Achieve Wealth Through Value Add Real Estate Investing Podcast

Welcome to Achieve Wealth Through Value Add Real Estate Investing Podcast with James Kandasamy.

Today I am very excited to have Jack Rosenthal as a guest on our weekly show.

Jack is an 18-year-old investor, entrepreneur, and author. One year ago he wrote the book "Teen Investing" which has now become the #2 best-selling book on Teenage Investing on Amazon. He also started the Young Investors Club, LLC (younginvestorsclub.org) which grew from 0 members to over 90 members today and over $120,000 in assets. Lastly, he manages his own investment portfolio as well as the portfolios of a few other investors.

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James: Hey audience, this is James Kandasamy from Achieve Wealth Podcast. Today, we have Coach, Trevor McGregor from Vancouver, British Columbia. But you know, he's been seen all over in the US, in a lot of conferences giving keynote speeches. So Trevor is a real estate coach, a consultant, a keynote speaker and many other things. Trevor, why not you tell the audience what do you do and what are the things that I missed out?

Trevor: Oh, well, thank you very much, James. Great to be on your show. I love your show. And yeah, you know, predominantly, my background is in business. I worked in the Fortune, you know, Fortune 500 company; it wasn't a Fortune 500 company itself, but I worked in corporate. It felt like a Fortune 500 company because I did a little bit of everything as the director of operations. I was involved in everything from marketing to finance, HR, site selection; you name it, I did it. And at the same time, as I was working in corporate, I also became a real estate investor. So I started investing in condos, townhouses, duplexes, fourplexes, single family homes. And at the same time, I also really got into personal growth. I was studying the likes of Tony Robbins and Jim Rohn, a little bit of Napoleon Hill.

And so, I had this trifecta going of corporate, of real estate, and a personal growth that eventually morphed into me doing a little bit of coaching in corporate and in real estate and in personal growth. I went on to start working with Tony Robbins. For those of you that know Tony Robbins, he's a business strategist and he loved that I had a background in business, a background in real estate and that I was big into personal growth. And so at some point in my career, I decided to just leave the corporate world and just end up doing coaching, consulting, keynote speaking and full-time real estate investing. And that's really what I do today.

James: Very interesting. So I believe that success in anything that we do is 80% psychology mindset and personal growth, internally, right? So tell us about the steps that any real estate investor needs to achieve his dream or his or her dream to become a really successful real estate investor. I mean, you have coached a lot of people, so why not we go through the list of what are the most important things that any real estate investors should look at?

Trevor: Absolutely. I'll be happy to. And I guess it all starts with understanding that there are two things. So I'll share two things before we get to the list, James, because I'm telling you, I've coached real estate investors all over this beautiful blue planet. You know, the majority of them have been in the United States, some in Canada, some in Europe, some in Australia, New Zealand, even as far away as Asia. And after doing over 20,000 coaching calls, that's an actual statistic, I found that it really boils down to just two things. You know, the first thing is to really have what I call a high-performance mindset. You've got to get what's right between the ears before you can even go out there and do the second thing, which is modeling; modeling best practices. You know, learning from people like you, learning from reading great books, attending conferences. Because if you can show up with a powerful mindset and you can model best practices, you can really take your real estate portfolio through the roof. Does that make sense?

James: Yeah, yeah, absolutely. Absolutely. So let's go to more things in how the journey can be started, right?

Trevor: Yeah. Well, absolutely. And I call it the seven simple steps to extraordinary real estate success. Because again, I've identified that if you do these seven things, you're going to be wildly successful in real estate. And if you miss one of these seven things, it can take you a long time to get to your ultimate outcome. So the very first thing that I always talk about, and it's always number one with people, whether you are new to real estate investing, maybe you are an expert at it, is that there's always something going on where we need to confirm with your mindset. Because we all have limiting beliefs, we all have doubts, we all have fears, we all have anxiety. And oftentimes we'll say things like, you know, it's tough to find great deals, right? Or maybe you've heard all the good deals are gone, or that it's hard to raise money nowadays because there's so much competition Or what if the market crashes?

And so those are all questions that if you don't get your head around those things, they can literally paralyze someone and stop them in their tracks. So what I come in is I come in as a coach and I take a look at things like, well, what are your beliefs? What are your values? What are your rules? How were you answering those questions? Because I'm telling you that there's a new way of thinking and behaving that you've got to really latch onto. Because if you don't, those limiting beliefs are going ...

Welcome to Achieve Wealth Through Value Add Real Estate Investing Podcast with James Kandasamy.

Today we have Quality Assurance Management professional with 17+ years Sathesh Singaram as a guest on our weekly show

Currently, Sathesh Singaram active as a Multifamily real estate investor besides his day job and invested & continues to invest in NC/SC, GA, TX markets. He is currently invested in 1000+ doors as LP in various Multifamily Projects in the USA. He is a member of nationally acclaimed Multi-Family mentor James Kandasamy’s program.

Never forget to like and subscribe and press the bell icon for more useful videos.

-----------------------------------------------------------------------------------------------------------------

Get your copy of James #1 International Best Selling book – Passive Investing in Commercial Real Estate – https://amzn.to/2Ng35KE

-----------------------------------------------------------------------------------------------------------------

☑️ Check out James Kandasamy at

🎓 Apply for Multifamily Mentoring Program:https://achieve-academy.net/

🌐 Invest with us: https://achieveinvestmentgroup.com/new-investor-form/

👍 Facebook: https://www.facebook.com/jameskandasamy/

📸 Instagram: https://www.instagram.com/jameskandasamy/

🌐 LinkedIn: https://www.linkedin.com/company/achieve-investment-group/

🐦 Twitter: https://twitter.com/achieveinvest

📹 YouTube: https://www.youtube.com/channel/UC_bqeFNjjrATXLX-2fSaLvw/featured

-----------------------------------------------------------------------------------------------------------------

📚 Achieve Wealth Through Value Add Real Estate Investing Podcast 📌 https://apple.co/3hWvVNV

-----------------------------------------------------------------------------------------------------------------

🔔 Subscribe My Channel and Press the Bell Icon 🔔

📺 https://www.youtube.com/channel/UC_bqeFNjjrATXLX-2fSaLvw/featured

-----------------------------------------------------------------------------------------------------------------

📞 Contact Me:

🌐 https://achieveinvestmentgroup.com/

📧 [email protected]

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James: Hi audience and listeners, this is James Kandasamy from Achieved Wealth Through Value Add Real Estate Investing podcast. Today we are doing a podcast and a webinar as well because I've an awesome presentation from Jeff Adler who's the Vice President of Yardi Metrics. Yardi is one of the largest property management companies in the nation and they have a lot of data behind them and Jeff is going to provide a lot of insight, which is going to give us a state of the union of multifamily industry. Hey Jeff, welcome to the show. Jeff: Well thank you very much James. James: Alright Jeff, so let's go back to last year 2019 where we had a really good podcast. I believe that's podcast number one. Where we call it a state of the union of multifamily for 2019. So this time is 2020. So let's have a recap. What has changed from 2019 to 2020 for the multifamily market? Jeff: Well, you know, in one regard, not much. Okay. And another regard a whole bunch. So if you kind of recall at the beginning of 2019 from an economic standpoint, there was a fair amount of uncertainty. The fourth quarter of 18 was kind of a Swan dive, we had an, a big inversion of the yield curve. The Federal Reserve had kind of raised rates. Stock market had kind of gone into a significant correction and 2019 we really weren't sure whether the economy would continue to be able to grow. Would the fed take the corrective action necessary? And the economy would be able to navigate some of the trade pensions and basically the continued health of the multifamily industry would it still kind of advance at a good clip or what was the state of supply. So there was some uncertainty around some of those kind of components. And so the picture is a bit more clarified from the macro economic standpoint. The feds did cut rates, the yield curve stopped its inversion flat again. And the economy kind of advanced forward, we had 2.3% growth over the course of the year. Job formation has still been quite good. Difficulties with supply had kind of stretched out that supply delivery curve and occupancies have performed well. Overall rent growth across the country has been around 3% with fewer markets performing poorly. Some of the hot markets kind of beginning to tamp down. So the one I would say negative component in all of the multifamily world is the regulatory backlash that occurred from rent control legislation in Oregon, New York and California, which has made those markets less attractive compared to others. But the basic outlines of the economy are still quite good. I just came back from the NMAC conference in Orlando I guess it seems like forever ago, but I think it's was only last week. And there the mood is very good, lots of capital lots of activity going on. People always worried about are things kind of richly valued, and they are. But if you look at the spreads in cap rate in the 10 year, still pretty good. You look at good availability, still very good. More capital is flowing into the multifamily industry from not only outside the United States, but inside of the United States with a multifamily being one of the two top asset classes for investments. So when you look at the demographics continued to be on a positive, you look at the supply, which we do not think will be out of hand and we just finished up a new supply forecast by property almost.

Taking into account a lot of the cycle time data we have on deliveries of projects. We think that we'll actually, as a country, deliver a tad less than the 300,000 odd units that were delivered in 2019. And we are in generally speaking housing shortage contrasted to the housing surplus that we had before the crash. So it's really a really good time to be in multifamily. It's almost so good we kind of pinch ourselves and saying we don't want it to be this good. There must be something bad. What's the horrible thing that's going to happen to us? We're just having a hard time dealing with good news as an industry. But I'm cautious. I continue to be cautiously optimistic. I don't see a recession at least until 2021 and quite frankly, with the way in which the economy has kind of come through this, I'll call it a mini manufacturing recession. It didn't really affect the services industry; it did affect manufacturing and sectors exposed to trade. With us actually coming out of that growth prospects for GDP are actually higher this year than they were in 2019. So I don't really see a recession till 2021 and one could argue very effectively, 2022 but certainly we have another good year ahead of us and inflation is not out of hand in any respect. And because inflation isn't out of hand, there really is no pressure for interest rates at the short end to move higher. And there certainly is no pressure on the long end. I mean, interest rates for the tenure are back down to below one six and they were at one nine, not just before this kind of corona virus scare. But if you look at that, like if there's ...

James: Hey audience, welcome to Achieve Wealth Podcast. This is James Kandasamy. Achieve Wealth focuses on commercial real estate and especially focusing a lot on Value Add Real Estate. And today we have Kimberly Radaker Bays from Dallas, Texas. Kimberly has done almost 430 million of assets specifically multifamily.

And this is just under her own asset management. And you know the 430 million represents almost 7200 units. Currently, they still own like 5000 of those units. And they focus a lot on deep Value Add which is an asset, not say an asset class, it's a type of Value Add that you know, gives you the highest return, right.

So they have done almost 10 deals up to now. One important thing that I want to mention before we bring Kimberly live is that Kimberly owns; construction management, property management, asset management and she also owns materials management, which is an important aspect of Value Add in vertical integration as well.

So hey Kim, welcome to the show.

Kimberly: Hi, thanks so much for having me.

James: Good, good. So I mean, you own a lot of units. You have been very successful in your Value Add Real Estate acquisition and you're playing in one of the hottest market, Dallas. So, can you briefly walk our audience and listeners through on how was your journey since the day you started? What year did you start? And can you just walk through your whole experience?

Kimberly: Well, I started in 2007, with some single-family houses and kind of did that when my kids were really little. And then as they got a little bit older, it was harder to take them into Value Add, fix and flips and rental houses and that sort of thing when they were getting into stuff. And so, took a little bit of time away from single families and then got into multifamily in 2011.

So bought the first property, was a 77 unit property in Irving, Texas. And went full cycle with that one in only 15 months and then did 1031 into 244 unit property. While we still own that one, we brought 444 unit property in Arlington. And then kind of as we sold, it just kept growing. So purchased three properties in 2015, which have now all been sold.

And we bought three in 2016, three in 2017 and seven in 2018. And then one so far this year. So all of those, we still own; the 2016 and on, we still own at this point. So that's 4874 units across 14 properties scattered all across the Metroplex, Easter Garland and West to West Fort Worth so.

James: Awesome. Awesome. And you do a lot on deep Value Add, right? So can you explain why did you choose deep Value Add?

Kimberly: I guess we weren't scared of it. And we had sort of a knack for it from doing some of the single-family stuff that we had done previously. So we got started with that. And so because we do self-managed because we have our renovation teams in-house because we have the materials import it's a lot easier for us to undertake some of those projects.

I mean, there's some of those projects that I definitely would never hand over to third party management. It would just be a real mess if you did, probably so it really takes an awful lot of hands-on stuff. And even then there's plenty of speed bumps that roll along with deep Value Add.

We have a property that we purchased almost two years ago, that had 200 hard down units that hadn't been occupied in at least 13 years that we know of. My guess is closer to 16 or 17 years. So that's been an ongoing project. And it's definitely hit various little bumps along the way with city inspectors and various things.

And, you know, pipes that hadn't been used in forever, most of the copper was gone, all those sorts of things. But we finally have all, almost all the way back online so.

James: So when you analyze deep Value Add, right, I mean, I'm sure you look for the value like you bought deals where there was a lot of units down and I think there's a lot of mismanagement and I mean, is that kind of deal easy to find nowadays?

Kimberly: No, it's not. The ones that are that deep Value Add are very, very few and far between at this point. But there is a ton of Value Add still available, just kind of depends on what you're looking for. So there's a lot of properties that have had some work done to them. But maybe more of the exterior has been done in the units, haven't seen as much on the interior.

And there's also a lot of room for Value Add on the management side. There's a lot of owners particularly that have owned for a long time in the market that haven't kept up with the rental increases that DFW has seen over the past five years. And so oftentimes, even a property that's in pretty decent shape, you can go in and definitely do some renovations and add some value there. But a lot of value can also be generated just by getting all the units up to the market.

James: Yeah, I know it's harder to find the deep Value Add nowad...