Episode Transcript
[00:00:00] Speaker A: As I sit here today, I'm a finance guy at heart. I probably got 35% of my net worth tied up in various multifamily projects across the country.
I'm in about 1500 doors as a general partner, and that equates to probably well over 200 million in assets under management. The values of those properties, that may seem daunting, but it's really not.
[00:00:28] Speaker B: Hey, everyone, what's going on? This is Kevin Daisy, your host here on the Managing Partners podcast.
And, you know, I'm always trying to find unique guests out there. And I'm not sure if you know this about me, but I do have some real estate. Me and my wife, outside of marketing, me and my wife also have some real estate properties. And I'm trying to build that out, diversify.
And of course, all my lawyers out there that I know I talk to often. I know a lot of you that are into real estate. Maybe you're in your buildings for your firms. You're looking at other opportunities to put money away for yourself and your families and build wealth. And so I want to bring Randy on the show here because he's deep into real estate. He's got some cool things to share, ways to build passive income, and I hope it's valuable to you. So we'd love to see any comments, questions, if you can post those when you're watching this, be happy to connect you with Randy or to respond to those questions. And yeah, just trying to bring us something a little bit different here. And Randy, welcome to the show.
[00:01:40] Speaker A: Well, Kevin, thanks so much for being on the show. It's really a pleasure to be here this afternoon as we record this. I'm Randy Langenderfer. I live in Houston, Texas. Today, my wife always tells me that I don't say I always talk about business. So I am.
I am a husband, a father of many, many years. I have three adult children. I actually have four adult children, five grandchildren, three girls and a boy that are out living their lives. And Kevin, my story started, if I can jump in there, really, about 10 years ago.
Ten years ago, after the Great Recession. I was working for a private equity firm in Cleveland, Ohio, at the time. And if anybody knows anything about private equity, they're really hard chargers. And I was working my butt off. And I was just really afraid I was going to get laid off. Not because of any performance problems I had or anything, but just because of the economic times after the Great Recession. As an executive, I had a pretty good number on my back. That would have been a Cost reduction. And that was just a real aha moment for me that excuse me, I needed to find another income.
And at that time I wasn't really ready to quit the corporate world. But I started looking at all kinds of things, buying small businesses, buying a franchise, other opportunities like that.
And I came upon real estate. I had a brother in law that was got me first interested in it. We were living in Cleveland, Ohio and we were hard money lenders to a group out of South Florida, Dade County. That means we were lending them money to buy the houses, repair the houses and flip them for a profit. And we would take very nice return percentage wise on the gain. So that's how I got started and then moved into multifamily when I was looking for a job and moved to Houston, Texas from Cleveland, Ohio and I got involved in a large. I became the chief compliance and privacy officer and cybersecurity exec for a large academic medical institution here in Houston. And so I've worked with a lot of attorneys. I've had attorneys work for me on the corporate side and just really a pleasure to be on your show and spend a lot of time with attorneys, put it that way on the compliance side.
[00:04:06] Speaker B: Yeah. Well I appreciate you joining me and interested to talk about some of this stuff.
Yeah, I just have some single family homes that are short term rentals and we've done good and we're scaling it up but you know, multifamily. You know I've been to some of the Grant Cardone stuff in Miami and learned a lot about that stuff. I had a client here actually a non law firm that owned like 60 multifamily complexes. 50 million, $60 million per property type stuff. And you know, he lives right here where I'm at and very intrigued listening to him and going how do I, how can you get into that and how is that even possible no matter what your income is when, how do I get into a deal that size? Now things a little daunting to think about so.
So be interested perspective on that.
[00:05:01] Speaker A: Well, it is daunting when you're at the bottom of the mountain looking up or when I was in 201112 thinking about what in the heck am I going to do? It is daunting and I would say there's nothing wrong with. I mean there's many different ways to make money in real estate from single family to multifamily. But what I learned in single family, doing the flip, the hard flips that I was doing, it's just very difficult to scale to get a lot of traction and it was limited to the amount of money I had. So how much money could I put in a building or a, an apartment or a single family unit to buy and flip it? I what my partner and I were.
[00:05:42] Speaker B: The bank and you know, cash flow, right. You're not, you're not building the cash flow up.
[00:05:48] Speaker A: You're, you're putting out a big outlay and hopefully getting it back and hopefully getting it back in six months, maybe nine months.
[00:05:56] Speaker B: You got capital gains, you got all the other things you got to just keep, I guess you just got to.
[00:06:01] Speaker A: Not even capital gains.
[00:06:03] Speaker B: Yeah, 10, 30 capital gains and step up, step up, step up. Right, yeah.
[00:06:08] Speaker A: But it's not even capital gains. It's ordinary income flipping houses because it's less than a year. So it's ordinary gains just like W2. So it became heavy taxed.
But there are a lot of advantages to it. I was able to graduate into it. But I think the perception that I'm going to go where I'm comfortable in becoming, I'm going to buy, I'm going to build, I'm going to own a big chunk of something. So I'm going to buy a two unit complex or two houses. And you are the man per se. And you know, I don't want to be the person that's getting called for the toilet leaking in the middle of night or the air conditioner going off in the middle of summer or somebody hit my car in the parking lot. The advantage of multifamily is we hire a third party property management to do that. They're the people on site every day dealing with what I say, tenants, toilets and termites.
So that's, that's the real advantage to some of this. And so the other one is, is, you know, from an investment perspective I mentioned I was at the Baylor College of Medicine and I got to know our chief investment officer real well. And when I first started there 11 years ago, almost 12 now, it was the traditional. We had a $1.5 billion endowment, that's with a B billion.
And we had the traditional asset allocation that everybody preaches about. So I'm a finance mba, cpa, so I'm all into asset allocation. Had a traditional model of 60, 40, 70, 30 equities bonds. Well over the ensuing time period, when I left there of that 1.5, we had anywhere from 8 to 12% of that portfolio allocated the real estate. And if you look at some of your bigger allocations from your endowment funds, they all have a chunk Anywhere. So I'm going to say 8 to 20% just on how aggressive they want to be and where they are in the cycle devoted to real estate.
It's a venue to boost your returns. Yes, it's a longer Runway, but it's a venue to boost your returns and complement what you're doing in the market. So today, as I sit here today, I'm a finance guy at heart. I probably got 35% of my net worth tied up in various multifamily projects across the country.
I'm in about 1500 doors as a general partner and that equates to probably well over 200 million in assets under management. The values of the values of those properties. That may seem daunting, but it's really not. It's like owning a piece of a mutual fund. So what I'm comparing it to is you own or somebody who owns three rentals, owns a lot and a little.
I own a little and a lot, so I have a small percentage in a big pie.
Those who go after single families, one at a time, they own a big piece of something smaller. Neither one of them is bad. It's just that I'm. Maybe I'm lazy in my old life. On my old age, I didn't want to do all that work.
[00:09:16] Speaker B: Oh yeah, My new property has been, you know, it's, it's a short term rental so it's not a tenant, which that sounds terrible to me to have single family tenants, but, but yeah, this is a lift. And then yeah, there's problems. You know, you got resources but you know, you have backup resources and sometimes there's no resources. So you, it's you. So.
But it was our way in. I've been to a lot of things on getting into multifamily and I learned what general partners were and all this other stuff and are trying to do your own structure, your own deal as a general partner. And to me, my decision was, okay, well I can go buy some stuff now that I feel comfortable with to get my feet wet and to see that it creates cash flow and revenue and increases in value and give me more leverage to buy something else.
And that's worked out well so far, but I'm still intrigued with everything out there, commercial, multifamily. And so I definitely want to move in that direction. And anyone listening, if you're not in real estate, you know you should be. I don't care if you're a owner of a firm or just a law student listening.
[00:10:35] Speaker A: A W2 employee.
[00:10:36] Speaker B: Yeah, real estate not your home. That's a liability, more or less. You're putting money into that, constantly fixing it up and paying bills. But, you know, getting into real estate, no matter what it is, is just a good way to go. Everyone that I know that's wealthy has real estate, every single one of them.
And the sooner the better, because it's never a good time or the right time to get into it.
[00:11:04] Speaker A: So, yeah. And you, you hit it on the head. The wealthy, if you look, I mean, whether you like or dislike Donald Trump, I'm not political side, but he's done an awful lot for the real estate profession and bolstered its image. And, and as the one guy told me, Randy, you don't have to be smart in this. All you have to do is follow the playbook of those that have gone before you. This isn't brain surgery. It takes work and some capital. But, you know, and I just wanted to go back to the comment we talked about, the other illustration. I had a conversation done this very breakfast this morning with a potential investor, and he's the same thing. He owns three rentals, and he's contemplating. Does he. Single family rentals.
[00:11:50] Speaker B: Yeah.
[00:11:51] Speaker A: And he's contemplating does he want to grow that or does he want to go into something different. And I said, again, I'm neither. Venue is wrong. It's what your comfort level is. But I said, you know, do you want to be the illustration I heard best put to me was illustration in the airplane, do you want to be the pilot in the front of the plane who's worried about air traffic control and the weather and ground crews and all the headaches he or she has? Or do you want to sit. Be the passenger sitting in the back, sipping your favorite beverage and reading a book and letting everything else to the guy up front? And that's kind of the way a syndication works. You know, you have a general partner.
[00:12:31] Speaker B: What you want to talk about today. And because I don't know much about that myself, so I'm here to learn just like everyone else.
And again, podcast is hopefully bringing some good information to y'all. And, and to me, again, as the host, I'm around every time, so. Which is. Which is awesome. So.
[00:12:50] Speaker A: Well, you've got the envelope. We'll see. You get to. You get to hear all your guests, unless you're. Unless your audience tunes in for every podcast, but you get to hear everyone and leverage that. That knowledge. But, yeah, syndication is really just. Just that. I mean, it is a group of investors coming together that's going to buy a multi million dollar asset that none of us could buy alone, period. None of us could buy a loan. So there's going to be a general partner. He's going to be the pilot in front of the plane. He or she is going to be the pilot that's putting the deals together. They're going to be the ones that are finding the deals, working with the mortgage companies, working with the SEC attorneys to make sure this deal is going to fly. And then that acquisition needs lots of passengers in the back sipping their favorite beverage or limited partners. And that's the easiest way to do it. So in a typical syndication, there's probably, I've been in taking down some very big assets with other partners, not with myself, but we've taken down, you know, $120 million deal. I didn't do it all. It took multiple people to do it. And we've done as small as a $7 million deal where it takes a lot less people. And so you just, you know, in the words of Robert Helmsley from the real estate guys, you know, invest where the money where the, where it makes sense and live where you want to live. So I've invested in assets and Columbus, Ohio, Tucson, Arizona, Greenville, Texas, Greenville, South Carolina and South Carolina, excuse me. Greenville, North Carolina, Columbus, Ohio, Shreveport, Louisiana. It's a matter of finding, and it's a matter of finding the place that you're comfortable with the leader or the general partner and their track record and you know, buying into their vision and a goal.
[00:14:56] Speaker B: So the general partner don't they. So let's just say you're buying a multifamily.
Not only are they, you know, there's the money to buy the property, but then the maybe the upgrades to the property that they're trying to raise the money for so then they can then raise the rents and then cash out refi in a couple years and then pay their general partners back or their limited partners back plus a return. Right. Is that kind of how it works?
[00:15:21] Speaker A: You've listened well.
So yeah, when, when a syndication comes together, they're generally looking at a five year hold. They're modeled on a five year hold. They may have. I've been in ones any, anywhere as short as 21 months and the longest is eight years still running for me. So it's anywhere when you achieve the business objective. But generally the syndication comes together with a pro forma, an investment summary that talks about the opportunity, the asset, where it's at the local market, what the business plan is to improve that market. And as your audience may or may not know, the beauty about commercial real estate, specifically multifamily, is the value of that property is based upon the cash is generating, not the comps next door like my primary residence is.
[00:16:14] Speaker B: Yeah. So like the property I just bought, I had comps for the houses that just sold down the street. Right. Commercial and multi. That's, that's going out the window pretty much. They look at how much still has.
[00:16:25] Speaker A: An impact, but it's, I mean, everybody, the bank and all the potential buyers down the road are looking at how much cash is this thing generating, pure and simple. So the net operating income is the number income minus expenses gives you net operating income. And so as we as the new owner of this XYZ property, if we can increase that noi, that net operating income, we increase the value of the property. So how do we do that? We either increase rents or we lower expenses or a combination of both. And that's really what you do when you take over any commercial property. You're looking to increase noi as well as let the market appreciate while the tenants are paying your debt down. It's a beautiful thing.
[00:17:12] Speaker B: Yeah, well, so, yeah, I'm, you know, this is speaking from what I know and I've learned, but I haven't done so. But yeah, like say you go in, you reface the building, you do landscaping, you do some, you know, add some new app like washers and dryers, whatever.
[00:17:30] Speaker A: Yeah.
[00:17:31] Speaker B: You don't have to like maybe redo the whole thing, but you're, you're fixing it up. You raise rents across, you know, a thousand units for 100 bucks a month. I mean, boom, that's, that adds up to quite a bit. Or you wait. Yeah. Or you're waiting for this rents to go up because you, you'll build up a percentage increase, you know, each year or whatever it might be.
[00:17:52] Speaker A: Right.
[00:17:52] Speaker B: But the rents are going to go up anyway. Right.
[00:17:55] Speaker A: Usually you break your capital plan into interior and exterior items. So interior items are just that, improvements you're going to make to the units themselves. You're going to put in new cabinets or counters or plumbing fixtures, lighting fixtures, carpet, anything in between. You know, some big stuff is late is tech packages where you can open your unit and turn control the thermostat with your phone.
That seems to be. And you know, we put that in for my latest property and we're getting 50amonth bumps. Just for that, we took over another. We took over a property and we started charging for reserve parking. So, you know, otherwise everybody Parks in the open lot. But hey, you want a reserve spot, $35 a month, you want a storage locker, another $35 a month. So all those, you know, it's just like any commercial property. You see any commercial thing, the add ons help immensely to boost your revenue and your noi, thus your property value.
[00:18:55] Speaker B: So yeah, yeah, you know, there's like tons of tax advantages. So if you're a higher earner and you have a bunch of real estate, there's a lot of advantages to having that.
And you know, that's, you know, most wealthy people have real estate that they like. Oh, well, they don't pay a lot of taxes like, well, you know, because there's all these advantages to that.
[00:19:17] Speaker A: So back to the Trump guy in 2016, whether again we like him or not, when him and Hillary were debating and she was criticizing him for paying no taxes and he said that makes me smart.
And so isn't the tax.
Yeah, and it's not tax evasion, it's tax avoidance. Tax avoidance to my legal friends out there is legal. Tax evasion is illegal. You know, I can tell you I left the corporate world in 23 to do this. I just signed my 23 return today and I am proud to say that I paid zero income tax for 23.
[00:19:55] Speaker B: Not because I'm so.
[00:19:58] Speaker A: But I'm not, I'm not bragging or anything. I'm just saying it's the advantage of real estate and you're taking all those passive losses you've created. Now I do have a, I am able to say that I'm a real estate professional designated by the irs. So I'm able to take those passive losses I have and offset the ordinary income I had. But even if I didn't have that real estate expert designation by the IRS that anybody can qualify with the right qualifications, those passive losses, I mean, there's three buckets of tax. There's ordinary income, there's capital and there's tax. Just like your capital gains sit in a bucket and they're there to your losses offset future capital gains same way in your passive income. So even if you're not a real estate professional for years, it's a great track tax strategy to buy multifamily, to let your depreciation and your losses accumulate so that when one sells it's a fact, you get a small portfolio of those. It's effectively a tax free game. You're just punting it down the road. And again, I didn't develop it, I didn't think of it. I'm just following the playbook.
[00:21:06] Speaker B: Well too isn't it as a limited partner in one of these deals on, you know, let's say $100 million property. I mean so you're getting the depreciation.
[00:21:20] Speaker A: Bonus, depreciation year one and then depreciation every year. So I mean the beautiful thing about real estate is you should get a positive cash flow as a passive investor quarterly or monthly, depending on property and a negative or tax loss every year on your tax returns until you sell the property. I mean you're eventually going to have a gain, but yeah, I mean so you have favorable tax treatment and positive cash flow. And depending on how active you want to be, if you want to go out and find buildings, that's great. Or if you just want to invest and reap the advantages, that's great too.
[00:21:55] Speaker B: That's interesting. So the other thing too that I've learned is maybe you can explain this real quick is say they bought, you bought your own building. Say I go buy my own 20 unit building or whatever and I fix it up, increase the rents, go back to the bank and say hey it's now. And they go, all right, now it's worth this.
Sometimes it give you a lot more than what you paid for it.
You could do a cash out refi as a tax free event. Correct.
[00:22:23] Speaker A: Can you do that on your personal property?
No, no.
[00:22:27] Speaker B: I mean you get your money back that you put in, still have a positive cash flow on it and take your money off the table, roll that right into the next deal.
[00:22:37] Speaker A: The only way you could do that in your primary residence, like I said, is to sell it, is to take advantage of the appreciation. So you hit it on the head. You buy a property, you've increased the value by increasing the rents.
You didn't do anything else. You just making it a better property and finding better tenants and you're getting more revenue. So back to my equation, your NOI goes up substantially. The lender is going to let you refinance that you're right on the noi value, not what the comps are saying. And when that happens, many times, you'll get a cash out refinance for anywhere from 50 to 100% of your. I mean the best thing to do is to get all your money back and hold it.
[00:23:21] Speaker B: Yeah.
[00:23:22] Speaker A: And that becomes an infinite return. Then when you get all your money.
[00:23:25] Speaker B: Back.
[00:23:28] Speaker A: I mean think about that. You put let's say $50,000 in a building, five years later, you get a cash out refinance, you get all your Money back and the group decided to hold the building.
That's a beautiful thing.
[00:23:39] Speaker B: Yes. I wanted for people listening, I wanted for people listening that aren't familiar with this kind of stuff, like so, yeah, let's just say right now I have and I've heard different numbers, some, some, some of these general partners that have different thresholds and things like that.
But for some people listening, they're like, oh well, how much, how much money are we talking about here and how do I get into a deal or whatever. I've seen stuff where you know, it's a hundred thousand dollars or it's, it's different levels and some are higher than others.
But just for, for people listening, like what kind of deals have you seen out there where if I want to be in a deal, limited partner, what's kind of the minimum entry level?
[00:24:18] Speaker A: The general rule of thumb, I'll say as any rule of thumb, there are exceptions, but the General 1 is $50,000. So you'll see some bigger assets where you ask for $100,000, they want to get fewer hundred thousand dollar investors versus many $50,000 investors just so they don't have to deal with investors.
[00:24:37] Speaker B: Sure.
[00:24:37] Speaker A: And from, from that perspective it makes sense. But from the average investor wanted to get in this, and then you can go out to crowdfunded sites today and you can get in this for as little as 500 bucks. I wouldn't encourage that. But for the typical private placement offering of which these all are, they have a requirement of I'll say anywhere from 50 to 100,000. There are deals that if you want to put in more than that, you'll get a bigger return. I mean if I put in, you know, 500, you're going to get a bigger return than the average lp.
But as a general rule of thumb, I would say 50.
[00:25:15] Speaker B: Okay. So yeah, I mean that was, that was kind of rumors I heard. But I think most people be like, all right, it's a million dollars. Like how much do I have to have set aside to do this and get into a deal?
And so yeah, the other one I.
[00:25:28] Speaker A: Wanted to say is on that one is Kevin. I'm sorry, I didn't mean to interrupt you.
[00:25:31] Speaker B: Oh, you're fun.
[00:25:34] Speaker A: The easiest way to get in this is even, even high income earners say I don't want to put 50 grand in my first deal. So the way I got started in my first deal, because I'm a finance guy and very risk averse, I started a self directed ira. So I took some of my IRA money and invested. You can do this very legally. You just have to transfer out of the fidelities or the schwabs into a different custodian. The biggest one is Equity Trust in Cleveland, Ohio, or Quest Trust Company here in Houston. Transfer your money there and then you can invest in crypto real estate, anything you want to invest in.
[00:26:09] Speaker B: Nice.
[00:26:09] Speaker A: So there's, there's a venture there too.
[00:26:12] Speaker B: So don't take your life savings and throw it into a deal. Right.
[00:26:15] Speaker A: Well, certainly don't take. I. Yes, I mean, I've actually advised people not to invest because I don't want to be the guy that takes their last $50,000 and you know, they got a kid going to college in two years or something and no, it's not, it's not worth it.
[00:26:33] Speaker B: Yeah, well, we got some good earners on this, on this audience here on this show. So. Yeah, you know, just everyone listen, I just think, you know, we're focused on growing our firms, my marketing firm, your law firm, but you know, we gotta be looking at these other things and put our money elsewhere and having it grow smart. I think the other thing too is if you like, I know, like my building here that I'm in were unoccupied. My business partner bought this building himself right before we kind of formed our new company. And he was already built, you know, buying this, this building.
I had a lease on a building in Virginia Beach. He was buying this, we decided to come here. We pay him a profit every month to be owner occupied. This has gone up a ton in value.
And you know, again, he makes, you know, we pay him, he gets more than he owes on it, that's for sure. And so it's a good investment for him. And now he's got like six commercial properties plus a couple short term rentals. And he's, you know, he's looking at different opportunities there too. So there's a lot of things you do if you, if you have a law firm owner occupied, buy your building, rent out, you know, the extra space that's available. I think there is like a percentage that you have to be occupying for certain, like SBA loans and stuff like that. But there's some advantages and loans you can get out there too for that kind of stuff if you're interoccupied with some good rates, SBA loans with good terms. So there's a lot of opportunities, of course, out there for real estate if you're, you know, that you're serious, if you're looking.
[00:28:14] Speaker A: Yeah, and, and yeah, I like Multifamily, you know, primarily for the reason everybody needs a place to live.
Not everybody needs an office building or a strip mall or an industrial park, the other commercial real estate classes. But in America, everybody needs a place to live. So that's the thing I really like to it. And when there's a shortage of houses, units, whatever you want to call it, across America, and that isn't going to change anytime fast because we're not building them fast enough and the barrier for people to buy them. So, you know, the millennials, I have three millennial children, and only one of them owns a house because they make good money, but they don't have. And daddy's not going to give them the down payment.
So we are becoming a nation of renters.
[00:29:06] Speaker B: It is, I was going to say. Yeah. So totally agree with you.
And you think about the pandemic, like office space and commercial space was devastated. And if you owned a bunch of rental space for office space, it wouldn't be very good for you. If you, you know, if you have a law firm or you're always going to be physical, you want, you know, own your building and make money on, you know, to rent out other parts of it, that's great.
But to your point, Randy, Yeah. More people are not buying and younger people are be. They're waiting longer to purchase homes.
They want to be flexible, they want to move around. They want to not be stuck with something. And so, yeah, there's going to be more and more and more multifamily. There's not going to be less of it. It's going to be smaller spaces that are crammed together, especially with the prices, the rates, inflation, and the barrier to entry is raised. So great investment. And it's always going to be there. It's not going anywhere, that's for sure.
[00:30:11] Speaker A: And I'm in Texas. I saw in the Houston area, and I think I saw the average median price of a starter home in Texas is like 350, 370, and that's probably low compared to the rest of the country, but still, that's going to require you to have a 60 or $80,000 down payment for the, for the newbie. And so if you got a double income, maybe you can do that, maybe you can save it.
And. And then the other end of the spectrum is you have people like me that are baby boomers that are looking to probably downsize and get out of the house and the maintenance and all the repairs and that stuff. I can still do it today, but give me another 10 years, I probably won't have any interest at all. So there's just a shifting mindset paradigm across the country.
[00:30:57] Speaker B: Well, yeah, too. If like, yeah, there's. There you go. It's not enough homes out there. And then also if me and you are in like a 3% interest rate and I want to buy another house for some reason, like I got to go to a seven or a six or everyone's holding tight, they're not selling, there's not a lot of inventory.
And then when there is, the prices are through the roof and interest rates are high. So it's a real disadvantage for anyone trying to get in their first home right now, that's for sure.
[00:31:26] Speaker A: And developers aren't building them as fast because of the interest rates.
Developers, even in Texas just now, they still build, but just nowhere near like did five years ago.
[00:31:36] Speaker B: Yeah, but if you can build at scale, right? Build, you know, 300 units on a property versus, you know, 20 houses. You know what I mean? Where's the money going to be, Right? I know a lot of, well, developers.
[00:31:53] Speaker A: So the latest project I'm doing, the latest project I'm doing right now is, I don't know if you've heard in Virginia beach, but build to rent townhomes or houses where they're actually, these are four townhomes in a building that are going to be sixteen seventeen hundred square foot homes, two story homes, three bedroom, two baths, garage, small back porch. But they're just as they said, they're built to rent, they're not built to sell. And you know, again, a lot of people willing to pay more for something like that than living in an apartment building. And we just happened to place this project in Melissa, Texas. And it's got a lot of upside on it. We just love it. But another demographic and paradigm change across America.
[00:32:45] Speaker B: No, it really is. And it's, you know, again, I was just listening to.
I've listened to all Grant Cardone stuff. Grant Cardone's big in real estate. I think that he's like 5 billion-plus in management or something like that. But I was listening to 10X Mentor. I listened to his other books. He breaks it down. He goes through all this. He talks about how he used to do single family and he used to do this and that. And you know, once he got into multifamily, he's never looked back. But because he's. Even though I made money on the single families, they were never, they were never cash flow and they were never passive. They were always expenses. I had to pay for them, I had to keep them up. I had to do all this and I made money on the end, but I had to wait and the economy had to go up and I had to, you know.
[00:33:32] Speaker A: Yep.
[00:33:33] Speaker B: And then I had to pick that money and immediately put it back into something else or I would have been taxed like crazy. So with multifamily, just the advantages are endless, to be honest with you. So I wanted to see, you know, for people listening and sake of time is if someone's like, hey, how do, how do I get into a deal like that? Or what would I, what's it really look like?
And then obviously I want to get how they can connect with you and learn more if they, if they're interested.
[00:34:01] Speaker A: Well, happy to do that, Kevin. So one thing I would say is our partner and I that are actually developing a course on a passive investor course. What a passive investor should know. And we priced it dirt cheap just because we want to give back to the profession and kind of help others out. It's only going to be 197 bucks. So. And it's consisting of like six modules, online modules that you can take at your own leisure. It's going to give you a really good introduction to how to be a passive investor and that's you can go out and look at the website. It's multifamily maestros, all one word multifamily maestros.com. the passive course isn't out there yet. We got an active course out there of how to find a property to buy. But we're coming out with that because we just found a lot of people are like this, want to understand, well, how do I do this?
And the simple answer of where you find deals.
I was just recording a session on the passive course saying there's, there's no 12 step process.
It's, it's hang with people. And I say you'll find what you seek.
If you're looking for a new car, you're going to find a new car or a red Bentley, you're going to find a red Bentley somewhere. There's meetups, there's podcasts you can get on my mailing list when I have opportunities like this BTR project in Melissa, Texas.
So there, there are opportunities. Just a matter of how fast your audience wants to go. Love to chat with them whenever. If anybody wants to talk about anything legal or professional though I'm not a practicing attorney.
[00:35:43] Speaker B: No. Well, I appreciate that and I think, you know, for everyone listening, I. To learn more about exactly what he's talking about and pretty much what he shared today. Like, I probably spent ten grand to go to an event, you know, real estate type event. And, you know, but there's those that are out there and you meet tons of people and a slack group that we created that had like 100 and some people that are all into this kind of stuff. And so there's, there's definitely a lot of information out there. But, you know, it's been 10 grand to go to an event to meet people for the first time.
So, you know, it's good that you have this information out there. So I would definitely take a look at what he's got. And again, you know, this episode might not be for everybody, but if you're looking to take your money from the firm that you've, you know and put it elsewhere and build that up and protect some of that honestly, and having tax savings and passive income, these are things that I'm looking to do and doing.
And I hope again, you folks out there and good friends attorneys are interested.
[00:36:55] Speaker A: So I was. Sorry, I was just going to say if I have one thought I'd leave your audience with today. Some people that are very smart, most of them are a lot smarter than I am, is really just invest in your education. Think of the money you spent investing in your legal education and your undergraduate education.
If it's not with me, spend a few bucks with somebody else to learn it before you invest in it, just so that you're comfortable with it and you begin to know like, and trust those you trust you're investing with. So education is a lifelong experience for all of us.
[00:37:31] Speaker B: Yeah, it's, you know, I'm always trying to learn. So there's great books out there.
You know, just like you're reading all the business books or if you're learning marketing with, you know, kind of stuff I do.
There's good books out here for this. There's other, there's people to follow, influencers. What's the guy? His Name's Ken.
[00:37:49] Speaker A: Ken McElroy. Yeah.
[00:37:51] Speaker B: Ken McElroy is great YouTube videos. There's a lot of good information out there. So just if you're not familiar with this kind of stuff or multifamily, I would suggest exploring it and getting familiar with it. But if you have any questions, ask me or I connect you with Randy here. If you're looking on LinkedIn or wherever you're seeing this episode, if you're driving your car, ping me. Reach out and be happy to connect you and, or talk to you for as much as I know about it, but I'm not playing the game yet, so that'll be next. But this is. This is motivating me to do it for sure. So I'm excited about it. Randy, anything else you want to share before we go?
[00:38:35] Speaker A: Just a large thank you, Kevin. It's really been a pleasure.
I've been trying to talk to separate audiences like this, and the legal audience is one that is really should be thinking about that back to where we started on diversification as well. And it's just a great way to build generational wealth.
[00:38:56] Speaker B: Yeah. Well, I appreciate the conversations before and during the recording. And everyone just, you know, get out there, live the best life you can. You know, work on your firms, grow on your firms, but make sure you're putting some of that somewhere else that's going to grow and build wealth for your family. So we'll see you all soon. Thanks for tuning in, Randy. I appreciate very much. And we'll talk to you all soon.
[00:39:23] Speaker A: Thanks, Kevin.
