Apartment Building Investing with Michael Blank https://themichaelblank.com Invest in Apartment Buildings with Private Money Mon, 09 Dec 2019 18:33:07 -0400 en-US hourly 1 Michael Blank’s passion is being an entrepreneur and helping others become (better) entrepreneurs. His focus is apartment building investing by raising money from private individuals. He’s been investing in residential and multifamily real estate since 2005 and began syndicating deals in 2010. He is the author of the Syndicated Deal Analyzer and the free eBook “The Secret to Raising Money to Buy Your First Apartment Building”. Through Michael’s blog on TheMichaelBlank.com, his weekly articles on the BiggerPockets.com, and his Podcasts, Michael is enthusiastic about sharing what works (and doesn’t work!) in the world of commercial real estate investing. Michael Blank: Commercial Real Estate Investor | Entrepreneur clean Michael Blank: Commercial Real Estate Investor | Entrepreneur mblank@neuron.com mblank@neuron.com (Michael Blank: Commercial Real Estate Investor | Entrepreneur) Copyright 2014 by Michael Blank. The Ultimate Guide to Apartment Building Investing with Michael Blank Apartment Building Investing with Michael Blank http://www.TheMichaelBlank.com/wp-content/uploads/powerpress/Artwork-300x300.jpg https://themichaelblank.com TV-G Northern Virginia MB 191: Raising Millions for Multifamily Deals—In Minutes! – With Josh Cantwell https://themichaelblank.com/podcasts/session191/ https://themichaelblank.com/podcasts/session191/#respond Wed, 04 Dec 2019 20:31:44 +0000 https://themichaelblank.com/?p=10395

If you want to raise money, I mean REALLY raise money, you need a thought leadership platform. Yes, at the beginning of your career, you will onboard passive investors one at a time. But once you’ve exhausted your network and you’re ready to scale, you’ll need to leverage online marketing techniques to expand your investor base and raise millions for multifamily deals—on a very short timeline.

Josh Cantwell is the CEO of Strategic Real Estate Coach, a program dedicated to giving real estate investors and agents the most advanced training in the business. Josh is the top real estate investor in his community, buying and selling more than 600 properties since 2003, and he regularly partners with other investors to close deals all over the US. He is also the author of The Flip System: Your Real Estate Investing Playbook to Create Financial Freedom and Peace of Mind and the CEO of Freeland Ventures Private Equity and Direct Real Estate Lending, helping investors get funding both residential and multifamily deals.

On this episode of Apartment Building Investing, Josh joins me to explain how his experience with pancreatic cancer changed his personal and professional life, sharing the strategies he uses to be more purposeful with his time and put his family first. He discusses why he chose capital raising for multifamily over syndicating deals and describes his process for raising millions of dollars—in just a few hours. Listen in for Josh’s advice to aspiring capital raisers and learn his four steps to building an online platform that attracts multifamily investors.

Key Takeaways

How Josh’s bout with pancreatic cancer changed his life

  • Focus on being family man first
  • Invest in things that pay in perpetuity

The strategies Josh uses to be purposeful about his time

  • Mornings for strategic thinking
  • Activities that give energy in afternoon (e.g.: investor calls)

Josh’s multiple business ventures

  • Private + hard money lender for residential real estate
  • Raise capital for multifamily via crowdfunding platform
  • Joint venture to raise capital for multifamily

The limiting beliefs that kept Josh away from multifamily

  • Not educated, smart enough
  • Surgery forced out of comfort zone

Why Josh chose raising capital over syndicating deals

  • Background in raising money (funding = freedom)
  • Joint venture with experienced investors

How Josh raises millions of dollars for multifamily in hours

  • Share potential deals in discovery interviews
  • Create scarcity in webinar (e.g.: 400 invites, 12 spots)

Josh’s tips for creating an online platform to raise capital

  1. Start with an irresistible offer
  2. Identify your investor avatar
  3. Be strategic about networking
  4. Reach out with regular content

Josh’s advice for aspiring capital raisers

  • Put yourself in second position
  • Raising money not a ‘forever business’
  • Stay in front of potential investors
  • Educate without asking for money
  • People will test with small investments

Connect with Josh Cantwell

Strategic Real Estate Coach

The Flip System by Josh Cantwell

Josh on Facebook

Resources

Michael’s Free Masterclass

Dr. Oz’s ‘The Power of a Nap’

Jack Petrick on ABI EP123

National Real Estate Investors Association

Michael’s Platform Page

Michael’s Free eBook

Nighthawk Equity

Podcast Show Notes

Review the Podcast on iTunes

Michael’s Website

Michael on Facebook

Michael on Instagram

Michael on YouTube

Apartment Investor Network Facebook Group

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https://themichaelblank.com/podcasts/session191/feed/ 0 If you want to raise money, I mean REALLY raise money, you need a thought leadership platform. Today, Josh Cantwell joins me to share his four steps to building an online community of investors and explain how he leverages digital marketing tactics to ... If you want to raise money, I mean REALLY raise money, you need a thought leadership platform. Today, Josh Cantwell joins me to share his four steps to building an online community of investors and explain how he leverages digital marketing tactics to raise millions in capital for multifamily deals—in a matter of minutes! Michael Blank: Commercial Real Estate Investor | Entrepreneur 55:36
Making the Leap from Passive to Active Multifamily Investor https://themichaelblank.com/passive-investing/making-the-leap-from-passive-to-active-multifamily-investor/ https://themichaelblank.com/passive-investing/making-the-leap-from-passive-to-active-multifamily-investor/#respond Wed, 04 Dec 2019 15:19:23 +0000 https://themichaelblank.com/?p=10384 Here’s a fact that probably won’t surprise you. Many of the active syndicators that I know started out in the real estate game as passive investors. Which makes sense. Passive investing is a great way to gain exposure to the real estate investment market, learn the industry, and get a sense for how the deals are really done.

At some point, these passive investors decided that they wanted to get their hands dirty and become active investors. They wanted to be the one to syndicate the deal: to raise the money, put the team together, and ultimately manage the whole process. But how?

Today, we are going to talk about how passively investing with somebody else is a great way to get started down the path to active investing.

Check out the video, or read on below.

Getting the Bug 

Some passive investors will get the bug for real estate investing. They start out investing in one deal, and then another, and after three or four deals they realize that they really love it. They love the cash flow, the tax benefits, and they find themselves blabbing about all the benefits to their friends. And maybe they get their friends to invest. 

Suddenly, they find themselves as active capital raisers. They begin to focus on raising capital from others in their network and, eventually, from people outside of their network. They may even establish a joint venture with syndicators who have the deals and are seeking help in raising capital. (A perfect match for someone that can raise money but is challenged in accessing deals!)

Having a passion for real estate investment and being able to share that passion with others, to the point that they invest with you, is an ideal scenario for getting started as an active investor. But, let’s be honest. Not everyone will have such luck, or the connections with the financial ability to invest. 

Here’s the good news: Capital is not the only thing that you need to be successful in the syndication game. Let’s take a look at how learning the tricks of the trade through passive investing can help you pave your way to becoming a deal syndicator.

Transitioning from a Passive to Active Investor

First of all, if you’re going to invest passively, you’re naturally going to learn a lot about multifamily as an asset class. You’ll learn what makes up each asset class, what the good markets are, what the risks are, and what the rewards can look like. Passive investing can teach you how to evaluate opportunities.

Sure, in this passive state you don’t have to be as detailed with your analysis as someone who’s actually doing the deal. BUT, you have to be able to analyze deals and markets. Even as a passive investor, you must be able to ask intelligent questions and call BS on some of the financial projections that you are presented.

This is where it pays to work with an active investor that has a solid track record and a proven process. One that can teach you about the life cycle of a deal through the closing process, including that all important step of the capital raise.

Related: How to Vet a Multifamily Syndicator

Once you’ve invested passively yourself, you become familiar with the process and you clearly understand the risk versus reward. It’s easy for you to tell others about it, because you’ve been through it!  Whether you have the “right” connections in your immediate network or not, this experience prepares you to be a great capital raiser.

The key word here being experience

I’m a big believer in experiential learning. Robert Kiyosaki from Rich Dad Poor Dad has a talk about Edgar Dale’s “Cone of Learning”, which is represented in the inverted cone below.  Basically, the cone shows how much a person can retain in two weeks based on how they take in the information.

Take a look at the bottom of the cone. Are you surprised to learn that people forget 90% of what they read in two weeks? Now look at the top of the cone. If you have a highly experiential experience, meaning if you actually do something, you’re likely to retain 90% of that knowledge.

Here’s the point. Regardless of what you want to do in life, immersing yourself through experience is proven to be the most effective way to learn. Whether that’s learning a new language, learning how to raise capital, or learning how to analyze a multifamily deal. You can read a book or take a course on the topic, and that’s great, but actually doing it makes a material difference. 

Immerse Yourself

Our mission at Nighthawk is to help pass investors become financially free by investing in multifamily syndication. We’re all about educating them, and we do that in a variety of ways.

First, we do it with videos, blog posts, downloads and podcasts. You can access a directory of our past blogs and videos that we’ve created specifically to help you make better investment decisions around these multifamily syndications. We’ll also host webinars and bring in subject matter experts to do a Q&A.

But we also try to engage investors with property tours, where you can join us in person and we’ll visit some properties together. This way you can actually see, touch, and feel the assets and ask us questions. You’ll find that we are very transparent about our deals.

We also host an annual conference called Dealmaker Live, which is typically held in the summer months around July.

We make all of these resources and various ways of taking in information available because we really want people to understand investing in multifamily. We want them to be comfortable enough to try to invest in it because the benefits are just amazing.

The cashflow. The consistent returns in tax benefits. It can be life-changing.

If you are interested in hearing about our upcoming deals at Nighthawk, you can go to www.nighthawkequity.com/join and we’ll set up a call with you, establish a relationship, and add you into our deal flow.

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How Much Should I Spend to Acquire a Multifamily Investor? https://themichaelblank.com/active-investing/how-much-should-i-spend-to-acquire-a-multifamily-investor/ https://themichaelblank.com/active-investing/how-much-should-i-spend-to-acquire-a-multifamily-investor/#respond Wed, 04 Dec 2019 03:31:03 +0000 https://themichaelblank.com/?p=10365 Today, I am going to answer 2 key questions that you must know in order to scale your capital raising business:

  1. What is the value of a single multifamily investor to your business?
  2. How much should you spend in marketing to acquire a new investor for your multifamily portfolio?

We are going to go through, in detail, how to calculate the value of a new investor to your business AND how to execute a marketing plan to attract and acquire multifamily investors. It begins with the creation of a core platform through a single investment that pays for itself multiple times over.

After year 2, it has you investing over $22 Million in multifamily properties.

Don’t be scared by that large number! We are going to go through a lot of numbers and, you can follow along in this spreadsheet, which is the same one that I use to calculate my own plan for a 2-year life-cycle.

If you’re interested in answering these 2 important questions for your business, grab a pen and the spreadsheet and enjoy this video. 

For the first scenario, we are going to work off of three assumptions.

  1. The average multifamily investor invests $70,000 
  2. The General Partners (GP) gross acquisition fee is 3%
  3. Your share as the capital raiser is 25% of the GP

Armed with that information, let’s get right into the deal.

Deal #1

At this stage, you probably have a few deals under your belt and profit to show for it. You could start pumping money into a marketing platform now. Or, you can take the proceeds from your next deal to fund your marketing efforts and keep your investor pipeline full.

For simplicity’s sake, we are going to refer to your next deal as Deal #1. Your target raise for this deal is $500,000. Based on the assumptions above, the GP’s gross acquisition fee (at 3%) is $15,000.

After the deal is done, the GP decides to invest 50% of that fee in to marketing. (By the way, this is an arbitrary number and just a suggested amount because you’re still building a business.) Over time, that percent is going to go down, as you will see in subsequent deals.

This means that you are going to invest $7,500 in marketing and keep $7,500 in profit.

Now, we’re going to use that money entirely to build our core platform. At the end of this investment we will have a lead magnet, the ability to capture those leads and then convert them into investors. $7,500 is what I am willing to invest in order to do that.

What is the value of a multifamily investor

So let’s see how this plays out…

Once you have the platform built, you’re going to be a guest on 5 podcasts. Now, there’s certainly other ways that you can (and will) generate leads. But I always suggest getting on other people’s podcasts because it is such an efficient way to attract leads.

In speaking on 5 podcasts, you’re going to generate 320 leads that download your free ebook, special report, or whatever you are offering.

Our experience, and industry standard, shows that you can expect a 32 to 1 conversion ratio.  Meaning, that for every 32 people that download your lead magnet, 1 of them will become an investor. This means that the 320 leads that you generate will create 10 new investors.

10 investors, with an average investment of $70,000, means $700,000 in new capital. Now you’re going to do Deal #2 with those 10 new investors. 

How much should you spend in marketing to acquire a new mulifamily investor

By the way, this isn’t counting repeat investment that you may earn from your previous investors, which is very likely!

Deal #2.  

Let’s run the same assumptions for Deal #2 as we did on Deal #1.

You now have $700,000 in capital, which will net you a $21,000 gross acquisition fee. But instead of investing 50% of that fee into marketing efforts, you’re going to invest 25% at $5,250.

What is the value of a multifamily investor

If you remember our earlier example, we invested $7,500. We’re starting to create a new baseline because we now have our core platform built. This adjustment allows us to keep $15,750 as profit.

You might be asking – “if we already have the platform built, what are we going to do with this $5,250?” Let’s check that out.

The first thing we’re going to do is outsource our digital marketing efforts to an agency. They are going to handle the bulk of the content production. That means video editing, creating blogs, creating the emails, and putting it all out there on social media. It’s going to cost you about $3,000 a month to have a team execute that for you.

This is a fantastic investment that is worth every penny.

I’m going to use $3,000 for that team and content production, and spend the remaining $2,250 on paid Facebook ads (or some other mechanism) to generate leads. A lead is anyone who downloads my free report, etc.

Let’s say it costs me $5 per lead that I’ve generated on Facebook, which is a fairly high number. It’s currently costing us $1.60 for my leads. Obviously a lot of that cost depends on how experienced your Facebook marketing manager is in the multifamily space, but I’m padding the example here at $5 a lead.

That $5 cost per lead, divided by the $2,250, will result in 450 leads. At a 32 to 1 conversion ratio, that’s going to give you 14 new investors. At $70,000, that is nearly a million dollars in new capital.

How much should you spend in marketing to acquire a new mulifamily investor

Do you see how this engine is starting to come alive? Let’s do one more deal here before we show you the bigger picture. Here we go…

Deal #3

We now have our 40 new investors. Multiplied by $70,000, that’s a $1 million capital raise.

The acquisition fees go up to $29,000, and we are going to ratchet down our marketing investment to 20%. This cut is going to be our new baseline and we’re sticking with it. It’s a great way to continuously reinvest in your business in an effort to generate more capital.

What is the value of a multifamily investor

Our profit margins are going up, and we still have nearly six grand to invest in marketing. We know we are going to spend $3,000 per month on the digital marketing team, and now we have $2,906 to spend on Facebook ads.

Using the same math, we can estimate to generate 581 leads, which is 18 new investors and $1.3 million in NEW capital.

How much should you spend in marketing to acquire a new mulifamily investor

Tracking Year 1 & 2

Below is a spreadsheet that tracks the first year. In the examples above, we covered the first three deals.

You’ll repeat the same strategy for Deal #4, which will produce 18 new multifamily investors and a near $1.3 million capital raise. 

What is the value of a multifamily investor

By the time we are done with Deal #4, we have raised $3.4 million in capital and earned $103,000 in acquisitions fees. We chose to spend nearly 1/4 of those fees in marketing, which allowed us to acquire 71 new investors and earn $77,000 in profits.

Not bad for year one!

How much should you spend in marketing to acquire a new mulifamily investor

What’s really interesting is the momentum that we’ve built in this first year. Yes, we’ve had some success and established a track record in the multifamily space. And because of this track record, our profitability can go even higher.

How? Typically, as a sophisticated capital raiser, you’re able to get better terms. Also, your Facebook advertising is going to get cheaper as your marketing team fine tunes the message and target audience. So then, let’s map out the second year.

The second year math is exactly the same here. We’re reinvesting 20% of our gross acquisition fees back into our marketing. The number of multifamily investors we’re creating keeps increasing and by the end of year 2, we’ll have raised $22 million.

Our share of the acquisition fees is $670,000, of which we spent $134,000 on marketing. That number includes an expanded marketing team because I want them to do more, because we know it’s working!  Over time we’ve increased our monthly spend from $3,000 all the way up to $8,000 near the end of year 2. 

multifamily investor marketing budget spreadsheet

You can see that in an average month we are spending a considerable amount of money on marketing. We are also keeping over a half million dollars for ourselves. I’d say that’s worth the investment, wouldn’t you?

The Bottom Line

If you look at established players in the multifamily space, they routinely raise $30-40 Million every single year. That puts a lot of food on the table. It creates jobs and they are serving their passive investors as well.

It all starts with building a core platform. Start by:

  • Determining the value of a single investor by calculating your gross acquisition fee, which is typically 3% of the total capital raise.
  • Make the decision to invest a portion of the proceeds (50%) from your next deal to the initial build-out of your lead generation, capture and conversion systems.
  • Choose your main source for generating leads (like Facebook).
  • Consider outsourcing your content creation, production, advertising and social media upkeep with a digital marketing team that is experienced in multifamily marketing.
  • Continue to invest a portion of the proceeds (around 20-25%) to marketing.

Don’t just take my word for it. Download the spreadsheet to create a plan that’s right for you.

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MB 190: From VA Loan to Multifamily Investing Career – With Phil Capron https://themichaelblank.com/podcasts/session190/ https://themichaelblank.com/podcasts/session190/#respond Fri, 22 Nov 2019 20:07:47 +0000 https://themichaelblank.com/?p=10270

When Phil Capron went through special ops training for the US military, he noticed that the recruits who made it to the end weren’t necessarily the strongest or the fastest or the smartest. So, what differentiated the 20 who succeeded from the thousands vying for the job? They simply refused to quit. And Phil believes that the same principle applies to making it in multifamily investing.

Phil is a former Special Warfare Combatant Craft Crewman in the US Navy and current full-time multifamily real estate investor. To date, he owns a 245-unit portfolio worth $15M in Coastal Virginia and shares his understanding of the space as a Senior Mentor with the Michael Blank Organization. Phil specializes in revitalizing distressed and underperforming assets to ensure profitability for his team and change neighborhoods for the better. He is also the author of the new release Your VA Loan: And How it Can Make You a Millionaire.

On this episode of Apartment Building Investing, Phil joins me to explain how taking advantage of a VA loan sparked his initial interest in real estate. He walks us through his transition from working in a brokerage and flipping houses to full-time multifamily investing, sharing his advice around when to quit a W-2 job for real estate. Listen in for Phil’s insight into what differentiates his successful mentoring students from those who don’t progress and learn how the grit he developed in military special ops training informs his investing career.

Key Takeaways

How Phil got started in real estate

  • Enlisted in US Navy at age 24
  • Bought 4BR SFH with VA loan
  • Friends rented rooms (live for free)
  • Real estate license, flip houses

What inspired Phil’s transition to multifamily

  • Trying to sell 13-unit for commission
  • Buyer turned down owner financing
  • Phil bought himself, rent checks roll in
  • Proved economy of scale concept

When Phil started investing full-time

  • 18 months into multifamily
  • Established 200-unit portfolio

Phil’s advice on when to quit your job

  • Make decision and write down plan
  • Save up 9 months of living expenses

Phil’s take on why people don’t take action

  • Perceive quality of life as good enough
  • Fear of success leads to self-sabotage

How Phil spends his days as a full-time investor

  • Look for deals + manage portfolio
  • Work with students on their deals
  • Surf, skydive and travel

Phil’s insight on why your story matters

  • Experience with bank (decision based on team)
  • Get gritty about not giving up

Connect with Phil Capron

Phil’s Website

Phil’s Podcast

Phil on Facebook

Resources

Your VA Loan: And How It Can Make You a Millionaire by Phil Capron

VA Home Loans

BiggerPockets

FHA Loans

Tyler Sheff

Drew Whitson

Financial Freedom Summit

Michael’s Mentorship Program

Podcast Show Notes

Review the Podcast on iTunes

Michael’s Website

Michael on Facebook

Michael on Instagram

Michael on YouTube

Apartment Investor Network Facebook Group

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https://themichaelblank.com/podcasts/session190/feed/ 0 Going through special ops training for the US military, Phil Capron noticed that the recruits who made it to the end weren’t necessarily the strongest or the fastest or the smartest. Today, Phil joins me to explain how the grit that made him successful... Going through special ops training for the US military, Phil Capron noticed that the recruits who made it to the end weren’t necessarily the strongest or the fastest or the smartest. Today, Phil joins me to explain how the grit that made him successful in the armed forces informs his multifamily investing career. Michael Blank: Commercial Real Estate Investor | Entrepreneur 40:45
How to Vet a Multifamily Syndicator https://themichaelblank.com/passive-investing/how-to-vet-a-multifamily-syndicator/ https://themichaelblank.com/passive-investing/how-to-vet-a-multifamily-syndicator/#respond Thu, 21 Nov 2019 18:39:51 +0000 https://themichaelblank.com/?p=10256 Multi-family investing is a team sport. Sometimes, we can get so caught up in “the deal” that we forget that this business is really about people.

I always encourage active investors to establish their team early on, before they even start to look for deals. For you, the passive investor, the key is to partner with an experienced operator or syndicator. One that has already been in the weeds to evaluate the market, sub-markets, and the properties within those markets.

This is why selecting the right operator is the #1 most important part of passive multifamily investing. You need to have confidence in the team that you are putting your money behind. And if you have a great operator, you can trust that the deal will be done right, even if you know very little about the deal itself.

After all, isn’t that the reason you’ve chosen the path of passive multifamily investing? To reap the rewards of real estate investment while riding on the backs of experts?   

If you’re new to passive investing in this space, I am going to show you how to vet a quality syndications team.


Evaluating the Team

Passive investing is all about partnership. When evaluating the team you’re considering investing with, it’s important that you look to both the team as a whole, as well as the individuals that makeup that team.

  • Things to consider:
  • How many people are on the team? Who is in charge?
  • How many deals have they done as a team/individual?
  • How aggressive/conservative is their underwriting style?
  • How much capital have they raised and deployed to date?
  • How many investors do they have in their syndication?
  • What’s the average rate of return for their investments?
  • What is their experience investing in the multifamily space? 
  • What is their experience investing in a particular market or sub-market?

Take Nighthawk Equity, for example. Nighthawk has built a strong record of over 1,100 performing multifamily units, with a portfolio value of over $44.2 Million. We are conservative underwriters that have evaluated and purchased properties in markets across the United States. And we have a team of people that are dedicated to key development areas:

  • Acquisitions
  • Asset-Management
  • Investor Relations
  • Operations

To see the deals we’ve got brewing, join the Nighthawk Investors Club.

Taking on Green Teams

Obviously, it’s ideal to partner with a team that has years (or decades) of experience and a solid track record. But every team starts somewhere, and I don’t think it’s necessarily a deal breaker to partner with a newly assembled team.

In today’s environment, there are new partnership opportunities that spring up all the time. A fairly new investor may have access to a property deal or to a capital raise. At Nighthawk, we will take on these investors as joint ventures. So, while these partnerships may be young, that doesn’t mean the value isn’t there.

The way I look at it; just because someone doesn’t have a track record as a multifamily investor, doesn’t mean they don’t have a track record in life. Consider their related or unrelated professional experience. What has their career been? Do they have a track record of success? How have they dealt with difficult situations?

This is especially applicable for friends and family investors. At the end of the day, you are investing in the person. (Remember, this is a people business!) There is certainly value in knowing and trusting the person you are doing business with.

Now, it’s up to you to determine if you’d prefer to stroke a check to a group you don’t know well, but trust their investment track record. Or, invest with a person that you know and trust, but may lack experience in multifamily investing. In either case, don’t just trust your gut. Do your research and ask the tough questions to make sure they’ve done theirs!

Building Long-Term Partnerships

The most successful passive investors are literally able to quit their job and live off their passive income. And that’s really the goal at Nighthawk; to enable passive investors to quit their day job, if that’s what they wish to do. Or, they can keep that full-time job and let their investment income compound over time for an even more comfortable retirement later.

Regardless of their personal long-term strategies, the most successful investors typically have one or two operators (maybe three at most) that they invest with. We’ve recorded hundreds of podcasts now, and this is a recurring tactic of the ultra-successful investors. Like us, they look to build long-term relationships.

The average investor might put in the minimum investment of $50,000 into Nighthawk just to see how well the group performs. And that is a great way to test the waters. But we are looking for long-term partners as well. We know that if we like the partnership, we communicate well, and we do what we say we’re going to do, we’ll have a great shot of being that investor’s main operator.

Because, ultimately, if an investment performs well, there’s really no reason why an investor couldn’t or wouldn’t invest with the same operator, over and over again. It’s a win-win scenario to build a long-term partnership. One where both parties can establish trust AND a track record of success.

We do encourage you to check us out and invest at the minimum level, to see how we do. Just know that we are looking for long-term relationships because that is how we are going to build the business and keep our investors happy.

Next Steps

If you’re still new to this and not quite sure what to do next, I’ve put together a report that compares the stock market to a multifamily real estate investment strategy. It’s a great report and totally free. I think you’ll find it eye-opening.

If you already have a deal under your belt, or you are ready to get started with passive deals, you’ll want to get on our deal list. To see the deals we’ve got brewing, join the Nighthawk Investors Club.  After joining, we’ll schedule a call to get to know each other and see if makes sense to work together.

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MB 189: Empowering Women Entrepreneurs & Real Estate Investors – With Olenka Cullinan https://themichaelblank.com/podcasts/session189/ https://themichaelblank.com/podcasts/session189/#respond Tue, 19 Nov 2019 17:30:53 +0000 https://themichaelblank.com/?p=10240

Real estate investing conferences are one of the few places where there is no line to the women’s restroom. And while that may be a relief to the female entrepreneurs in attendance, it can also be very discouraging. Why are there so few women playing in the multifamily space? And what can we do to encourage more women to become entrepreneurs and investors?

Olenka Cullinan is the Business Coach behind #iStartFirst, a platform dedicated to inspiring women to achieve their full potential. Through her online bootcamps, #iStartFirst Bossbabes Summit and national speaking engagements, Olenka empowers women to up-level their mindset, overcome their fears and build successful careers.

On this episode, Olenka joins me to explain why there are so few female entrepreneurs and what she is doing about it through #iStartFirst. She speaks to the limiting beliefs many women share and describes how the female mind works differently when it comes to making deals. Listen in for Olenka’s insight around the power of mentorship to help you start or scale your business and learn why you don’t necessarily have to be in the limelight to be a leader!

Key Takeaways

Olenka’s entrepreneurial journey

  • Move to US from Russia at 21 with $450
  • Struck by lack of women in venture mentorship program

Olenka’s advice to her younger self

  • Get mentors early
  • Bring in people to share vision

The story behind #iStartFirst

  • Inspired to fix lack of women entrepreneurs
  • Listen to people serve for next iteration

Why there are so few female entrepreneurs

  • Women shy to make moves, hold back ideas
  • Socialized to supportive role as wife + mother

Olenka’s insight around building your brand

  • It’s about messenger, not message
  • Selfish NOT to share

The limiting beliefs many women share

  • Imposter syndrome
  • Feel like not enough

How women differ from men in making deals

  • Long-term commitment once decision made
  • ‘Everybody wins’ community mentality

The idea behind #iStartFirst

  • Can’t view men as financial plan
  • Must start saving ourselves

Olenka’s take on women in supporting roles

  • Don’t have to be in limelight to be leader
  • Affirmations lead to breakthrough

Olenka’s idea client

  • Women who want to start/scale business
  • Up-level mindset to grow in career

What women learn at Olenka’s bootcamp

  • ‘I can do anything’
  • Balance personal + professional life

Olenka’s concept of an Alpha Woman

  • Try to be like men
  • Get into drive zone, lose feminine side

Olenka’s advice to aspiring female entrepreneurs

  • Already have everything needed inside you
  • 90 seconds of fear will elevate to next level

Connect with Olenka Cullinan

Olenka’s Website

iStartFirst

Resources

Stop Preparing Start Doing eBook

Rising Tycoons

Olenka’s TEDx Talk

Tony Robbins

John Maxwell

Robert Kiyosaki

Passionistas: Tips, Tales and Tweetables from Women Pursuing Their Dreams by Olenka Cullinan et al.

Purpose, Passion & Profit by Olenka Cullinan et al.

Michael’s Mentorship Program

Podcast Show Notes

Review the Podcast on iTunes

Michael’s Website

Michael on Facebook

Michael on Instagram

Michael on YouTube

Apartment Investor Network Facebook Group

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https://themichaelblank.com/podcasts/session189/feed/ 0 Why are there so few women playing in the multifamily space? And what can we do to encourage more women to become entrepreneurs and investors? Today, Olenka Cullinan joins me to discuss the limiting beliefs many women share and explain what she is doin... Why are there so few women playing in the multifamily space? And what can we do to encourage more women to become entrepreneurs and investors? Today, Olenka Cullinan joins me to discuss the limiting beliefs many women share and explain what she is doing to empower women to start or scale their businesses through #iStartFirst. Michael Blank: Commercial Real Estate Investor | Entrepreneur 43:15
Stand Out with Brokers Using Video https://themichaelblank.com/videos/stand-out-with-brokers-using-video/ https://themichaelblank.com/videos/stand-out-with-brokers-using-video/#respond Mon, 18 Nov 2019 16:04:50 +0000 https://themichaelblank.com/?p=10227 You’ve learned from my previous blog posts that the key to accessing off-market deals is to create relationships with brokers. If you haven’t read those articles, do me a favor and go back and read them now. I’ve provided the links below.

Related: How to Find Off-Market Deals

Related: The Broker Script to Unlock Off-Market Multifamily Deals

If you have already started the process of building your team, contacting brokers using my suggested script, and building rapport with your new connections, you’re on the right track. But at this stage, you might also find that it’s still tough to access consistent deal flow for attractive properties.

Here’s the deal. You’ve GOT to stand out from the other buyers on your broker’s list. How do you make yourself standout to land those coveted off-market deals? I’ve got some insider secrets that I’m excited to share with you today.


Secret #1: Follow-Up

When a broker sends you a deal, it’s critical that you follow-up within 24 hours. Even if the deal is a complete dud, you need to provide a timely response to the broker. You owe it to them (and you) if you are going to be taken seriously as a buyer.

I polled my brokers awhile back and they said that only about 20% of buyers on their list will get back to them when they send out a deal. That’s a staggeringly low percentage! But it plays in your favor. You can be in the top 20% of buyers on that broker’s radar simply by responding. Incredible.

Secret #2: Provide Feedback

When you respond to the broker, give them feedback on the deal they’ve submitted. Don’t just respond with, “thanks, but no thanks”. Give them constructive feedback that will help them to assess the attractiveness of the deal. This also gives them greater insight into what you are looking for as a top buyer on their list.

For example, you can give them specifics about the property itself. Share that you’re really looking for a value add deal, a pitched roof, or a property in a different part of town. Or maybe the price and structure is wrong for you, and you can share why and what would be a better fit.

In any case, responding to a deal call is a great opportunity to share with your broker exactly what you are looking to purchase. They’ll take note and you’ll be top of mind when the right property comes along.

Secret #3: Use Video to Accelerate the Sale

As I grew my nationwide list of brokers, this process of following-up on every proposed deal started to take an insane amount of time. Sometimes up to 4 hours. So, I developed a technique called The 10 Minute Offer to help accelerate the process. 

My secret weapon is using video to rocket my way to the top of a broker’s buyer list. Video is a fast way to clearly communicate. It’s easy to setup and surprisingly underutilized by most buyers.

I use a free program called Loom that records whatever is on your screen. I record my analysis and talk through it so the broker can see exactly what I’m looking at on my spreadsheet when they view my video.

Let me show you what this could look like:

This stuff actually works. The broker that I sent this to responded and said:

“This is brilliant! I am going to forward this to my clients. We can jump on a call together to discuss and should have some feedback for you tomorrow, hopefully.”

WHOA. Do you see what happened there? He is going to share my video with the seller to help them understand what the prospective buyer is saying. This means that I’ve helped him add value with his client, all while speeding up the sales process.

A day goes by and I received this follow-up email from the broker:

“We have other offers coming in. My clients were pleased with your presentation and the details in your offer.  We anticipate a level of savviness engaging you as a buyer, as opposed to the others who we are in the process of vetting.”

Now, this was back in 2007. I was just getting started and didn’t have a deal to my name. But the fact that I responded to the broker, in a timely manner, using an efficient and unique means of communication really set me apart. 

This is the same way that I communicate with my brokers today, and I hope you’ll find that it’s an effective strategy for you, too.  Don’t forget to download my free e-book for the The 10 Minute Offer, or check out my video on the topic here:

How to Make an Offer on a Mulitfamily Deal in 10 Minutes.

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MB 188: STOP Saving Your Money & START Investing in Multifamily – With Grant Cardone https://themichaelblank.com/podcasts/session188/ Mon, 11 Nov 2019 18:00:58 +0000 https://themichaelblank.com/?p=9697

Do you have your money right? Or are you handing it over to Wall Street and hoping for the best? What if I told you that the secret to true wealth is to STOP saving your money and START using it to invest in real assets—like multifamily real estate!

Grant Cardone is the CEO of Cardone Capital, a multifamily real estate investment firm with more than $1.36B in assets under management. He is also an international speaker and bestselling author, well-known for creating the 10X Movement and 10X Growth Conference. Grant was named the #1 marketer to watch by Forbes, and he is a widely respected entrepreneur who owns and operates seven privately held companies.

On this episode, Grant joins me to share what he’s investing in now, discussing what kind of returns he expects on multifamily deals. He walks us through a day in the life of Grant Cardone, sharing his secret to work-life balance, his definition of true wealth, and his thoughts on the importance of spirituality. Listen in to understand what is driving Grant to build a legacy and learn how his Reg A fund serves non-accredited investors.

Key Takeaways

What Grant’s investing in right now

  • $473M portfolio in 5 properties, 2K+ units
  • Well-located and institutional quality
  • Deals with competition (list of buyers)

Why Grant avoids value-add multifamily deals

  • Lack of salary growth in America
  • ‘Value-add story will hit limits’

The returns Grant expects from multifamily investments

  • 5 to 6% cashflow, 15% IRR
  • $40M down becomes $135M in 30 years

Why Grant started a Reg A fund with $5K minimums

  • Moral issue to support ‘little guy’
  • Not true that < sophisticated, more trouble

A day in the life of Grant Cardone

  • Time for gym, self-improvement
  • Shut down work at 6pm for dinner

Grant’s secret to work-life balance

  • Don’t invest in anything with potential to lose
  • No worry more important than high returns

How Grant’s approach to money has changed

  • Used to scrounge, act like miser
  • Now use money to make life easy

What drives Grant to keep growing

  • Legacy for family, change community
  • Produce something of value = live forever

Grant’s insight on taking it to the next level

  • From $90M deal to $900M
  • Good friends will challenge

Grant’s definition of wealth

  • Money, time, love, health and purpose
  • Continuous learning = expansive

The role of spirituality in Grant’s life

  • Spirit comes before and after body
  • Best ideas come from beyond mind

Grant’s advice for ABI listeners

  • Get your money right (use, don’t save)
  • Invest in real estate with someone you trust

Connect with Grant Cardone

Grant’s Website

Cardone Capital

Resources

Cardone University

10X Growth Conference

Grant on Lewis Howes’ Podcast in 2017

The 10X Rule: The Only Difference Between Success and Failure by Grant Cardone

The Millionaire Booklet: How to Get Super Rich by Grant Cardone

Robert Kiyosaki on Apartment Building Investing EP160

The Real Estate Guys

What’s the Best Investment: The Stock Market or Real Estate?

Nighthawk Equity

Podcast Show Notes

Review the Podcast on iTunes

Michael’s Website

Michael on Facebook

Michael on Instagram

Michael on YouTube

Apartment Investor Network Facebook Group

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

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Do you have your money right? Or are you handing it over to Wall Street and hoping for the best? Today, Grant Cardone joins me to explain why the secret to true wealth is to STOP saving your money and START using it to invest in real assets—like multif... Do you have your money right? Or are you handing it over to Wall Street and hoping for the best? Today, Grant Cardone joins me to explain why the secret to true wealth is to STOP saving your money and START using it to invest in real assets—like multifamily real estate! Michael Blank: Commercial Real Estate Investor | Entrepreneur yes 40:26
MB 187: Raise Capital for Real Estate Through Content Creation – With Hunter Thompson https://themichaelblank.com/podcasts/session187/ Thu, 07 Nov 2019 17:38:21 +0000 https://themichaelblank.com/?p=10197

Raising capital for multifamily real estate deals strikes fear in the heart of many an aspiring syndicator. But what if you didn’t have to chase leads? What if you could ATTRACT high-net-worth individuals and bring in investments of $100K (or more!) with a single phone call? It IS possible, provided you commit to consistent content creation and position yourself as a thought leader in the space.

Hunter Thompson is the Managing Principal at Asym Capital, a real estate investment firm that helps clients build a diverse portfolio around low-risk cashflow production. With nearly 10 years of experience in fund management, Hunter is a prolific writer on the finance of commercial real estate and the host of Cash Flow Connections. His new book, Raising Capital for Real Estate, teaches aspiring operators the art of establishing credibility, attracting investors and funding deals at scale.

On this episode of Apartment Building Investing, Hunter joins me to share his experience raising capital for real estate deals and building a thought leadership platform to attract passive investors. He explains how to get started with content creation, what to do if you’re not a great writer, and why content is crucial if you want to scale. Listen in for Hunter’s insight on picking a niche that fits with who you are—and learn his process for building an infrastructure that attracts and nurtures high-net-worth investors.

Key Takeaways

Hunter’s journey to multifamily investing

  • Stock market volatility motivated to try real estate
  • Raise capital for opportunities across asset classes

What Hunter looks for in a joint venture partner

  • Best-in-class operators with $100M under management
  • Systems in place but haven’t built out investor relations

Hunter’s experience of writing Raising Capital for Real Estate

  • Wrote in < 3 months, editing process takes much longer
  • Outlines process of creating platform to attract investors

Hunter’s advice on how to get started with content creation

  • Brainstorm list of 100 potential articles and rate top 10
  • Identify and mimic industry leaders for topic ideas

What to do if you’re not necessarily a great writer

  • Practice regularly, build up to 1K words per hour
  • Ask friend to interview you and transcribe with Rev

How to develop a commitment to consistent content creation

  • Start small and schedule 1 post every 2 weeks
  • Consider blocking off time to batch content

Hunter’s take on why content is important

  • Scalable way to attract + nurture new leads
  • Build credibility, close with single phone call

How to define the kind of investor you want to attract

  • Biproduct of being yourself
  • Don’t try to appeal to everyone

Hunter’s process of building a thought leadership platform

  • Started with writing articles in 2013
  • Add podcast in 2016, book this year

Hunter’s advice for starting your own real estate platform

  • Pick a niche (okay to pivot later)
  • Use free content to get leads into infrastructure

Connect with Hunter Thompson

Raising Capital for Real Estate

Cash Flow Connections Real Estate Podcast

Intelligent Investors Real Estate Conference

Email info@raisingcapitalforrealestate.com

Resources

Hunter on ABI EP087

Raising Money Summit

Pitch Anything: An Innovative Method for Presenting, Persuading, and Winning the Deal by Oren Klaff

Best Ever Apartment Syndication Book: A Four-Part System for Raising Money and Buying Apartments by Joe Fairless and Theo Hicks

Rev

Corey Peterson

Jeremy Roll on Cash Flow Connections EP001

Investor Mindset Podcast

What’s the Best Investment: The Stock Market or Real Estate?

Nighthawk Equity

Podcast Show Notes

Review the Podcast on iTunes

Michael’s Website

Michael on Facebook

Michael on Instagram

Michael on YouTube

Apartment Investor Network Facebook Group

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

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Raising capital for multifamily real estate deals strikes fear in the heart of many an aspiring syndicator. But what if you didn’t have to chase leads? What if you could simply ATTRACT high-net-worth investors? Today, Raising capital for multifamily real estate deals strikes fear in the heart of many an aspiring syndicator. But what if you didn’t have to chase leads? What if you could simply ATTRACT high-net-worth investors? Today, Hunter Thompson joins me to explain how he built a thought leadership platform that nurtures prospects through consistent content creation. Michael Blank: Commercial Real Estate Investor | Entrepreneur 44:23