t have any experience.
People kept telling me I wasn’t qualified to do what I wanted to do, which was super frustrating because I spent a lot of money in school. Um, I didn’t have any private money lenders in my network. I didn’t even know what a self-directed IRA was. And you want to understand those things because it opens up doors that you have no idea.
There’s a lot of people with retire money who want to be out of the stock market, but they don’t know where to go. And so there’s tons and tons of tons of opportunity there. And I guess the last thing from an experience standpoint, yeah. I didn’t know anybody who owned multi-family I know I said it before, but I just want to come back to that.
Like, there are people, like, if you are a one and there are people on here that type three and four, you want to know them in some way, shape or form. So go connect with them on LinkedIn, start building your network, because I just baited them into telling you that they’re in the game and now you have the opportunity to connect with them.
It’s amazing. Um, but yeah, at the end of the day, guys, look, you need to expand your network of operators so that when you find that deal and you know, that they invest in your area, you can get into a deal with them and get that experience. Yeah.
My most costly mistakes was being self-taught right. And they’re like, what do you mean? You could have spent 50 or 30 or 45 or whatever the number is. And that would have been really costly. It’s only costly if you don’t factor in how much your time is. Right. It, and I’m not telling anybody to go spend that much money in a program.
I think there’s other ways to do it. But what I’m telling you is there is something to be said for having somebody curate the content before you, so that when you get to the end of the road, you have a system in place that you can use as your baseline. I didn’t have that. I was getting stuff from all over the country from everybody who had a thought leadership platform and the vast majority of them weren’t even talking about joint ventures.
They were talking about syndications and how to raise money and all this other stuff. I didn’t need to know how to do that. I needed to know how to ask that. Right. I manage a 23 unit that we were doing everything from the roofs to the parking lot to removing walls and all this other. And nobody was talking to me about that.
And on top of that, everybody always made money. They always had their project on time on a schedule and they never lost, there were no mistakes, there were no headaches. And that just was really frustrating for me because I have all of that stuff. Um, when you’re in these JVs, you get the opportunity to be involved in operational decisions.
Some people don’t want that. I get it. Um, there’s a whole lot of people who want that. And I don’t want anybody to think that being a limited partner is giving you that experience in a syndication because it isn’t. Um, and then I guess the other thing is usually these deals are smaller, so there’s less risk of something goes to over the arm.
What does that mean? The amount of money that is going to be lost if you totally screw up your business plan is lower than if you go buy something huge and he’s like, oh, well, when you buy those other deals, they’re not recourse. They’re not recourse until you trigger something that makes it a recourse loan.
And then it’s just like the deal before where you’ve got a recourse loan on the deal that, um, has a property that you probably can’t write a check to fix the problem. And this one I’ll, I’ll stay on just a little bit because I think it’s super important. There are going to be people in your deal who have capacity to write checks, the Fitz problems.
There are going to be problems. I don’t care how good of an operator you are. And there are going to be times where you may have to write a check or go back to your partners and ask them to write a check. You really want to be careful about doing that because it will frustrate people. And while some will say, Hey, you don’t know what you’re doing.
There are things outside of your control and I’ll use COVID as a perfect example. You know, if you don’t collect the rent, you don’t have the money to pay the bills. And one of the most common things is, oh, well, this guy overleveraged his property. That’s why he can’t pay his bills. If you buy your property, right?
Your debt service is going to be under 40% of what your gross potential rent is. And so I don’t know if 40% means that you’re overleveraged right. But it’s definitely not like a single family home where people are putting 90 and a hundred percent leverage on it. And then trying to figure out why it’s not cashflow.
It’s not cash flowing because you’ve got too much debt on it. We believe in altruistic investment. And this is a big part of the reason why joint ventures are so important to us because we’re able to be nimble in our deal. But James Bryan, who’s one of my partners. She’s a partner in just about every deal I do.
Um, he’s got this thing about doing good while doing well. Uh, he was on the path and I mean, he was on a tear to pay off his home. And he like, when we started talking about this and the ability to make an impact in somebody’s lives and the environment that they spend the most time he’s like, that actually makes sense.
And he stopped that. Path so that he could have more cash available to buy more property. And so he’s got this goal of positively impacting the lives of 500 people over the next five years. Well, it’s less than that now, but that’s what he was saying about a year ago. And I have this ambition of helping a hundred people leave their jobs so that they can do the things that they’re most passionate about through passive or not really passive, but through income from ownership and apartment buildings.
Um, I believe that owners have responsibilities. I don’t think it’s all about just getting as much money out of the property. I think you need to make sure that you’re investing in a property. Um, one of my mentors, Bangkok Sharman says you got to love on the property. If you love on the property, property, love on you.
I think there’s two types of properties that are out there. There’s one that I call a goose. And so you feed the goose, the goose lays eggs. Yeah. And as long as you feed the goose of Goose X, and then there’s alligator, you feed the alligator and the alligator gives you poop. Right? And so you really want to have a bunch of geeks in your portfolio and minimize the number of alligators you have.
I won’t go through all of these stories, although I think they’re amazing stories. The one that I will use is on that 23 units, the first deal we bought, we were so anxious to get the deal close, that we didn’t notice that there was sewage backing up in the kitchen snakes. There was all the sides. There were stains on the cabinets.
There was, um, a building where a corner and suck, but we didn’t put two and two together until we got through the rehab. And it was like, Hey, there’s something wrong. And then we had to spend 30 or $40,000 pulling out the main drainage pipe and replacing it. What happened was the building song. Uh, caused the pipe to crack and the previous owner never fixed it and we didn’t spend the time necessary in order to do that.
I just say that to say, Hey guys, everybody makes mistakes. And the really, really, really important thing there is, make sure that you’re diligent. You do due diligence and you say, well, how could you miss that drunk? I didn’t know. It was my first time through. I saw all the stuff, but I didn’t connect all the dots.
And that’s why, from my perspective, so important to have somebody with experience and not just Penn experience, but actually experienced as an operator so that you don’t miss stuff that ends up costing you serious dollars. And so here it is. Here’s the, here’s the, here’s the screenshot guys. The 10 reasons why we prefer joint ventures.
Oversimplifications one as a joint venture partner, you get to have input into what the business plan is. The pretty thing about syndications. If you’re not in a GP, is you just get this offering memorandum or deal summary or whatever the sponsor wants to call it. And everything’s figured out it’s got all the returns and it gives you an IRR.
And I know what everybody does is just say, this one has this IRR, this one has that IRR. I’m going to go with the one with the bigger IRR, right? I, I want to be in the sausage making and I, if you want to be active, then I think it’s important that you get into the sausage making you get experience, right?
If you’re in a joint venture and your own enough of the deal, you will get the opportunity to sign the loan, or if you don’t own enough of the deal and you just want to sign the loan, a lot of banks would do that because they like having more people that they can come after than less. You get to be more involved in operational decisions.
Me and my guys, we do meetings. We have monthly reports and quarterly meetings, and we talk through what’s happening. Any other property, we talk about next steps. We talk about what works, what didn’t work. And when, if there’s a big ticket, I don’t, we have conversations about those as well. Um, for me, and this is a personal mission, a lot of people don’t care, but for me, like I, even the son of a soldier and stay at home mom, right?
So like we weren’t wealthy. We didn’t have business owners coming over and hanging out and talking about their multi-million dollar real estate investments at my home. And I want to open the door for more people so that they get access to this asset class, which a lot of people don’t know that they can own.
I think if you go to a city. Let’s call it 2200 unit complexes. There’s probably, um, 200 properties that are under a hundred units in that same city. Probably a lot more. But just to give you an example of scale, right? And so when everybody’s hunting for the same thing, I think it’s super challenging to win.
And I’ve heard stories of people having 30 offers, and then there’s 10 people invest in final. And then it’s down to interviews with two or three. Like, I just don’t know how you win. And by definition, right? If you actually get awarded the deal, you overpay because you pay more than what anybody else was willing to bet it.
And that just doesn’t sound fun. We like to be the only game in town, get the deal under LOI evaluated, make sure that the number makes sense that we made the offer on. And if it does, then we continue. If now we can. Um, again, less full-time competition, which I think is a competitive advantage. Um, we liked the opportunity, given small operators, the opportunity to retire.
We think that, you know, somebody’s done well, that they get the op they should have the, they should have a great exit, right? They’re selling their business. And I guess I haven’t said that yet. And I really should, when you’re buying a apartment building, you are buying a business. You’re not, you’re buying a business that has really stayed attached to it, but the business is really what you’re buying.
And so that’s why it’s so important that you execute that business plan. Uh, people like to put these multi-families in the same spaces, they would a stock or bond. Hey, buy low, sell it high. Well behind those stocks and bonds or particularly the stocks, um, there’s a business that’s operating in that business has to make money.
Well, when you’re a real estate investor, particularly a multi-family investor, That business has to make money in order for the stock price, air quotes to go up. And, you know, you’re not just going to buy the property lowest seller high, unless you’re in a market, that’s having some pretty dramatic cap rate compression.
Um, again, there’s less risks if it goes terribly wrong. That part is important because I think risk mitigation is something that when you’re new to it or early in it, you kind of forget. You just want to go big, get as much as you can grow, grow, grow, and you don’t realize that preservation of capital is the most important thing that you can do.
Um, being in joint ventures, I think explained. Work of operators because you’re able to touch people in different markets. And there’s a ton of camaraderie with this piece of the business. I’m sure there is with limited partners, but when you actually operator you look over and you kind of give the, the man nod, right.
And you say, oh man, you’re a gladiator too. You’re out here fighting. And I truly understand your struggle. And the last one, there’s more backend buyers, right? When you start getting into, and like, I got a ton of respect for Dan Halford, right? Like when you’re doing $50 million deals there’s but so many groups are people that can do deals that big.
And so when you get ready to access it, you know, it’s going to a handful of people where with the smaller deals, you get the opportunity to have a little more competition and have more exit plans is probably the best way I can say it. Um, and so, um, man, I was Spencer was on. The ultimate question, right?
Like, would you rather be on a fighter jet or would you rather be on an Airbus? Right. Spencer was picking at me. He’s like, Hey, which is better a hammer or a saw. And I was like, no, which one’s better fighter jet or Airbus. It just depends on what you want at the end of the day. I don’t think anyone is better, but I just, I think I really do have this contrarian view on not doing the syndication thing, especially for the people who are looking to be business owners, want to grow wealth and don’t just have this idea of, I just want to be a passive investor.
Um, we do three things, right? So we’ve got real estate education company. We actually do operate a portfolio and I do some coaching. Um, and then we’ve got two live events. We’ve got the mid Atlantic multi-family investing class. That’s happening March 19th through 21st of 2021 early bird tickets are available and we’ve got a mastermind for dads because I’m the dad’s dad.
And I really don’t think there is enough emphasis placed on being a great dad and committed partner and building a business is usually all slanted towards building a business. And so we wanted to take a spin on that and give people, uh, a cohort, a group of pack that they could be a part of that those values and I promise free resources.
And so here they are. If you want to jump over to Myers methods.com. You can get our free four step guide talks more about joint ventures and syndication and our approach to multi family investing. And it also talks about the things that you can bring to a deal. I think there’s like three or four different things that you bring to a deal.
And one of them is the actual deal, but there’s a number of other ones. And then the two podcasts that I think are applicable to this group. One is multi-family missteps. We get war stories from operators and the other is the dream catcher response podcast, where we tell the story of people who have escaped the matrix.
And what does that mean? It’s more, whatever you define it. As a lot of people want to do something different than what they’re doing. And I just want to share those stories so that people can actually, um, get inspired and then pull out the tools and tactics and techniques that people have used in order to make that transition.
And so I see the chat moving. I am super curious about what’s in here. So fire away. Yeah. To it. I think there, there, there were a bunch of questions in there throughout the presentation and just wanted to say, thank you very much, Jerome. This is great. Very eyeopening as always thought-provoking controversial, uh, con controversial contrarion as you’d like to put it, but, um, it, yeah, because, you know, you’re raising points that a lot of people don’t talk about and I think it’s really important.
Um, so I really appreciate you coming on. You’re sharing this point of view and really kind of driving home. What, what drives you? I really that’s the most important, and I think a lot of people will relate to that. And the fact that we have almost a hundred people on this call today just just shows, shows you that there are a lot of people interested in this and, um, you know, want to hear different points of view.
So who does everyone for joining? I really appreciate that. And, um, let’s, let’s get to some of these questions. I think there were. There were some questions you have stroll a lot up. And if you do have more questions now, but there were definitely a bunch in the, uh, above. And so we’ll get to as many questions as we can.
And then we’ll break into the breakout rooms obviously. Cause that’s, that’s really fun too. Um, someone said, what are you, what? Let’s see if I can scroll over, you probably beat me to it. I’m not going through it. I’m counting on you. Okay. So I’m doing it. So we’ve got a bunch of fives, a bunch of fours, threes.
I’m just kidding. Um, so great question. Um, really ready. The beginning is, and really I’ll, I’ll stop my question maybe because I didn’t even type it in there. Um, but, and, and Ryan, Ryan BDS a bunch of questions, but I think they were kind of contextual to the presentation. So I’m not sure, uh, some of them weren’t like, why do you think that is right.
But I don’t remember at what point do you, you said that, but the question that I had, so Ryan, if you want to, and type in any other questions there or unmute yourself, that’d be great. Um, the question I have for you is that a lot of people don’t, uh, you know, that are thinking about getting into real estate, they didn’t like what you did, right.
Podcasts. Um, and just maybe started with some small speaking flips, things like that. And then here are these ideas of like these programs. And I think they’re really great because they’re coaching. And like you said, you know, the biggest waste of your time and your biggest one is the fact that you spent so much time, uh, without that proper guidance.
So, you know, there’s always this, this kind of dichotomy of like, well, yeah, this is a cash point too. Yeah. I need that guidance to really get to the next level. But, um, you know, and doing it on my own is not going to get me there. But then a lot of the guidance, people that are out there are just pushing this kind of program.
What do you, what do you say to that? Just take your program and that’s cause you’re different now. Uh, objective, objective answer. And so I don’t want anybody to pay money for something that they don’t need to pay money for. Right. Because in the end, the only reason the program is successful is the students actually get deals done.
Right. And so, you know, that’s why, like, if we haven’t had a one-on-one conversation, you can’t even find the link to take our online course. And if we haven’t had a one-on-one conversation where I’ve interviewed you a few times, or I’ve really gotten to know you, I won’t even take you on as a coaching client.
Right. So for me, there are people who just let it be out there and anybody can buy it and maybe you share it on tape. Maybe you shouldn’t restrict the education for people because they may figure it out. What I will say though, is I personally don’t believe that it should cause a used Mercedes or BMW for somebody to find out whether or not they want to be in this space.
And I always go back to get some tuna in the boat, right. Everybody wants to go out there and chase Moby Dick and get this huge deal. And then there was set for life and that’s not real. That’s get rich quick. What I want you to do is go do a deal. That’s half a million at 1.5, with your friends and family and somebody who else that you know is experienced operator and see if you actually like owning the deal, right.
There is a lot of stuff that comes up that nobody really wants to talk about. That is part of being in a business. Sure. Yeah. Property management deals with a lot of it, but like what happens when 20% of your people move out during COVID or can’t pay and you got to pay all the expenses and there’s still a mortgage to pay.
Does anybody get excited about writing a check to do that? I don’t think anybody does. And so I think you need those experiences so that you know what you’re actually getting two, before you make an investment of that number. The flip side of that Yona is you can go do it on your own and lose a whole lot more money doing it and get on your own because you take poor financing, you miss something and due diligence mentioned, or some of this other stuff, I really see the education and the coaching as insurance for the person that’s doing the deal.
And for me, when I’m working with somebody, it’s really about how do you do this? Well, not telling the person, no, don’t do it because I’m going to say, Hey, that’s not a good deal. There’s a reason why that’s not been bought yet, or don’t buy it at that price. A perfect example. I had a deal that I was chasing here and somebody came in and paid 25% more than what I was willing to.
I worry about that deal on the backside, because I actually know what rents are here. I know what it takes to operate. I know what a renovation budget looks like in order to get it to the place it needs to be. But if you just go do it and you don’t have that experience to fall back on, you can up in a place where you spend too much and you can’t get back out.
Right? So you do a $2 million deal and you get in trouble on that deal. The $50,000 wouldn’t matter if you lose 200,000. And I think that’s the part for me is I think about it like drivers that you don’t want to, you want to make sure that the person doesn’t run into a bridge abutment or run off the road.
You want to keep them in the lane so that they don’t get in trouble. Gotcha. Okay. Makes a lot of sense. Um, next question. And I think you, you, you, you spoke to the point of when people ask, I think that’s where we’ll point. It’s not about the program. It is about the willpower. I know a lot of people who’ve done it and I, I deal with hundreds of investors across the country.
I see a lot of people going through this program and there are a lot of people that are successful it go through it. But I think you’re right to the fact that there’s percentage of people that they’re just not taking the action that will do the work and not really sure why they’re doing the first way.
So that’s probably why they don’t get into their own deals. Um, but again, I think it really comes back to, you know, the person’s own drive. Um, I do want to get to some more, some of these questions. Um, so, so he, Dr. Heath ask the question. Did you have any examples before you exited the matrix? So while you were still working?
No, I had, I did not. I had, um, I had, no, I was just doing fix and flip hard money loans. Gotcha. And what, um, I guess the followup question was, and I just accept the chapters of losing him, but. What, what, what should people have in place before quitting your job? And I guess that’s it, that’s a tough question,
but what do you, what do you have to say about that? Yeah, if they go to Myers methods or not, my, the dreamshouldbereal.com. We’ve got a 15 point checklist for people. What things that we found people should have in place before they exited the matrix. And so it’s everything from money in the bank to access to credit lines.
Like we run down through 15,
right. Um, um, uh, on top of the meeting, go ahead. I said, so dreamshouldbereal.com and I’ll put it in the chat. Right. But this goes with the right down the line of dream catchers. Um, But if you go there, we’ve got a 15 point checklist and it goes through everything from the conversations that you need to have with people that are going to be impacted money.
That’s how much money you should have in the bank. Access to the credit lines, a bunch of different stuff. And for me, that is like super, super cool, because if you go out and you’re not prepared, then what you end up doing is going right back in. And I call it like running back out the desert. It’s not fun when you’re starting from scratch.
And one of the other things is just figuring out how you’re going to make revenue. If you don’t know how you’re going to make money, or you’ve never had to sell before and now you’re going out and you have a business. If you don’t have any revenue coming in, you’re going to be in trouble. When you’re trying to replace that income, that’s going to take care of your bills.
And if you not living off a budget and you’re trying to leave, you’re in trouble already, you’ve got to run your personal finances the same way you would run your business plan.
Um, so I think someone asked me in privately, but, um, I think it’s a more relevant question. Maybe not. Let me, let me get to some questions bursts. So, okay. Jefferson asks you a question for a JV deal that is remote to the market. So you talked a lot about being the one in your market, right. And just investing in your backyard.
And I think that’s, you know, for what you’re doing is the best way to go about doing it, but he asked about what about when you’re investing out of state, you’re investing outside of your market? Uh, what do you think is a good responsibility that our partner can do that the partner can do knowing they’re remote in that area?
And how do we say that you’re partying with the right local JV partner. Okay. This is tough questions. Really? Yeah. So from a partner standpoint, I will say guys, don’t, don’t diminish this. You’re getting married. And you may have a prenup, but you’re getting married. And so make sure that you actually understand who the person is.
You know, the things that we look for, people not to partner with, everybody’s always wrong. They’re always right. Don’t want to work with them. Um, they are desperate to make money and they’re just trying to figure out how to make fee our values just aren’t aligned there. Um, and I think the other thing is like, They don’t actually see the people that live in the property as people like, they’ve just lost the humanity and they’re just see them as somebody to send them money.
Now, the other piece of that Jefferson, there’s nothing that I do by living in Greensboro that I couldn’t do from Richmond or anywhere else. I just liked the thought it’s part of my identity. Right? I liked the thought of being the asset manager in market. And the only real advantage that I have is let’s say something major happens, say, there’s a fire, say a water main breaks, say there’s something super expensive.
And I want to go put my own eyes on it. A good example is a tree fell. Right. We had a tree fall out of our yard onto somebody else’s duplex. And it’s like, okay, well let me go check on it and see what’s going on. And it’s like, oh yeah, this is no worries. We don’t need to do anything about it. Property manager gives you the updates, but at the end of the day, you know, it just felt good to be able to run over and check that out and know that it wasn’t going to be our insurance claim.
It was somebody else’s issue to deal with, but there’s nothing that I do that somebody like my partners in Richmond, Virginia, can’t do all the reporting’s virtual. Um, all of our meetings are virtual. Like there isn’t really anything that keeps us outside of being able to go tour property and the speed to be able to do that.
Or the level of convenience associated with that is higher just because I’m 20 or 30 minutes away. Awesome. A couple more questions here. Um, was one of the world, but I think it was that it’s all good. What we’ll do. Um, anyone can reach out to Jerome afterwards. Definitely. Uh, I don’t wanna move dinner or anything. To through his website when you put in there. Good question from, from Jim or Alice, Kim from, uh, representing a 10 X, right. Jim works, Ricardo capital.
So I’m glad you’re joining us or Jim, Jim asks a great question. How, uh, are there any networking groups, because you talked a lot about diversity, um, at the beginning. And are there groups that you know of, uh, for people of color that in the real estate space? Yeah. Ju uh, Clive Davis has an amazing group called, uh, I think it’s called, African-American collaborate.
You still here glad was on here. And he’s got a great group on Facebook. Um, Tiffany Ward started a group and I think it’s called more and it’s minority. I forget what the acronym stands for. That’s on Facebook too. Um, outside of that, I haven’t really seen any, what I will say is that, you know, our mid Atlantic multi-family investing.
Has more minority speaking than they do majority. And that’s intentional. I mean, the goal is to give people more exposure to others who are doing the business, but maybe aren’t on a national speaking tour or have their own platform. Um, so the goal is to give more exposure in that regard. And I just think they have fresh messages.
It’s not like super canned and they’ve given it 20 times and they just kinda zone out and don’t listen to what anybody is saying or asking because I’ve seen enough of that. And it’s very frustrating.
Only way to get really good at speaking is by speaking a dozen times, I don’t think you should repeat yourself. And I do think you need to be attended to the audience. I agree with you though. Yeah, no, I agree with you as well. Um, so another good question. Steve asks, how are you connecting with those who are entering the states that he’s Dr.
Benson’s find that with individuals and you allow those people who may have a little real estate sense to be a GP. We’re only passing or we’d be paying a paying customer to jump jets. I think he’s combining different things, right. He’s I think talking about what a regular syndication might look like, um, but go ahead and feel that, um, so the people who come coming to my deal is not because of their profession, right.
It’s because of the relationship that we’ve cultivated and having aligned values for me, it’s about getting to a place where, um, we, we rig success by having aligned values and a shared mission. Um, well, I partner with people who have little experience. Are don’t really understand it. No, because them putting their money in the deal, isn’t that value for me, I’m looking for thought partners.
And so what’s exciting for me is like, we built the thing, right? So you can go through our program so that, you know how that we think about the world and curate the content. So you can go do your own thing, but if you want to stay in partner with us on deals, you’re doing it the way that we do it. And so it allows you to get access to our network and get things done quicker from my perspective.
Awesome. Um, I think last question. Yeah. Quiet. Thanks for putting that in the Facebook. Um, in the chat there have been moves to check out the app, very multi-family investor network group. Uh, how do you know how much is the max and can stand upon it? Um, high is the easiest way to answer this question is the majority of lenders are going to look for the combined net worth of the group.
That’s buying the deal to be equal to the loan amount and post close liquidity of 10%, or yeah, post-close liquidity of 10%. What does that mean? We want say you’re buying a million dollar deal or you’re getting a million dollar loan. They want the people who are in the deal to have a million dollars in net worth would be everybody who signed up for the loan and the a hundred thousand dollars in the bank after you closed the transaction.
And that goes out. If you’re doing a $10 million loan, they want $10 million and a million dollars in cash. And so that’s why this part is like super important. And you’re like, well, I’ve only got $50,000. Well, then you need to partner with people who have more capacity so that you can do bigger deals or you do the deal that you can do execute that business plan.
Get out of that deal and roll that money into the new, bigger deal, because I think that’s really is the game and it is a long-term strategy. I think, I mean, you’ve said this and I think a lot of people say this, but most people getting into real estate don’t realize that real estate is a long term game.
Right. It’s not a get rich quick, um, investment strategy at all. And in fact, I’d say quite the contrary, the real wealth comes after spending a lot of time, many years, um, you know, added consistently. So that’s, uh, yeah, that’s what I was saying. Um, all right. Well, Sterling, thanks for joining us right on time for, uh, just getting, I know it’s it’s Eastern time guys.
We meet every Wednesday Eastern time. We’re um, we are next week. Have a really awesome panel discussion of commercial real estate returns. So get your questions ready for commercial real estate attorneys who are going to be, uh, you’re basically answering any questions that we feel them. So I’m going to be trying or attempting to moderate that, uh, again with the attorneys, not necessarily easy thing to do, but they’re all good people.
So I think we’ll be fine. And, and they’re all actually all four of those attorneys that are getting on the panel or participating in our 10 day challenge a Lieutenant. So that’s cool. It’s kind of a, uh, in-house, uh, kind of thing going on. So I appreciate you guys doing this, joining us once again, then we meet every Wednesday, 7:00 PM.
Eastern time. You got a great plan coming up in the next, um, next thing. Yeah, run next week. We’ll be a real estate attorney panel. So originally, and ask them any questions that have to do with commercial real estate transactions. They’re all transactional attorneys. Couple of them do litigation as well, but I think more from the transactional side.
Thank you for joining congratulations, Jerome grabbing the best turnout we’ve had yet on in the 16 weeks we’ve been doing the, uh, the thing your, your podcast, uh, you know, on wasted advices still have the highest, but I guess if everyone on this call goes and listens to the podcast, wise advice that will get you over the top.
That’s for sure. What are we good? We need to do the selfie. Yeah, we got to do the selfie. In fact, we got like five selfies here because zoom only allows us to, uh, have like 20 people on the screen. It was like 25 people. So turn all your cameras on guys. Cause we’re all gonna smile and say, she’s on camera with me and we’re going to do it.
I think our three times, because like I said, there’s a bunch of different people here. So if you’re still on here and want a smile for the camera, say, geez, what are you pointing at? You? You? Oh my camera. Cause mommy you’re you’re down here. Okay. All right. 1, 2, 3, and give us my a year. Y’all ah, you guys are awesome.
Thank you so much for joining. This has been a lot of fun. We’re going to do it one more time because we love to get everyone in the multiple screenshots, even though I usually post one of them to LinkedIn or whatever Saatchi is the nicest one. Probably the moment you open it. Sorry guys. But you guys feel free to share this.
Um, you know, with social media, tell people about this awesome meet up. Um, they can come and catch the Facebook, uh, live reporting show. Uh, we’ll get to the next, the next time for those people on the second page, you get a nice big smile. Uh, here you guys are awesome. Beautiful. So again, one, uh, we’re going to bring it up.
Great garments. You guys don’t know what that is. The breakout rooms and basically push a button, which is going to split. Everyone was being called by 80 people that are still here and the middle groups of four or five. And we can just get to know each other. Yeah. Um, you know, amongst ourselves and start that process of networking.
The only way we know how in this COVID situation. So a lot of familiar faces, I’m really appreciative to all you that are coming out here tonight, guys, next week as well. The first breakout room, we’ll try new in 15, 20 minutes and there they wants to stay on. We’ll do a second one. If you’re on the Facebook live still, which I’m ending right now, just click the link to get into the zoom room before you can no longer do so.