Know the Average Vacancy for Your Market

blog Oct 04, 2019
Every sub-market is unique. It is your responsibility to understand what the metrics are even within your sub-market. Vacancy, average rents, absorption rates, building permits, etc.

Let's take a look at mistake number four. You've got to know the average vacancy for your market. All right, this sounds simple but let me explain to you where this goes wrong. And I'm going to show you exactly what I'm talking about. When I talk about the market, the average vacancy, I'm not just talking about the market. I'm also talking about the sub market within your area. 

You can't just say, "Oh that's all 10%." You've got to know exactly what it is within your sub-market. And there are different places that you can find that. And here's why this has become such a crucial problem for new investors. 

When you're building the model in your CFA and the cash flow analysis, does it model what the market is doing? In other words, if you put in there the standard or you think that you're...

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Know the Trends in Your Market

blog Oct 04, 2019
You need to gather all the data for your market and submarkets so that you can present this information to your investors. You’ve got to put together your offering memorandum and you need all the information in reports on trends in your marketplace.

As a multifamily investor in your marketplace you need to know all of the trends of your market - from vacancy, expenses and rent. Let me give you an example of what I'm talking about. Where is the best place to find average vacancy in your market and submarket along with absorption rate? Okay listen, there are many different places in different markets who'll have different sources. If you are among those who have not looked at this yet, or if you're looking in to some particular markets and you haven't even gone to this most basic site, then shame on you. I'm going to show you what you need to be doing for this type of data and start keeping track of trends on an Excel spreadsheet. 

Build out the most beautiful model so...

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#23: How To Achieve Passive Income Through Real Estate Investing with Jason Yarusi

podcast Oct 02, 2019

Jason Yarusi is an active Real Estate Syndicator and Real Estate Investor. Jason founded Yarusi Holdings, a multifamily investment firm with over 450 units under management. Jason and I discuss how he went from owning small multifamily properties to owning close to 100 units.

Listen to all our episodes and leave a review: HERE

Download Podcast: HERE

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Jason had been investing in small multifamily properties but knew that never he'd be able to hit his goals. Jason wanted more passive income and a less active role. He ended up purchasing a 94 unit property in Kentucky for $2.3 Million. 

The property had been owned by a 90-year-old man who passed it down to his sons. His sons didn't want to deal with the property as they were out-of-state which allowed Jason to get a great price. This deal exemplifies the fact that Jason preaches being patiently aggressive. 

No matter what deal...

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Know What The Average Expenses Are In Your Market

blog Sep 26, 2019
Expenses are usually per year, per unit number. If you can decrease your expenses you can make so much more money because of the power of the cap rate. If you can break it down on a per item basis you can see where you can save.

Mistake number three : Know what the average expenses are in your market. Now, what you'll see some brokers doing is expressing the expenses as a per unit per year number. I see that quite a bit good, alright? That's fine. Let's capture that information. So when we capture that information from them and we also capture on our own, we then have perfect information or more precise information as to what is going on in that market as far as the expense numbers go. 

And this gets to a value play. But what do you do on the expense side? How many times have you looked at the expense side and really broken it down to know that, if you can just adjust this one particular category of expenses, it's going to save you a lot of money. You've got to look at all...

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#22: Quitting Your 9-5 To Invest In Real Estate Full-Time with Ali Boone

podcast Sep 25, 2019

Ali Boone bought her first turnkey in 2011 after investing in pre-construction in Nicaragua. She started Hipster Investments in 2012, which facilitated over $18M in real estate transactions in its first 5 years. Ali and I discuss how she left her full-time job to become a full-time real estate investor.

Listen to all our episodes and leave a review: HERE

Download Podcast: HERE

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Ali Boone never expected to be a real estate investor. She wanted to become a pilot but knew that pilots starting out don't get paid that much. Instead, Ali became an aerospace engineer. Her work took her into an underground tunnel and into a cubicle. This is not what Ali had in mind for a dream... She knew she had to do something about it. 

To get out of her job, Ali realized she either had to start a business or invest in real estate. She invested $40K into a deal in Nicaragua... only to have the money...

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Know What The Average Rents Are In Your Market

blog Sep 19, 2019
If you don't start collecting information, you will have to go on what the broker tells you! You have got to understand the numbers!

One of the mistakes that I see people making is knowing what the average rents are in your market. Some of you may be thinking to yourself, "Charlie, that's ridiculous, of course." Listen, I'm telling you right now. I'm blown away by the fact that investors , new investors will take the offering memorandum and just take the broker’s word as to what the market is for the rents in the area. Let's just think about this for two reasons why you need to know what the average rents are going to be. 

The first reason is when you receive the offer memorandum, you will know right away if the rents are in line with the market. In other words, what they're saying and when they’re showing you the rent roll, you're going to know. And that’s because you know the market.

You can say, “hey, these guys are way low, or these numbers don't...

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#21: Acquiring 10 Properties Every Month Without Using Your Own Cash with Chris Prefontaine

podcast Sep 18, 2019

Chris Prefontaine and his family acquire 5-10 properties every month and control between $20 and $30 Million dollars worth of real estate deals -- all done on TERMS without using their own cash, credit, or signing for loans. Chris and I discuss the routines of a successful real estate investor and how Chris coaches his students from purchasing their first deal to having his students make 1500 transactions per year.

Listen to all our episodes and leave a review: HERE

Download Podcast: HERE

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Prior to investing in real estate, Chris had worked as a broker for 5 years. Chris and his family eventually started investing in real estate... and quickly excelled. Today, Chris coaches people throughout the US and Canada. 

Chris and his family use strategies to purchase homes without their own money including lease purchasing and owning financing. Most of the properties that Chris deals with...

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#20: How To Own Your First Mobile Home Park With No Money Down with Andrew Keel

podcast Sep 11, 2019

Andrew Keel and I discuss how he fell into purchasing two mobile homes and now owns a mobile home park, his own property management company and his own mobile home transport and installment business. If you're thinking about investing in mobile homes, this is the episode for you! 

Listen to all our episodes and leave a review: HERE

Download Podcast: HERE

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Andrew had been a wholesaler and house flipper when he had the opportunity to purchase two mobile homes for $2200. Not knowing too much about mobile home parks, Andrew started to do his research on the niche and quickly learned how profitable it can be. 

Andrew loves mobile home parks because you are renting the lot. You don't own the home so that means you aren't responsible for the maintenance on a mobile home. It doesn't hurt that mobile homeowners have a low turnover rate of around 4.5% annually because it costs between...

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Why You NEVER Ask the Broker What the Cap Rate Is!

blog Sep 08, 2019
If you don't start collecting information, you will have to go on what the broker tells you! You have got to understand the numbers!

The reason why I come up with some of these topics is because I see students doing things incorrectly while some students are doing things perfectly. And I want to get everybody on the same page. One thing is that investors, students and new investors, they just go. They're running all over the place as far as the market, what markets they should be in and where they should go. So much so that they never become experts in their market. 

So I want to identify some of the mistakes I see new investors are making when they are not the experts in the marketplaces that they're looking for. If you just focus your business on one particular area and capture the data from every property you evaluate in that marketplace, you will be able to move on a dime when the opportunity presents itself. No one will be able to bamboozle you. You'll know the numbers...

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#19: How to Systematically Raise Capital with Dave Dubeau

podcast Sep 04, 2019

Dave Dubeau is a Real Estate Entrepreneur, Best-Selling Author, Speaker, and Investor Attraction Expert based in Kamloops, B.C. Canada. For the last several years Dave has been the world's #1 investor attraction "Imple Mentor." Using his proprietary 5 Step Money Partner Formula, Dave helps real estate entrepreneur clients grow their portfolios significantly and in record time by attracting investors instead of chasing them. Dave and I will be discussing how you can attract clients on demand!  

Listen to all our episodes and leave a review: HERE

Download Podcast: HERE

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How to systematically raise capital with Dave Dubeau

While Dave is a real estate entrepreneur, he is a marketer at heart. Dave had been investing in multifamily properties when he ran out of cash. This is when Dave learned the pain point that most investors have... figuring out how to raise capital. Dave...

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