Imagine having the financial security to do what you love, to pursue work that brings you joy—even if that work happens to be in an unpredictable industry. Mark Hentemann began his career in entertainment as a starving artist in New York City, often wondering how he would cover rent. Now, he leverages the cashflow from real estate investments to spend his days coming up with jokes in the writer’s room, without the stress of financial instability should his show get cancelled.

Mark Hentemann is a writer, voice actor and producer, working on shows like Family Guy, Bordertown and The Late Show with David Letterman. He is a two-time Primetime Emmy award-nominee for Outstanding Animated Program and Outstanding Comedy Series. In addition, Mark is an avid real estate investor, cofounding the multifamily investment company Quantum Capital, a firm focused on value-add assets in centrally located, growing neighborhoods of major metropolitan areas. To date, he has a portfolio of 185 units and earns $1M in passive income.

Today, Mark joins me to explain how a desire for financial security led him to invest in a duplex soon after his move to LA. He describes the moment when he finally understood the power of real estate and speaks to the advantages of house hacking as strategy to get started. Mark also shares his belief in economies of scale, discussing how he finds deals that make sense in Los Angeles. Listen in to understand why Mark is getting into syndication and learn how you can follow in his footsteps, leveraging multifamily real estate investment to pursue the work you love!

Key Takeaways

How Mark got involved in real estate

  • Starving artist in NYC, needed financial security
  • Move to LA, invest Family Guy income in duplex

Mark’s first real estate deal

  • Duplex ‘rough around edges’ in improving area
  • Listed at $380, won bidding war for $435K
  • Sold in 2005 after remodel for $1.27M

When Mark realized the power of real estate

  • Refi on duplex reduced interest from 7½% to 4¾%
  • Rent covered mortgage, insurance, taxes + utilities

The advantages of house hacking

  • Provides hedge against economic volatility
  • Add value to force appreciation

Mark’s belief in economies of scale

  • Realized benefit of larger multifamily properties
  • Found and purchased 6- and 14-unit buildings

How real estate impacts Mark’s quality of life

  • Takes financial strain out of equation
  • Write for fun (without stress of economic instability)

Mark’s perfect day

  • Write jokes and laugh during day
  • Network and look for properties

How Mark finds deals in the LA market

  • Chronic undersupply of B-class multifamily
  • Look for 40-year-old buildings in up-and-coming areas
  • Focus on low cost per ft2 (price comparable to land)

Mark’s experience with syndication

  • Motivated seller with 3 buildings ($10M deal)
  • Committed, then scrambled to find investors

Mark’s advice to aspiring multifamily investors

  • Take advantage of house hacking
  • Find 2- to 4-unit value-add in area on rise

Connect with Mark

Email markhentemann@me.com

Quantum Capital

Resources

Keith Weinhold on ABI EP034

Tyler Sheff on ABI EP072

Michael’s Mentoring Program

Invest with Michael

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

Michael’s Website

Podcast Show Notes

Review the Podcast on iTunes

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