Dear Multifamily Investor:
Ever since I was a little boy, I have always wanted to own apartments (and be a lawyer and a pilot). Growing up in Nashua, NH, my heroes were not guys like Bobby Orr of the Bruins or Carl Yastrzemski of the Red Sox. Instead, my heroes were the big real estate tycoons of my hometown like Sam Tamposi or John Stabile (At that time, Donald Trump probably had not yet borrowed his first million).
When it came time to choose where I was going to college, my dad told me that I could go to any college I wanted to but the tuition checks were going to Boston College, it didn’t take me long to pack my bags and head south. During three of my four years at BC, in addition to dishwashing and working on golf courses, I had a great job for a student as the evening shift doorman at 1501 Beacon, a luxury apartment building in Brookline, MA. I consider this my first foray into multifamily real estate.
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CALL TO ACTIONFrom my perch at the front desk, I would open doors for little old ladies, accept packages and occasionally deny the process server access. I got to observe the daily workings of an apartment building and more importantly, I watched the owner intently. One day a month, Mr. Rand, the owner, would drive up in his white Rolls Royce Corniche convertible, park it right under the portico, go inside and count the rents, pay his bills and leave not to be seen for another 29 days. It didn’t take me long to know that this was a job that I could handle. Not only could I handle it, but I could excel at it.
Unfortunately, upon graduation, like far too many young people, I took the path of least resistance and joined the family business of selling insurance. As I always say, if you have a child graduating from college and is desirous of entering the insurance business, there is something very, very wrong with that child. Selling insurance is a fallback position.
Nevertheless, there I found myself, starting my career alongside my father. Cold calling. Sitting at kitchen tables talking to newlyweds. Coming home late at night, not having sold anything. This was definitely not the life I had envisioned for myself. Then, one day after several years in the business, my father sent me to go see one of his clients, a multi-millionaire multifamily real estate investor.
Sitting in his office, I looked at the client, a former chicken farmer and said, ’John, you are doing exactly what I would love to do.’
“Then, why aren’t you doing it?” John responded.
Of course, I had every excuse in the book ready to go. No money, no time, new family, new mortgage. I’m sure you have heard them all before. You may still be using them yourself to justify why you are not where you want to be.
John, then reached behind his desk and grabbed a hardcover book, handed it to me and said, “Do everything this book tells you to do, step-by-step and you will someday be in my position. I know this because this book is what got me to where I am today.”