#172: Multi-Family INC

 

Welcome to The Accelerated Investor Podcast with Josh Cantwell, if you love entrepreneurship and investing in real estate then you are in the right place. Josh is the CEO of Freeland Ventures Real Estate Private Equity and has personally invested in well over 500 properties all across the country. He’s also made hundreds of private lender loans and owns over 1,000 units of apartments. Josh is an expert at raising private money for deals and he prides himself on never having had a boss in his entire adult life. Josh and his team also mentor investors and entrepreneurs from all over the world. He doesn’t dream about doing deals, he actually does them and so do his listeners and students. Now sit back, listen, learn, and accelerate your business, your life, and your investing with The Accelerated Investor Podcast.

So hey there, guys. Welcome back. I’m excited to be with all of you guys, and today is really our first official episode of Multifamily Inc, also known as Multifamily Inner Circle, Inner Circle Inc. What I thought I would do today, today’s Friday, I’m recording this. It’s Friday, January 8th. It’s actually today’s my dad’s birthday. So an important day for me. My dad passed away, as you guys might remember, right before Thanksgiving. My dad was my first real mentor. So it’s great to launch this sort of new version of the podcast and also to be talking with you on what we would have been dad’s seventy fourth birthday. So happy birthday, Dad. Up in the sky, up in the clouds, up in heaven. Appreciate all your mentorship and advice that you’ve given me over the years, Dad. 

And so today, what I wanted to do was launch this new version of the podcast. What I’m going to do is every Friday at the end of the week, just kind of record and tell you guys about all the things that happened with our deals this week. That way, you guys could get a real live feel for what’s actually going on in my business and certain tactics and strategies that I can give you based on real world live multifamily apartment raising capital strategies. So let me just tell you about just a few of the dozens of things that we had done this week. So actually this morning. I just came back from a fifty-two unit in Cleveland, this is in the Gold Coast of Cleveland, is one of the best parts of the Cleveland market, right on the water on the very west side of Cleveland near Lakewood. 

We’ve got a fifty-two unit under contract. We did our due diligence, which means we went through all the leases, we compared the leases to the rent roll. We compared the leases to the bank accounts to make sure that the money was actually collected. Then we compared the bank accounts to the financial statements to make sure that they were accounted for from the bank. We went through every single lease. We went through every single lease applicant, their application. We compared that to every single unit. We looked at all the insurance, we looked at the property taxes, we looked at the monthly cash flow. We looked at the expenses for water, sewer, gas, electric. We reviewed all those bills, all the bank statements and all the financial records. We can read the sewers. We found that out of the sort of 12 specific sewer lines that we actually camera’d, two of them actually had cracks that we were we’re not really concerned about the water still flowing through them because the crack is on the top of the sewer line, which means the water flows at the bottom of the sewer line down underneath the crack. 

But it is something that we’ll have to address in the future. Probably cost us about 15 to 17 grand to fix it. But we’re not going to retrade it. We’re not going to change the asking price, which is three million dollars is the purchase price. We’re not going to change that because the fifteen-thousand-dollar fix is not worth jeopardizing a three-million-dollar asset by the three-million-dollar asset. It’s going to be worth five point two million when we’re done with it. So there’s over a million and a half dollars of equity after our soft costs and after our CapEx. It’s not worth risking one point five million for a fifteen-thousand-dollar fix. It’s only a one percent difference. So we went back to the seller. We explain what we found, but we told them, listen, the good news is that we’re not going to retrade the deal. We’re going to go forward now here in about an hour after I get done with this podcast, I’m actually meeting with Glenn and Tyler, my business partners in our apartment business. 

And we’re going to just talk through, again, the leases. We’ve got copies of the leases. Compare those one final time and then we’ll talk through what we think the price per square, the price per square foot is on the units when we lease them out, finalize that, make sure we’re comfortable. We’re also meeting with our commercial lender this afternoon at around four o’clock to take a look at the loan. We’re getting a bridge loan for this particular building because there’s only 40 out of the fifty-two units that are currently occupied because there was actually a fire. There was a fire on the fourth floor in the front unit Forell one and then unit three, one and two. 

All one and 101 were all damaged because of all the water that was shot up by the fire department into Forell. One in the league down through three. One, two, one, one, two, one. Also, there’s a bunch of smoke damage up on the fourth floor. 

That allof those units are unoccupied, so there’s four units that are total new construction, total tear outs, rip outs, redo insurance claim, and then there’s six more units that are smoke damage, which are all going to be renovated by the time we occupy the building. So 12 out of the fifty two units will already be totally renovated, will be able to charge premium rents for those, which is fantastic that our goal is to turn the rest of the units, spend about five thousand dollars a unit for the other 40 units, which is about two hundred grand, and then also add a courtyard in the middle. The building is shaped like an upside-down horseshoe or like upside down U. We’re going to then finish a courtyard in between in the open place of the U and add in a couple of pergolas, add some park benches and places to sit and those kind of things for everybody. 

And then places where they can have a drink, they can have a smoke, they can enjoy the outside, enjoy the sun. So today actually we have to give the seller the go no go. Our due diligence period actually ends tomorrow. So we’re going to wrap that up today. So that was a big part of our week. The second thing is we have a fifty-four unit in Niles, Ohio, which is a suburb of Youngstown, a very big class suburb of Youngstown. And we had an Alawi that was approved, a letter of intent that was approved before Christmas. The PSA was done over Christmas. Obviously, the attorneys, everyone’s out for the holidays, people taking time off. So that PSA was returned to us and we’ve executed that. So we’re fully under contract now. We’ve got to put up one hundred-thousand-dollar earnest money deposit. We’ve got to get that over to the seller on Monday by the end of business on Monday. So that’s important. 

Now, the interesting thing about that fifty-four unit that we’re buying is it was actually part of an adult living community. There were two separate parcels. One parcel was actually an assisted living and rehab facility. The other parcel was just basically an adult independent apartment living community, just regular retail pay, apartment living, but primarily for seniors. And looks like, from what we can gather, the assisted living portion of the business. They closed that facility and they moved about five miles down the street or three miles down the street and built a massive new complex. And what they did was they left the old complex, the old assisted living complex and rehab facility vacant, empty. 

So the guy that we’re buying this from is actually a rehabber, he was a residential investor who did rehabs and flips. He was able to get this fifty-four unit, which was the independent living apartments for seniors under contract. He just bought it back in July and he paid about one point two million for it back in July. Well, we have it under contract now for two point three five million to buy it from him. So he’s going to make a shitload of money. He’s going to make a ton of money in the past six months. So imagine yourself as a rehabber buying a building for one point to selling it for almost two point four million within six months. Now, he spent probably around three to four hundred thousand dollars turning the units and proven the units, putting in new flooring, putting in new kitchens, countertops, nothing super expensive like Formica countertops, but they’re nice luxury vinyl, plank flooring, linoleum flooring in the kitchen, stuff like that. 

Didn’t spent a ton of money, but probably spent five to seven thousand a unit. So we’re buying that building and we expect that building to be completely renovated. All 54 units all updated. The only thing we’re going to have to do is lease them out. By the time the building is is done and we finish off whatever leftover improvements there are, at least out, we’re going to be into it for about two point six million. It’s going to be worth four point two million. OK, so those two deals are two small deals, 52 Lake and 54 Niles, about a one point five to one point seven million of equity each. 

So those two deals will raise my net worth, my balance sheet by between three million to three point four million dollars. Not that most people work all their lives to save, save, save, Slavin’s save to accumulate a million bucks and then hope to live on that million dollars, earn a six percent return and live on sixty thousand a year while these two buildings are going to net us about one hundred eighty thousand dollars a year as soon as they’re stabilized, which will be about 18 months from now. So over three million of equity and one hundred eighty thousand of net free cash flow just from those two kinds of small deals. They’re really, really small, actually. Those are not even medium sized or large apartments, 50 units, not a big deal. 

Also, this week was super exciting. We had our letter of intent accepted actually last week between Christmas and New Year’s, the day after, not the day after Christmas. Christmas is on a Friday, but Monday morning we got our letter of intent accepted on a two hundred and twenty unit, which is I’m not going to tell you too much about location because it’s very, very new for us. But the letter of intent was accepted. It’s two hundred and twenty units. It’s in the Cleveland suburbs and we got that approved for eleven point six, five million. 

We’re budgeting about a million of capital improvements and soft costs. It’s going to pencil out to be worth eighteen million dollars by the time we’re done with it. This is a very a B class building in a very big class market. But right now the rents are just around six hundred dollars on average. The current owner is a great dude. 

Actually is from the Pittsburgh area, is probably a Steelers fan, and but it’s got a really nice apartment portfolio in Pittsburgh. This is the only asset that he owns in the Greater Cleveland area. So he was willing to sell it. It was off market. Nobody knew about it except for us and the brokers. They brought us in. We got our offer approved at eleven point six, five million. So still a lot of work to do. You have 30 days of due diligence, another 30 days of financing. We have to raise four point five million dollars to close that deal. 

But this week, actually, on Wednesday and Thursday morning, Wednesday, kind of all day to Thursday morning, I spent almost all of that time texting, calling, talking with investors and potential investors. And I said, listen, we need to raise four and a half million dollars for this deal. I could go out and raise that from 30, 40, 50 investors. One hundred-thousand-dollar increments, one hundred thousand dollars minimum. 

But what I’d rather do is work with about 15 investors who can invest three hundred thousand dollars each. That would be our four and a half million. And so I really I called on about twenty five of our existing investors who already have relationships with guys that for the most part have invested in deals with us before. And I’ve already raised against a soft raise because this is just barely under contract. Soft raise, four point zero five five in soft commitments. So literally in 48 hours was able to raise four point five, five million dollars and we need four point five million, so I’m only four hundred fifty thousand short of my goal. Now, some of those people will fall out. Some of that won’t work, but we’re way ahead of the game with raising capital, getting capital, closing that deal will not be a problem if it goes through due diligence. We which we expect it to. We did it. We walked about four or five units with the brokers. Everything pretty much checked out. We’re going to push the runs from six hundred dollars to eight hundred dollars in this market. Six hundred dollars for a two bedroom all the way up to eight hundred dollars for a two bedroom. That will push the value to nearly 18 million dollars. So that all happened this week. Super exciting. 

Also, we found out right before Christmas we had a four hundred and seven unit that we partnered up with some JV partners of ours was supposed to be was originally penciled out to refinance and produce about five and a half million dollars of RE5 proceeds. Well, when the appraisal was done, the appraisal came in a little bit short. Then there was a bunch of covid holdbacks, covid escrow holdbacks, that the bank, over one and a half million dollars at the bank is holding in escrow for principal and interest escrows. 

So. Long story short, that five and a half million of originally projected cash out re-fi proceeds, none of it’s going to happen, but there is about one point seven million dollars locked up with the lender that. The lender is going to hold on to and then eventually release it in six to 12 months from now. So what we decided to do instead was we packaged up that four hundred and seven unit with a bunch of other properties we have done in Albany, Georgia. We call it the Albany A portfolio. We packaged that up. We put all of it on the market. And sure enough, we got we got an offer on it. And so. We expect that buyer to get through due diligence next week and sell and close that portfolio, it’s over eight hundred and fifty units that were partnered on and we expect that to close in mid-February, potentially late January. And that would be a massive, massive transaction in 50 units, at over 60 thousand units and over 50-million-dollar deal. So that’s we worked on that this week. 

Also have another portfolio we call the Albany C portfolio. And the same buyer that’s buying the Albany A portfolio, which includes that four hundred and seven units, also made an offer to buy the Albany C portfolio that’s supposed to close in late February. That’s over nine hundred and eighty units that I’m involved in. There’s more units that our joint venture partners have packaged up with those nine hundred eighty units and offered them for sale. So if that was to sell off. 

You know, that’s almost a thousand units that I’m involved in, plus additional units, so we got an update on that. Hopefully that will close in mid to late February. We also have another portfolio of close to eight hundred units in Macon, Georgia, that is also under contract and supposed to close at the end of February. So eight hundred units in Macon, 850 units in Albany and another nine hundred eighty units in Albany, all on the market very quietly. 

All under contract to sell and close, so you could imagine in February, we’re going to buy a fifty four unit, buy a fifty two unit. Buy a two hundred and twenty unit. Sell eight hundred units in Macon. Sell eight hundred and fifty units in Albany and sell another nine hundred and eighty units in Albany. So this is February and March is shaping up to be absolutely bananas when it comes to our portfolio and all the movement, all the moving parts. We also got word. We have a two hundred and sixteen unit that we own with some JV partners down in Lawton, Oklahoma, and we’ve own that now for almost 16 months. 

We have a bridge loan that’s going to come due in March of 2021, about two months from now. And so that is also scheduled to refinance. That’s fully stabilized. We did a bunch of improvements. It was actually a massive fire in one of the buildings that burned out six or eight of the units. Those units are currently down and being renovated. But we’re going to get the insurance dollars that’s going to cover those renovations. But two hundred and sixteen units, we call it to 16. Krosby That’s set to re-fi in mid-February. That’s going to return nine hundred thousand dollars to our investors that they’re going to be able to reinvest. So we’re going to be able. We originally projected to get about six hundred thousand dollars of cash out reified proceeds. 

But because Fannie Mae and Freddie Mac are doing covid escrows, they’re, you know, protecting themselves by putting principal and interest aside in these covid escrow accounts, we don’t think the there’s going to be really any cash out reified proceeds. But that will come back to us in six months to 12 months from now. So we’re going to get the cash out re-fi proceeds, just not in February or March, but that will return all the investors’ principal that they invested, but just not get the cash out, re-fi proceeds. Also, we have another 164 unit in Cleveland Heights and Shaker Heights, Ohio. I’m partnered up on this one with another JV partner, good friend of mine named Jack Petrich. And that hundred and sixty four units is also set to refinance in February. 

Again, we bought that almost 16 months ago at the end of February. Early March is going to be 18 months. We have a bridge loan. That bridge loan is going to expire and we can either extend that bridge loan or we can refinance and pay off the bridge loan. And right now we’re scheduled to refinance about 40 days from now, in mid-February, again, scheduled to have about eight hundred fifty thousand dollars of cash out reified proceeds. But because of covid, the banks probably going to make us put about six hundred thousand dollars into a covid escrow account for principal and interest that will then set aside. Hopefully we’ll get that money six months from now, 12 months from now. But we plan on holding that property in the property and Lawton, Oklahoma, long term for the next five to ten years or longer. 

As these all close, this is going to put us on track to close our 13th large apartment complex after we close on the two hundred and twenty unit, it’s three thousand two hundred and seventy-one doors or units, and it does not even include our residential portfolio of duplexes and Quad’s and little deals like five unit deals and 16 unit deals and stuff like that. By the way, this is some of the crazy stuff that you see. 

We had one of our small buildings is a little 16 unit that we own in Akron, Ohio. We got word we went down to collect rent on a number of the properties. When we bought it, we almost bought it, like with no real due diligence. The seller was like eighty-five years old. We kept track of everything with a pen and a piece of paper. We paid cash for the building. The guy had like no records to give us, no leases to give us, no leases, none of that stuff. And so but we bought the building because it was a good deal. 

We knew that we could jack up the rents, so we bought it for five hundred and forty thousand. We actually, out of the five forty, we actually paid a wholesaler a ninety-two-thousand-dollar wholesale fee. Imagine that. So the real purchase price was four hundred and forty eight thousand. We paid the wholesaler ninety-two grand and so our total Olin was five hundred and forty. We raised six hundred thousand of private capital and we paid all cash for the building. We paid ourselves a small acquisition fee of about 17 grand. 

And then we set the rest of the money aside for renovations, repairs and operating operating capital. But we found out this week that there’s a prostitute living in the building. We also found out that one of the tenants is sort of just randomly walking around in the parking lot at night with a gun. So. Prostitutes and guns, it’s like this isn’t really what I signed up for, this is not the type of buildings that we typically buy. We typically buy B class buildings in B class areas. This is firmly a B class area. But obviously some of the tenants here are D class tenants. 

So what do you do with the prostitute and a guy with a gun while they’re already on the eviction sort of kickout list? And here’s the things about these eviction moratoriums. So these eviction moratoriums. Federal, you know Donald Trump signed the massive package, the stimulus package, you know, almost a trillion dollars right before Christmas. That included an extension on the eviction moratorium. 

Well, the eviction moratorium is you can’t evict for nonpayment, but you can still evict for not renewing someone’s lease. And so a lot of these leases are month to month leases. So now we’re evicting for non renewal of their leases. OK, so this is a big deal. This allows us. So when we acquire a building where you prefer that about a blended 50 50 or 60 40, we prefer that about 50 percent or 60 percent or 40 percent of the leases are month to month. We like that because we want to be able to turn some units, kick out some of the bad tenants, kick out some of the people who are paying low rents, ask them to pay more and then be able to kick them out with just a simple month to month lease instead of a annual lease. And that annual lease might not expire for, whatever, five months, six months, eight months from now. 

So on 16 Akers, this is going to allow us to kick out the prostitute and the guy with the gun and pleasantly ask them to leave. We’ve got a lot of tenants that love the building, that want to stay there, live there. But they’re realizing, based on these two bad tenants, that they don’t know if they want to live there anymore. So, you know, our goal is to raise the rents about 150 bucks. The rents are about five fifty blended average, five fifty. We’re going to jack them up to seven hundred, then we’re going to refinance. We were all in for about five hundred seventy-five thousand. 

That’s just a little tiny apartment. That one’s going to be worth nine hundred fifty thousand by the time we’re done with it. Also this week, I’m really excited because I spent some time with some good friends of mine. I spoke to a friend of mine named Justin Donald. If you haven’t followed Justin Donald, do that. Listen to his podcast. His podcast is called The Life Style Investor Podcast. I was a guest on the podcast. I think I was episode number four. So definitely go into iTunes or YouTube and look up. Justin Donald, the Lifestyle Investor podcast. Look up my episode with Justin where he interviewed me. It was episode number four. Also, I interviewed Justin for our podcast. I think it was episode 160 something I could look it up. Accelerated Investor podcast, episode one sixty eight or one sixty four. 

Let me see, here is a single mom, let me see if I can find it real quick, nine point takeover plan. Actually Justin’s going to be Episode 170. We haven’t even released it yet. I’m about to release it next week. We’re going to release it on January 13th. So just depends on when this podcast goes out, when you hear this. But Justin is actually releasing his book in his new podcast has already been released. It’s got tons of ratings. I think it’s got over one hundred ratings within like a couple of weeks. It’s amazing. Again, I was episode number four. Listen to that episode. It’s fantastic, by the way. But Justin just launched his new book, which is also called Lifestyle Investor. That book launched on January 12th. So make sure you go check that out by his book. And he’s got what he calls the Ten Commandments of lifestyle investing. 

And what I love about his book is not only what I’ve learned from it, his Ten Commandments are fantastic, but also he invested in one of our deals. He is a passive investor with us in the Macon portfolio that I talked about earlier. And that deal, two hundred and forty units was a part of that total portfolio of over eight hundred units that just invested in that deal. Purchase price was twelve point seven five million. We’ve got over one point six million of rehab in CapEx, all in for fourteen point eight four million with a stabilized value of twenty-one million. And so just invested in that. I met Justin actually at the Capitalism conference. 

I was a keynote speaker on a panel with Brian Moran and a bunch of other amazing speakers, Tom Wainwright, other guys that spoke at Capitalism.com. And I met Justin actually over a drink in the hallway. We started having some some bourbon together. And it turns out Justin’s a baller. Justin’s friends with guys like Hel Elrod from the Miracle Morning. And Ryan Lévesque, from the Ask Method, both bestselling authors, friends of mine, friends of Justin’s investors in our deals. And so check out Justin’s book, The Life Style Investor on Amazon. Also check out his podcast. So I promised Justin we would support his launch that happened this week. So, guys, and the takeaway from that is like you just never know. 

You just never know when you’re going to meet somebody who can introduce you to other amazing people. Justin’s a total giver, so I want to support his book launch because he supported me. He’s invested in our deals. He’s introduced us to amazing people. But Justin also has an amazing book and an amazing podcast that you should definitely download and listen to talking about some of his rules for investing like a quick return of principle. 

Another rule is make sure you can cycle your money, meaning you invest in a deal one time, but you get equity in that deal even when your principal is returned to get equity in that deal forever in perpetuity. Right. I think Kevin O’Leary made the word in perpetuity famous. So when you know, when Kevin O’Leary spoke at my event back in twenty seventeen, I was I was excited to talk to him and talking about all the deals he’s done in perpetuity. He continues to make cash, continues to make money on deals, and he’s leveraging his income and building multiple streams of income also this week. 

I spent some time listening to my friends Robert Ritz and Thula and Rod Kalif, they have a new deal that they were pitching to their investors. And so Robert and I have talked about giving on a number of deals in the past. Radclyffe and I have been on each other’s podcasts. We’ve talked about giving on some deals in the past where she had a deal in Shaker Heights, Ohio, under contract right before covid that we were going to partner on. We decided to retrade that deal and ask for a lower purchase price. 

They did not accept our retrade. They took the property, put it back on the market. It got under contract by a new group. That group also asked me to step in and joint venture with them because they know I can sponsor loans and they know I can raise a lot of capital. That deal fell through because the sponsor, which was not us, which was another group. Couldn’t raise all the money they needed, and so the deal went back on the market actually finally sold, but Robert and I created a friendship over that deal. 

And I listen to Robert and Rod Khalif pitched their latest deal called Cottonwood. Was a thirty-nine million dollar deal in Dallas, Texas. Two hundred and seventy units. And I listen to them raise thirteen million dollars for their deal, which is pretty cool. I love to listen to other people give pitches, right. 

Pitches of their deals and how they present deals and how they sell deals and how they raise capital and how they, you know, pitch deals to investors and kind of cue them up and how they’re going to manage and what their business models are. So, you know, one of the best things you can do to learn about apartments is to listen to how people pitch their deals and then listen to how they actually operate their deals and how the operations compared to the pitch. 

OK, that’s one of my favorite things to do, is to see OK, did the did the pitch. Like, outperform the actuals or did the actuals do better than the pitch or did they line up? So listen, and Robert was cool. I listened to his podcast. Also, we have an Airbnb that we run in the Cleveland suburbs is actually in Broadview Heights, Ohio, if you’re ever in town. I’ve got an amazing Airbnb in Broadview Heights, Ohio, that you can rent on a nightly basis and that Airbnb has been rented out the last eight nights in a row, which is great. 

What we realized for Airbnbsand for nightly vacation rentals is that those vacation rentals that are in the city, the urban core, those are only renting out about 20 to 30 percent of the time because people don’t want to rent, they don’t want to live. They don’t want to be in the city because of Covid. They just don’t want to be on top of each other. They don’t want to come across too many people. Everyone’s still distancing to some degree. And but people love to rent nice properties. So this is a three thousand square foot property on four acres in the Cleveland suburbs with a four car garage. It’s an old farmhouse that we renovated. It’s beautiful. 

You can you can look it up if you want two eight zero one West Royalton Road in Broadview Heights, Ohio, go check it out on Airbnb and VRBO and also on Zillow, two eight zero one West Royalton Road. So I actually stayed there overnight with my wife and kids on New Year’s Eve. That was fun. New Year’s Day was only a week ago. It’s crazy how fast I felt like this week. Just a blur with all this things I’ve been telling you about. All this stuff literally happened this week. 

And so the other thing that we do is obviously we do the business and we coach like we do the business, and then we teach, we do the business, and then we mentor people who want to do the business like we do. And so with all this experience and all the different things that I’ve been doing this week, obviously we’re super qualified to to teach this to other people. So we sent out some e-mails this week to our members, people who follow us. We have over one hundred thousand subscribers and members. We had over two hundred people raise their hand and say, yes, Josh, I want you to mentor me this year. I want to learn about apartments and multifamily and raising capital.

Will you mentor me? And so we’re currently emailing back and forth with them right now, kind of through a hand raiser type of campaign, people that are saying, yes, do I have the time to do this? Yes. Do I have the motivation to do this? Yes. Do I have the money to do this? Yes. 

And we had some people enroll in our coaching program, which is a twenty-five thousand dollar a year coaching program. We have other programs, but this one in particular is twenty-five thousand dollars a year. So we had several new people enroll in that, which is great for me because I love the team. 

I love to do the business, but the business does not take me 40 hours a week. It doesn’t take me 60 hours a week to run my apartment business, OK? And so I’ve got plenty of time to coach and read and mastermind and go to my kids volleyball games and coach volleyball and help my kids with their homework and silly stuff like today at a meeting and then all of a sudden the Internet went down. So, you know, I’m not off in some far-off place, I’m home with my wife and kids to help them with what they need at home, including when the Internet goes down, when they’re know virtual home school learning, digital learning. 

So that’s important to me. Also this week, I’m getting my teeth fixed. All right, see this two, three here, I got this one, too, it’s been crooked. I got braces when I was 16 years old. I remember I was so goofy in high school. I was I was athletic and I was popular. And I had all my my sports buddies, my friends. I dated cheerleaders like, you know, I just had a great high school experience, but I had to wear braces and I wore glasses and my hair was parted down the middle. So imagine that, right? Braces, glasses and my hair parted down the middle in high school. And I was still sort of popular. I was still sort of one of the jocks who had a beautiful high school cheerleader girlfriend. Funny, funny. But once I got out of high school, got my braces off, I want played college football. I wasn’t exactly wearing my retainer every night. I was probably in the bar too much or again, dated cheerleaders chasing the cheerleaders around in college. And so I didn’t want my retainer and this tooth went crooked. I’ve got this one too crooked tooth right here. So finally now I’m forty four years old. I’m finally going to get that tooth fixed, I got a new Invisalign, a new Invisalign tray this morning and I’m wearing that and it’s pushing my teeth forward. Hopefully by the end of February. I’ve got straight teeth. And so all of those amazing things, all those fun things are happening. You know, my kids are back in school this week, but they’re virtual learning. 

They’re to go back in the classroom January 19th, which is another week, and they’ll be back in school wearing masks. My girls are playing club volleyball. It’s which is so exciting. My oldest daughter, Juliana, who’s 12, she worked her butt off when she was 11 years old. She loves volleyball. She couldn’t even serve overhand when she played Twelve’s volleyball. I was her coach. She made the second team, the second highest team out of four teams. She made the second team. I was her coach. We had a great experience, but a lot of fun. I’m a good volleyball coach, but not a great volleyball coach. 

Then all summer she worked on her game. She went to all the open gyms, she went to the tryouts, she did private lessons. We pay for private lessons with amazing instructors. And she’s an outside hitter. So, you know, bumps that spike. She’s the one that gets to spike the ball on the third hit. And she’s getting really, really good, really talented. But I give her a lot of credit because she also two years ago was diagnosed with scoliosis and she’s got a pretty significant curve in her back. And so she wears a brace, you know, twenty, twenty one hours a day. 

And she’s amazing at you know, she has a lot of self-confidence. She got a lot of self-esteem. She’s definitely got days where she’s down or days where she doubts herself, just like all of us adults do. But she wears this body jacket, this brace. Twenty-one hours a day. I’m so proud of her because she made the top team this year. She made the national team. 

And so now this week, we’re also going through the rigmarole of trying to figure out, OK, are they going to have tournaments with covid? And if they have tournaments, are they going to wear masks? Are they going to allow spectators or they don’t allow any spectators? One spectator, she’s got tournaments in Columbus, Ohio, Chicago, Illinois, Indiana, Indianapolis, Detroit. She might go to Vegas if they qualify for Nationals, Pittsburgh, you know, all these crazy things. My wife’s just kind of ripping her hair out, trying to figure out, are we going to go to these tournaments? Is she going to play, you know, what’s going on with covid? Are they going to wear masks? What’s going on? 

But I just love the fact that they’re back in the gym and they’re playing. These kids just love sports. They love school. They love their friends. And I think it’s very, very confusing for all of us about who we should be hanging out with, who should be spending time with, who we should be, what should be happening with covid, this and that. So especially for a twelve-year-old that my daughter, the daughter is eleven, my son is nine. They’re not seeing their friends very much. And so it’s a very confusing time for them. 

So I think as parents to be home, to be engaged, to listen when my kids are home and they’re kind of confused and they just start talking and some of them sometimes start crying, I think as parents we always want to say, especially men, we want to solve the problem. So what I’ve been trying to do is just listen to not necessarily offer a whole lot of advice, but just to listen. 

That’s really, really important. The other thing that I’ve been doing this week, which is part of my goals for 2021, is every night before we go to bed, I always wanted to spend more time reading. I like to have sort of a quiet home house, my wife, me, my kids, to be off of our devices, to be spending family time together and for there to be a calm, quiet experience. I think it’s important for kids. It’s important for adults, too, to know that they’re going to bed in peace, to know that they’re going to go to sleep in a peaceful, secure, safe environment. 

And with covid, obviously, that’s put that in jeopardy for everybody. So what I did was I grabbed the new book, this particular book that we’re reading, you can see behind me every dozens and dozens and dozens of books. One of my favorite books is actually this one here called Extreme Ownership by JoCoWillink. 

That’s a great one. Influenced by Robert Cialdini is a great one. Unshakable by Tony Robbins is a good one. ECMWF Mastery by Michael Gerber’s is a great one. Ready Fire Aim by Michael Masterson’s a great one. The Cleveland Clinic Way. This is an amazing book that’s written by Toby Cosgrove, the CEO of the Cleveland Clinic. My wife and my son, their experience of my son’s emergency delivery and emergency C-section and emergency surgery on my son’s throat. That’s actually, believe it or not, it’s page one, chapter one of that book. 

And so some amazing books. But my book I’m reading right now is called Next Level Thinking by Joel Osteen, the pastor of Lakewood Church down in Houston, Texas. So whether you like Joel Osteen or not, whether you believe in, you know, whether you’re faithful, whether you have religion or not, I do. I was born and raised a conservative Catholic Christian still. So going to church every Sunday, still pray with my kids every day, multiple times a day. But this book is amazing. So I’m actually reading to my kids every night about next level thinking. And the book is all about self-confidence. It’s all about self-esteem. And I really love it, especially because there’s one gift that I want to give my kids. If there’s one thing that I think is most important that us parents deliver to our children, it’s not a nice new car when they’re 16 years old. It’s not a brand-new iPad. It’s not a new phone when they’re in fifth grade, it’s not all these material things. 

The one thing I think that’s most important that we give our children is self-esteem is self-confidence, because if you have self-confidence, that gives you an open door to do almost anything in your life. You know, I got an email from one of my subscribers this week who said, Josh, I can’t do it. I can’t invest in real estate. I can’t do it. The world is against me. You know, I can’t raise any capital. I can’t find any deals. 

And this just to me, sounds like somebody who’s defeated well before they even got started. So imagine that for a 12 year old or an 11 year old or a nine year old, we don’t want our children to feel like they’re defeated before they ever even start. Right, so I remember telling my kids this this this past week a story about how when I was young, when I was about eight or nine or 10 years old, my mom sent me to swimming class. I learned how to swim. But then they wanted me in swimming class to dove off the high dive. 

And I was convinced before I ever jumped off the high dive that I was going to splatter all over the ground and hit the water. And it was going to be hurtful. It was going to be painful so I could never really dive off of a high dive because I had a preconceived idea that I was going to fail. This is going all the way back till I was eight or nine or 10 years old. I remember every time I tried to dive off the high dive, I would lift my head up and if I lifted my head up, I would lift my chest up and then I would do a belly smacker onto the pool and it hurt really bad. And so I didn’t really learn to dive until I was well into high school and dove off a high dive was even more.

I had my friend Shawn, Shawn Goriest, who’s a passive investor with me and a good friend of mine since second grade. That really taught me how to dive. When I was at Louisville basketball camp, when I was like in freshman or sophomore in high school, that was really when I started to learn how to dive off a high dive. So again, I think as kids, I already had a preconceived idea that I was going to fail. So if I can help my children and you can help your children, if you don’t have any kids, if you can help a younger people, if you can mentor a child, big brother, big sister, you know, help someone who’s younger, give them confidence, is going to give you confidence. You know, if you can’t find time to read, bring your wife, bring your husband, bring your kids into your bedroom at night and sit down and read as a family, this past week has been awesome for us because we’ve been sitting down and reading. The only note I didn’t read to them was last night because everyone was really tired. I went to sleep a little bit early, but that’s another thing that I did this week that I thought was.

So we’ve gotten off to a really good start this year. We’ve got over three thousand two hundred units of apartments. We’ve got three big deals that we’re going to close in February and March. We’ve got three or four deals that we’re going to sell. We got two deals that we’re going to refinance. We’ve got a prostitute and a guy with a gun in another deal that we’ve got, we’re figuring that out. We’ve got Justin Donald launching his book. Robert Ritson pitching a nice deal that I got to pay attention to. An Airbnb that’s full. And I also worked out five out of the last six days. I’ve got a calendar in my basement, guys. You want some ideas around getting things done? 

I’ll just give you this one piece of advice and we’ll wrap up what you track. Well, expand what you track will get better, what you track will succeed, what you track will improve. So I’ve got these notebooks, I’ve got one right here. I’ve got two more in my backpack, which is in the kitchen. I take tons of notes. And so because we’re tracking it, because I keep meticulous notes, I’ve got PowerPoint decks and Google Docs that I keep notes in because I keep meticulous notes. I see things getting accomplished at these see things improving. And I don’t have a guess. Like when I go to bed and wake up in the morning, I have no no guess about what I need to do the next day because I track it, I write it down. So I think these things are getting better and better and that helps me and my team and my staff improves. So as a CEO, I like to be the guy who tracks and reviews and keeps my own personal notes on everything. Nothing slips through the cracks because I like to write. I spend a lot of my day taking notes, writing, taking track of things and knows things expand. They improve, they get better. 

OK, that would be my piece of advice to you. So invest in multifamily apartments, raise capital. That’s my first piece of advice. My second piece of advice is kick out prostitutes, people that have guns out of your apartments. My next piece of advice is download the Justin Donald Lifestyle Investor podcast. Buy his book Lifestyle Investor on Amazon sometime after January 12th when it’s launched. And also read to your kids at night. Empower your kids to have personal self-esteem and self-confidence. Super, super important stuff. And as always, I just want to say thanks to all of you of listen to this podcast. I so enjoy sharing what I’ve learned. I hope it’s impacting you, impacting your life, impacting your business, whether you’re in the gym or on the road or you’re at home listening to this wherever you’re at. Just I love you. Thank you so much for engaging with me. This is such great therapy for me to talk to you on this podcast. 

And also, if you’re interested in learning more about how you can work with me, I can mentor you to buy multifamily properties, invest in apartments and raise capital. Just send us an email at JoshCantwellVIP@gmail.com, OK? And just reference that you’re interested in apartments and I’ll start to walk you so we can have a personal conversation via email. JoshCantwellVIP@gmail.com. Just shoot us an email there. We’ll talk to you about how we can help you learn more about what we think will fit, what kind of programs we have that might help you in your journey this year in 2021. Again, as always, if you enjoyed the podcast, leave us orating, leave us a review. Share this all-over social media. Thank you so much for being here today and we’ll talk to you soon. Take care. 

You’ve been listening to Josh Cantwell and the Accelerated Investor Podcast. Leave a comment on our iTunes channel and let us know what you want to learn next, or who you’d like Josh to interview. While you’re there, give us some five-star rating and make sure to subscribe so you can be the first to hear newepisodes. Follow Josh Cantwell and his companies, the Strategic Real Estate Coach and Freeland Ventures on all social media platforms now and stay up todate on new training and investment opportunities to start your journey towardthe lifestyle you’ve always dreamed of. Apply for coaching atJoshCantwellCoaching.com.

Welcome to my Multi-Family Inner Circle podcast where, about once a week, I’m going to sit down and give you the rundown on the deals I’m currently working through. You’re going to get an inside look into my deal flow, and see just how I evaluate properties.

Inside this episode, I’m going to talk about some current projects:

Buying:

  • A $3 million, 52-unit apartment on the Gold Coast in Cleveland that we’ve just completed our due diligence on. Because of fire damage, we’ve got an occupancy rate of 76%, however, we’ve also got the opportunity to completely renovate and bump up the rents immediately on 10-units.
  • 54-unit complex in Niles, Ohio, just outside of Youngstown.
  • 220-units in a B-class neighborhood in Cleveland that I’m currently raising money for, but it will be worth $18 million once the project is completed
Selling:
  • 800-units in Macon, Georgia
  • 850-units in Albany, Georgia
  • 980-units in Albany, Georgia

Several of my properties that I purchased last February and March are up for cash out/refinances, so I share some of the strategies I’ve had to adapt to with my partners to accommodate the COVID escrow accounts that Freddie Mac and Fannie Mae are insisting on.

I love what I do and I feel honored that you take time out of your day to listen to me. If you’re interested in talking to me about raising capital, multi-family investing, or coaching, send me an email at: JoshCantwellVIP@gmail.com.

What’s Inside:

  • Why you should kick the prostitutes out of your properties.
  • I explain “COVID escrow” and how it’s affecting my refinancing process.
  • I talk about the assisted living complex that I’m purchasing from a flipper, and our plans to add to the outdoor living space to spruce up the property.

Mentioned in this episode​

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