Financial Independence Through Real Estate with Kaylee Mcmahon - CREPN #233
Commercial Real Estate Pro Network
Release Date: 01/30/2020
Multifamily Value Add Underwriting with Ashley Garner - CRE PN #535
Commercial Real Estate Pro Network
Today, my guest is Ashley Garner. Ashley is a seasoned real estate entrepreneur and founder of ABG and Associates with over 30 years of experience, he combines analytical rigor and hands on property management to consistently deliver strong, cash flowing returns to his investors. And in just a minute, we're going to speak with Ashley Garner about value add, deal making, real world stories and lessons from transforming underperforming properties into profitable, high yield investments.
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BIGGEST RISK with Ashley Garner
Commercial Real Estate Pro Network
J Darrin Gross If you're willing, I'd like to ask you, Ashley Garner, what is the BIGGEST RISK? Ashley Garner I think the biggest risk is to be under capitalized and and ultimately, you know, a property can go up in value, or the the P and L can show a profit, but if you don't have enough cash flow to pay the bills or make the repairs that you need to make, or make the improvements you need to make, then you you're in a tight spot, and that puts everything at risk, and that's an avoidable risk to not be under capitalized. But the temptation is so great a lot of times to say, I'm...
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Short Term Rentals Real Estate Investments with Kenny Bedwell - CRE PN #534
Commercial Real Estate Pro Network
Today, my guest is Kenny Bedwell. Kenny Bedwell is a seasoned real estate investor and entrepreneur known for helping high income professionals identify and acquire short term rental properties that generate strong cash flow. And in just a minute, we're going to speak with Kenny Bedwell about short term rentals versus boutique hotels.
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BIGGEST RISK with Kenny Bedwell
Commercial Real Estate Pro Network
J Darrin Gross I'd like to ask you. Kenny Bedwell, what is the BIGGEST RISK? Kenny Bedwell So you know, I the biggest risk. I think that this the answer I was going to give you originally, and I kind of talked about it, so I'll move on from it, but it's regulation. Regulation changes. You're in trouble that is a huge risk to any investment. But the risk that I don't really hear often talked about. In our space is actually safety, guest safety. So I'll give you a stat. This is a real stat by there's a there's a guy Justin Ford, he's a safety expert in a short term rental space, and...
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Pro Storage Commercial Real Estate with Joe Downs - CRE PN #533
Commercial Real Estate Pro Network
Today, my guest is Joe. Downs. Joe is a lifelong entrepreneur with business ventures spanning securities, mortgage, hospitality and real estate industries. He co founded the bell Rose group to pursue opportunities within the niche Self Storage sector of commercial real estate, and in just a minute, we're going to speak with Joe downs about pro storage. What is it and why we need it.
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BIGGEST RISK with Joe Downs
Commercial Real Estate Pro Network
J Darrin Gross If you're willing, I'd like to ask you, Joe downs, what is the BIGGEST RISK? Joe Downs To me, it's, I'll give you, I'll give you, all right, you just want the biggest I'm gonna go right to base. To me, it's change. It's sort of what I just alluded to, if we were, if, if we still thought, because we weren't out there interviewing and investigating other third party management companies. If we refuse to do all that and just head in the sand, we would probably start falling behind other storage facilities, other competitors, who are managing their facilities better than we...
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Multifamily Leasing Strategy Training Courses with Peter Roisman - CRE PN #532
Commercial Real Estate Pro Network
Today, my guest is Peter Roisman. Peter Roisman is the CO founding principal, President and CEO of REV, the multifamily leasing company, a Houston based venture established in 2019. Under his leadership, REV has become a trailblazer in multifamily leasing management and training, and in just a minute, we're going to speak with Peter Roisman about leveraging data for improved multifamily leasing results.
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BIGGEST RISK with Peter Roisman
Commercial Real Estate Pro Network
J Darrin Gross If you're willing, I'd like to ask you, Peter Roisman, what is the BIGGEST RISK? Peter Roisman Well, the biggest risk, in my mind, for besides physical property itself, is the occupancy and and and the rental rates. So if you have an underperforming leasing team. And your occupancy drops into the 80s, you know. And at one point, 15% of the properties in Houston were under 85% you're at risk. That is, that is a high risk, too. So in to flip that, to address that risk, you have to be high performing at leasing, which, which means you're not at risk at all. You're lowering...
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Infinite Banking Money Multiplier Method with Brent Kessler - CRE PN #531
Commercial Real Estate Pro Network
Today, my guest is Brent Kessler. Brent Kessler was a chiropractor, and after implementing the money multiplier method, Brent paid off $984,711 in third party debt in 39 months, he became so passionate about how powerful this concept was, he began sharing it with others, and in just a minute, we're going to talk with Brent Kessler about Infinite Banking through the Money Multiplier Method.
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BIGGEST RISK with Brent Kessler
Commercial Real Estate Pro Network
J Darrin Gross And so if you're willing, I'd like to ask you. Brent Kessler, what is the biggest risk? Brent Kessler Yeah, well, let me answer it a couple different ways on there. But so as far as a risk, okay, as far as in our business, and what we do when you have this type of policy, I tell people all the time, there is no risk at all, because nobody's ever lost money in a whole life insurance policy. But then I stop, and I say, wait a minute, there is one risk. The risk is you, the risk is you the client and how you use the policy. So you're the only one that can screw this up. You...
info_outlineFinancial Independence through Real Estate is available to you.
Kaylee Mcmahon is proof that if you are willing to hustle, you can create financial freedom through real estate. She is based in Texas and has tried a lot of different things, learned a lot and grown an impressive portfolio in a short amount of time.
Single Family Real Estate
In the beginning, Kaylee got her real estate license and worked as an agent and broker listing and selling single family properties. This availed her to do flips and learn how to manage projects. Flipping houses taught her that she has little patience for babysitting grown men, contractors, who cannot perform as they have promised. But the experience taught her what is involved in renovating a property.
Marketing
Regardless of what you do, in order for others to know what you do, you have to market yourself. Kaylee was featured on Ryan Harper’s Propelio TV, YouTube channel, which created a video resource for real estate investors. Here, she met and networked with real estate professionals with many different skill sets while growing her sphere of influence in real estate.
The Apartment Queen
At one of Propelio’s large networking events, she heard Will Crozier talk about the $780 Million portfolio of multifamily properties he acquired in just eight years. He explained how the economies of scale multiply with multifamily. At that moment, she knew the path to her future and true financial freedom through real estate. The Apartment Queen was born.
She connected with Will, and other investors and learned all she could.
Multifamily Syndication
To date Kaylee has syndicated six apartment properties in just under three years. The first two deals happened almost simultaneously. Kaylee raised all the money herself, and leveraged the experience of her partners. The experience of her partners provided Kaylee with a sounding board for her to solve the problems and issues that go with syndicating multifamily properties.
Her partners also provided the networth required with the banks to qualify for the loans. Lenders require your net worth be greater than the value of the property you are acquiring. When you are just starting out, this is a great opportunity to find and work with a high net worth investor.
Raising Money
Raising money in the beginning is tough. You have no track record, everything is new. The key she has learned is to continuously be raising capital. When she meets with her investors, she qualifies what her investor is looking for and how much they have to invest. Then she stays in touch with her investors.
Her efforts have paid off. Now her deals are getting oversubscribed, and she is able to raise millions in hours.
Independence
Real estate has provided independence for Kaylee. As an agent, she made enough money so that she could afford to live on her own. Her success has allowed her additional opportunities for networking and travel so that she can get away from work and recharge. Being alone provides her the time to evaluate what she is doing and how it is working for her.
BIGGEST RISK
Each week I ask my guest, “What is the Biggest Risk Real Estate Investors face?”
BIGGEST RISK:
I think the BIGGEST RISK in what I do, multi-family investing, is making sure that the deal the way that you buy it. If you don't buy it, right. Sorry, sucker!
The point is, is you want to buy it at the right price to where there's a margin of error. There's a margin. So, for example, if you screw something up, it's like, OK, well, we have enough cash sitting over here, we can fix that problem. Or you want to be as far away from foreclosure point as possible.
You know, everyone's everyone's freaking out honestly about, you know, these the cycle changing and coming. I think people are freaking out and that's going to cause an issue. I don't think that there really is going to be an issue probably for another three years. But I think because people are preemptively freaking out. You know, so you have to mitigate the risk.
So one thing I build in to the underwriting on a deal is you want to look at the market vacancy. So for me, I go ahead and say, OK, let's look at the deal. If we have to drop the rents or if we have to increase vacancy 10 percent. So I do that and then I take the rent number or the rent amounts we think we can get. And when I reduce rent and take the actuals. What it's doing today, not what we think we can, which is twelve. But on an actual worth doing today, I take that down 10 percent.
Let's decrease rents 10 percent because we have nonrecourse debt on these loans. Right. I check out the expenses and I use the expenses at the same rate of growth. So like if to expense growth every year. Expenses are going to increase. And so I say, OK, we're gonna grow 2 percent every year.
I could talk on this forever, but there's there's several stress tests that we put our deals through to make sure that we can ride out a recession, which I think is the biggest risk.
For more go to:
Website: theapartmentqueen.com
Podcast: #1 Leading Ladies