Advertise on podcast: Multifamily Missteps Hosted by Jerome Myers

Is it possible to generate passive income while on active duty? Of course! Listen in as Tim Kelly and Jerome Myers emphasize the importance of education and networking to becoming successful in real estate investing. In this episode, Tim explains how to create a community of like-minded individuals in order to leverage relationships and access opportunities. Tune in as he shares stories of his own successes and failures. This is a signal for you to take the necessary steps to achieve your own goals.   [00:01 - 10:23] Creating Financial Freedom on the Way to Success The importance of education and connecting with successful peopleLearning allows for avoiding mistakes and achieving success fasterFinding a community of people who share your goals[10:24 - 22:03] Finding Like-Minded Individuals for Support and Accountability Helping veterans transition into civilian life and create freedomUnderstanding unique experiences is key to building relationshipsHow the ADPI fund helps investors in commercial multifamily projects[22:04 - 25:53] Closing Segment Continue your personal developmentFinal words  Tweetable Quotes: “You can learn the mechanics. The more important part is adapting and growing your mindset.” - Tim Kelly  “There is no such thing as failure. You either win or you learn and move forward.” - Tim Kelly    Learn more about Myers Methods of Multifamily Investing: http://bit.ly/37u6oK3 Register for Myers Methods Multifamily Investing Course: https://bit.ly/37iozkB Learn more about the Mid-Atlantic Multifamily Conference: https://bit.ly/2V7SlCC Support the show

Many people can get involved as you start your real estate journey, so how do we make sure that the people we have are worthy of our trust? Verifying information and clear communication are keys. In today’s episode, Jerome Myers interviews Dave Seymour, who has a background as a firefighter turned into a real estate investor. Listen as he shares his struggles with the consequences of the downturn in the market.  They discuss how property values can go down, even in good times, and how this affects their decision-making.   [00:01 - 04:41] Opening Segment  Suffering financial pain and being forced into entrepreneurshipProgressing the business and educating peopleRiding the roller coaster of real estate[04:42 - 19:01] Understand Who Controls the Money The one who controls the money winsThe effects of high inflation and current eventsBeing solid in predictions than someone who is just starting outStaying in the trenches and never giving up[19:02 - 24:04] Be Careful of Whom You Trust The harsh truth when you are taken advantage ofCreating a flow chart to make it easier for potential investorsAdvice on verifying information before taking any action[24:05 - 25:53] Closing Segment Never give upFinal words  Tweetable Quotes: “He who controls the money wins his race” - Dave Seymour “Never give up, never lay down, never surrender trust, but verify.” - Dave Seymour   Learn more about Myers Methods of Multifamily Investing: http://bit.ly/37u6oK3 Register for Myers Methods Multifamily Investing Course: https://bit.ly/37iozkB Learn more about the Mid-Atlantic Multifamily Conference: https://bit.ly/2V7SlCC Support the show

Wisdom comes from experience and learning from mistakes. Perhaps for those starting in multifamily investing, being a bit more conservative at first and taking calculated risks is the way. Do not take for granted the relationships you are developing along the way as this may turn out to be more valuable than what you are earning. My guest, Justin Britto, talks about how he became an investor, what mistakes he has made in the past, and how he has learned from them. He also shares advice for aspiring investors. [00:01 - 05:40] Opening Segment  Observing a lot of demand coming in from both buyers and rentersHow the economy in Phoenix has been growing rapidlyThe aim to mitigate risk and make money for investors[05:41 - 16:12] Transparency is Always Key Broker relationships to move quickly and efficiently in the private capital marketIndependently analyzing deals and owning a property management companyGaining trust despite a lack of track record -  transparency is keyTactics to employ for saving money on renovations through system integration[16:13 - 25:44] Addressing the Barriers to Get Started Fear as a limiting factor in the ability to invest in day trading stocksHow relationships can be more valuable than moneyOpt for your own financing if possible for a lower interest rate on a purchaseYou don’t need a perfect partner - do the work and put in the effort[25:45 - 27:24] Closing Segment Keep the fortitude so you won’t have to turn backFinal words Tweetable Quotes: “The important thing in the situation for me is just being transparent with the investors and just letting them know along the way, hey, this is what's going on.” - Justin Britto “Don't wait. You don't need to have the perfect team in place. You don't need to have the perfect partner in place to get started. It's just put in the action, put the footwork in, and do your due diligence research, and you'll figure stuff out along the way.” - Justin Britto Learn more about Myers Methods of Multifamily Investing: http://bit.ly/37u6oK3 Register for Myers Methods Multifamily Investing Course: https://bit.ly/37iozkB Learn more about the Mid-Atlantic Multifamily Conference: https://bit.ly/2V7SlCC Support the show

Do you have an exit strategy? A lot of risks go into your investment if you do have one. In today’s episode, my guest, Ben Fraser, discusses the implications of ensuring assets worth more in the future and being able to protect the investment at the same time. Listen closely as he talks about the dangers of over-leveraging in the current market environment and how to avoid getting trapped in a cycle of debt. [00:01 - 05:26] Opening Segment  Ben Fraser on the managing real estate turbulenceFiguring out deals that make sense in the current market [05:27 - 17:31] Understand the Cyclical Nature of the Economy Bad capital structures and deals cause huge lossWhy taking out the finance to sell during a recession is a bad ideaBen’s thoughts on the current state of the economy [17:32 - 21:44] Be Aware of the Capital Structures The need to be mindful of inflation when doing dealsHow the current economy is affecting the business of real estateAdjusting the budget arises from economical trends [23:46 - 25:18] Closing Segment Be careful not to lock in a lossFinal words Tweetable Quotes: “Inflation - it kind of cures all ills in a lot of senses, but it only cures them if you can hold on to the asset through the challenges.” - Ben Fraser “Watch out for the greater fool strategy, which is ‘I'm just going to do this plan and hope that the next person is willing to pay what I just paid for this and I can manage through it.’ ” - Ben Fraser Learn more about Myers Methods of Multifamily Investing: http://bit.ly/37u6oK3 Register for Myers Methods Multifamily Investing Course: https://bit.ly/37iozkB Learn more about the Mid-Atlantic Multifamily Conference: https://bit.ly/2V7SlCC Support the show (https://www.facebook.com/groups/157335752156211/)

What makes the real estate industry attractive is how you can attain a huge cash flow passively. However, is that the truth or is there something more? In today's episode, Axel Ragnarsson discloses his story and reminds us of the due diligence to establish when assessing deals, the ramifications of not working with key persons in transactions, and the dangers of complacency and how it can put you in a tough spot. [00:01 - 04:49] Opening Segment  Get to know today's guest, Axel RagnarssonHe shares his podcasting and real estate journeyMissing out on the best deal because of his job [04:50 - 13:31] Pulling the Lever on Equity, Not Just Cashflow The danger of not understanding the construction side of the businessCost basis approach: Why this is importantMore than cashflow and passive income [13:32 - 22:45] Complacency Puts You in a Tough Spot Axel shares the challenges in his first few deals on refinancingThe financial ramifications of not having a brokerGood deals no longer growing from trees [22:46 - 24:20] Closing Segment Check out Axel’s podcast and reach out to him!Final words Tweetable Quotes: “You learn a ton of stuff as you grow. Right? I think we all obviously do. And there's so many things you'll learn. ” - Axel Ragnarsson “Real estate's a game where we all get into it for cash flow and passive income. And I think that's what entices a lot of people to or brings a lot of people to real estate, but you really make money by growing the equity and growing the value of a property or, you know, buying something below market taking your cash out buying something else.” - Axel Ragnarsson “I think that we're at this point in the business where good deals, they're not just growing on trees, right? It's not like it's easy to go out there and, and get a good deal. So you really got to maximize what you have, like in front of you.” - Axel Ragnarsson  Learn more about Myers Methods of Multifamily Investing: http://bit.ly/37u6oK3 Register for Myers Methods Multifamily Investing Course: https://bit.ly/37iozkB Learn more about the Mid-Atlantic Multifamily Conference: https://bit.ly/2V7SlCC Support the show (https://www.facebook.com/groups/157335752156211/)

It is perfectly normal for some people to leave you and come into your life. In real estate, however, it should not be. When the people leaving your properties are more than those who come in, you should realize there’s a problem, and you need to pinpoint and address that problem fast. Luckily for Sonya Rocvil, she realized that there’s something wrong with their property and they were able to address it.  [00:01 - 03:07] Opening Segment  I welcome today’s guest, Sonya Rocvil Connect with SonyaLinks below[03:08 - 13:46] More People Moving Out Than Moving In  How she landed in the real estate space Why their occupancy rates were not going upWhat she learned about this misstep[13:47 - 23:02 Digging Deep into The Issues  Learn how to leverage bridge loans The question you should ask in closing a deal What changed in their process to make sure the misstep will not happen again[23:03 - 25:54] Closing Segment Don’t miss these words of wisdom from Sonya! Final words Tweetable Quotes: “You still have to be diligent and you’re screening [potential tenants].” - Sonya Rocvil “You have to be willing to really dig deep sometimes to find out the issues.” - Sonya Rocvil You can connect with Sonya by emailing [email protected] or get in touch with her on LinkedIn. Check out Bedrock Real Estate Investors to acquire multifamily properties with potential economic growth and opportunities.  Learn more about Myers Methods of Multifamily Investing: http://bit.ly/37u6oK3Register for Myers Methods Multifamily Investing Course: https://bit.ly/37iozkBLearn more about the Mid-Atlantic Multifamily Conference: https://bit.ly/2V7SlCC Support the show (https://www.facebook.com/groups/157335752156211/)

When the property turns out to be way too problematic to handle, it is easier to give up on it. So, should we do it? Alex Moore argues otherwise, saying that as long as you have multiple plans in place, it is even harder not to be successful in real estate investing. Also, she leaves a valuable tip for any investor to avoid huge headaches and uncover deeper issues - touring the property at night - and there are good reasons for that. [00:01 - 04:23] Opening Segment  Alex Moore on being a nurse practitioner for ten years and doing multifamilyGood lessons from small multifamily investing - knowing the location very well [04:24 - 08:14] Why You Should Opt for a Walkthrough At Night Why you should go back at night instead of only a day tourWhen there are more unpleasant outdoor activities at nightThe hard lesson of choosing your tenants [08:15 - 11:39] Do Your Research and Get Involved Getting more information when you don’t know who’s payingSelf-management due to smaller marginsApplying the value of reconnaissance to multifamily [11:40 - 15:28] Closing Segment Having multiple plans is keyFinal words Tweetable Quotes: “Go back at night… Nighttime tells you a lot more about what's going on in an area than what's going on while people are either at work, or there are fewer people there.” - Alex Moore “Asking more questions upfront and seeing if you can get more information is also a good thing too, that we learned that hey, are all the tenants paying on time? And if they're not, what's going on right now? What were the circumstances for that tenant? And are we pursuing any legal action at this point?” - Alex Moore “I would encourage everybody who's concerned about all the things that can go wrong in real estate, to still get involved, because honestly, you will make it… You can mess up a lot of ways and still recover as long as you have a plan B and Plan C. So have multiple plans to turn an asset around because that is really the key.” - Alex Moore Learn more about Myers Methods of Multifamily Investing: http://bit.ly/37u6oK3 Register for Myers Methods Multifamily Investing Course: https://bit.ly/37iozkB Learn more about the Mid-Atlantic Multifamily Conference: https://bit.ly/2V7SlCC Support the show (https://www.facebook.com/groups/157335752156211/)

Are you putting your opportunity fund in the right places? Although it is common to think that simply putting your money in the bank account is ideal because it is safe and risk-free, clearly, it is not the way to supercharge your investment. As Rod Zabriskie and Blake Brogan stated, we should consider playing around with the idea of compound interest and get the money working for us. Listen as they discuss the ways to be smart with how you store your opportunity fund. [00:01 - 06:41] Opening Segment  Rod Zabriskie and Blake Brogan on the investment optimizer strategyA better way to utilize your opportunity fund - leveraging the dollars [06:42 - 12:40] A Reconsideration of Opportunity Fund Strategy Mitigating the risks through insurance policies Taking advantage of the guaranteed growthHow investing in life insurance companies can be safer than the bank [12:41 - 22:03] The Magic Happens with Strategic Allocation Working with A-rated companies and how they have the upperhandUnderstanding the idea of compound versus simple interestHaving the asset, no loan, acquire the original investment, and repeat [22:04 - 31:10] Get the Money Working for You When banks have lazy money sitting aroundWhy a whole life insurance would be better than termConsidering a source of tax-free income in retirement [31:11 - 36:05] Closing Segment Get your dollars working more efficientlyFinal words Tweetable Quotes: “We're utilizing these [insurance] policies as a way to enhance what our dollars are doing in between deals. So then when it comes time to leverage them or utilize the capital, we have the entire balance continuing to earn and grow… then very literally, you can borrow against it or collateralize, or leverage it to go invest in the things that you are already going to invest in anyways.” - Blake Brogan “You, of course, could be building it [life insurance] up for one to three years if you're planning on investing in the future. But this isn't something that's going to restrict any of the active investing that you're going to do.” - Blake Brogan “Sometimes people will say, Okay, well, that's great. I've built all this money in a life insurance policy. And nothing's gonna happen until I die, right? Well, that's not the case. This also becomes a source of tax-free income in retirement for people.” - Rod Zabriskie Learn more about Myers Methods of Multifamily Investing: http://bit.ly/37u6oK3 Register for Myers Methods Multifamily Investing Course: https://bit.ly/37iozkB Learn more about the Mid-Atlantic Multifamily Conference: https://bit.ly/2V7SlCC Support the show (https://www.facebook.com/groups/157335752156211/)

When it seems like everything is going as planned, suddenly, you went way under budget for the renovation. That was the problem Chris Grenzig had to face in his deal. He shares the importance of surrounding yourself with people who know more than you and why you should always ask more questions and look for potential drawbacks to plan for contingencies. Listen as he shares this huge hurdle that was eventually turned around with a better plan and increasing rental growth. [00:01 - 06:28] Opening Segment  Chris Grenzig on getting his feet wet in the business worldHow COVID-19 triggers the shift in focus on the world and business [06:29 - 17:03] A Huge Budget Deficit for Renovations Saved by Rent Increase Surrounding yourself with those operating at a higher levelA major underbudget mistake from 13k to 30k per unitPushing from the initial partial renovation to a full-on revampIncreasing rent growth higher than the projection [17:04 - 24:49] Closing Segment Ask more questions and look for potential pitfallsFinal words Tweetable Quotes: “If you're starting from scratch on everything, you're basically at everybody else's mercy at that point.” - Jerome Myers “I probably should have brought in more experience earlier on and leaned on them heavier than I did, I think I was probably a little naive… and not really asking the questions of like, ‘Hey, what can go wrong with this plan?’ and not really looking at contingencies and backups and potential pitfalls.” - Chris Grenzig Learn more about Myers Methods of Multifamily Investing: http://bit.ly/37u6oK3 Register for Myers Methods Multifamily Investing Course: https://bit.ly/37iozkB Learn more about the Mid-Atlantic Multifamily Conference: https://bit.ly/2V7SlCC Support the show (https://www.facebook.com/groups/157335752156211/)

We always hear about the importance of due diligence. Well, we can never say it enough as Ayal Joshua shares his real estate experience of a costly fix that shouldn’t have happened. He goes over the turn of events and the steps he had to undertake to make the property function without compromise and worked on lowering the cost. He emphasizes the value of going beyond what’s required and practicing caveat emptor: “Let the buyer beware.” [00:01 - 03:49] Opening Segment  Ayal Joshua on getting into multifamily as an electrical engineerInvesting in your own backyard to see all the bad, the good, and the ugly [03:50 - 12:46] Costly Fixes That Shouldn’t Have Happened Why you should go granular and do the septic system inspectionA costly mistake that could have been avoided through due diligenceFrom $400 to $60 a month for city water and sewer [12:47 - 15:32] Considerations for Cutting Down Cost Cutting down costs without the compromiseThe virtue of doing more than is required [15:33 - 19:24] Closing Segment Do your due diligence and do the inspectionFinal words Tweetable Quotes:  “It all starts when you're purchasing the property. It all starts with your due diligence… The other thing is, you've got some properties that are connected to the city sewer, so they have septic tanks, and many people don't do the septic tank inspection. Sometimes that's critical.” - Ayal Joshua “You have to exercise the letter buyer beware, you know, the caveat emptor. Do your due diligence, do the inspection.” - Ayal Joshua Learn more about Myers Methods of Multifamily Investing: http://bit.ly/37u6oK3 Register for Myers Methods Multifamily Investing Course: https://bit.ly/37iozkB Learn more about the Mid-Atlantic Multifamily Conference: https://bit.ly/2V7SlCC Go to rentometer.com to get a free 7-day trial and try it out for yourself. Rentometer: your source for local rents, comps, trends, property details, and more. Support the show (https://www.facebook.com/groups/157335752156211/)

You enter a deal and the underwriting reveals that there is too much expense allocation for the property topped with bandaid fixes to solve… What happens then? Williams Edwards shares this noteworthy experience that ended up with reduced expenses, replaced property management team, and even lower tax burden. He also highlights the value of consultancy for better tax benefits. Listen as he shares his story of starting from the ground up and now investing in 5000 units. [00:01 - 04:29] Opening Segment  Williams Edwards on the W-2, the software systems, then to real estateWhen multifamily ticks all the boxes as a GP and a KP [04:30 - 12:21] The Dangers of Overlooked Bandaid Fixes Going for a 37-unit instead of a 100-unit…why?The perks of operating with your own moneyWhen the maintenance only go for bandaid fixes without replacement [12:22 - 21:44] Steps to Take for Better Positioning Undertaking the steps to vetting the property managersWhen the underwriting reveals too much expense allocationConsidering loans, interest rates, and tax valuation for better positioning [21:45 - 24:49] Closing Segment Do your best and follow your heartFinal words Tweetable Quotes: “A lot of people who come into the space think, ‘Oh, it's gonna work from day one, like it's new, out of the box.’ And that's just not the case. ” - Jerome Myers “You don't really know what you got out of the gate, you know? Just do your best job. Follow your heart.” - Williams Edwards Learn more about Myers Methods of Multifamily Investing: http://bit.ly/37u6oK3 Register for Myers Methods Multifamily Investing Course: https://bit.ly/37iozkB Learn more about the Mid-Atlantic Multifamily Conference: https://bit.ly/2V7SlCC Go to rentometer.com to get a free 7-day trial and try it out for yourself. Rentometer: your source for local rents, comps, trends, property details, and more. Support the show (https://www.facebook.com/groups/157335752156211/)

Dealing with various properties can be such an interesting journey where you’ll encounter issues you never thought would occur. For Justin Fraser, it was about environmental issues and because of this experience, the need to have contingency plans as you go through deals becomes all the more essential. When this happens, staying positive and practicing due diligence in the process can make all the difference.   [00:01 - 05:24] Considering Exits and Doubling the Equity Justin Fraser on handling 670 units as an asset managerThe reason for the exit of a monster dealSelling properties more than double in four years [05:25 - 12:44] The Various Factors in Determining the Strongest Offer Hitting the tipping point - the urge to sellThe factors making the strongest offer versus the highest priceWhat to do when environmental issues arise [12:45 - 17:43] The Value of Contingency Plans  Dealing with air quality and safety issues in the propertyPlowing through with diligence in the process [17:44 - 21:47] Closing Segment Stay positive and make many plansFinal words Tweetable Quotes: “There are a million things, we've never dealt with this before. I've never experienced it, but you learn on the fly. And you know, at the end of the day, we would have to do the right thing. We always try to do the right thing.” - Justin Fraser “Stay positive… It's easy to kind of get down on yourself, but just take a breath, make a plan, and if maybe it's a contingency plan A through Z, but make as many plans as you can.” - Justin Fraser Learn more about Myers Methods of Multifamily Investing: http://bit.ly/37u6oK3 Register for Myers Methods Multifamily Investing Course: https://bit.ly/37iozkB Learn more about the Mid-Atlantic Multifamily Conference: https://bit.ly/2V7SlCC Support the show (https://www.facebook.com/groups/157335752156211/)