Financial Independence Through Real Estate with Kaylee Mcmahon - CREPN #233
Commercial Real Estate Pro Network
Release Date: 01/30/2020
Commercial Real Estate Financing Options with George Otel - CRE PN #520
Commercial Real Estate Pro Network
Today, my guest is George Otel. George is the seasoned entrepreneur with over 10 years of experience in real estate and finance, and in just a minute, we're going to speak with George Otel about business finance.
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BIGGEST RISK with George Otel
Commercial Real Estate Pro Network
J Darrin Gross If you're willing, I'd like to ask you, George Otel, what is the BIGGEST RISK? George Otel The biggest risk when it comes to funding, is not looking for funding early enough, because the biggest risk is when people call me that they need funding yesterday. So it's I tell people you always have to look for funding, even if you don't need it, because when you need it, you may not find it where you may be. Tweaks. Expensive because of your situation. Let's say you got to look for funding when you're doing good, when you're doing great, because the lenders see less risk in...
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Virtual Assistants for Real Estate Focused Businesses with Pete Neubig - CRE PN #519
Commercial Real Estate Pro Network
Today, my guest is Pete Neubig. Pete is the co founder and CEO of VPM solutions, and in just a minute, we're going to speak with Pete Neubig about the Benefits of Hiring a Remote Team.
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BIGGEST RISK with Pete Neubig
Commercial Real Estate Pro Network
J Darrin Gross If you're willing, I'd like to ask you. Pete Neubig, what is the BIGGEST RISK? Pete Neubig So the biggest risk for VPM, well, I would say for us, the biggest risk is, at the end of the day, we're a payment processor, okay? You know, even though we have all these whistles and bells where you have this marketplace and you have these searches and you have this training, you have this video, if I can't pay people, I'm out of business. And so my biggest risk is that we are connected to stripe, and if stripe decides to cancel or go belly up. You know that I cannot process...
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Interior Design Space Planning for Multifamily Housing with Marcy Sagel - CRE PN #518
Commercial Real Estate Pro Network
Today, my guest is Marcy Sagel. She's the founder and principal of MSA interiors, with over 30 years of experience shaping multifamily housing, student living and senior housing and more. And in just a minute, we're going to speak with Marcy Sagel about From Blueprints to Brilliance, designing multi family spaces that rent.
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BIGGEST RISK with Marcy Sagel
Commercial Real Estate Pro Network
J Darrin Gross I'd like to ask you, Marcy Sagel, what is the BIGGEST RISK? Marcy Sagel I'm going to answer that in a few parts, because there's different aspects of the job that can be different risks. So when we pick materials for a project, we have to make sure we're working with tried and true materials, okay, materials that are not going to fail on a job, for instance, in the units, if we select a, you know, vinyl plank flooring, we want to make sure it's going to last. So we only work with manufacturers that we know are going to give us a solid product, not we're not trying to test...
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Workforce Housing Community Development with Lissette Calderon - CRE PN #517
Commercial Real Estate Pro Network
Today, my guest is Lissette Calderon. Lissette is the founder and CEO of Neology Group, a vertically integrated, lifestyle driven residential and commercial real estate firm that specializes in transforming undervalued neighborhoods into sought after communities, and in just a minute, we're going to speak with Lissette Calderon about solving for housing's greatest need, a focus on workforce communities.
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BIGGEST RISK with Lissette Calderon
Commercial Real Estate Pro Network
J Darrin Gross If you're willing, I'd like to ask you. Lissette Calderon, What is the BIGGEST RISK? Lissette Calderon Well, I think in today's world, probably the biggest risk you have is uncertainty. And how do you underwrite uncertainty? You know what happens next? How do you underwrite whether it's Harris insurance numbers, construction costs, what does that uncertainly look like, and what, how do you underwrite that? So, you know, how do we do it? You know, we really can't avoid it because, you know, we're developers. So of course, our job is, you know, we really think about a how...
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Commercial Real Estate Career Success Skills with Allen Buchanan - CRE PN #516
Commercial Real Estate Pro Network
Today, my guest is Allen Buchanan. Allen Buchanan is an S, I, O, R, and is a nationally recognized commercial real estate broker, columnist, speaker and creator of the sequence success framework. He's also a principal at Lee and Associates in Orange County, California, and in just a minute, we're going to speak with Allen Buchanan about building a successful career in commercial real estate.
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BIGGEST RISK with Allen Buchanan
Commercial Real Estate Pro Network
J Darrin Gross If you're willing, I'd like to ask you. Allen Buchanan, What is the BIGGEST RISK? Allen Buchanan Darrin, for me, the BIGGEST RISK is relevance. And I use this in a micro sense, in a macro sense. The micro sense is, I'm 68 years old, and so I realized that I'm on the back nine, maybe the last three holes of my career. And so maintaining relevance with those with whom I deal, first and foremost, family members, clients, friends, etc, there's then a relevance in terms of the commercial real estate profession. I know you've had guests on your podcast that specialize in...
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