In this episode we hear from Joe Fairless, a real estate investor and podcast host who has amassed $28 million in apartment buildings in three years.
Joe Fairless is Principal at Fairless Investing and Host of the extremely popular leading iTunes podcast - BEST REAL ESTATE INVESTING ADVICE EVER. He started buying multifamily properties in 2013 and now controls over $28,000,000 worth of real estate in Dallas-Fort Worth, Houston and Cincinnati AND WHAT IS AMAZING IS THE FACT he achieved this in just 3 years. He currently lives in Cincinnati and has been investing in real estate since 2008. Prior to that, he was the youngest vice president at an award-winning advertising agency in New York City. His latest acquisition was a 155-unit apartment community in Houston and he currently consults other investors on multifamily investing. As host of the popular show Best Real Estate Investing Advice Ever, which is the world’s longest running DAILY REAL ESTATE PODCAST he has interviewed guests such as Barbara Corcoran from the popular show Shark Tank and Robert Kiyosaki, author of the leading real estate investor book RICH DAD POOR DAD. He is a strong advocate of GIVING BACK and serves on the Alumni Advisory Board for Texas Tech University and the Board of Directors for Junior Achievement in Cincinnati. AND, I also understand he is writing his first book that is due to come out soon.
Additional Highlights of His Background
Had four single family homes but started getting interested in multifamily real estate after he was working out in a spreadsheet how many homes it would take for him to become financially independent.
Started educating himself on multifamily in 2012
Got a cash-out re-fi on one of his single family homes and had $50,000 to invest
Started his own REI company
Bought his first multifamily property in 2013, a 168-unit apartment in Cincinnati, while he was still VP of an advertising firm in New York City
Waited two years before he bought any more – wanted to learn by owning
Two years later purchased a 250-unit and 155-unit apartment communities
Currently has a 320-unit under contract in Carrolton, TX
Find out how Joe made THE BIG JUMP from single family homes to apartments (168 UNITS) with almost NO MONEY DOWN from him!
Hear how his broker found the property (publically listed on LoopNet.com), valued at $6.5 million, AND a seller willing to do creative financing
He shares a little known secret technique known as a Master Lease which basically gave him complete control of the property without having to pay up front.
IMPORTANT FACT: If you ever do a master lease, you must get the bank’s PRIOR APPROVAL otherwise they could call the note to pay it back immediately or negate your transaction.
Now – He had to raise the down payment!
Find out how he set out to raise $400,000 but, instead, raised over $1,300,000
Biggest Mistake – He had two!
Poor due diligence on the property inspection with 168-unit deal
Realized later that there were things he would need to fix
Raising extra money for down payment but not setting funds aside for he operating budget or improvements to the property
He almost put no money into the deal until this happened! So he ended up putting in his own money in to cover operating expenses and property improvements
Starting a daily podcast
Helped him raise over $800,000 for his deals
Learned great amount of information
Advice for Those Looking to Get Started in Real Estate Investing
Get educated – read a lot of books
Get educated before you get the mentor!
JUST DO IT!
What Are You Excited About With Your Current Business?
His podcast and where it is going
What Vision Do You Have For the Future of Your Company
Reach $1 billion in holdings and then assess from there