‘When others are fearful, be greedy. When others are greedy, be fearful.’ Today’s guest took Warren Buffet’s advice to heart, moving past her fear and reaching out to investors at the top of their game to ask for guidance as she shifted from single-family fix and flips to 300-plus unit multi-family properties. Her bigger-is-better philosophy has led to a love of investing in sizable unloved properties and performing a full-gut rehab to revitalize the property – and the community.

Kira Golden is the CEO of Direct Source Wealth, a real estate development company out of Denver that does direct deals and serves as a platform for new and experienced investors. By the time she was 18, Kira had holdings in both the real estate and stock market. After graduating Magna Cum Laude from George Washington University with a master’s in public administration, Kira worked as a financial advisor at Edward Jones until she was in a position to live off her investment income. She currently owns properties in Washington, Colorado, Arizona, Illinois, Ohio, Puerto Rico and France.

Kira is on a mission to bring high-quality deals to Main Street, providing clients with the financial freedom she has earned through investment in real estate. Today she shares how she financed her first deals, what prompted her shift from single- to multi-family properties, and why she reaches out to big name investors at the top of their game. Listen in to understand how to choose the right equity partners and why Kira recommends investing in apartments – the sooner the better!

Key Takeaways

[2:25] How Kira got her start in real estate investing

  • Watched Robert Kiyosaki infomercials as ‘12-year-old insomniac’
  • Experienced windfall/freak-out cycle as daughter of inventor
  • Desire for consistent cashflow led to buying houses at 18
  • Bought five houses in three years

[5:13] How Kira financed her first deals

  • Invested $3K savings in stock market, grew to $10K
  • Used $10K to finance first house
  • Put $1K deposit on condo, then sold option to homebuyer (value had increased during construction)
  • Used profits to finance second house

[9:14] Kira’s minimalist philosophy

  • Continued to save money, work full-time during college
  • Conscious decision to ‘live like college kid’ until age 30
  • Passive cashflow exceeded expenses by 22 ($2K/month)

[10:56] Kira’s shift from single- to multi-family investments

  • Goals grew from $1M to $100M
  • Weary of fix and flips, borrowing hard money at 18%
  • Got into private lending
  • Time became more valuable than money
  • Feedback from lenders indicated that $1M loan for multi-family was easier to secure than $100K loan for single-family home

[15:07] Kira’s intent behind reaching out to potential partners

[16:56] Kira’s first 30-unit multi-family deal

  • Continues to take 20% of time three years later
  • Bank deal, bought distressed asset
  • Bought $5.4M bank note for $1M
  • Invested $2.5M to complete construction
  • Used investor capital, joint venture with equity partner

[19:19] How Kira attracts investors

  • Shares her excitement for deals
  • Distinguish between fear and intuition
  • Go where you’re afraid, reach out to big names
  • Founder, CEO of fifth largest mortgage bank in US
  • Large real estate investors at top of game

[23:12] What Kira learned from reaching out to sought-after investors

  • People you’re hero-worshipping are just people
  • Deep respect for what they have accomplished
  • Emulate skills that made them successful

[27:34] The importance of alignment in selecting an equity partner

  • Had to buy out partner on 30-unit after legal battle
  • Long-term buy and hold vs. high-velocity fix and flip will end in conflict

[30:47] How Kira would approach raising money for 30-unit deal without equity partner

  • Not beyond door-knocking (pushing own boundaries to raise more capital)
  • Approach bank to carry back the debt
  • Raise construction capital after closing ($250K/month)

[31:56] Kira’s 315-unit full gut rehab

  • Mentor offered pocket deal, he functioned as silent partner
  • Vacant, drug-/crime-infested area of Dayton, OH
  • Turned around, named top-ten complex in city
  • No equity partner, built engine to find investors (first generation made good)

[34:16] Why Kira wishes she had done multi-family sooner

  • Fix and flip experience was valuable (can’t be snowed by property management companies, contractors)
  • Two years would have been long enough
  • Multi-family is a better vehicle
  • Had to build confidence while maintaining roots

[37:21] Kira’s advice for aspiring real estate investors

  • Determine whether you are a deal junkie or just want to retire early
  • 10% who are deal junkies should align with experienced partner to short-cycle learning process

[39:15] What’s next for Kira and Direct Source Wealth

  • Three days meditating in Sedona
  • $100M fund to bring high-quality deals to Main Street

Connect with Kira

Direct Source Wealth

Connect on LinkedIn

Facebook

Resources

Partner with Michael

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

Visit Us On FacebookVisit Us On YoutubeVisit Us On Google PlusCheck Our FeedVisit Us On Twitter