What is the quickest route to financial freedom through real estate? Do not pass Go. Do not collect $200. Go directly to… Multifamily. But how do you overcome a lack of experience and capital to accelerate the timeline and jump straight into apartment building investing?

Josh Eitingon is the founder and manager of JAE Property Group, a real estate investment company specializing in 50- to 150-unit value-add multifamily properties outside the New York metro area. With the guidance of a coach, Josh made his first multifamily investment in 2012, and now he is up to eight deals. He began his real estate career while working as a software developer, eventually joining a Long Island investment group where he led the acquisitions team in securing $100M in real estate. Today, Josh is a full-time investor in his own right.

Josh joins me to discuss the early investment in a coach that facilitated his shortcut to multifamily. He addresses how he overcame a lack of experience to do his first 20-unit deal and the personal guarantee he made investors to raise $200K for the renovation. Josh explains what he loves most about multifamily investing, describing the challenge of finding a formula to optimize each new property. Listen in for Josh’s advice around investing in your own deals, choosing the right location, and scaling up a multifamily business.

Key Takeaways

How Josh got started in real estate

  • Hired coach to force action
  • Multifamily made sense as asset class

Why Josh invested in a coach

  • Working 9-5 for software company
  • Long-term time, financial freedom

Why Josh went straight to multifamily

  • Dumb luck + mentor’s help
  • Ability to scale

How Josh overcame a lack of experience and money

  • Partnered on distressed 20-unit in Cincinnati
  • Raised $200K from family, friends and co-workers

How Josh overcame his reluctance to do the first deal

  • Poor condition, no background in renovation
  • Concerns around taking on debt
  • Believed in deal, commitment to go all-in

The factors for success on Josh’s first deal

  • Coach reinforced right path
  • Good location, visibility
  • Less than $10K/unit

How Josh raised $200K for the deal

  • Talking up real estate for 6 months prior
  • Personal guarantee at 9% interest
  • $10K chunks

The additional risk of raising money in debt

  • Bank loan for 80% + promissory notes
  • ‘I carry burden, not investors’

How Josh’s first multifamily deal played out

  • 20% occupancy, 0% economic occupancy
  • Spent $5K/unit on interior renovations
  • $50-70K on exterior, mechanical improvements

Josh’s subsequent multifamily investments

  • One or two deals per year ever since
  • 44- and 62-unit in same market
  • 70-unit in Florida

What’s next for Josh

  • 90-unit in Minneapolis under contract
  • Continue on same path, 2-3 deals/year

What Josh loves about the business

  • Creativity (partner, invest and find deals)
  • Find formula to optimize each property

The challenges of scaling a multifamily business

  • Source of equity
  • Right partner for any given deal

Josh’s advice for aspiring multifamily investors

  • Start saving money to invest in own deals
  • Commit to ongoing education
  • Right people around you (accountability)

Josh’s AHA moment around location

  • Good schools, retail in area
  • Allows for operational consistency

Josh’s top mistakes

  • Could have done more deals
  • Checks and balances on construction management

Connect with Josh

JAE Property Group

Resources

Financial Freedom with Real Estate Investing: The Blueprint to Quitting Your Job with Real Estate—Even Without Experience or Cash by Michael Blank

Rich Dad Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not by Robert T. Kiyosaki

The Ultimate Guide to Buying Apartment Buildings with Private Money

The Michael Blank Coaching Program

Free eBook: The Secret to Raising Money to Buy Your First Apartment Building

  • Download
  • Text “secretbook” to 44222

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