Posts tagged "property"

JC 083: Finding Your Grit with Keir Weimer

January 22nd, 2020 | no comments

Taking on Big Challenges and Calculated Risks.

Keir Weimer has a passion for taking early-stage ideas to market and growing teams, cultures, and businesses around them. Despite his success today, Keir’s journey was anything but easy. At the age of 23, he was convicted of vehicular manslaughter after causing a tragic boating accident that killed his friend.  Keir had to overcome life struggles and decided to become an entrepreneur.

Today, Keir is an internationally recognized, luxury real estate agent and team leader. He is also a successful real estate and lifestyle entrepreneur, having founded and grown several 7-figure businesses in the areas of luxury brokerage, investment, hospitality development, and now a multimedia company. Keir is considered an expert in these areas and has broken free from adversity with his unique life story. His success has been featured in major global media outlets such as the Wall Street Journal, The New York Times, Bloomberg, and Sotheby’s International Realty.

Keir Weimer joins John Carney today in The Real Estate Locker Room and discusses pulling yourself up from your bootstraps and learning how to list luxury properties.

Key Points:

  1. You will accomplish great things when you put your mind to something, create a mental road map, and are patient.
  2. Find your circle of support. Never give up on the vision and persevere until you reach it. Write it out, make it part of your daily routine, be accountable for it, and get to work
  3. In order to be successful, you must be willing to work through the obstacles and setbacks.
  4. Don’t be intimidated by big challenges. Try, don’t stop just because you don’t have experience. Build a vision, build a strategy that supports the vision, and take a calculated risk.
  5. Tips for getting started in real estate:
    1. Chart out a vision if you want to get started.
    2. Know your skillset.
    3. Find the people with the expertise you need.
    4. Work with mentors.
  6. Personal growth tip: Schedule time to be creative.

Favorite Athlete:

Favorite Books:

Pro tip:

  • “Don’t count time. Make time count.” – Mark Weimer

Resources Mentioned:

Reach Out to Keir Weimer

  • keirweimer.com

Thank you, Keir, for taking the time to share your story and life advice with the audience.

Listen to all the episodes of The Real Estate Locker Room Show and sign up for my FREE monthly newsletter at www.johncarneyonline.com

Connect with John Carney
Facebook: @JohnCarneyOnline
Twitter: @John_M_Carney
Instagram: @johnm_carney

© John Carney 2020

 

JC 079: Your Real Estate Portfolio in Your Pocket with Minesh Bhindi

November 13th, 2019 | no comments

Helping People Build Wealth with Real Estate

Minesh Bhindi has been a real estate investor since he was sixteen years old. He has leveraged his experience and knowledge to consistently achieve massive real estate success.Minesh and his father are the pioneers of a unique no-money down real estate transaction process in the UK. By eighteen, Minesh had completed his first independent real estate deal for three flats in the heart of London’s financial district, which netted him a cash-back on purchase of £68,000 and £250,000 in equity.

Minesh has built three companies to help investors implement the strategies that he has learned and successfully applied to acquire real estate, stocks, and gold and silver as income-generating assets.

Minesh Bhindi joins John Carney today in The Real Estate Locker Room to help us understand REITs and how to use them.

Five Key Points:

  1. The more you are prepared to walk away from a deal, the more it seems to chase you. The more real estate deals you have, the less attached you will feel to one particular deal. When you take the timidness out of your negotiation, it gives clarity to all of the parties involved.
  2. Diversify your real estate portfolio! Your investment doesn’t have to be a large multitude of physical properties. You can diversify in stocks and REITs and manage your real estate portfolio from your phone.
  3. Invest in REITs (Real Estate Investment Trusts) that are managed by proven experts that give investors a double layer of protection.
  4. Real estate is a great vehicle for investing. If you invest correctly, your investments will bear fruit. You need to own at least a few physical properties (brick and mortar) but also know your objective and how you want to use your investments. Then partner with someone who has experience and expertise.
  5. Suggested practice to stay focused in life and work: transcendental meditation and Cuban cigars.

Favorite Sports:

  • Soccer

Pro tip:

  • Start. Most people won’t start. If you are sitting there and not doing anything… that’s the problem. The quicker you can get to the starting point, the better it will be for you.

Reach Out to Minesh Bhindi

Thank you Minesh for taking the time to discuss diversifying your real estate portfolio with the audience.

Listen to all the episodes of The Real Estate Locker Room Show and sign up for my FREE monthly newsletter at www.johncarneyonline.com

Connect with John Carney
Facebook: @JohnCarneyOnline
Twitter: @John_M_Carney
Instagram: @johnm_carney

© John Carney 2019

 

 

 

JC 074: The World’s 1st Landlord Scientist: Al Williamson

September 4th, 2019 | no comments

Make a Difference in Your Community

Al Williamson is a professional engineer, full-time real estate investor and the author of several real estate books. His real estate investing career began in 1996 and Al best known for publicly documenting his quest to create enough secondary income streams to cover the 1st mortgage of his eight-unit apartment building (which he accomplished in September 2015). Al is a proud family man who now spends his day managing and expanding his corporate housing business in Sacramento, California.

Al Williamson joins John Carney today in The Real Estate Locker Room to unpack how to invest in your community.

Five Key Points:

  1. Exercise leadership over a troubled neighborhood. Take an active approach to invest your time, experience and money into the community.
  2. It takes about two years for a difference to be seen in a community. You will make great things happen if you focus on connecting the dots for a specific need and are consistent.
  3. The size of your portfolio doesn’t matter as much as the amount of your net income.
  4. Learn how to increase the net income of your rental property in ways other than annual rent increases.
  5. Experiment and try new things. Make mistakes and learn from them.

Actionable Items:

    1. Use one internet account to blanket the whole property with a fiber optic network. It creates savings for everyone.
    2. Storage on your property can be made available to both tenants and non-tenants.
    3. Add bio friendly wastewater treatment products to break up clogs and that preventative measures to your plumbing.

Favorite Sports:

  • Gymnastics

Favorite Athlete:

  • Jackie Robinson

Favorite Books:

Pro tip:

  • If you’re interested in working at a higher level, network your way to a higher level of friends.

Resources Mentioned:

  • Think Up (app)

Reach Out to Al Williamson

Thank you Al Williamson for taking the time to discuss community leadership and thinking outside the box with the audience.

Listen to all the episodes of The Real Estate Locker Room Show and sign up for my FREE monthly newsletter at www.johncarneyonline.com

Connect with John Carney
Facebook: @JohnCarneyOnline
Twitter: @John_M_Carney
Instagram: @johnm_carney

© John Carney 2019

JC 041: Lead Generation 101 with Tom Cafarella

March 7th, 2018 | no comments

How to find sellers in any real estate market

Tom Cafarella is a real estate investor, coach and the owner of Ocean City Development, a real estate firm that puts the needs of their clients first. Before becoming a real estate investor, Tom was on track to becoming a doctor, a profession he chose because it was the most lucrative at the time.

Tom was focused on completing his medical degree when he picked up Robert Kiyosaki’s “Rich Dad, Poor Dad” audio book. He realized that his career path in medicine wasn’t the right fit for him. Tom quickly pivoted, changed degrees and turned his attention to business and accounting. His post college accounting career path was short lived when he was fired for daydreaming (researching real estate). Tom jumped into the real estate game and began taking massive action to make ends meet.

In this episode, Tom shares the story about his entrepreneur’s journey into the real estate industry and the many obstacles that he had to overcome along the way. He drills into why it’s important to do what you love and why you shouldn’t lie to yourself when it comes to choosing a career. Tom reveals his tricks to finding qualified sellers as well as provides examples of how to always stay one step ahead of the competition.

Three Marketing Strategies for Real Estate Lead Generation

  1. Mailers – Be consistent. 3000 to 10,000 letters to get that one big deal.
  2. Cold Callings – Build a list and continue to call your database.
  3. Internet – Google pay-per-click and Facebook adds. Hire a professional.

Five Key Points:

  1. The harder the task, the less competition you will have.
  2. The first step in a new venture is always the hardest.
  3. Our number one job as investors is to find opportunities and take advantage of them.
  4. There’s no direct career path to real estate investing and that is why guidance from a mentor is necessary.
  5. Most new investors make the mistake of having a preconceived notion of what it should take to get a good deal

Favorite Sports:

  • Basketball and Football

Favorite Athlete:

Favorite books:

Pro tip:

  • Prioritize your time and complete the hardest task for the day first.

Reach Out to Tom Cafarella:

Thank you Tom for taking the time to share your expertise on finding properties ahead of the competition.

Listen to all the episodes of The Real Estate Locker Room Show and sign up for my FREE monthly newsletter at http://www.johncarneyonline.com

Connect with John Carney
Facebook: @JohnCarneyOnline
Twitter: @John_M_Carney
Instagram: @johnm_carney

© John Carney 2018

JC 029: How to Invest in Land from Anywhere with Mark Podolsky

October 25th, 2017 | no comments
Capitalize and Earn Passive Income by Investing in Raw Land 

Mark Podolsky is known as the Land Geek, a title he’s earned for focusing his business on raw land investing. He’s been in the business for over 16 years and has completed over 5,000 land deals with an amazing average ROI of 300% on cash flips, and more than 1000% on deals sold with financing terms. This is quite the achievement if you consider the first deal he made in 2001 was worth only $3000.

Mark says his reason for getting into investing was to simply escape the rat race. Prior to his current business, he was trapped in a state of “no work, no pay” status. Top that with high amounts of stress and not having enough “me” time, Mark knew he had to find a way out fast. Now Mark barely works 5 hours a week, and has created his business in such a way that not only is it mostly automated, but also manned by a great team with the same vision he possesses.

Five Key Points:

  1. Aim to reach the point where you spend less time working IN your business and more time working ON the business.
  2. If we don’t pay for something, we typically don’t value it very much.
  3. The neighbors can be your built-in best buyer.
  4. Selling lands allow you to be free from renters, rehabs, renovations, or rodents.
  5. The primary benefit of selling raw land is you have a massive market and only few are doing it.

Favorite Athlete:

Favorite books:

Pro tip:

  • If you’ll do for the next 3-5 years what other people won’t do, you’ll be able to do for the rest of your life what other people can’t do.

Reach Out to Mark Podolsky:

Free Gifts:

  • Email Mark at support@thelandgeek.com with the subject heading “real estate locker room” or “John Carney” to get your passive income launch kit for free.

Thank you Mark for taking the time to share your expertise on raw land investing with us.

Listen to all the episodes of The Real Estate Locker Room Show and sign up for my FREE monthly newsletter at http://www.johncarneyonline.com

Connect with John Carney
Facebook: www.facebook.com/JohnCarneyOnline
Twitter: @John_M_Carney
Instagram: @johnm_carney

© John Carney 2017

JC 028: How to Make Private Money Work for You with Jay Conner

October 18th, 2017 | no comments

All You Need to Know About Private Money

How to Make Private Money Work for You with Jay ConnerJay Conner has been in the real estate industry for over 14 years and is known as an expert in private money lending. He has over $52 million worth of real estate transactions under his belt and runs a fully automated business, allowing him to manage his company working not more than ten hours a week, earning no less than a seven figure income.

Jay’s road to becoming a private lending expert started when the bank cut him off during the crash of 2008. Desperate to salvage deals, he was forced to learn how to raise private funds less than two weeks after being cut off. He did his research and was able to create a system that combined the best aspects of all that he learned. His ordeal became a blessing in disguise in the end, as his system was able to raise over $2 million in less than 90 days in private funds, stating the first person he approached handed over $250,000 in private money. It blew him away to realize that his system worked the way it did and raising private money wasn’t entirely complicated as he imagined.

Needless to say, his private funding accomplishment has only helped his career reach new heights and to this day, Jay credits the banker who cut him off.

Hard Money versus Private Money

Hard money

  • Hard money lenders are mostly brokers.
  • They go out and raise money from individuals.
  • Average interest rate on hard money is 14%
  • Origination fee is 4 points.
  • They won’t advance more than 80% of the purchase price.
  • They will check your credit.

Private money

  • A private money lender is an individual that loans money out from their investment capital or retirement account.
  • Interest rate is 8%, no points, no renewal fees.
  • 100% of the purchase is advanced when you buy,
  • you can get 125% of the after repair value when you buy.
  • They won’t check your credit.

Five Key Points:

  1. The number one thing that keeps real estate investors from moving forward is not having the funding for the deals.
  2. Private money puts you in control.
  3. The most dangerous number in any business is one: having eggs only in one basket.
  4. Only 13% of for sale by owners will sell in some creative way, the other 87% just want all the money.
  5. The great thing about private money is you can use it for commercial investments too.

Favorite books:

Pro tip:

  • Do not run a to-do list. Successes are scheduled, so schedule what you want to get done.

Reach Out to Jay Conner:

Free Gifts:

Thank you Jay for taking the time to share your expertise on private money with us.

Listen to all the episodes of The Real Estate Locker Room Show and sign up for my FREE monthly newsletter at http://www.johncarneyonline.com

Connect with John Carney
Facebook: www.facebook.com/JohnCarneyOnline
Twitter: @John_M_Carney
Instagram: @johnm_carney

© John Carney 2017

 

JC 026: How to Become a Cashflow Ninja with M.C Laubscher

September 20th, 2017 | no comments

Eliminate the Control That Banks Have Over You

JC 026: How to Become a Cashflow Ninja with M.C LaubscherM.C. Laubscher’s a wealth architect and strategist, educator, and financial freedom fighter. He’s the President and CEO of Valhalla Wealth Financial and creator and the host of the popular business and investing podcast, Cashflow Ninja.

M.C.’s mission is to help as many people as possible eliminate the control that banks and financial institutions have over their lives by building their wealth in a variety of ways outside of Wall Street.

He believes the best way to achieve this in the Information Age is by reclaiming the banking function in your own financial life through the structuring of an efficient cash flow management system and creating and building assets that provide multiple streams of income. This is how to eliminate the control that banks have over you.

M.C. teaches actionable education to his listeners and helps his client’s collapse time in their wealth plan and achieve 40 years of financial results in 10 years or less.

M.C. challenges existing societal belief systems and misinformation around concepts such as money, saving, investing, wealth and retirement.

The 3-Question approach towards achieving financial freedom:

  • What do you want? What do you want in life with your health? What do you want with your money and your investing? What do you want from the relationships in your family?
  • Why do you want it/why does it matter? For clarity, you have to know the reason why do you want it and what do you want.
  • Who do you need to become in order to get what you want? Customize and design processes and systems get you to where you want to go.

Five key points:

  1. Before investing you need to recruit an A Team / Power Team in every area that you require help. Then you must customize and design processes and systems that will keep you on track to go exactly where you want to and what achieve what you want.
  2. Whether you’re looking to become a real estate investor or looking to take your portfolio to the next level, there’s art and science in creating financial freedom and in creating the laws that ensure financial freedom. Science is the way to figure out exactly how to get there and the art part is deciding where your interest lies.
  3. A real business is about solving problems for other people and creating outcomes for clients or customers. Products and services are just vehicles for solving problems and creating valuable outcomes.
  4. Every investor must have the skillset of analyzing data, analyzing investments and understand how to analyze a property deal.
  5. In real estate investment it is important to understand who are you trying to serve so that you can determine the approach, strategy and tactics.

 

Favorite athlete: Joel Theodore Stransky – Famous South African rugby player.

Learn about the game of rugby union here: https://en.wikipedia.org/wiki/Rugby_union

Favorite books: The Creature From Jekyll Island by G. Edward Griffin

Pro Tip: Set a target and be crystal clear about what you want in the next quarter, the next six months, or the next year.

Check out the Cashflow Ninja podcasts – http://www.cashflowninja.com/podcast and reach out to M.C. direct – info@cashflowninja.com

Thank you M.C. for taking the time of your schedule to share your story and cash flow expertise with us.

Listen to all the episodes of The Real Estate Locker Room Show and sign up for my FREE monthly newsletter at http://www.johncarneyonline.com

Connect with John Carney
Facebook: www.facebook.com/JohnCarneyOnline
Twitter: @John_M_Carney
Instagram: @johnm_carney

© John Carney 2017

 

JC 025: 3 Keys to Real Estate – Scale, Value and Risk with Ike Mutabanna

September 13th, 2017 | no comments

Learn how to penetrate new real estate markets

JC 025: 3 Keys to Real Estate – Scale, Value and Risk with Ike MutabannaIke Mutabanna is a real estate entrepreneur and the president of Dallas, Texas based IHM Business Group. Ike also hosts the successful podcast, “The Side Business Show,” where listeners learn how to grow their wealth through running a wide variety of side businesses.

Over the last 15 years Ike has spent time as co-founder, president and CTO in a variety of startups and turnaround companies. He’s originally from India where he attended the University of Bombay, India and earned his BE degree. Ike also has a MS degree in Engineering from the University of Cincinnati.

Ike is an active commercial real estate investor and multifamily syndicator. In his downtime you will find Ike pursuing his newfound passion for mountain climbing, having recently started training for technical climbs on rock cliffs.

The 3X advantages of syndication versus single-family investment:

1) Risk diversification is much better in a ten-unit apartment building versus three single-family houses.

2) Economies of scale is better in terms of net income. The more net income allows you to hire property managers, allowing you to focus your time and energy on further investments.

3) Value appreciation – you have the ability to force appreciation with creative strategies to increase rent and overall income and push the value of your properties.

Five key points:

  1. When investing instate you have the definite advantages of knowing your local market and the ability to study that market in depth, without needing to rely on other people to relay information. You can easily build networks by attending meetups and creating partnerships.
  2. When investing out of state it is essential to take the time to build a trusted and solid team before proceeding with investments.

 

  1. Take advantage of your opportunities when you are investing instate: visit neighborhoods personally, study the local markets, take detailed notes and photos of different neighborhoods and create a thorough database which you can easily refer to when looking into new investment opportunities.

 

  1. Multifamily syndication provides the opportunity for much larger scale where investors can achieve larger returns on their investment

 

  1. It is important to find an activity outside of your business that inspires you and that will assist in training your mind and help you maintain an energetic and motivated state. You then transfer that energy back into your business.

Favorite athlete: Sunil “Sunny” Gavaskar – Famous Indian cricket player.

Learn about the game of cricket here: https://en.wikipedia.org/wiki/Cricket

Favorite books:

Favorite quote: “When you want something really, really bad and you take the action to achieve it, the universe comes together to help you achieve it.” The Alchemist – Paulo Coelho.

Check out The Side Business Show podcasts and contact Ike here: www.thesidebusinessshow.com

or podcast: thesidebusiness.show

Thank you Ike for taking the time to share your story and business insight with us.

Listen to all the episodes of The Real Estate Locker Room Show and sign up for my FREE monthly newsletter at www.johncarneyonline.com

 

POST GAME REPORT: Episode Transcript

JC 025: 3 Keys to Real Estate; Scale, Value and Risk with Ike Mutabanna

Learn how to penetrate new real estate markets

Announcer: Welcome to the, “Real Estate Locker Room Show” with John Carney. Did you know investing in real estate is a team sport? Join John and his guests as they explore the business of real estate and athletic competition. The goal for this show is to grant you direct access to the real estate pros that are closing profitable deals and growing their businesses. On the “Real Estate Locker Room Show” we are getting in the ring with successful investors, developers, operators, and all of the industry professionals to learn what it takes to achieve on-going success. Now it’s time to kick-off and level up with new ways to grow your real estate business.

John Carney: Welcome back to the Real Estate Locker Room Show everybody. I’m your host John Carney, coming at you from my office here on the sunny Westside of Cleveland, Ohio this fantastic Monday afternoon in the month of August. We are going to be talking to a real estate investor and entrepreneur Ikbal Mutabanna, who is on the line and joining us in The Locker Room from Texas. But before we get into that I just want to remind you: the purpose of The Real Estate Locker Room Show is to help you as an investor or a real estate professional who supports the industry in some capacity, or someone who’s looking to break into real estate — we really want you to be able to: number one, recruit the best team of professionals that you can to work with you; to position yourself for success and really elevate your real estate game.

The person who we’re going to be talking with has definitely done that. We met through networking. Here you go, I’m up in Ohio and being connected to Ike and his business partners from Texas and Colorado. So that is just a matter of being in the game and participating in networking events I suppose. But anyways, welcome to the locker room Ike.

Ike Mutabanna: Hey, thank you John. I’m excited to be here.

John Carney: Yea. I’m stoked to have you. So, let me just let the audience know a little bit about you. Ike is his nickname, but Ikbal Mutabanna is the president of IHM Business Group. His previous business ventures include strategic technology services, commercial real estate syndication and multifamily acquisition. Ike is also the host of a podcast called The Side Business Show, where listeners learn how to build wealth through a variety of side businesses, regardless of whether they are full time employees, stay at home mums or students.

Previously, Ike spent 15 years as co-founder, president and CTO in a variety of startups and turnaround companies. He earned his MS degree in engineering from the University of Cincinnati and a BE degree from the University of Bombay in India. Ike enjoys mountain climbing and has recently started training for technical climbs on rock cliffs. He lives in Dallas, Texas with his wife and two beautiful children.

Alright, so let’s get into it Ike. Not only are you an entrepreneur on the technology side and experienced business operator, but you’re also a real estate investor.

Ike Mutabanna: I am.

John Carney: Well, before we get into everything that you’re doing real estate related I like to warm up on the show and just get the conversation going with a few sports related questions. Do you have a favorite athlete that you looked up to as a kid?

Ike Mutabanna: As a kid, that’s a good question. Yes, there was actually. The only caveat that I will say John is that, because I grew up in India, some of the sports played there are different than the sports that we are familiar with in the U.S. So you being — having lived in Australia you’re probably familiar with cricket and field hockey.

John Carney: I am definitely familiar with cricket and my wife is a huge fan, so I’m into the test match cricket.

Ike Mutabanna: Right, right. So as far as cricket is concerned, there was a very famous — so cricket, for those of our listeners who don’t know what that is, it’s a game very similar to baseball, just a slightly different shaped bat and a ball that is made of living material, and a few different rules.

But we have an Indian player when I was growing up by the name of Sunil Gavaskar, also known as Sunny, who scored the highest number of runs in cricket at that time. He was later, of course, his records are broken about 15, 20 years later, but while growing up he was my idol in a sense. Not just for the game but also for his sportsmanship and his gentlemanly conduct in everything he did.

John Carney: You know, for the audience who — I know we have global listeners out there — but for the audience here in the states or North America who’s not familiar with cricket, it is a gentleman’s sport. But don’t take that as — these balls are travelling incredibly fast right at you. And they spin, right?

Ike Mutabanna: Yea they spin. I mean the spin is I think far more than I’ve seen in baseball, just because of the fact that it also bounces before it hits the batter.

John Carney: I just don’t see myself getting padded up and in the nets in front of a fast bowler anytime in my life.

Ike Mutabanna: Yea, I’ve done that, I’ve been hit quite a few times so I like the field now.

John Carney: So, you grew up playing organized cricket when you were living in India?

Ike Mutabanna: Well, it’s interesting, even though cricket was a very prevalent game in India, it still is, in fact, it’s considered to be the second biggest religion in India, after Hinduism. The reality is when I was growing up, India was actually the champion in world field hockey so that’s the game that I played most when I was growing up.

John Carney: Which, now you’re in North America, and it’s really, we’re an ice hockey culture.

Ike Mutabanna: We’re an ice hockey culture, exactly. So I watch ice hockey, it’s similar. Different enough that I don’t necessarily follow it anymore. But yea, that was I think my passion all the way until college and then it fell apart once I left college.

John Carney: Alright, well thank you for sharing that history of growing up in a foreign country with our audience and bringing a new sport to the forefront of the conversations we have here in The Locker Room, and we’ll make sure that we link in plenty of stuff related to Sully and cricket in the show notes.

Alright, so real estate: we were talking when we met here in Cleveland about your past work experience. You lived in Indonesia and worked in technology startups and now you’re here in the United States. You went to school in Ohio and got an advanced degree and real estate is something that you’re pursuing.

So why don’t you give the audience the ten-thousand-foot view of what you do in the real estate game?

Ike Mutabanna: Sure. So I started real estate in a very small fashion about three or four years ago. I used to live in Boston, Massachusetts and, you know, like most people in this industry who first — who are not from real estate backgrounds — their first instinct is to go buy a single-family house that they can rent out. Or a duplex. And that’s pretty much what I did for a couple of years. Never really made that much of a profit from doing that, because generally the financial economics of that doesn’t work out too well. Your vacancy can hit you if you have vacant periods, when there’s turnover of tenants you tend to then get hit by all of the changes and the maintenance things that you have to do in the house. So I never really took it very seriously.

But about a year and a half ago, when I had moved to Dallas by then, I got introduced to our common friend actually, Joe Fairless, who is big in the multifamily apartment building business. And that really intrigued me, because of the economies of scale in that business. So I started studying it, I invested in a couple of those last year, and as I started doing that and studying the markets really well, it became apparent to me that that is really where real estate can achieve the kind of scale and profit and goals that you can strive after, right? Where you’re not going after the small little peanuts that you can get in the single-family world, but you’re really going after something that can build generational wealth. So that’s what intrigued me. I started going after it. And then really entered that full time at the beginning of this year.

So since then I’ve been working on syndication for large apartment complexes in DFW. I’ve got about three that I’ve invested in so far, and around the time that I started looking at expanding that portfolio is when I got introduced by my partner in Colorado to Cleveland. It just so turns out that his family is in Cleveland and we started just hearing this little buzz about Cleveland from a bunch of different sources. So that’s what brought us to Cleveland, that’s when I met you John and since then what I’ve been doing is working on expanding the network of people that we know in Cleveland, and trying to figure out how I can put in place all of the different players I need in order to be successful in the Cleveland market, considering that I’m going to be an out of state investor.

John Carney: Right, and that is — let’s talk about that. You’re in state in Texas. Are you in city? Are you in Dallas or are you looking at markets outside of Dallas?

Ike Mutabanna: Well, so far, I haven’t looked at markets outside of Dallas. The Dallas Fort Worth Metroplex itself is so massive that you can easily consider it to be equivalent to three or four different cities all meshed together. So there’s just such massive opportunities happening here that I’ve not really had the chance to look at other parts of Texas. We did briefly look into Houston, decided not to venture that at this time because, while Houston was attractive say about a few years ago, I think the dip in oil prices hit the economy pretty hard. So that doesn’t mean there are investors who are not in there, in fact there are investors in there who are actually grabbing up properties because they’ve gone done in value. I just don’t play in that particular niche. My goal is to play in the niche of looking at really stable class C plus or B type properties where we can really work on doing some amount of repositioning, but largely focus on the cash flow aspect. So we haven’t really done into Houston.

We looked at San Antonio, the market felt a bit too small but I haven’t ruled it out. In fact, just last week made a really good contact there and there’s a potential that San Antonio might be on the horizon. I did meet another person who started investing in San Antonio from California. So clearly there’s interest in that market as well.

John Carney: Yea, so. I suppose — I didn’t mean to cut you off.

Ike Mutabanna: That’s fine.

John Carney: The question that’s sort of coming to my mind is, not only are you — you’ve moved around in the United States, so you’re establishing a business in multifamily real estate in your home town at the moment, which is Dallas, right? And then you’re also looking to other markets.

So whether they’re in state or out of state, let’s talk about how you went about recruiting your team locally, and then how that translates into how to be time efficient and find the right people in another market. Because this is an important message that I’d like to get across. And I believe that you’ve got the experience to give the pro tips on how to achieve that.

Ike Mutabanna: Sure. So there’s a substantial difference between investing in state and out of state. What happens is, in in state, as I started becoming familiar with the market, really studying the market, the ability for me to be on the ground made it much more of a favorable situation, where I did not necessarily have to depend on others to confirm things for me. If I heard of a particular neighborhood which was on the upswing and there was some good developments happening there, it would be a 15, 20-minute drive for me to get out there, park my car, walk around, really study the neighborhood in detail. And I have a habit of making lots and lots of notes. Every time I go to a neighborhood I’ll sit down and I won’t carry too much, I’ll just carry my phone with me. I enjoy using Google Keep. So I’ll just start making notes, I’ll take a few photographs.

But I’ve built up a huge databank of notes of a lot of the neighborhoods in the Dallas area. And that’s something I can do on an ongoing basis, which is really helpful because that means when I get an opportunity presented, or one that I’m looking at, I don’t necessarily have to depend on a pro-forma or someone else telling me what is the potential of an area or not.

But when you go to out of state, you no longer have that luxury, right? Unless you’re willing to fly down like two or three times a month. You really don’t have the luxury to go and do that on a regular basis.

So the big difference between how I’ve been able to do things in Dallas versus when I’m targeting a place like Cleveland, is that in Dallas I’ve done a lot of the groundwork myself and now I’ve spread the word, I’ve gone and attended meetups, which again, something I can do when I’m in state but I cannot do when I’m out of state. And I’ve made a lot of contacts. I’ve also made — I’ve created partnerships with larger firms, people who are much bigger than me in this industry, and many times, rather than finding my own deals, I go participate in their deals.

Interestingly, one of the companies I partner with, they actually are not in Dallas themselves, even though one of the partners is originally from Dallas. So when they get deals it’s easy enough for me to go validate their underwriting and all of the assumptions they’ve made, to make sure that I’m comfortable with it. Again, something not so simple to do when you’re out of state.

So as far as Cleveland is concerned, we realized early on that the only way we were going to be successful is if we spent the time upfront in building out a solid team before we even took the first step of identifying and trying to evaluate a property. So in fact, to be honest, I haven’t evaluated a single property so far, from an underwriting perspective in Cleveland. All I’ve been working on is just a slow, patient process of talking to people in Cleveland, finding the right set of partners in every different area that I need. So whether it’s property managers, whether it’s brokers, whether it’s lenders, title insurance, CPAs, lawyers. We’ve just been going methodically one by one talking to people.

I did visit Cleveland for about a week, which is when you and I were able to meet up, thankfully. And that was a very instructive week because again, as I said, because of the fact that in state, while you get a really solid lay of the neighborhoods, you can’t depend on a map or someone telling you something to realize what works and what doesn’t.

While I was in Cleveland, as an example — I’m sorry if I’m rambling, do stop me so that I can focus in a particular direction you might want John — but as I was looking at the area near Case Western Reserve University, what we found was, literally after crossing three streets there was dramatic change in the nature of the neighborhood. It went from a neighborhood where I would consider under my strategy a very desirable area to buy a multi-family, to a neighborhood where I would want to stay away. And in fact we encountered police cars, when we went up and talked to them and the police officers told us to stay away from that section. We’re talking about a few streets, we’re not even talking about an entire neighborhood changing. So that’s a big disadvantage that out of state investors are going to face when investing in an area that’s not in their backyard. And it’s very important to do some groundwork but then build a really, really superb team that they can over time depend on.

John Carney: Right, you definitely want your boots on the ground, reading from the same sheet of music as you, and you want their marching orders to be clear. So I’m familiar with the area around Case, and I’ve scouted it out, and literally, you come across the wrong side of the tracks are the wrong side of the tracks.

Now I’ve done similar work to yourself, I invested and built a business around Phoenix, Arizona, based on a solid team and good relationships and limited knowledge of the area, and was successful and loved that market. But you have to have — in our case it was an investor who was also a real estate agent was our go-to guy. And he would be the first one to tell you, “No, that side of the street is no good, this side of the street is great. And I’ve got three houses here on this side of the street. Would never buy something on that side of the street.” So, that’s all sound advice as far as pros and cons for looking at your home town versus out of town. And then talk a little bit about the syndication. How does that look if I want to invest with you? Give the audience a little bit of: I wake up in the morning and work on this so that I can buy a building with this many doors.

Ike Mutabanna: So I think one of the factors about syndication is the economics of it, right? I work on syndication in the DFW area, primarily on really large properties. So mostly which is 100 doors or more. What that brings in is the kind of scale where you can not only achieve much larger returns on your investment, but you can also drive a much better return for your investors.

So one of the goals we try and do is that we try and ensure that we can return a certain amount of cash flow back to investors which we give them as a preferred return, and our goal is to try and beat what they would have got from alternative sources. So when most investors, sophisticated ones, when they talk to us the first thing they’ll say is, “Why can’t I just put this in a hedge fund or put this in an XYZ mutual fund where I can easily get 5, 6 or 7 percent returns?”

The argument that we have to be able to provide them is that not only can we exceed that, but the fact is that this is being backed up by a hard asset. So it’s very important for that to be an asset that is truly valuable.

Now many investors, when they get into syndication, there’s a different strategy that people will follow, right? Because of the fact that we follow a very cash flow driven philosophy, we don’t necessarily look at appreciation from a very wide angle. We don’t go after really large appreciation. So we stay away from properties where there is speculation that there might be five, six, seven times growth. Usually what happens in those cases is that either the market is severely undervalued because of some reason that we don’t necessarily know yet, or it’s in a neighborhood where there is a speculative element telling you that appreciation is going to happen but you have no way of knowing.

On the other hand when you go to a more conservative underwriting technique, where you say that we think we can get 2x or 2.5x multiple on this property, but we can drive 10% cash flow returns, well now that becomes very attractive. Because we’re not promising you that for every 50k you put in you’re going to get 150 or 200k back, but what we are saying that is that on a yearly basis we’re going to be able to return 10% back to you, which in most markets is a fantastic return. You know, you’ll be lucky if in certain places you can get even five or six percent, which usually matches what aggressive investors can get in the stock market or in hedge funds.

So our syndication philosophy is very much driven around finding properties that are larger scale, 100 plus doors, in fact almost every one I’ve done is 200 plus doors. And where we can — our underwriting can be conservative enough that we can promise, not promise, but rather where we can project, very conservatively, that we can return the capital with ten percent returns on a yearly cash basis, as well as potentially reach a 2x multiple.

John Carney: That all makes sense to me. And I’ll sort of come back at you with my summary. My question being, do you bring improving the property and raising the rents, right? You didn’t mention that, but is that part of your overall strategy?

Ike Mutabanna: Absolutely.

John Carney: Okay.

Ike Mutabanna: Absolutely. That’s always part of the strategy John. The extent to which you can achieve that can vary, our goal is always to find properties that are — where the rents are some percentage below what the market can bear. And one of the things that we try to keep in mind is that when we project our financials on the basis of doing the rehab and the renovations for repositioning, that we’re not projecting that we’re going to go try to match the market, we’re just going to try and improve the rents to come close to the market but still stay below. Because that’s what insures that we’re left with some buffer to deal with market fluctuations.

John Carney: So to recap: you’re finding units, your sweet spots, plus or minus 200 doors. You’re not trying to set a record in that area for the highest rent, what you’re trying to do is find undervalued properties that are undervalued by rent and fix those up and improve the multiples so that your investors get a preferred return and then you can scale the business model by replicating it. Would you say that’s accurate?

Ike Mutabanna: That’s a great recap.

John Carney: So we just acquired a large asset. It was a complex capital stack. Having a seat at the table through this entire process from the day we first went and looked at this building, until where we are now, under construction building 29 units out. That’s almost coming up on a year for the work.

But I would throw this back out to you and the listeners: once you have been invited into a multifamily deal that’s a little bit more complicated than your standard single family home transaction, you’ll learn that with the right team in place you can go back out and do it again. Would you second that?

Ike Mutabanna: Absolutely. You do it once. The first time is definitely frightening. It’s also really, really hard. I think a lot of people under — they don’t realize how hard it can be to convince investors when you’re doing it for the first time. But once you’re over that hurdle; you’ve learned the business; you’ve learned how your entire process flows; you’ve learned the language, you’ve learned how you’re able to communicate with investors, what you can and cannot say. It starts becoming a lot more second nature to you the next time around. And you just get better every time. And you keep learning as well.

John Carney: So let’s carry that thought on and — I’m going to pick your brain here for just another couple of minutes before we wind this up — but three tips that you could give a listener or someone who, if you’re approaching an investor, what would be — sorry I’m a little all over the shop.

I’m just going to pick a number out and say $50,000, or maybe I’m too high, maybe $25,000 can get you a seat at the table. Talk about the three advantages of being in real estate through the syndication model. Especially if this is something that you want to pursue as a career. You have to get started and you have to learn somehow. So why not get started now with someone like yourself? So what are the three advantages that you can offer up to the listeners that would say, “Hey, think big, play big and this is why?”

Ike Mutabanna: Sure. So I would say that the first thing is almost self-evident, which is the economies of scale. There is absolutely no chance that in the single-family world you are going to achieve the kind of scale that you can achieve in multifamily. And the scale goes in many different directions, right? It’s not just in terms of the net income that you can derive, but it’s also the risk. When you have three single family houses versus a ten-unit apartment building, your risk is diversified in a far better way than when you have those three houses. So the risk diversification.

There’s better economies of scale in terms of net income, there’s also economy of scale in terms of the cost, right? How you manage the cost. Once you start going into larger size properties in multifamily, you find it easier to be able to afford to have property managers who can manage things for you where you’re just more of in a supervisory role. That makes it easier for you to start than once you’ve done one to go to another, because you’re not managing everything yourself. When your single-family world, unless you amass a really large portfolio of maybe 10, 15, 20 properties, you necessarily may not want to hire a property manager to do it for you because that then cuts into the little income that you’re making anyway on those. So those are the big advantages that I would talk about.

The other interesting advantage that you would see in multifamily is that, unlike single family, where the valuation of a single family, which is dependent on the market comps, in the case of multifamily it actually depends on the rental income that you can drive. Which means you can force appreciation. So if you can come up with creative ways in which you can increase rent, you can increase overall income, you can force appreciation in the valuation of that property, which is something that is phenomenal. What other asset can you think of where you can actually decide how much — and as long as, of course, certain parameters are fulfilled where you can push the values up by actively doing things in that property. So I would say risk mitigation, economies of scale and value appreciation. Three really solid reasons why multi family is a far superior asset.

 

John Carney: I love it. Great advice and thanks for coming up with those quickly on the spot Ike. Well I wrap this up with what I like to call the two-minute drill. And these are just a couple of questions I’m going to throw at you rapid fire.

Are you a reader? And if so do you have a favorite business book or non-fiction book that you’ve read more than once or you made some notes in that you keep on your desk and refer to from time to time?

 

Ike Mutabanna: Yea I’m a reader. A very avid reader. I’ll mention two books. One is non-fiction and one is a fiction but which has a lot of — it’s really influenced me a lot in my business life. The non-fiction is a very old book by Dale Carnegie called “How to Influence People.” Really old book, some of the things in there might sound outdated, but the underlying principles are really solid. And they relate to always having what he calls a “you” attitude. When you’re working with someone how do you do something for them is what you should be thinking about, because when you do that, it all comes around eventually.

The other really awesome book that I’ve kept close to me is called “The Alchemist” by Paulo Coelho. Even though that book is a fiction book, it’s usually coded more in the circles of people who like to read books that sound spiritual in nature. It is spiritual and it has helped me from that perspective. But it has also helped me motivate and inspire myself in what I’m doing. There’s a very interesting sentence in there which I’m going to paraphrase. It says, “when you want something really, really bad and you take the action to achieve it, the universe comes together to help you achieve it.” Which I think is fantastic. It’s a phenomenal way to think about something.

 

John Carney: So I’m going to use that in the show notes as your favorite quote. And I like that. I mean, I don’t know, there’s a lot of good motivational sayings that come from business leaders and athletes alike about overcoming the odds and the obstacles, and I think I’m kind of looking back now, some of the people I follow, on my social media threads are quoting the stoics.

So nothing is outdated because guys like Marcus Aurelius were writing this down a long long time ago and it’s pretty relevant to life and business today, right?

 

Ike Mutabanna: True, very true.

 

John Carney: Okay. Well one last question. How do you train for success? You’ve moved around the world, you’re a successful person, you know how to recruit a team. But how does that look like? How do you achieve that consistently?

 

Ike Mutabanna: I think what I try to do is always take up one activity that is not related to my business which I take up as a passion activity. Something that I put a lot of energy and effort into and that usually helps me train my mind to stay in that super energetic state, which then transfers into my work and business as well. So what I’ve recently started doing is — I mean I’ve always been an avid mountain climber, I’ve never really done any kind of technical climbs, it’s usually just been putting on my hiking boots and going with a bunch of friends and trying climbing whatever peaks are accessible. But about a year ago, I started realizing that if I really wanted to scale some heights here I needed to learn how to do technical climbs. And so then I went ahead and joined this local group that does a lot of technical climbs and they have beginner’s groups as well. So I’ve started doing that, it’s very early stage yet, but my goal is within a year’s time to get to a point where I can go climb at least one intermediate level peak in the U.S. which involves some amount of rock climbing.

 

John Carney: That’s a great goal. That’s a highly — you have to be very highly focused and strong to scale intermediate level fixed rope climbs. So I mean, I wish you the best of luck in learning that, and not that you won’t achieve it, but that’s going to be a practice. It takes mental and physical discipline to build up that stamina to be good at it. I lived in Colorado for a number of years, I was never a fixed rope mountain climbing type person. There’s so many sports and activities available out there that that just wasn’t one that I fell into but when I see photos of the people I know standing on top of these spires, it’s awe-inspiring. So that is great, thank you for sharing that.

Alright, well there you have it folks. I truly hoped that you picked up some actionable advice today from my conversation with Ike. And I want to thank Ike for taking the time out of his busy day to join us in The Locker Room. Where can our audience find you if they are interested in following you online or maybe even connecting with you to talk about syndication opportunities?

 

Ike Mutabanna: Sure. I think the easiest way is to go to my podcast website: it’s called thesidebusiness.show. You could also go to thesidebusinessshow.com and it has both my podcasts and also my contact information on it. I’d love to hear from your listeners.

 

John Carney: Perfect. You’ll be easy to find then. Alright. There we are.

Make sure that you check out the Real Estate Locker Room Show on iTunes, Stitcher or Google Play and hit that subscribe button to ensure that you never miss out on the pro tips from our great guests like Ike.

The mission here once again is to help you elevate your real estate game and be successful. If you like what this show is all about, I’d be grateful if you would leave us a five-star review on iTunes, Stitcher or your preferred podcast platform so that other like-minded real estate professionals and people just like you can find us when they are searching for real estate shows.

The post-game report show notes, links and additional content related to this show, specifically to the wonderful world of cricket, will be available on my website: johncarneyonline.com/podcast, and while you are there feel free to drop your email into the newsletter sign up form and you’ll occasionally receive some real estate investing insights, tips, tricks, hacks and useful tools from me.

Remember to stay focused on your goals, have fun and stay in the game. I’m your host John Carney and until next week, please remember to work hard, play hard and profit hard in your real estate game.

One more time, really thankful for you taking the time out of your busy day Ike to share your story of success.

Ike Mutabanna: My pleasure John. Thanks for inviting me.

(Music Out)

End Audio

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© John Carney 2017

JC 024: High Margins and High Returns with David Herrera

September 6th, 2017 | no comments

Cheap isn’t always good for the velocity of growth

The Real Estate Locker Room Show with John Carney

David Herrera is living his childhood dream as a Chicago real estate developer. He lives and breathes real estate and finance and classifies himself a “financial markets athlete.” All profitable real estate development begins with simple math.

David is a full time estate developer and financier with over 12 years of diverse financial services experience across investment banking, private equity, asset management, real estate development, structured finance and the is principal of The Golden Mean Group Inc. David’s career kicked off in the big league at XL Capital Ltd, a Bermuda based Fortune 500 firm with over 49 billion in assets under management.

Prior to pivoting into a career as a full time real estate developer David furthered his financial markets experience as the Second Vice President of the Northern Trust Corporation’s Structured Finance Group and oversaw financial modeling, structuring, pricing, P&L oversight and transactional execution for the banks $3.5 billion interest-rate derivatives book and hedging product offerings.

David is passionate about developing communities and driving markets. He believes that it isn’t work when you love what you are doing day in and day out.

Opportunity is everywhere – David’s wealth of knowledge and proven track record allows him and his team to secure high margin, high return infill development opportunities for their core investors.

Five key points

  • To become an expert in your field, whether it’s sports or business, you need to live and breathe it every day – that’s what gives you the competitive edge.
  • Surround yourself with information and resources to support your career: read the market news daily, learn about geopolitical issues that may affect interest rates or stock prices – have a passion for what you are doing.
  • Cheap deals aren’t necessarily the best deals. It is necessary to do your homework and quantify the deal before going ahead. Markets where the land is more affordable may have rents that aren’t as strong. Look at the path of growth and the velocity of appreciation in the markets you are considering investing in.
  • Look at location, property zoning and land entitlements. How many stories or square footage can you build in the location, particularly in a core urban infill area?
  • Hiring people with proven experience is important for building a successful team and when you are pitching to a bank. Its an easier sell when you approach a lender with plans, an experienced architect, a proven builder and other competent team members supporting your project.

Favorite athlete: Michael Jordan – NBA All Star.

Real estate roll models: Jerry Reinsdorf and Ted Turner

David’s pro tip: Learn from the successful people around you; what makes them successful? How did they become successful? Learn from other people’s mistakes.

Highly motivated – serving and enhancing the community through development.

Thank you David for taking time out of your busy schedule to share your story and valuable insights with us!

Reach out to David and his team at: www.goldenmeangroup.com

Email direct: david@goldenmean.co

Company Website: Golden Mean Group Inc

Linked-In: David Herrera

Facebook: https://www.facebook.com/davemichaelherrera

Listen to all the episodes of The Real Estate Locker Room Show and sign up for my FREE monthly newsletter at http://www.johncarneyonlie.com

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© John Carney 2017

 

JC 022: Grit and Billion Dollar Real Estate with Brendon Bergen

August 23rd, 2017 | no comments

Your success and failure depends on you

Every deal starts with a financial model. Brendon Bergen is the Director of Asset Management for Affirmed Housing Group in San Diego. He embraces the team aspect of the real estate game and is always on the lookout for the most efficient way to operate an asset and add value for the residents.

Brendon’s company looks after the environment and has implemented solar powered electrical systems at their properties in order to strive for Net Zero electric. Solar offers a triple win solution; the owner benefits, the city benefits and the tenants pay a fraction of “on grid” electrical prices. They install high efficiency water systems as well.

Brendan loves working on repositioning older, rundown assets. He tackles the challenge of each project head on and enjoys witnessing the tangible transformation of the renovations. Improving the asset and the tenant experience results in win, win.

Brendon moved from Cleveland to California to pursue his real estate career right at the beginning of ‘The Great Recession’ – the worst time to be knocking on doors to interview for a job in real estate. He relied on the grit that he developed on the wresting mat to manage the “no’s” that he received job prospecting. His perseverance paid off and Brendon landed a job as an analyst for a portfolio holding retail centers, office and industrial real estate.

Brendon’s number one tip for success in the real estate game is to be resilient. He highly recommends joining the Urban Land Institute as a networking platform and a way to learn who the players are in your market.

5 Key Points:

  • Always look for ways to be more efficient and add value.
  • Surround yourself with the right experts.
  • Add solar technology to multifamily and commercial real estate projects.
  • Understand the fundamentals of real estate development on small projects before you tackle larger projects.
  • Be resilient. Your success and failure depends on you.

Favorite athlete: Lebron James – NBA player

Favorite book: An Unfair Advantage by Chad M Robinchaux

Favorite quote: “The strongest iron comes from the hottest flame”

Brendon trains for success by waking up early, working out and getting to work early.

Connect with Brendon on LinkedIn or send him an email, brendon@affirmedhousing.com

Affirmed Housing Group – www.affirmedhousing.com

Thank you Brendon for taking time out of your busy day to share your success tips with us today.

Listen to all the episodes of The Real Estate Locker Room Show and sign up for my FREE monthly newsletter at http://www.johncarneyonline.com

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© John Carney 2017