Passive Income through Multifamily Real Estate
Passive Income through Multifamily Real Estate
Kyle Mitchell, Lalita Mitchell and Gary Lipsky
Welcome to the Passive income through multifamily real estate podcast brought to you by APT Capital Group where Kyle, Lalita & Gary talk to top experts and seasoned passive investors in the business to help provide clarity and key insights to keep you safe on your journey to financial freedom. Our goal is to help you get educated on how to create passive income for you and your family by using real estate as your vehicle.
Episode #187: Billion Dollar Broker with Brent Sprenkle
It's not every day you meet a broker who has sold over 1.2 billion dollars in commercial real estate. Today’s guest, Brent Sprenkle, has done just that. He has more than 20 years of experience as a broker in Los Angeles at two of the nation's top firms, Berkadia and Sperry Van Ness. Brent helps his clients achieve their goals of exchange, expansion, consolidation, and disposition. In this episode, Brent sheds light on the current state of things given the pandemic, where he touches on deal volume, rent changes, and the eviction moratorium. We also talk about how to mitigate the risk of the moratorium if you are buying properties at the moment. Even though California's landlord-tenant laws are less than favorable, Brent shares why it is still such a great place to invest in property. The show wraps up with Brent giving his top tips on connecting with your broker. Tune in today!  Key Points From This Episode:Get to know Brent, his real estate journey, and what he's up to now.Deal volume in 2020 and the outlook for 2021.Brent's experience of how investor sentiment has changed as the pandemic has continued.Seller versus buyer expectations: what Brent is doing to bridge the gap.Rent changes in California and difficulties in the different asset classes.Brent's take on when the eviction moratorium will end.Some of the ways that you can underwrite to reduce eviction moratorium risk.Why California is still a good place to buy multifamily.Hear about the ADU program, which Brent calls the next big thing in multifamily.The biggest lesson Brent has learned about being a successful real estate investor.Brent's top tips on building and maintaining a relationship with a broker.Final four with Brent: The tool he can't do without, his biggest mistake, and more. Tweetables:“Now, vacancies are not really much fun. Lenders are also cognizant of it and when these buildings have over, you know, five, 10% vacancy, they’re pulling back on the proceeds or they just don’t want to fund it at all.” — Brent Sprenkle [0:07:43]“If you're buying now, you just have to underwrite properly. Just keep in mind that brokers are always telling you that there’s no collection issues.” — Brent Sprenkle [0:10:53]“California is always going to have more appreciation on values on the rents than other states.” — Brent Sprenkle [0:13:14]“This is a long game. It takes patience.” — Brent Sprenkle [0:16:47]Links Mentioned in Today’s Episode:Brent SprenkleBrent Sprenkle EmailBrent Sprenkle Phone Number — 310-621-8221BerkadiaSVNBillion Dollar PortfolioAPT Capital GroupPassive Income Through Multifamily Real Estate on FacebookSchedule a Call with Kyle MitchellGarzella Group Virtual Asset Management Summit 2021
Apr 26
25 min
Episode #186: Single-family Homes Thriving through Covid with Kathy Fettke
When the COVID pandemic hit, numerous experts anticipated that America’s single-family market would experience a downturn. Despite expectations, many single-family investors have thrived through COVID. Today we speak with Real Wealth Network Co-CEO Kathy Fettke about the state of single-family real estate and why real estate is still blessed with abundant opportunity. We open our conversation by talking about Kathy’s background and how she first learned about real estate and creating passive income streams. Then we dive into what the single-family market looked like before the pandemic, with Kathy sharing insights into past trends that the pandemic has only accelerated. Following this, we discuss why some single-family markets have thrived in the face of the pandemic. We touch on how many people have prioritized paying their rent and why good operators haven’t missed many rent collections. A key theme in this episode, we explore ways to minimize your risk, why every city and market behaves differently, and the importance of timing when jumping into new opportunities. Later we ask Kathy about her thoughts on the Biden administration. As she explains, real estate has strengthened during the pandemic. Tune in to hear Kathy’s best practices about thriving within difficult times. Key Points From This Episode:Introducing Real Wealth Network Co-CEO Kathy Fettke.Kathy shares details about her background and how she learned to create passive income.Why it’s never too late to learn how to create wealth. An overview of the pre-pandemic single-family market.How Kathy began her business helping investors buy out-of-state property.Why Kathy’s business has thrived during the pandemic.Tips on finding and investing in lower-risk markets. Hear Kathy’s view that “market timing is everything.”Insights into new opportunities arising in multi-family. Why Kathy isn’t fearful of how the Biden administration will impact real estate. Kathy discusses her current investing strategy and her top areas to buy in.From her most valuable tool to her biggest mistakes, Kathy answers our fast final four questions. Links Mentioned in Today’s Episode:Kathy Fettke on LinkedInKathy Fettke on TwitterReal Wealth Network Real Wealth Show on Apple PodcastsRichard FettkeAPT Capital GroupPassive Income Through Multifamily Real Estate on FacebookSchedule a Call with Kyle MitchellGoldman Sachs FOX NewsCNBCBloombergABCCNNRobert KiyosakiHome DepotGarzella Group Virtual Asset Management Summit 2021
Apr 19
25 min
Episode #185: From Fortune 200 W2 to Full-Time Real Estate Investor with Steven Louie
Exiting your W2 job to pursue a real estate career can help you achieve financial freedom, and many of you might be striving to do what today’s guest has done: get out of the corporate rat race and get into full-time multifamily real estate investing. Steven Louie worked for 25 years in the benefits and consulting industry, where he held various executive and sales leadership roles at Mercer and MetLife. He is now a Managing Partner at Vertical Street Ventures, where he is responsible for acquisitions, sourcing capital, and building key strategic partnerships, and he has grown his multifamily portfolio to over 2,500 units across Arizona, California, Florida, and Texas. In this episode, Steve shares what drove him to exit his W2 job and the five-step plan he used to do so, how he made the transition from corporate America to self-employed, and his advice for expediting the process. You’ll also learn his secret to scaling rapidly, how he found and vetted his partners, and why he values relationships above all else, so tune in today!Key Points From This Episode:Learn a bit more about Steve, his corporate background, and what he does now.How he found multifamily while looking into the many tax benefits of real estate.The driving factor for Steve to leave his W2 job was spending more time with his family.The five-step plan he used to exit his W2 job: network, hire a coach, self-educate, build a team, and take action.Having a mentor versus self-education: it depends on how much free time you have.What Steve learned while transitioning from corporate America to running his own business.Hear what he would do differently if he had to start again: become an investor sooner!Steve’s advice for expediting the process from W2 to full-time investor: do your job well and great things will happen.The secret to his rapid scaling success, starting with honing your people and sales skills.How Steve found his partners and the importance of focusing on finding the right ones.Find out how he met his brokers and the deal flow that has come from those relationships.Where Steve sees his company going in the next three to five years.The tool Steve can’t do without: a customer relationship management database.What he learned from his biggest mistake and what he needs to grow to the next level.Tweetables:“You’re chasing that corporate dream, you’re chasing money, and you sacrifice a lot of things. One of the things I did sacrifice is family. With the recent exit of corporate America, I have the freedom to work on my business as a business owner as well as spend time with the family.” — Steve Louie [0:05:29]“Whatever you’re doing, do your corporate job extremely well and all those skillsets will lead right into what you do from a real estate professional standpoint as well.” — Steve Louie [0:12:23]“A lot of people shy away from the word sales, but it’s all part of what you have to do in life. That’s a key aspect of what helped me grow my career across the board.” — Steve Louie [0:14:34]“Hiring great people across the board is very important. I’m a big fan of hiring the right talent.” — Steve Louie [0:22:28]Links Mentioned in Today’s Episode:Steven Louie on LinkedInSteven Louie EmailVertical Street VenturesRich Dad Poor DadRich Dad’s Cashflow QuadrantGarzella Group
Apr 12
24 min
Episode #184: Creating Long-Term Wealth Through Multifamily with Timothy Lyons
Today we are joined by a special guest who has dedicated his life to being a firefighter and nurse in New York City and who has, through these roles, had a massive impact on his community. But after working 80+ hours a week, he knew that he had to make some changes to spend more time at home with his wife and three daughters. That’s when Timothy Lyons read Rich Dad Poor Dad and became interested in the opportunities in the world of real estate. After partnering on a multifamily property 13 months ago, he saw firsthand the power of real estate investing as an opportunity to create passive income and build wealth for his family. In this episode, Timothy talks to listeners about his pivot away from smaller units to bigger multifamily apartments, explaining that the former became too labor-intensive and time-consuming to be scalable. He also shares how he applies his leadership and management experience in his real estate investing career, what passive investing has taught him, and why he focuses primarily on active investing nowadays, so make sure to listen in!Key Points From This Episode:The story of how Timothy became a New York City firefighter. The unique opportunity firefighters have to do another job due to their unusual schedules. Getting his nursing degree and finding fulfillment in work that makes an impact. Timothy talks about the struggles of working 80-hour weeks. Deciding to pursue real estate investing after reading Rich Dad Poor Dad. How Timothy found his first deal and why he was immediately hooked. Why he decided to pivot away from the three-plex model to the larger multifamily space. How Timothy applies his real-world experience and leadership to real estate investing. Timothy talks about being amazed at the many benefits of passive investing. Why he decided to go the active investing route when he initially wanted more free time. Timothy shares why he is a better active investor now that he has done passive investments. The most important things for sponsors to do from a communication standpoint. Tweetables:“I think, the more that I get older, the more I want to do impact type work and, between the firehouse and the hospital type stuff, it was great.” — Timothy Lyons [0:03:17]“When you get your first K-1 statement and you see the passive losses versus your passive income, you can quickly see that this is an amazing opportunity to have your money work for you.” — Timothy Lyons [0:10:18]Links Mentioned in Today’s Episode:Timothy Lyons EmailTimothy Lyons on LinkedInCityside Capital Rich Dad Poor DadBiggerPocketsKeith WeinholdMichael BlankJake and GinoThe Real Estate GuysAPT Capital GroupPassive Income Through Multifamily Real Estate on FacebookSchedule a Call with Kyle MitchellGarzella Group 
Apr 5
21 min
Episode #183: Escaping the Rat Race, Twice with Chris Miles
Financial advisors will tell you that playing the long game and investing in stocks is the path to financial independence. But here’s the secret that they don’t tell you — very few financial advisors ever achieve true financial independence themselves. Today we speak with Anti-Financial Advisor, Chris Miles, who teaches entrepreneurs and professionals how they can find financial independence by getting their money to work for them. We open our conversation by diving into Chris’s past as a financial advisor and how he discovered the flawed assumptions underpinning this industry. We then explore the link between cash flow and financial independence before discussing what it means to be caught in the rat race. With incredible openness, Chris shares his story of how he found financial independence before a few critical mistakes and the 2008 recession forced him back into the rat race. We touch on the lessons that he’s learned, the mindset needed to unlock your cash flow, and why adding value to people is a sound money-making strategy. Near the end of the episode, Chris unpacks common financial advice and gives listeners his top tips on expanding their financial literacy. Tune in for more insights on escaping the rat race from Chris Miles, AKA, the Cash Flow Expert.Key Points From This Episode:Introducing Chris Miles, famed “Cash Flow Expert and Anti-Financial Advisor”.Why Chris quit being a financial advisor and began investing in real estate.Getting out of the rat race and the differences between financial independence and freedom. Chris shares why he left his early retirement to help others.How Chris ended up escaping the rat race for the second time. Why doing what you love won’t always bring you money.Having a saving versus a spending mindset and the key to managing your finances. Hear how Chris grew from difficult circumstances and the importance and embracing an abundance mindset. Exploring the many flaws behind traditional financial advice.Why alternative investment strategies are the key to attaining financial independence. Tips on how you can expand your financial literacy. Teaching your children about passive income and how to think about money.Links Mentioned in Today’s Episode:Chris Miles on LinkedInChris Miles on TwitterMoney RipplesThe Chris Miles Money ShowWho Took My MoneyRich Dad, Poor DadU.S NewsCNN BusinessDave RamseyThe Brady BunchThe Lehman BrothersKilling Sacred CowsCASHFLOW ClassicAPT Capital GroupPassive Income Through Multifamily Real Estate on FacebookSchedule a Call with Kyle MitchellGarzella Group 
Mar 29
26 min
Episode #182: Delaware Statutory Trusts with Paul Moore
In today’s episode, Paul Moore shares his extensive knowledge of Delaware Statutory Trusts (DSTs) and the many reasons why he believes they are beneficial to people who wish to be passive investors. Although, it is common knowledge that DSTs aren’t for everyone, so as part of the discussion today, Paul openly talks about the downsides associated with them. However, negatives aside, if you are interested in earning money without the hassle of managing the properties yourself, this episode will be a great and insightful starting point. Paul offers tips on the ways to find DSTs, the assets that are best suited to DSTs, and how to avoid going through a broker to get them. Paul is not only interested in real estate investing but also has a deep desire to alleviate suffering in the world, in particular, human trafficking. You will hear more about how he has made it his mission to create awareness around this global tragedy and how he goes about raising funds to help fight against it. This is Paul’s second time on the show and his insights are always extremely valuable and hopefully, it will not be his last! Key Points From This Episode:Paul touches on his transition to mobile home parks and self-storage. He explains the 1031 exchange and how it negatively affects many investors. The reason why Paul is a big fan of the Delaware Statutory Trust (DST).The story of the 72-year-old attorney who made Paul aware of the DST and its value.The issues with tenants in common agreements. Paul openly shares the downsides associated with DSTs. The types of assets that work best in terms of the DST. Most people go through a broker to get a DST, but Paul decided to take a different route.In addition to his own company, Paul offers other suggestions on where to find DSTs. The horrifying revenues generated from human trafficking and how Paul has done his part to combat this. How the Bonjoro tool has been very useful to Paul in his business. The failed investment story which is most painful for Paul. The way saying ‘yes’ to too many things has impacted Paul’s life and why he wants to learn to say ‘no’ more often. Links Mentioned in Today’s Episode:Wellings CapitalHow to Lose MoneyFord Motor CompanyHouse HuntersRealizedKay Properties and InvestmentsNefarious HubSpotBonjoroThe One ThingGarzella Group 
Mar 22
32 min
Episode #181: Ground Up Development with Shannon Robnett
Few deals can promise the high returns that you can get from ground-up development. Today we bring in ground-up expert Shannon Robnett to discuss this asset class. With 40 years in real estate and having completed over 200 million dollars in construction projects, we open our conversation with Shannon by touching on his career highlights. After sharing why ground ups can be such valuable investments, Shannon dispels the myth that ground ups are always risky, especially when compared with multi-family risks. We chat about how having a reputable and experienced team mitigates most ground-up risks before diving into common challenges that ground ups. Reflecting on how the pandemic has led to huge population shifts, we talk about why now is one of the best times to get into ground-up. Near the end of the episode, Shannon gives listeners his insights into how he picks his projects, the importance of understanding your market, what real estate tool he can’t live without, and the main takeaways from his biggest real estate mistake. Tune in to learn more about lucrative ground-up investing.Key Points From This Episode:Introducing seasoned investor and ground-up expert, Shannon Robnett.Shannon shares details about his extensive real estate experience.What makes ground up such an excellent asset class. Comparing the multi-family risks versus ground-up risks. How you can reduce risk when making ground-up investments. Exploring the challenges that many ground-ups face.How ground-up beginners often make mistakes with their timeline. Why now is a better time than ever to get into ground-up investing.Hear Shannon’s advice on getting into ground-up.Insights into how Shannon picks his market and develops different asset classes.The importance of knowing your market when making deals.The top real estate tool that Shannon can’t live without.Shannon shares the main takeaways from his biggest investing mistake. How Shannon grows his business by picking the best possible people for the job.Tweetables:“When you’re deploying capital in a risk-mitigated situation and with an experienced group, nothing will get you a bigger return and keep your expenses in line like new construction will.” — @Robnett01 [0:03:49]“Where I do most of my business, we are coming unglued because of the volume of people that are moving in here at an unprecedented rate. The opportunity is everywhere” — @Robnett01 [0:13:02]“I don’t have to be a fortune teller. I just need to be plugged into the marketplace and know where there's a need.” — @Robnett01 [0:16:48]Links Mentioned in Today’s Episode:Top 70 Multifamily Real Estate Podcasts You Need to Follow in 2021Shannon Robnett on LinkedInShannon Robnett on TwitterShannon Robnett IndustriesAPT Capital GroupPassive Income Through Multifamily Real Estate on FacebookSchedule a Call with Kyle MitchellBullpen
Mar 15
22 min
Episode #180: Debt and Credit for Consumers with John Roberts and Robert Childs
There is a lot of information out there on laws regarding credit that you can use to protect yourself. Such things as the Fair Credit Reporting Act (FCRA) or the Fair Debt Collection Practices Act, known as an FDCPA. FDCPA has to do with you, the consumer, and the creditors,  while the FCRA is between the consumers and the credit bureaus. Would it surprise you to know that only about 1% of the country knows about and uses this information? Our guests on today’s episode are credit experts Robert Childs and John Roberts. Robert founded a credit repair company in 1990 and by 2012 he grew his business from just two employees to over 560 employees. In January 2012, Robert sold his company to a large bank for a seven-digit figure.  Robert’s credit repair company processed over 5,000 new clients per month with revenues that reached 65 million dollars in annual sales. John has worked in the credit restoration industry since 2015 and has helped thousands of consumers with credit issues along the way. He has demonstrated excellence in the credit industry as Director of Business Development and he has also served as Chief Operations Officer for companies and both the credit restoration and debt settlement industries. Together, we have the cofounders of The Debt and Credit Guys. Stay tuned for some very insightful bits of advice from two experts in the credit arena, the do’s and the don’t’s of improving your credit score, dealing with collection agencies, and so much more!Key Points From This Episode:Robert and John share more about where they come from and what they are doing now.What is a FICO score: A three-digit negative or credit score.The difference between a FICO score and a VantageScore.Why a FICO score is important.Ways to improve your FICO score: Four ways to boost your credit quickly.How closing a credit card can damage your credit score.Other ways to add negative items on your credit score that impact your credit.How to legally remove negative items from your credit report.How to deal with collection agencies: FDCPA and how to respond.Three important things to ask if you are being called about debt.The best and worst times to settle a collection amount.Other ways to improve your credit scores.One tool they use in real estate investing that they could not do without: Credit!The importance of doing research in the real estate business.Links Mentioned in Today’s Episode:Robert Childs on LinkedInThe Debt and Credit GuysJohn Roberts Telephone — 949-371-8899The Debt and Credit Guys PodcastThe Debt and Credit Guys on TwitterATP Capital GroupBullpen
Mar 8
26 min
Episode #179: Investing Outside of the U.S. with Greg Junge
Today’s guest is a first for the PIMR podcast; Greg Junge is the only person who has been interviewed on the show who has invested in property outside of the United States. Greg joins us today to discuss how and why he and his wife Mandy, became limited partners in a resort in Belize, and the people who influenced their decision. In this case, the decision was based on the fact that it is a place they would like to revisit often, and therefore it is a lifestyle investment as much as it is a financial one. Greg doesn’t always invest in properties that he will make use of himself but he does always ensure that he completely trusts whoever he is investing with and he runs us through his vetting process in this episode. Greg also gives us insights into how the COVID-19 pandemic has affected his investments; why the pandemic has not deterred him from investing in more properties; the benefits of finding a niche in the vast world of real estate as quickly as possible and most importantly, why investing in your own personal development is a key to success. Key Points From This Episode:Greg gives us a brief rundown of his professional career.  Where Greg and Mandy gained the confidence to invest in Belize. Some details about the Mahogany Bay Village development and the value Greg sees in investing there. The delays that COVID has caused.The lifestyle investment is as important to Greg as the financial investment with regard to investing internationally.Patience is key in the real estate world, especially during COVID times. Greg talks us through the qualities that he looks for when he is vetting sponsors.The three main things that Greg looks at to determine whether he is going to invest. Greg and Mandy’s decision to continue during the COVID-19 pandemic. Why finding a niche as quickly as possible is beneficial to success. The benefits of investing in your own self-development. Tweetables:“With real estate, it never happens very quickly, it’s not get-rich-quick, it’s get-wealthy-slowly.” — Greg Junge [0:09:32]“It’s really just patience and trusting the process and trusting the team that you vetted out.” — Greg Junge [0:10:00]“If I am going to write a check for a decent amount of money, I want to make sure that I trust that person who is receiving that money and that I trust them not only now, but a year from now or 10 years from now.” — Greg Junge [0:16:02]Links Mentioned in Today’s Episode:Greg Junge EmailSeven Figure CapitalSuccess Habits of Super AchieversReal Estate GuysRobert Helms Prosperity AidMahogany Bay VillageNeal BawaDeal Maker LiveMichael BlankBullpen
Mar 1
22 min
Episode #178: Managing the Manager with Andrew Cushman
For over a decade, Andrew Cushman has been growing real estate investment businesses full-time. Starting off with single-family properties in the depths of the Great Recession, Andrew completed 27 single-family flips, all of which were profitable. In 2011, he transitioned to the acquisition and repositioning of multifamily properties and now acquires B-class, value-add properties throughout Texas and the Southeast United States. In total, Andrew and his team have acquired and repositioned over 2,000 multifamily units to date and, of course, each one of those units requires property management. In this episode, you will hear Andrew's experience of managing the property manager, from finding and hiring a third-party property management company to the biggest challenge he has faced in working with a property management company, and he also shares his best practices and talks about his asset management superpower. Tune in today!Key Points From This Episode:Find out a bit more about Andrew and what he doesBest practices for finding and hiring a third-party property management company.Making sure that your type of asset is what the company is best as managing.Why great property management companies are discerning about who they work with and have your best interests in mind.The biggest challenge Andrew has had with a company: managing renovations.Learn why Andrew has had to fire a property management company before.Andrew’s best practices for managing the manager, like weekly calls with everyone, including the maintenance technician.Andrew’s asset management superpower is being actively involved without micromanaging.Tweetables:“The wrong management can turn a great deal bad in no time.” — Andrew Cushman [0:03:36]“Do the best you can to find out if the people in the [property management] company have created a culture of integrity.” — Andrew Cushman [0:07:39]“Our asset management superpower is being able to partner with our third-party management in somewhat of an unusual way, to get everybody on the same team and function as if it was in-house and vertically integrated.” — Andrew Cushman [0:11:52]Links Mentioned in Today’s Episode:Andrew Cushman on LinkedInAndrew Cushman on BiggerPocketsVantage Point AcquisitionsThe Multifamily Accelerator MastermindAsset Management MasteryAsset Management Mastery Facebook GroupRedIQ
Feb 26
14 min
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