Is investing in apartments only for really, really rich people or can anybody get access to it?
In this video, I'm gonna walk you through how to start investing in apartments so you
can experience amazing cash flow, that big appreciation that we're all looking for and
you can finally create financial freedom because most of the stuff gurus are
teaching just doesn't work.
The very first tip to investing in apartments is you have to shift your mindset.
This is the hardest thing I struggle with moving from 2 to 4 unit deals into investing in apartments.
It was hard for my mind to wrap around instead of making 25 to 35 hundred dollars a month
from a duplex to 20 thousand dollars a month from a specific building.
That is a big shift our mindset has to make but if you're gonna get into the apartment
game, I want you to start normalizing talking about bigger numbers.
I want you to start normalizing the 7 figure game because if you're gonna get into apartments,
you're gonna be investing a million dollars and above.
So, for you, investing in million dollar buildings, it's just an everyday thing.
That's the shift in the mindset I want you to experience.
Because if we don't shift that mindset, every tactic you seek to apply, you're gonna be
bumping up against the ceiling of your mindset.
The mindset sets the ceiling of success.
That's true in multi-family real estate.
The only reason I invested in 2 to 4 unit deals and not 50 unit deals was cause I kept
bumping up against the ceiling of my mindset.
And I don't want you to make the same mistake that I made.
So today, start saying to yourself, "I invest in buildings 7 figures and above."
Let's start normalizing success because if apartments are gonna be the reality of our
investment, it has to first happen in the reality of our mind.
That's what we have to get first before we can ever see 20 10's that's paying us from
1 building.
The 2nd thing you want to do when investing in apartment building is choose your market.
Now, picking a market is very tedious with investing in multi-family apartment buildings
because the markets you really want to be in are often really expensive.
And the markets you don't want to necessarily be in, you can get properties pretty cheap.
And the temptation is to gravitate towards the markets that have properties you can afford
versus gravitating towards the markets we should investing in even if it's out of our
price range currently.
Because again, if we're gonna shift our mindset, that's only a matter of time.
There's 3 things I look at when I'm picking a market to invest in apartments.
Number 1 is population growth.
Let's make sure that people are still moving to this city.
For example, over the past few years, many people are moving to the south-eastern side
of the country.
South and North Carolina, Georgia, Florida, Texas, Alabama.
We're seeing a big move towards the south-eastern side of the country for a couple of reasons.
Taxes are lower, cost of living is lower and there's a lot of jobs.
Well, that creates a huge reason to uproot my life and move there because there's so
much benefit.
But when that's the trajectory when that's what you see, that's where you want to invest
in apartments because there's more people moving there.
Now, I talk about population growth.
Not just population growth in any city, you want to make sure the reason the population
is growing is because of jobs.
You can have retirement communities that are increasing in population, but that's not where
I would buy apartment buildings because there's a lot of fixed income scenarios.
And what you're gonna have is population growth but not necessarily job growth.
You want to make sure there's both.
You want population growth, which you want to see is what we call that north-eastern graph, right.
The graph is moving to the north-east, meaning people are moving there every single month.
I remember when I first started to invest in multi-family real estate specific apartment
buildings, it blew my mind for example, that Columbus, Ohio hasn't seen the decrease in
population for 20 years.
That'd be a good place to look at for multi-family real estate.
I've noticed that Indianapolis last year was the strongest rent growth in the country.
That'd be a great place to invest to multi-family real estate.
I noticed that Texas has higher property taxes but their state income tax is so awesome.
That's a good place to invest to multi-family real estate because those are the kinds of
things that bring people to a city.
We invest, when you're investing in an apartments, in places in which people are moving.
If you just follow this one simple tip of follow jobs when investing in apartments,
you'll never lose.
And the last thing when you're picking a market, you want to remember is make sure you choose
landlord friendly states.
All those places I just mentioned.
South Carolina, North Carolina, Georgia, Florida, Texas, Tennessee, Cincinnati, Ohio, Indiana.
Those are all powerfully landlord friendly states.
Meaning, they make it really easy to succeed as a landlord meaning owning properties in
which you rent to tenants.
Because the truth of the matter is sometimes people hit a rough patch and they can't pay the rent.
We certainly want to work with them but if it gets to the point where they're not able
to keep up their end of the bargain, they need to move out of our place so we can get
a tenant in that can pay.
Well, we need legislation that makes it easy to accomplish that.
We need to be able to move a tenant out and bring a tenant in that's gonna pay that rent.
Because I'm guessing when you underwrote your property, you didn't underwrite a bunch of
tenants not paying rent, none of us do.
Do we plan for some of that?
Sometimes, sure.
But we want to make sure we're investing in a state that supports the entrepreneurial
endeavors of landlords and makes it easy for us to successfully create safe housing for
our tenants and very, very profitable businesses so we can keep doing what we do which is creating
value for people.
When I first started toying with the idea of investing in apartments, the very first
thing I did was I got a mentor.
I hired somebody to show me the ropes.
How do I scale from 2 to 4 units to 50?
How does that change happen?
Because I knew my mindset had to shift, but I didn't know if I could do that on my own.
So, I selected a mentor that already was where I wanted to be.
When you're choosing a mentor, especially in investing in apartments, make sure you
pick a mentor that's trustworthy and that is already where you want to be.
I get very, very leery of the people driving in and around in Lamborghinis, most of them
they rent for photoshoots, where we don't know if they're making that money just from
selling coaching or if they're actually doing what they're teaching.
So, for me, I went to somebody who coaching wasn't their primary role.
Their primary role was investing in apartment buildings and I said, "Will you coach me?"
He had a very small group of people that he was working with and he began to change my life.
71 days after I hired a mentor, I had my 1st apartment building under contract.
71 days.
That's the power of mentorship.
I didn't have the ability to go there in my mind until somebody came along and said, "Mike,
not only can you do it but here's how."
And that's the power of mentorship.
Not only do you need to shift your mindset but you know what you need?
You need a mentor that you can pick up the phone and call and say, "What do I do when this happens?"
When you hit a rough patch or something happens that you're not ready for, you need somebody
that you can call and run that by.
Not only did that mentor help me get my first property under contract, I closed on that
property, I still own that property today and it makes my investors money month after month.
It's a beautiful property.
It opened so many doors to me after people found that I was starting to invest in apartment
buildings, investors started to want to give me money, they wanted to partner on some of
my deals all because I got a mentor that can help me get to the finish line faster.
Mentoring is not always just about telling what you don't know.
It's about cutting the speed in half, it's about instead of taking 2 years to get your
own apartment deal, why not do it in a few months?
That's the difference.
And getting a mentor can take you way further, way faster.
I have a free gift for you.
I've created a multi-family master class that walks through how I got into apartments and
how you can start busting in to the multi-family game.
In the description, go ahead and click the link, get into that training and start digesting
the content that can change your life.
And I have way more for you.
This is just part 1.
Go ahead and click on the right corner of the screen and get part 2 of how to start
investing in apartments.
I'll see you in the next video.