BTM 64: Bigger & Faster Using Commercial Apartment Buildings with Chad Doty
Chad Doty has 12 years of experience as a multifamily investor, but he wasn’t born with real estate in his blood. Originally, Chad was a management consultant for Arthur Andersen. Watching that company meltdown prior to him making partner made him realize that letting outside circumstances control his life wasn’t for him.
So Chad then founded his own consulting company, only to realize he was simply trading time for money. Determined to control his own destiny, Chad decided to leverage commercial multifamily real estate to develop recurring, passive income. He formed 37th Parallel Properties, a private real estate acquisitions and asset management rm.
As the CEO of 37th Parallel Properties, Chad specializes in syndicating multifamily investments. His offerings allow investors access and opportunities to generate stable streams of tax-advantaged passive income and equity growth without needing to manage the property themselves.
Through this approach, Chad helps investors get access to tax-advantaged apartment investments that can produce income and equity growth that have historically retained their value through economic downturns and nationally cycles. Chad is a proven multifamily veteran with over 12 years of investing experience, another 10 years of management consulting experience, and $325 million dollars in real estate transactions.
On today’s episode, we talk with Chad about his story of growing up with his family and how working with his father taught him the importance of work ethic at an early age. Chad’s father gave him the book Think & Grow Rich at the age of 18 and Chad started to listening to inspiring and motivational speakers including Les Brown. Chad knew he wasn’t an entrepreneur but he did have a desire to learn and improve his life for himself and his family.
Chad talks about how he had a burning desire for more freedom and control after working in corporate after college. You’ll learn what inspired Chad to get into real estate and the purpose behind choosing multifamily as a the primary asset class for his investing.
We also talk about advice for any professionals who are currently investing in their 401K and what might be a good mix for investing to achieve financial freedom for you and your family. Chad shares with us the number # 1 reason his primary focus is multifamily (earning twice the money with half the time).
We breakdown the the biggest difference between investing in residential vs. commercial real estate properties and how Chad’s biggest failure set up him up for success. Lastly, we wrap up the episode discussing the benefits of investing in multifamily apartment buildings and how to handle downturns in the real estate investment market.
Key Points From This Episode:
- The story about Chad’s wife telling him she was pregnant with their son switched his mindset to focus on gaining more time, freedom, money, control and be there for his son
- Chad shares he didn’t grow up in real estate but rather picked it as a business analyst. He found that it had the best features that he wanted to build a wealth and get scale from people and time. After doing further research on real estate investing, he decided that multifamily was best real estate asset class.
- Amazing advice for any professionals who are currently investing in their 401K and how they should go about investing
- How you can decide what is a good mix when starting out in investing or should you focus on what investments are given to you as a default
- Chad shares how his failures as an entrepreneur later set him up for success
- The differences between residential vs. commercial real estate investing (trends, markets, etc.)
- The # 2 life-changing things Chad implemented to improved his business (the theory of constraint and shifting your business to scale from how and what vs. why and who
- Breakdown of types of residential properties (under 4 units) vs. commercial real estate (5 units +)
- The main benefits of going big (purchasing multi family vs. single family/triplex/duplex)
- At one point Chad had 100 cash flowing homes there was a market ()
- The #1 myth in real estate about finding and financing a good deal (tip: money flows to people who know what they’re doing)
- The lending environment with smaller real estate deals vs. multi family/commercial
- Daray and Chad share their best advice on how to handle a downturns when investing
- What classes of real estate Chad looks for and why (class A, B, C, etc.)
Links Mentioned in Today’s Episode
Chad’s Website: https://37parallel.com/
Recommended Books/Websites:
Chad’s Favorite Books:
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BTM 63: Triplex Case-Study A to Z with Sunny Burns
On today’s episode we catch up with our first guest on The Before The Millions Podcast, Sunny Burns. It’s been a year and Sunny’s life has drastically changed. Sunny brought this amazing triplex and still traveling the world.
On episode 1 of this podcast, Daray and Sunny got to know each other and we decided to bring Sunny back for an update on what’s going on in Sunny’s life. During this episode, Sunny shares great insight for real estate investors and entrepreneurs on what steps he took to purchase, rehab and close his triplex rental property.
Since we last spoke with Sunny he has been focused on his engineering career in the Department of Defense and just recently got a promotion from making 83K to six figures salary. Sunny closed on a triplex and own two properties (gross rents on the two properties are $100,000/year). Now he has a six figure salary and six figure passive gross rental income for the two properties.
We will breakdown exactly how Sunny brought his second property (the triplex). You’ll learn how Sunny found the triplex deal, finance the deal, how he rehabbed the property and more. Lastly, Sunny shares with us all the lessons learned during the buying and closing process of the triplex deal.
Key Points From This Episode:
- We catch up with Sunny 1 year later after his first interview on Before The Millions podcast
- How Sunny now has a six-figure salary and passive $100K/ year cash flow rental income
- Breakdown Sunny’s deal of buying his first triplex (lessons learned, tips and tricks, etc.)
- How his rental income today in 2018 can replace his entire salary and retire his family
- Step-by-step blog post Sunny wrote about his experience buying the triplex on his website Faminvestor.com
- How to prepare for the pre-approval process when buying rental properties
- Why community banks might work in your favor as a first-time investor vs. national banks when financing your real estate deals
- How Sunny found properties to analyze once he was pre-approved investor
- How to determine if a property meets your criteria as a investor
- Importance of knowing that it cost nothing to put in a offer on a property
- Questions you should ask before you make an offer on a deal
- How hiring a lawyer can help you ease through the paperwork and terms when closing a deal
- Various options for getting a down payment on a property for a first-time investor
- Breakdown of hiring an property inspector
- Sunny’s advice on rehabbing a property yourself vs. hiring a contractor to get the job done
- The process of closing the deal and lessons learned throughout the entire buying process
Links Mentioned in Today’s Episode
Before The Millions Episode 1 https://beforethemillions.com/episode1/
Sunny’s Website: http://www.famvestor.com/
Sunny’s Blog Post: http://www.famvestor.com/triplexcasestudy/
Recommended Websites:
Cozy makes renting easier for landlords and renters everywhere
Realtor: Search real estate property records, houses, condos, land and more
RentoMeter: Paying too much for rent or charging too little? Get rental comps and find apartments.
Yelp: User Reviews and Recommendations of Best Restaurants, Shopping, Nightlife, Food, Entertainment, Things to Do, Services and More
Craigslist: provides local classifieds and forums for jobs, housing, for sale, services, local community, and events.
Sunny’s Favorite Books: The Way of Kings
Sunny’s Favorite Lifestyle Design App: Scanbot is the most advanced PDF scanner app for iPhone, iPad and Android. Create premium quality scans and upload them to your favorite cloud.
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BTM 62: The Lifestyle Design Aspect of Passive Income with Ali Boone
Ali Boone is a lifestyle entrepreneur, business consultant and real estate investor, and has literally defined non-conformity when it comes to her career. Ali left her corporate 9-to-5 job as an Aerospace Engineer, despite the “dream job” status that came with it, to follow her passion for being her own boss and creating true lifestyle design. She did this through real estate investing.
Her own real estate portfolio started with pre-construction investments in Nicaragua and then she moved on to investing in turnkey rental properties in various markets throughout the U.S. She managed to invest in her first five properties in 18 months using primarily creative financing. After starting out as a real estate investor just for herself and her own financial benefit, she went on to create her company Hipster Investments which facilitated over $18M in real estate investment sales in its first five years of business.
She’s written roughly 190 articles for the BiggerPockets website, she’s been featured for her writing in Fox Business and The Motley Fool, and she offers hands-on support for new investors and those going through the investing process. She still owns her first turnkey rental properties and she is also a co-owner and the landlord of a local property to her in Venice Beach.
Her primary focuses revolve around passive income and passive investment options. In addition to running Hipster Investments and working as an active business consultant, she’s a pilot and teaches flying and she can often be found snowboarding, hiking, or volunteering in California prisons. Her ultimate goal is to one day challenge Tim Ferriss to a lifestyle design duel.
On today’s episode we talk with Ali about her journey on becoming an entrepreneur and real estate investor. Ali shares with us how she knew real estate was the right path for living the life of her dreams. Ali knew that she didn’t want to fix and flip homes and decided to focus on the passive income side of real estate. You’ll learn how reading the Rich Dad, Poor Dad book changed Ali’s mindset to start thinking like an entrepreneur instead of an employee.
We also talk about the many benefits of having a lifestyle design and how to achieve it using passive income from various investments. Ali shares with us her first deal in real estate (mistakes made, lessons learned, etc.) and gives some great advice for college graduates and other professionals on how to get started. We also talk about the importance of knowing the difference of working in your business vs. owning a business. Lastly, we discuss how Ali spends her days as a location independent entrepreneur and what it took for her to finally live the life of her dreams.
Key Points From This Episode:
- Ali’s journey from being in the corporate world to living life on her terms as a real estate investor and entrepreneur
- The importance of having a great real estate network of people to help you along your journey
- Why investing in real estate is key to having lifestyle design (living life on your own terms)
- The REAL benefits of lifestyle design and how you can achieve it in your life
- The #1 thing Ali would say to millions of people that would be a game changer
- Breakdown of Ali’s first real estate investment and how she turned that experience into a profitable thriving business today
- Advice for every college grad and corporate professional on how to achieve lifestyle design using real estate and becoming an entrepreneur
- The story of how Ali met a guy on a rooftop and what she saw that change her entire life and mindset
- Difference between working in your business vs. owning a business
- Importance of understand the mindset of an employee vs. entrepreneur
- Why self-awareness is key to success and how being patient led her to prosperity in real estate
Links Mentioned in Today’s Episode
Ali’s Website: Hipster Investments
Ali’s Instagram: https://www.instagram.com/hipsterinvest/
Ali’s Favorite Books:
Ali’s Favorite Lifestyle Design App: Instagram
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BTM 61: Wall Street Employee Loses Job For Greater Destiny with Daniil Kleyman
Daniil Kleyman grew up in the cold, snowy city of Moscow, Russia. At age 12, he immigrated with his family to Richmond, VA. After a brief and not-so-successful run on Wall Street, Daniil finally realized that he was utterly unemployable and ventured into real estate investing and software development.
He hasn’t looked back since. Daniil’s real estate investing business currently includes a portfolio of rental properties, ground up residential construction, multi-family development and mixed-use commercial development. He is also incredibly passionate and hands on with the software development, constantly working with the development team on new releases.
Daniil has been involved in hundreds of transactions and different strategies including Wholesaling, Rehabbing, New Build Construction, Apartment Investing, & Commercial properties. But his favorite investing strategy today is still cash-flowing properties whether it’s single family homes or commercial.
He talks about why cash flow is so important, and how to get financing so that you can become financially free. Daniil also produced a software for Wholesalers and Rehabbers in the industry called Rehab Valuator which will show you the true value of a property, and allow you to blast out the key information to your buyers list.
On today’s episode we talk with Daniil about his journey and how he didn’t want to have a job anymore. He didn’t want to be responsible to anyone else and have a set schedule. Daniil didn’t want to be trapped in an office or a cubicle. He didn’t want to ride the subway at 7 o’clock in the morning wearing a suit. You’ll learn why Daniil knew he looked good on paper but wasn’t fulfilled.
We talk about simplifying your life to have a clearer mindset and why staying organized and contracting out certain phases of your business are important. He talks about the story of getting his start; investing in rentals coming out of 2008 and 2009 real estate crash. Finally, we wrap up the episode with Daniil sharing his strategy behind new construction and buying land and how you can make smart real estate decisions right now.
Key Points From This Episode:
- Daniil’s driving force behind investing heavily in one market vs. diversifying a bunch of different areas.
- How he ended up in Richmond, VA after working in Wall Street as a young man in New York City
- Being in a approval seeking environment (aka a job) left him discouraged and unfulfilled
- How you can make every right decision to having a good income (work hard, well liked, etc.) and still end up having everything taken away from you
- The importance of finding ways to diverse your income so if your job doesn’t work out you’re not helpless
- Importance of diverse your skill set (challenge yourself to learn new ways to create the life you want) such as marketing and sales skills you can take with you anywhere
- How he humbled himself to move back with his parents after leaving Wall Street making over $200K/yr
- The story of how he found a $40K shell of a house and brought with his partners (spent 6 month rebuilding that house)
- The breakdown of how a development works and an example of a duplex that he has brought (numbers on it, how long it takes and typical returns you’ll see in your market, etc.)
- What Daniil is doing today in real estate and the breakdown from the time he finds the land to buy to the time a tenant moves into the rental property
Links Mentioned in Today’s Episode
Daniil’s Website: Rehab Valuator
Daniil’s Favorite Books:
Daniil’s Favorite Lifestyle Design App: Uber
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BTM 59: Time Wealth Anyone? The VIP Formula with Mark Dolfini
Mark Dolfini is a husband, father, and a veteran of the United States Marines. He owns several million dollars worth of real estate and has actively managed over $40 million in real estate in his 20 years of being in the real estate business. That is not what makes his story so compelling. Mark has Time-Wealth. He is now able to control his calendar to do the things he wants, when he wants, and with whom he wants to do them.
Marine veteran, Mark Dolfini received a Bachelor of Science in Accounting at Purdue University. He is the Managing Broker of June Palms Property Management, LLC and the CEO of Landlord Coach, LLC. Mark Dolfini is also the author of The Time-Wealthy Investor.
On today’s episode, we talk to Mark about his journey into entrepreneurship after leaving his corporate accounting career. He shares with us his story as a high school graduate to finally joining the U.S. Marine Corps and becoming an real estate investor. After he joined the military, Mark realized he needed to get his life on track and start making some serious plans to make a better future for himself and his family.
You’ll learn how to use the concept of “anticipated joy” to create the life of your dreams. You’ll also learn why every investor must become a student of business in order to succeed. Mark breaks down The “VIP” concept and how you can use it today to structure your business and achieve the goals you have for your life.
Key Points From This Episode:
- Mark’s journey into entrepreneurship from being a first endeavor vegetable stand in his parent’s garden in upstate New York
- Importance of setting up a infostructure that fits your vision for your dream life
- The story of how Mark brought his first real estate property (while attending college)
- Mark’s favorite failure to date that set up him and his business for later success
- Why you need to understand the difference between self-employment and business ownership
- How Mark rebuilt his real estate portfolio and business after losing millions of dollars due to a health
- How you can create a system to help you run your business and not let the business run you
- Why you should become a “student of business” and learn the systems and infrastructure of how successful companies are built and managed
- Importance of investing in great property management software
- The #1 investment Mark made to take his real estate business and network to the next level
- The 2 most important questions every real estate investor must ask to avoid bottlenecking
- Why you need to learn how to eliminate, delegate or automate low-end tasks to free up your time as a entrepreneur
- What “VIP” is and how you can use it as a investor and entrepreneur to achieve your goals and dreams
- V- Vision: Establishing a crystal clear picture of what exactly you want your life to be like. Write down everyday what that vision is and have an accountability partner to keep you accountable through the process.
- I- Infostructure: How you will run your business. Think of this as train tracks for your business. This is the foundation for everything.
- P- Process: The rules you will operate on top of the infostructure. If you find yourself involved in every aspect of the business, ask yourself these 2 questions: Is this the best use of my time? Can I delegate, eliminate or automate this task?
Links Mentioned in Today’s Episode
Mark’s Website: Landlord Coach
Mark’s Favorite Book: Think & Grow Rich
Mark’s Favorite Lifestyle Design Apps:
Property Boss Solutions: Customizable Property Management Software
Contactually is an intelligent CRM for real estate professionals.
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