#191: Pause, Strategize, & Buy 900 More Apartments

Welcome to the Accelerated Investor podcast with Josh Cantwell. If you’re looking to retire early with forever passive income, you’re in the right place. This podcast is the go-to destination for real estate investors, both active and passive. And multifamily apartment investors, both new, intermediate and advanced. Now sit back, listen, learn and accelerate your business, your life and your investing with the Accelerated Real Estate Investor podcast.

So, you guys, welcome back to another episode of Accelerated Real Estate Investor. I’m so excited to be with you today. It’s just me, just a solo cast. Thanks for engaging with me, sharing with me. I love doing this. I love sharing ideas and strategies with really smart people who take this information and go use it in the real world to make hay, to chase their dreams, to to create entrepreneurship and just innovate and do new things. I just love it. So thanks for giving me the opportunity to come inside your head, inside your car, wherever you’re at listening to this. Thank you for the opportunity. What I want to do today is give you some insight to just what we did this week. We had an amazing week, an amazing, amazing week of things that we accomplished. So let’s jump in. 

So here’s what I typically do with my week to give you some structure. So I used to go to a conference and a mentor called Dan Sullivan, strategic coach. Actually, one of my companies is called Strategic Real Estate Coach, sort of named after dance company Strategic Coach. And, you know, when I was younger, I learned about Dan’s system of what he called the free day, focus day and buffer day strategy. He also called it the personal economic system. And Dan’s strategy is that you take an entrepreneur like me, like you, and you frame up your week into three parts free days, which again are total free days. You don’t do anything for work. You don’t. You just enjoy your life. You shut off your phone, you shut off your email, you shut off your text message, do nothing for work. That’s a free day off. 

And on free days is when I get my best ideas. And I think and I come up with just amazing ideas because my brain is free to flow and think and be happy. And when I’m in my joy and I’m in my life and I’m enjoying my family, my friends, my wife, my kids, people that I love, I get my best ideas. It just they just kind of pop into my brain. I think it was. Bill Phillips from EAS sports, Nutrition and Body for Life who said, hey, you know, I’ve never had a great idea by actually thinking about it. I’m just kind of in the joy of my day. My brain is free to think. And it just the great ideas just kind of slide in there and you’re like, oh, my God, that’s awesome. I got a great idea and I wasn’t even thinking about it. 

So, you know, for me, I took Dan Sullivan’s personal economic system and I take these free days very seriously. Many people bleed all their free days and all their focus days and all of their buffer days all together and then never have any time to think. So for me, of course, Saturdays, Sundays, evenings are free days. I also love to drive in my car because I don’t get on the phone. I just listen to podcast and listen to audiobooks. And I think it’s such an important part of my life. Well, my buffer days then are usually Monday and Friday, Monday and Friday is when I have a lot of meetings and podcasts. And so this past Monday I get to have a meeting for free land properties went through all of our property management stuff. So how many units do we have? How many units paid? How many collections did we get? Are there any evictions? What’s going on with maintenance tickets? What’s going on with our capital improvements and capex? We cover all that on Monday. 

Then a job to do another meeting where we’re talking about are loan loss reserves. So we’ve got two funds that were winding down and we have a reserve set aside for any kind of losses. So we had a conversation around that. Then we jumped into our marketing for the week. And a big thing that I’m playing with in my business is all the way since two thousand and six. I’ve done live events. I’ve done live events with Donald Trump Jr, Kevin O’Leary, Barbara Corcoran, Jack Canfield. I’ve done live events with Dr Peter Lindemann, who’s the founding professor of the Wharton School of Real Estate at the University of Pennsylvania. Did all these amazing live events and have it done on a live event for two years. So we’re really kind of been going back and forth and this is a multi-million dollar decision probably over the course of the next ten years. Could be a billion-dollar decision for us whether we’re going to do live events or not. And what I mean by that is that I do live events in order to have a mastermind group and the mastermind group in order to do deals with those members. 

So we haven’t done a mastermind in two years, primarily because of covid, and I was just kind of burned out on these events. But now I’m ready to do these events again. But, you know, I just closed the five hundred and fifty-two unit, one hundred-million-dollar deal in Houston with a friend of a friend that we close this deal with. Right. A joint venture partner. So my whole idea for Mastermind’s is simply to create more relationships, more networking, more deal flow in order to do more deals. And so over the next 10 years, that’s easily a billion-dollar decision for us with the deals that we’re buying and acquiring. And so all week, this week has been a total mind F, if you will, trying to figure out are we going to do these events or not? What’s the structure going to be? What’s the pricing going to be? What’s the purpose? What’s the reason? Are we going to be doing this for deal flow? We’re doing this to raise capital. Are we doing this to create community? What’s the best way to do it, and I’ve gone back and forth, I’ve wavered back and forth for months on this because I know it’s a massive decision. Once you get into it, you don’t really want to get out of it. 

So you have to be very strategic about getting into it. So spent a lot of time on that Tuesday. I went and visited some of my single-family rentals because we’re getting them all ready to sell. I only have about 10 or 15 of them left, duplexes, quads, single family homes. We’re getting them all ready to sell because the market is so hot. Matter of fact, I just came out with a podcast with my buddy Darren Blomquist, who’s the VP of Market Economics at Auction Dotcom, talking about why prices are up 16 percent in the residential single. Family space prices are up 16 percent in the middle of a pandemic. You know why interest rates are low? There was a 19 percent decrease in interest rates, wages are up five percent, so people are making more money. The inventory of single-family homes is down to a million total properties on the market. It’s the lowest that there’s ever been. According to the National Association of Realtors. And people have stimulus dollars in their hands, so there’s all these levers being pulled that are all in favor that make real estate very bullish. 

OK, so we did that. Then on Wednesday, I spent time at a fifty-four unit that we’re buying. So this is amazing, right? So we’ve got a fifty four unit under contract back in December, December 2020, the seller agreed to deliver us the property with 54 units that were. Thirty-four of them were improved, on an improved condition. So we’re going to get 20 units that are in classic condition and thirty four of them that are in upgraded, modernized condition. Well, unfortunately, the seller his dad died from complications including covid. His father-in-law had health problems, including covid. They both passed away, so he fell behind. 

Well, we did an inspection back in February and we were really disappointed with the results of how much progress he had made because he’s got to deliver us three, four improved units. Well, we decided to schedule this next inspection and he said, hey, we’re going to be done, we’re going to have all three, four units completed, I promise they’ll be done. And sure enough, we went Wednesday and oh, my God, they’re all done and they’re all done really, really well. OK. You know, the carpets new, the LVP is new, there’s some vinyl flooring in the bathroom, I don’t really care about that. The fixtures are new, the trim looks good, the bathrooms look good, the cabinets are painted, there’s new countertops, there’s new appliances, all the switches, the outlets, the baseboard heating, the air conditioners. Everything’s done in new. 

So we’re buying this property for $2.45 Million. And our focus is just going to be leasing. We’re going to lease up those 34 units as fast as possible. Lease up. And then we’re going to refinance and keep or we could sell it, make a million bucks just by leasing it up. It’s easily going to be worth we’re buying it for two point four or five. It appraised at three point two million in it’s as is condition. OK, so we’re adding eight hundred thousand dollars to our balance sheet, eight hundred thousand to our net worth doing nothing, just buying the property at the right price, relationships with a broker who brought us the deal to buy it at the right price. 

So just got the HUD one today, closes next Friday. And when we buy it, we’ve only got to bring five hundred thousand dollars to the table. We’ve already raised nine hundred thousand dollars. That’s going to go in the operating account. We’re getting a bridge loan because we’re going to buy it. We’ve got some money in the bridge loan for rehab. They rolled all the closing costs into the loan because the appraisal came in high, covers all the closing costs. And, you know, it’s just going to be a great deal. So Wednesday did that, then I went to see my dad at the cemetery. You guys know my dad died back in November. And my mom and I, we didn’t buy a headstone yet for his burial site. So just humor me here for a second. So I went to see my dad. Prayed with my dad and said, hi, you know, he’s buried at Calvary Cemetery in Youngstown, Ohio, but there’s no dirt, not the big mound of dirt anymore. It’s flat, so there’s no headstone there. So I just took a rock and took the dry ground and just carved my dad’s name in the dirt and the dirt’s dry. So it’s there. 

And I felt good that even though we didn’t find the headstone yet, because my mom is obviously still alive and she doesn’t know what kind of headstone she wants for herself, she’s going to be buried next door. So she’s still thinking that through. But it was great to see my dad. Then I went to see my ninety-three-year-old grandmother, Gigi Fran. And I got to tell you, this is this woman is incredible health. She lives alone. She still drives. She’s ninety-three years old. And one of the coolest things about her is she always said that the word shit damn and hell weren’t swearwords. And so even my kids who are 12, 11 and nine, they know that Gigi Fran said shit damn and hell our swearwords. So they don’t swear they don’t say those things. But it’s kind of a joke in our family because that’s how I grew up with Gigi Fran. 

So then on Thursday I recorded four podcasts. I went out to our new two hundred twenty unit that we just bought. I met with a new contractor who’s hopefully going to do some unit turns there. We met with the property management team. We ordered the security doors. There’s 20 buildings there and we need the new security doors to make sure that the residents feel secure. A lot of the security doors are broken. They’re easily just Jimmy open and access. And it’s not good. It’s not safe for the residents. So we’ve got it all new security doors ordered. 

The security doors are seventeen hundred and fifty dollars each. And so we ordered those times twenty it’s about thirty five thousand bucks to secure the units. And now I also talked to a roofer who’s going to go give us quotes to fix the roofs. That same guy also owns an asphalt paving company. It’s going to give us a quote to seal and strip the driveway. I’ve got a landscaper going there. I actually have a landscaper go there to cut the grass and edge and trim, clean up the bricks and sticks that we’re laying all over the property. So that looks good. I got another landscaper going there to do a hardscape in the front of the building to build like a brick facade around the flagpole. That’s going to be amazing. 

And then we’ve got another landscaper, the landscaper going there to dig out the mulch beds to spray for weeds and put mulch down and flowers, all amazing stuff. And I talked to a new private investor that’s got about 150 to 200,000 dollars is ready to invest in one of our deals that I had a meeting this morning with my team to talk about this mastermind. I recorded three more podcasts, actually five new podcasts today, held a coaching call for my coaching students to go through a deal. And tomorrow we’re going to our camper on the lake to kind of open that up. My daughter has a prep course because she’s going to be going to high school in two years. And so it’s just been a super, super busy week. But it’s been so fun. Like, I don’t really I didn’t work more than 40 hours this week. I didn’t work a 60-to-80-hour week, just kind of a normal week for me. Fun, exciting. 

And we’re going to be closing on and buying the fifty-two unit, the fifty-four-unit next week, in the week after, so we’ll add one hundred and six units to our portfolio in the next two weeks. We just got a two, which is about a five hundred and fifty-two unit. So what does that five fifty two plus two twenty is seven hundred and seventy two plus one hundred and six. That’s eight hundred and seventy-eight units that we added in the last two months to our portfolio. And it’s awesome. It’s amazing because the cash flow, the equity, the acquisition fees is it’s just it’s creating and has created the lifestyle that most people dream about.

So, you know, you think about this whole thing of working in the corporate world. Saving, slaving thirty to forty-five years and then being free. As a pancreatic cancer survivor, my advice to you is just be free now, just be free now, because you just never know when your number is going to be called. You never know when you’re going to end up in the hospital. You never know when someone’s going to get sick. You never know when you know you want to just go on vacation. I interviewed one of the guys this week, a guy named Dave Foster, who is going to be on the podcast, the episodes coming up here soon. And Dave basically said, look, you know, we always wanted to raise our boys on a sailboat. 

So we bought a fifty-three foot sailboat and we raised our boys on a sailboat. And I thought, how simple like how cool is that? That you just bought the boat, moved your kids, sold your house and raised your kids. He home schooled his kids on a sailboat, traveled the world on the ocean and done in the Caribbean. And just that’s it’s all you have to do is make that decision to say, like, I’m going to go do what I want when I want. Right now, I don’t have to wait for permission and I have to wait for somebody else. I don’t have to wait thirty-five years and I have to save a bunch of money. 

Just have to find a way. Sit down with a pen, a piece of paper, strategize, think about how you can make it happen right now. There’s options, there’s ways you can do it now if you just try. OK, so that’s my week in review. It’s been an absolute crazy, awesome week and I appreciate you letting me share it with you. If you are not subscribed yet to the podcast, make sure the subscribe button on iTunes where you get your podcasts, YouTube. If you’re not a member of our Facebook group yet, go to Facebook. Search Accelerated Real Estate Investor. Join the Facebook group as soon as possible. Also, we’re considering opening up this mastermind for other business owners, owner operators, mobile home park investors, multifamily self-storage entrepreneurs. 

If that’s something in that interview you’re interested in, just email my office, send us an email to support@FreelandVentures.com, or leave us a comment on our Facebook group or comment on YouTube, iTunes, whatever. Let us know if you’re a fit for that. And if you want to join, it’s not going to be free, but it is going to be awesome. So let us know if you’re interested. All right. Otherwise, thanks for being here. Appreciate you sharing this with me and an opportunity for me to come into your life and share some of mine with you. We’ll see you next time. Take care. 

You were just listening to the Accelerated Investor podcast with Josh Cantwell. If you enjoyed this episode and learned something new, help us build the A.I. community by leaving a review and five-star rating on our iTunes podcast channel. Also, don’t forget to subscribe so you never miss another episode. To see passive investing opportunities, visit FreelandVentures.com/passive. To start your journey toward the lifestyle you’ve always dreamed of with multifamily apartments, apply for one-on-one coaching with Josh at www.JoshCantwellCoaching.com.

I’m going to peel the onion back on myself today and give you a look into what’s going on in my own business. We’ve added 878 units in the last two months to our portfolio and it’s awesome. Life is so good right now, and I want to give you the rundown on my most recent acquisitions and some big decisions I’m mulling over for my business.

Part of my personal strategy is giving myself a free day to think about my business. I turn off my phone, live my life, and watch my best ideas flow in. I got this idea from Strategic Coach Dan Sullivan, whom I’ve considered a mentor for years. I also give myself a buffer day to just plan projects or work on strategies with my business partners. You’ll be amazed at the increase in your productivity and creativity when you try it.

I’m going to walk your through my most recent purchases in this podcast:

  • 220 units, with new security doors
  • 54 units, already mostly remodeled
  • 54 unit
  • And a budget of $1.7 million CapEx
I love getting a chance to talk to you, and I’m honored when you take the time to leave me a review or comment. If you haven’t joined the Accelerated Real Estate Investor group on Facebook, we’d love to see you on the inside.

What’s Inside:

  • Are we going back to live events? That’s currently a billion dollar decision that we’re sitting on.
  • How I give myself time to think and come up with my best ideas.
  • A look into some of my newest acquisitions and why we’re busier than ever in spite of the crazy real estate market.

Mentioned in this episode​

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