He’s the founder of Real Estate Wealth Builders at REWBuilders.com, an educational company that helps real estate investors quickly scale their real estate business. 

Topics on Today’s Episode:   

• Introduction to guest Mike Mannino II and his journey in real estate investing. Discussion of the critical importance of mindset. 
• Mike's early success, buying a house at 19 to renovate and house hack. He sold the house at 21 and chose to reinvest the equity in fix and flip homes. 
• Wayne relates discipline and going against the grain to invest in the future, during his time the Marine Corps. 
• Goal setting is important for both personal and business aspects. The feeling of achieving a goal feeds the next goal. Humans avoid pain more than seek pleasure, so the feeling of not achieving the goal is very motivating as well. 
• Mike's passion for retiring his father and already achieving a $100K/year goal for him. 
• Mike discusses his standardized pricing sheet and uniform set of decisions for each fix and flip property-same cabinets, floors, trim, paint color, etc. Defined process saves time and money for each flip. 
• Profiling key members of Mike's team, including his partner David and office manager Olivia and 3 construction crews. Mike’s goal to help others is manifested through helping them achieve higher income to support their families. 
• The inception of REWBuilders.com, Mike's real estate educational platform. Free resources and Facebook group are available on the website. 
• REWBuilders live event in Florida for networking and learning about various types of real estate investing. 
• Overview of Mike's nine years in real estate: flipping 80 houses and acquiring 60+ rentals. 
• Insights into flipping houses and the difference between being rich and being wealthy. Mike states that flipping single-family homes built cashflow, but multi-family helped him achieve financial freedom. 
• Leverage people that are in places you want to be. Learn from and partner with those who have done the thing you want to do, to reach your goals. 
• Mike and Wayne share the importance of focus and overcoming fears in real estate. 
• The conversation on building wealth over time and the significance of setting achievable goals. 
• Mike’s proudest moment was achieving his goal to retire his dad with $100k in income per year. 
• Wayne's gratitude for the conversation and a teaser for an upcoming podcast on entrepreneurial mindset. 
• Get more info from Mike through the free resources on REWBuilders.com and by joining his active Facebook group. 

Links and Resources:   

Mike Mannino II 

https://www.rewbuilders.com/

https://www.facebook.com/MikeManninoII

CREI Partners  

https://www.creipartners.com

https://www.passiveinvestorcoaching.com

linktr.ee/creipartners  

Tom Dunkel is the Chief Investment Officer of Belrose Storage Group LLC and brings over 27 years of real estate, finance and investment experience to the table. Working alongside his world-class team of professionals, Tom makes it his mission to find great investment opportunities for his clients while helping them meet their wealth-building goals. 

Tom manages the firm’s financial underwriting, playing a critical role in creating win-win deal structures that ensure achievable investor returns. In addition, he works closely with private investors to communicate about new acquisitions and investing opportunities, as well as report on the progress of current investments. 

Topics on Today’s Episode:  

• Introduction to Tom Dunkel and his background in real estate investment. 
• The focus of Bellrose Storage Group is on acquiring underperforming self-storage facilities. 
• Overview of the self-storage industry and its stability over the years. 
• Discussing remote management and contracted call centers for self-storage facilities. 
• Factors that contribute to the demand for self-storage, including both good and bad times. Home sales can drive traffic for retail self-storage, so during this time of low residential turnover, Tom is shifting focus to more stable commercial clients. 
• Utilizing social media advertising, such as Facebook geo ads, to target specific demographics. 
• Value-add opportunities in self-storage investing, including renovations, security upgrades, and management efficiency. 
• Interest rates and exit cap rates in self-storage deals. 
• The potential increase in properties coming on the market, due to capital stack distress. 
• Targeting specific markets and customers in the self-storage business. Shifting focus to commercial customers offers a variety of benefits. People using storage units for their business are more likely to pay on time and be long term clients. 
• The process of dealing with non-payment of rent and virtual auctions in self-storage facilities. Delinquencies are much lower cost and easier to turnover than multifamily evictions. 
• Building relationships with neighbors and communities for goodwill and to understand the market and their needs. 
• Risks and challenges in the self-storage asset class, including market shifts and control over variables. 
• The importance of grit and overcoming challenges in real estate investing. 
• Tom’s proudest moment: Building a successful, self-sustaining team. Tom’s goal is closing a deal without direct involvement, showcasing team growth. 

Links and Resources:   

Tom Dunkel 

Belrose Storage Group, LLC - Self Storage Investing 

tom@belroseam.com  

Belrose Storage Group - Facebook 

Belrose Storage Group - Instagram 

CREI Partners

https://www.creipartners.com

https://www.passiveinvestorcoaching.com

linktr.ee/creipartners  

With over four decades of experience in industrial real estate, Joel leverages extensive brokerage expertise to lead conservative yet profitable syndications. After co-founding and growing Epic/Savage Realty Partners, a 60+ professional firm to successful exit, he founded Brit Properties. Joel has brokered over $250 million in transactions through valued long-term relationships.  

Joel’s syndication approach uniquely utilizes 0% debt for principal conservation while targeting 8%+ cash returns. Having navigated the Great Recession, he employs a cautious strategy informed by cycles. For his investors, Joel delivers reliable cashflow, upside potential, and mitigated risk through dedication to the asset class and prudent deal structuring. His investments draw on a proven track record of 2,000+ industrial leases and sales totaling hundreds of millions acquired. Joel continually refined his real estate acumen over decades to create wealth for partners. 

Joel attended the University of Michigan. He enjoys playing golf and spending time with his family, particularly his 3 young grandchildren. 

Topics on Today’s Episode: 

• Introducing Joel Friedland, an experienced Real Estate investor with extensive experience in Chicago. 
• Friedland's focus is on mitigating drastic loss for investors through diligent and debt-free operations. 
• He offers insights into his investment preferences, such as smaller, older manufacturing buildings over large warehouse buildings. Defining your niche helps focus your efforts. 
• Friedland shares an example of a lucrative investment in downtown Chicago. 
• He discusses his unique approach to finding an 8% return on investment. 
• Friedland recommends investors diversify their investments, capping at 5% of their net worth with him. 
• He reveals his acquisition strategy, which involves buying properties from families experiencing internal transitions. 
• Friedland and Wayne discuss the importance of strong partnerships in the brokerage and real estate business. 
• They highlight the necessity of having a well-organized back office with efficient bookkeeping/accounting and property management. 
• Outsourcing, specifically in property management, is advised for individuals more attuned to sales. 
• Friedland's unique real estate investment strategy involving seller financing is discussed in detail. 
• Target investors for Joel are described, focusing on affluent older individuals. 
• Friedland emphasizes the approach of minimizing risk in investments. 
• As an investor, evaluating your own risk tolerance can guide you toward investment decisions that fit your needs and goals best. 
• Friedland's investment successes are highlighted, with narratives from successful collaborations. 
• Wayne and Joel both stress the importance of knowing an investor’s risk tolerance as well as how to mitigate risks to protect maximum returns.
• The podcast ends with contact information for Joel Friedland and his company, Britt Properties. 
• Wayne introduces CREI Partners and the concept and benefits of passive Real Estate investing. 
• Joel shares experiences and lessons drawn from the 2008 recession. 
• The episode completes with a discussion on the current real estate market condition and a cautionary note on a potential upcoming downturn. 
• A comparison of Joel's strategy to specialized surgery. 
• Joel's proudest moment with a satisfied investor. 

Links and Resources:   

Joel Friedland

Brit Properties 

Joel Friedland (@investingwithjoel) - Instagram 

Brit Properties - YouTube 

Joel Friedland - LinkedIn 

CREI Partners

https://www.creipartners.com

https://www.passiveinvestorcoaching.com

linktr.ee/creipartners 

A few years ago, Susan was taken aback by a huge federal tax bill. In response, she developed a 'tax bucket' strategy to map out her future tax planning. This approach enabled her to effortlessly visualize her income and tax obligations, ultimately revealing remarkable opportunities for substantial tax savings. Today, she consistently saves over $100,000 annually on her taxes. In this presentation, we will delve into Susan's tax-saving secrets. We'll learn how to categorize income into the IRS's three distinct buckets and discover deductions tailor-made for each bucket. Prepare to unlock the potential for substantial tax savings that put money back into your own pockets! 

Topics on Today’s Episode: 

• Overview of the importance of tax planning and optimization in real estate investing. 
• Explanation of the tax bucket formula and its divisions (active, portfolio, passive). 
• Discussion of a client example named Meredith, who has income from a W-2 job and stocks. 
• Discussion of tax-advantaged accounts and real estate as tax-saving strategies. 
• Explanation of how short-term rentals can be classified as active businesses for tax write-offs. 
• Case study of a client generating a $120,000 loss in the first year through depreciation and expenses. 
• Importance of tax-savvy savings and the long-term impact of saving on taxes. 
• Example of using a backdoor Roth IRA to add to the active bucket and reduce taxes. 
• Benefit of being in the 0% tax rate for dividends and long-term capital gains. 
• Comparison of previous and current tax burdens for a client, resulting in significant savings. 
• Mention of other income benefits related to the Affordable Care Act, FAFSA, and Medicare. 
• Discussion of the potential future wealth growth through compounding. 

Links and Resources: 

Susan Geist

https://www.risingfemmewealth.com/

risingfemmewealth@gmail.com 

https://calendly.com/risingfemmewealth

https://www.linkedin.com/in/susan-geist

CREI Partners

https://www.creipartners.com

https://www.meetup.com/texas-multi-family-investor-meet-up/

https://www.passiveinvestorcoaching.com

https://www.facebook.com/creipartners

Dr. Rob Scranton uses accounting and finance expertise to teach the Infinite Banking Concept, or IBC, for wealth growth. He shows how to leverage debt and expenses with this little-known strategy instead of traditional scrimping and saving. 

Infinite Banking predates the IRS so wealth accumulated through it is protected from government seizure. Dr. Rob has achieved financial success with this method without compromising lifestyle or going frugal. It's about staying wealthy by preserving and growing your money. The wealthy use this 200-year-old strategy to keep more money rather than working more or taking on more risk. 

Dr. Rob is passionate about sharing these strategies from family traditions, like how private banking saved his great grandparents' farm in the Great Depression as public banks failed. He explains why personal banking is critical now. If you want true wealth, learn the Infinite Banking Concept - Dr. Rob can help. 

Topics on Today’s Episode: 

• The benefits of using overfunded, cash-heavy whole life insurance policies that pay dividends through mutual companies, for loans, cash growth, accumulation, and compounding. 
• The importance of structuring insurance policies properly for the infinite banking concept. 
• The mistake of going to just any insurance agent without considering their knowledge of structuring policies for IBC. 
• The advantage is for the client rather than the agent in setting up policies properly for the banking concept, so be aware of what you need and read the policies. 
• The benefits of the death benefit attached to these policies and how it continues to grow when policies are set up properly for banking purposes. 
• An example of a long-standing policy showcasing significant returns on investment. 
• The concept of getting a return of premium in addition to the upside of an insurance policy. 
• The company's partnership with other companies that have designed policies specifically for infinite banking. 
• Dr. Rob Scranton’s personal experiences and success with their banking system. 
• The limitations and requirements for policies based on age and income. 
• The ability to continue earning interest on the cash value even after taking out loans. 
• The option of passive investing in real estate, using these accounts, and the benefits it can bring. 
• The differences between term life insurance policies and whole life insurance policies. 
• The challenges and misconceptions surrounding infinite banking. 

Links and Resources: 

Book Recommendation

Becoming Your Own Banker: Unlock the Infinite Banking Concept: R. Nelson Nash: 9780972631617: Amazon.com: Books 

Rob Scranton

https://www.tiktok.com/@robertscranton4

yourfinancialiq.org – Have your money work for you 

CREI Partners

https://www.creipartners.com

https://www.passiveinvestorcoaching.com

https://www.facebook.com/creipartners

Back in 2001, Tom was broke as a joke. A near-death experience while whitewater rafting pushed him to find a new way to break free of his 9-to-5 job. His first "deal" almost took him under as well, but real estate investing saved him in the end, both personally and financially. 

Hundreds of deals later, he is happy to share the negotiation, marketing, and business techniques that set him free, so you can do the same. Simple, structured, and step-by-step techniques that take you from spinning your wheels to making profitable deals. 

Investors of all levels struggle with their businesses. Newbies want to get started, but often hit a wall of confusion and start spinning their wheels. Intermediate and advanced investors often find that they made a wrong turn and built a business they aren’t actually happy with, but don't know how to fix and re-engineer it. 

Tom Zeeb works with real estate investors of all levels to get their business built (or re-built) correctly, so that their personal goals and lifestyle stay at the center of everything they do, giving them more money, time, and freedom to spend as they please. 

Topics on Today’s Episode: 

• Tom’s experience in real estate investing and how it saved him, both personally and financially. 
• The role of networking and building relationships in finding good investment opportunities. Real Estate investing is a team sport. 
• The use of public records and other resources to identify potential investment opportunities. Divorce, death, being an out-of-state owner, etc, are all available in public record and may lead to owners that are trying to sell their homes quickly This allows targeting with direct mail or other outreach. 
• If the sellers are distressed and need to sell, helping them by wholesaling or buying as an investment is a helpful act of service. 
• Sellers may not have time or money to sell their property in a more traditional way. Wholesaling can be a service to “buy and hold” rental investors, or rehab investors, to help them find appropriate deals. 
• Be sure to understanding assignable contracts and options in investment opportunities. 
• The importance of marketing, negotiation, and having an exit strategy in real estate investing. 
• The 3 P’s of negotiations: Pinpoint the problem and get to the deeper layers of the problem, Package deal that solves the problem, and Persuade them to accept it.  
• The science of negotiation defines how to get predictable responses. 3 tips for successful negotiation follow.
• Reacting to a number introduces doubt. Flinch about the number, every number, to get the upper hand. Act surprised. 
• Meeting location: The fairest place to meet is in the middle in negotiations. Bracketing: set your initial high to engineer where the middle of the bracket is and help the seller feel like you gave something. 
• Specific numbers: Offer a very precise number such as $203,579 rather than $200k. Helps seller feel the number is higher, that the buyer has tried to maximize the purchase price, and it sounds heavily considered and calculated. 
• Negotiating residential real estate can be more emotional and pride based. Negotiating commercial real estate is more fact and spreadsheet based. 
• The importance of having a mentor in real estate investing and the benefits they provide. 
• Tom’s proudest moment: After Tom requests testimonials from sellers, there can be unexpected answers that reinforce that he is helping them in big ways. 

Links and Resources: 

Tom Zeeb

https://www.linkedin.com/in/thomaszeeb/

https://www.tomzeeb.com/

https://tractionrealestatementors.com/

https://tractionreia.com/

CREI Partners

https://www.creipartners.com/

https://www.facebook.com/creipartners

https://www.passiveinvestorcoaching.com/Enrollnow

Jack Krupey is the principal and founder of JKAM Investments. He has been investing in both real estate and distressed debt since 2001. He has built long-term relationships with experienced real estate developers, sponsors, and syndicators over his 20-year career. Jack leveraged the 2008 financial crisis as part of a private equity fund that yielded impressive returns off of distressed and restructured debt. He repositioned properties as well as modified and restructured loans for borrowers. 

In 2014, Jack entered into a partnership with a large private equity fund and led the asset management arm of the firm that made over 3 billion dollars in purchases of non-performing and re-performing mortgage debt between 2015 and 2019. An entrepreneur by nature, Jack decided to launch JK Asset Management and the JKAM Diversified RE Fund to focus on alternative assets such as value-add multifamily real estate.  

Prior to beginning his real estate investment career, Jack graduated from Rochester Institute of Technology with a bachelor's in information technology. Jack graduated with a dual MBA from Northwestern’s Kellogg School of Management and from Hong Kong University of Science and Technology. 

Topics on Today’s Episode: 

• Jack’s journey from an IT consultant to real estate entrepreneur and financial freedom.  
• Missed opportunities in the rental market for investors who did not take advantage of recent rent surges. 
• Jack’s take on value-add strategy of renovating units and raising rents to increase net operating income and the value of the building. 
• The benefits of real estate investment in terms of generating positive cash flow, tax deferral, and building long-term wealth. 
• Many reasons to be bullish in today’s market, especially in Houston. 
• The number one metric to look at is still net operating income (NOI). Interest rates can move up and inflation can increase, but NOI is the one thing we can control and if you are hitting this metric, then you should be stable in the midst of any storm. 
• For individuals in high tax brackets, real estate investing can be a game-changer. Building long-term wealth and achieving tax deferral through real estate can be a powerful tool for retirement planning. 
• The importance of investing with good operators who have the financial means to execute projects effectively. 
• How concepts like depreciation, passive losses, and tax-deferred income, investors can strategically reduce their tax liability and generate positive cash flow. 
• Jack shares his insights and wealth of knowledge on evaluating distressed deals and investing in stabilized assets. 
• Today’s multifamily climate and potential risk with Class A assets.  
• The national housing shortage has opened huge investment opportunities in the class B multifamily market. Rents are still rising in today’s market at a rate of up to 10-15% per year. 
• The power of tax losses and tax-deferred income in real estate syndication. 
• Reinvesting profits into other deals to defer taxes and achieve tax efficiency. 
• Jack’s experiences in helping individuals transition into the real estate business and their focus on assisting individuals in finding passive income and non-traditional financial options. 
• Finding opportunities in multifamily build-to-rent communities and RV boat storage facilities. Real Estate 101 is finding ways to unlock value. 
• Resources and information are available, such as a Passive Investor Coaching Program, podcast, blogs, and an Investor Club on our website at CREIPartners.com. 

Links and Resources: 

Jack Krupey

https://jkaminvestments.com

JKrupey@JKAssetManagement.com 

https://www.linkedin.com/in/jackkrupey

https://www.facebook.com/jkaminvestments

CREI Partners

https://www.creipartners.com

https://www.passiveinvestorcoaching.com

https://www.facebook.com/creipartners

Guided by discipline and a relentless drive for excellence, Igor has founded and managed thriving companies and businesses in Southern California. In 2015, Igor ventured into real estate and established Avista Fund in 2020. This privately held firm focuses on raising capital from investors and investing in income-generating, value-add multifamily properties. Their mission is to provide local as well as international investors with access to US real estate, safeguarding and growing their wealth amidst high inflation rates in their local countries and currencies. They are currently serving as a limited partner to 17 different real estate deals, 3,050+ multifamily units, with a cumulative value of over $483.5MM. They prioritize conservative underwriting and meticulous due diligence, ensuring a prudent approach to investing while delivering value to both investors and residents.  

Igor's professional journey exemplifies a relentless pursuit of excellence, supported by his values driven approach to business and investment. Through Avista Fund, he not only empowers investors but also makes a positive impact on the lives of residents and communities 

Topics on Today’s Episode: 

• Introduction to Igor Shaltanov and his perspective on ownership in real estate investing. 
• Comparison of different cultural perspectives on ownership and property rights. 
• Encouragement to ask questions about the legal framework and potential risks in real estate investing. 
• Discussion on the value proposition of converting currency to American dollars. 
• Analysis of the depreciation of other currencies and the potential long-term value of investing in the US dollar. 
• Exploration of the fear of losing what has been earned or gained as a potential reason for lack of investment interest among groups of people from various parts of the world. 
• Speculation on the number of investors like Igor who are purchasing apartments in Russia, Ukraine, or passive investing in the United States. 
• Personal experience of leasing a single-family home in California, including difficulties and frustrations. 
• Appreciation for the multifamily space and its ability to cover expenses even with vacant units. 
• Importance of taking pause and not letting emotions get involved in real estate investments 
• Personal background of Igor as part of the professional water polo team and his worldwide travels. 
• Meeting Igor's wife in Turkey and their journey to starting a family. 
• Roller coaster nature of a career in sports and the discipline required to navigate it. 
• Exploration of the potential for social media and the world to create division and conflict. Questions about personal experiences challenge negative expectations and stereotypes in South Africa and Russia. 
• Reflection on Igor's proudest moment: finding a real estate idea with high return and low risk. 
• Discussion on the importance of holding value in something stable and predictable in an unpredictable world. 

Links and Resources: 

Igor Shaltanov 

Igor@avistafund.com  

https://www.linkedin.com/in/igor-shaltanov-13682b43/

https://www.instagram.com/igorshaltanov/

CREI Partners

https://www.creipartners.com/

https://www.facebook.com/creipartners

https://www.passiveinvestorcoaching.com/Enrollnow

Jeff Greenberg is the CEO and managing member of Synergetic Investment Group LLC, also known as SIG. Jeff has over 12 years of experience managing all aspects of commercial real estate ownership, including acquisitions, operations, value-add implementations, and dispositions, and is a seasoned expert in the field. He's been involved in projects worth nearly $150M. Properties have consisted of over 2000 units, including student housing, and short-term rental and market-rate multifamily properties. Through the SIG Wealth Fund, Jeff provides high-net-worth individuals the opportunity to passively invest in commercial real estate. With his extensive experience and network, Jeff uses the best-in-class commercial deal syndicators to help investors discover and invest in high-quality alternative investments.  

Topics on Today’s Episode: 

• Introducing Jeff Greenberg, CEO and managing member of Synergetic Investment Group, LLC (SIG). 
• Background and experience of Jeff Greenberg, highlighting projects worth nearly $150 million. 
• Discussion on recent changes in Jeff's investment strategy. He has shifted from selling off assets to focusing on raising money and working with investors. 
• Introduction to SIG and its offering of a diversified and customizable equity fund for high-net-worth individuals. 
• Explanation of the private equity funds created by Jeff, allowing investors to decide whether or not to invest in each deal brought into the fund. 
• Insight into the benefits of the fund, including the ability for investors to self-diversify and choose deals based on their criteria and goals. 
• Details on the flexibility and customization of the fund, providing investors with the opportunity to have a say in their real estate investments. 
• Explanation of the one K-1 form issued to investors at the end of the year, regardless of the number of deals they are involved in. 
• Discussion on the advantages of a single K-1 form for investors, simplifying the tax reporting process. 
• Insights into Jeff's focus on transparency and communication with investors in the fund. 
• Highlight of the student housing property in Georgia that Jeff still owns as a testament to his ongoing investment success. 
• Examples of successful deals and projects that Jeff has been involved in, showcasing his expertise and track record. 
• Explanation of opportunities for passive investors to grow wealth through real estate by investing in SIG's equity fund or with CREI Partners, LLC. 

Links and Resources: 

Jeff Greenberg:

jeff@synergeticig.com  

https://www.synergeticig.com/

https://www.linkedin.com/in/jeff-greenberg-a9974411/

CREI Partners:

https://www.creipartners.com/

https://www.creipartners.com/podcasts/

https://www.creipartners.com/ebook/

Hollis’ passion for real estate began when he was a kid, watching his family’s landlord collect rents. As he got older, he became an expert in creating opportunities and finding deals, and is committed to staying at the forefront of the latest technologies. 

Hollis is also dedicated to sharing his knowledge and expertise with others, regularly speaking at real estate conferences across the country. 

After growing 24 Capital Group’s asset portfolio to over 80 properties in 2022, Hollis is excited to tackle new opportunities, and to continue making a positive impact on the real estate community. 

Topics on Today’s Episode: 

• Introduction to William Quinton Hollis and his real estate journey, beginning with inspiration from Mr. Carter, their landlord in Queens, NY. 
• After initially believing that real estate investing was out of reach, he attended a real estate conference and learned about wholesaling. Wholesaling was different from Mr. Carter's approach.  
• Economies of scale lead to transitioning to larger real estate deals and the importance of partnering with others, which led to starting their firm, 24 Capital Group.
• Exploring specialized short-term rental companies.
• Emphasizing the importance of partnering when investing in short-term rentals.
• Partnering with individuals in different markets who are "boots on the ground."  
• Differentiating between hiring and partnering for a higher level of commitment and service.  
• Advice on finding a partner in a favorable short-term rental market.
• Discussing the concept of commoditization using the example of milk: Create a product or property that has no competition. There is less competition at the top, where similar amenities are rare. Below the 75th percentile of revenue, it’s a race to the bottom of price, it’s a commodity. Above that, there’s little competition and much greater price flexibility. 
• Highlighting the unique vacation experience provided by Airbnb and praising incredible homes created by Airbnb with various amenities.
• Involvement in a venture outside their portfolio partnering on smaller properties.  
• Importance of market analysis and attracting families or groups of friends to minimize risk.  
• Significance of design effort and amenities in distinguishing properties and charging premium rates.  
• Partnership with Tech investors on a short-term rental fund and its benefits.
• Valuing trust, personal relationships, and having uncomfortable conversations in real estate. 

Links and Resources: 

William Quinton Hollis

https://24capitalgroup.com/

https://www.instagram.com/reihollis/

https://techvestor.com/

https://www.propstream.com/

CREI Partners

https://www.creipartners.com/

https://www.facebook.com/creipartners

Matt Clark currently lives in Houston, TX, where he was born and raised and attended the University of Houston. His journey into the world of real estate was an exciting pivot from the software realm, where he honed his skills as a value-added seller. 

Currently, Matt is part of the dynamic team at Madison SPECS, a company with over 15 years of experience in the field and an impressive track record of completing 10,000 studies nationwide. In his role, Matt specializes in offering Cost Segregation Studies, helping real estate investors unlock hidden value within their properties and optimize their financial returns. 

With a passion for property and a commitment to delivering top-notch service, Matt is dedicated to helping clients achieve their real estate investment goals through the power of Cost Segregation. 

Topics on Today’s Episode:

• Cost segregation study timeframe: Typically, the IRS has a seven-year cutoff. Workarounds and special scenarios can extend the timeframe to up to ten years 
• There are workarounds to potentially extend the timeline up to ten years.  
• Cost segregation (cost seg) calculated per property, not per investor 
• Savings pass down to individual investors if the property has multiple investors 
• Classification of properties. Multifamily properties are typically considered commercial and fall under a 39-year scale.  
• Residential properties with long-term leases qualify for residential tax breaks 
• Cost segregations break down each component of the property into different asset classes. This allows depreciation deductions to be taken on shorter time frames for components that qualify. Therefore, this accelerates the rate at which depreciation deductions can reduce taxes on the property's income.
• The depreciable basis is the property value minus the land value (around 15% in Texas) 
• Quicker tax savings are available by accelerating depreciation deductions 
• Bonus depreciation and carry-forward deduction: Upfront deduction of all five-year and fifteen-year assets. Rates are currently at 80% and phasing out in 20% increments. Deductions carry forward indefinitely 
• Eligibility and benefits of cost segregation: Anyone who invests in real estate and plans to hold the asset for more than a couple of years is eligible 
• Active investor status for real estate professionals with 750 hours of service in real estate activities. 
• Maximize tax savings with cost segregation: To meet this goal, it is important to add every little piece of the property for larger lump sum savings. 
• Cost segregation typically worth it for most investment properties 
• Depreciation schedules and savings: Multifamily properties are commercial, and residential properties can still save a significant amount 
• Investors will save on a 39-year schedule 
• Bonus depreciation phase-out and potential return. Last year was 100% bonus segregation, this year it's 80% and phasing out by 20% each year, but there is speculation on bonus depreciation potentially returning due to upcoming elections 
• In-person versus virtual property study: Depends on type of property and availability of online information. However, larger properties may require in-person study, while residential properties can be done virtually if extensive online information is available. 

Links and Resources: 

Matt Clark 

https://www.linkedin.com/in/mczz/

CREI Partners 

https://www.creipartners.com/

https://www.facebook.com/creipartners

https://www.passiveinvestorcoaching.com/Enrollnow

Wayne leads the investment lifecycle and investor relations for CREI Partners as the lead sponsor and general partner. For more than 15 years Wayne has worked with a Fortune 150 commercial real estate firm leading property management services of 4.5M+ square feet for both institutional and non-instructional clients over his career. Wayne has worked closely with dozens of real estate professionals executing building strategic plans of over $60M and assisted owners through their investment lifecycle. His background in commercial real estate, passion for leading teams, and desire to increase his investor’s and team’s wealth pushed him to start CREI Partners. 

Topics on Today’s Episode:

• Importance of understanding return rates and conducting sensitivity analyses
• Assessing projected interest rate increases and exit cap rates
• Emphasizing the importance of trust and relationships with the sponsor
• Importance of timely communication and responsiveness from the sponsor
• Goal of increasing net operating income, NOI
• Increasing revenues through various avenues
• Reducing shared property management expenses by managing multiple properties together
• Building a strong team for investors
• Importance of the rent roll in determining monthly rent and other charges
• Evaluating financials for a specific time period (T-12, the prior 12 months of financials)
• Calculation of net operating income by subtracting expenses from total rent revenue
• Use of income statement for underwriting
• Preference for multifamily investments due to cash flow potential and economies of scale
• Explanation of multiclass waterfall structures for profit distribution
• Importance of GP sensitivity analysis in investor presentations
• Approach to finding on-market and off-market opportunities
• Importance of rent roll and income statement in evaluating opportunities
• Staying conservative and assessing achievability of business plan
• Assessing competitors and listening to the company's story
• Trusting instincts and passing on questionable opportunities
• Benefits of interest-only payments for distressed properties
• Adjusting the exit cap rate in investment analysis
• Considering different scenarios for interest rates and cap rates
• Analyzing cap rates to determine if they make sense for the deal
• Explanation of property condition reports and working with trusted contractors
• Commercial real estate can have variable hold times. While underwriting for passive investors, we shoot for 5-7 years but that can change based on market factors.
• Investors may have different preferences for cash flow over equity upside or longer holding periods.

Resources:

https://www.creipartners.com/

https://www.passiveinvestorcoaching.com/

https://www.creipartners.com/podcasts/

https://www.creipartners.com/ebook/

https://www.youtube.com/@creipartners

https://www.linkedin.com/company/creipartners/

Zach is originally from New Orleans, Louisiana. He began as a Chemical Engineer at LSU. After a couple of years, he realized that he wanted to take his life in a different direction. This led him to packing everything up and moving to Houston to pursue a degree in Finance at UH.  

Even then, the traditional route of a normal Finance major didn’t seem like the right fit. That’s when he found Quest. He started his career at Quest over 4 years ago in Quest’s Internal Auditing team. This meant that he led a team that looked over every investment that came through Quest. He learned in detail how these investments are structured.  

After that, he joined the IRA Specialist team which he is currently on. This allowed him to get a different perspective. Now not only does he know how most investments are structured at Quest, but he also now gets to take a deep dive into the networking and business development that make these deals possible. Quest has had a profound impact on his life and the way he views his own personal investments for the future.  

Topics Covered on Today’s Episode: 

• Zach Wilson is an IRA specialist from Quest Trust Company. Quest Trust has grown into the largest self-directed IRA custodian in Texas with over 20,000 clients and $2.8 billion in assets. 
• Importance of knowing and understanding retirement accounts. 
• Zach is happy to provide assistance and information to clients, not just Quest clients. 
• No negative implications for developers using SEP IRA funds from investors. 
• Must perform due diligence and ask questions. 
• Use the entity's information instead of personal information when investing with an IRA. The IRA is a separate entity with its own name, address, and EIN. 
• Reporting requirements: Value of assets held under administration reported to Texas Department of Banking and IRS annually. 
• Quest Trust YouTube channel has educational videos. 
• Taxable and non-taxable entities for investing: Differentiate between taxable entities (individuals, LLCs, corporations) and non-taxable entities (self-directed IRAs, nonprofits) 
• Benefits of self-directed IRAs: Allows individuals to invest in the same deals in a tax-advantaged account. 
• There are 3 main reasons why you should self-direct your IRA: 1. Diversify, 2. Tax Benefits and 3. Invest in what you know best.  
• Restrictions on investments with Self Direct IRA include, but are not limited to, yourself, spouse, immediate descendants and ascendants or any company that they are affiliated with. You cannot buy, sell or trade, loan, extend a service to or receive a benefit from IRA, whether direct or indirect. Investment restrictions include life insurance policies, and you cannot use your IRA to invest in collectibles. 
• Important considerations in investments in real estate syndications with self-directed IRA include UBIT (Unrelated Business Income Tax) and UDFI (Unrelated Debt Finance Income) refers specifically to the amount of unrelated business income that is subject to UBIT. 

Links and Resources: 

Zachary Wilson

• Zachary.Wilson@QuestTrust.com 
• www.QuestTrust.com 
• 855-FUN-IRAS or (855) 386-4727 

CREI Partners

• https://www.creipartners.com/ 
• https://www.creipartners.com/podcasts/ 
• https://www.creipartners.com/ebook/ 
• https://www.youtube.com/@creipartners 
• https://www.linkedin.com/company/creipartners/ 

Courtney Bhenderu is a passionate learner who has been involved in the creation of newsletters, blogs, and social media posts for over a year now. Her craving for knowledge and inspiration has led her to delve into the world of passive investing and real estate syndication, which has recently seen a surge in popularity. As she continues to create content for others to learn from, she is also excited to get to know her audience on a more personal level. Her journey toward a more fulfilling career in finance has just begun, and she can't wait to see where it takes her.

Coming from 10 years serving on teams managing assets along the skyline of Houston’s Central Business District and Galleria submarkets, Courtney has deep knowledge and experience in every aspect of high-end commercial property management—from building countless Fortune 500 tenant relationships to helping manage multi-million dollar high-rise renovations. She firmly believes in the foundational principles of good old-fashioned service, transparency and teamwork—values that mesh perfectly with the pillars of CREI Partners.

Topics on Today's Episode:

• Teaching kids about money and investing to ensure future prosperity.
• Raising confident daughters with traditional values.
• Kids create business plans and launch lemonade stand to learn entrepreneurial skills.
• Flexibility in investment approach for profitability.
• CREI Partners launching investment into luxury storage for RVs, boats, and businesses.
• Prioritizing investment goals for syndication projects.
• Invest for long-term gains, not dividends.
• We are hands-on asset managers and prefer fewer, well managed, deals per year.
• Commercial investment advice and helpful resources available.
• Excellent property manager perseveres amidst turnover.
• Investing is better than saving money to offset inflation.
• As an investor, you have to know, like, and trust the deal sponsor, but avoid overthinking. We are always available for a chat or lunch to get to know if our goals align.

Links and Resources:

Courtney Bhenderu

https://www.linkedin.com/in/courtneybhenderu/

https://www.creipartners.com/invest-with-us/

CREI Partners LLC

https://www.creipartners.com/

https://www.creipartners.com/podcasts/

https://www.creipartners.com/ebook/

https://www.youtube.com/@creipartnershttps://www.linkedin.com/company/creipartners/

She will discuss how passive investors can save a deal and avoid potential train wrecks in the current environment, where rising interest rates, insurance costs, and property taxes are creating challenges. The conversation covers topics such as stress testing deals, communication and transparency, private placement memorandum, and evaluating distressed real estate opportunities. Seshadri shares her experiences dealing with a train wreck deal and offers advice on how limited partners can communicate concerns and take actions early to avoid potential pitfalls.

Topics on Today's Episode:

• Guest introduction: Sandhya Seshadri, an experienced real estate investor. 
• Discussion on the challenges faced by real estate investors due to rising interest rates and lack of rate caps. 
• Importance of stress testing deals and evaluating property management practices. 
• Analysis of failed real estate deals in Houston due to poor underwriting and troubled locations. 
• Importance of reading and understanding the Private Placement Memorandum (PPM) for investors. 
• Focus on the details of the PPM and operating agreement when a deal is in trouble. 
• The significance of transparent communication with the sponsor syndicator. 
• Availability of monthly financial reports for investors, providing full transparency. 
• Understanding the impact of additional capital raised through a capital call on the deal's recovery. 
• Importance of assessing risks and potential outcomes when evaluating a distressed investment. 
• Communicating concerns with the general partners and documenting questions in writing. 
• Involving other LPs to add their voice and request a meeting to discuss problems. 
• Seeking advice from the syndication lawyer and obtaining original copies of relevant documents. 
• Writing a demand letter and requesting a meeting or webinar to get clear answers. 
• Assessing the deal and making an informed decision on whether to hold on or exit. 
• Considering the runway and potential future distress deals in the decision-making process. 
• Sandhya Seshadri's successful real estate deals that outperformed the S&P 500. 
• Importance of being sophisticated and informed as a passive investor. 
• Encouragement to be prepared to invest in distressed real estate opportunities and remain vigilant in evaluating investments. 

Links and Resources:

Guest Sandhya Seshadri

linkedin.com/in/engineered-capital

engineered-capital.com 

AcePassive.com 

invest@multifamily4you.com

CREI Partners LLC

https://www.creipartners.com/

https://www.creipartners.com/podcasts/

https://www.creipartners.com/ebook/

https://www.youtube.com/@creipartners

https://www.linkedin.com/company/creipartners/

In this episode, Wayne talks to Senate Eskridge, who is an expert real estate investor who currently owns a managed portfolio of single and multifamily homes. He owns or manages over 500 units across the country. Senate has over 10 years of experience in real estate investing, and more than 20 years of experience in business development, management, and sales. 

Senate Eskridge is a multifamily coach that teaches students how to purchase multi-family properties. On this episode, he shares valuable insights and experiences. Listeners will learn about the advantages and risks involved in passive investing and multifamily vs single-family investing. The speaker discusses key questions to ask when considering a deal and warns against working with people who may not know what they're talking about. They share their journey from accidentally becoming a landlord, to becoming a coach and investor with 595 multifamily units. Listeners will also gain knowledge about diversification, valuations, mentorship, and a lot more that goes into investing in real estate. 

Topics On Today’s Episode:

• The speaker has been an entrepreneur most of his life, starting with selling things in school. He got into real estate by renting out a house he couldn't sell. He then discovered the BRRR strategy that involves buying, repairing, renting, and refinancing. He eventually moved into flipping houses and commercial multifamily apartment buildings. He sought mentorship and became a coach for investors in multifamily. Currently, he owns 595 multifamily units across twelve transactions. 
• Start with multifamily if that's your end goal, but starting smaller is okay. Single family isn't a necessary step. 
• Single-family houses are risky and not profitable. They generate around $100-200 per month, but require a lot of time, effort and carry significant risks for maintenance. Vacancy can lead to zero income and additional expenses. Investing in larger complexes spreads risk and is more profitable. 
• Real estate investing can either be active or passive. For passive investing, investors need to network with known people and invest money, then read property updates and cash checks. For active investing, hiring a coach is essential to find out what kind of investment to pursue and what goals to set. 
• The five buckets for active investing include deal finding, due diligence, risk capital, a key principle or deal sponsor, investor relations or capital raising, and asset management. 
• Elite performers have many coaches, while beginners are resistant to coaching. Coaches help compress time frames and achieve success faster. 
• Specialize in one thing, and get really good at it. Build a canyon of knowledge. Be a specialist in one thing and be the best and make a ton of money with that one thing and then use that money to diversify through other people that specialize in one thing. 
• Networking is key to finding real estate investment opportunities. Join online forums, attend conferences and investor clubs to meet potential partners and passive investments. 
• Investing in turbulent markets requires caution. But money can be made in any market if someone knows what they are doing. 
• As a passive investor, vet the people you work with and ensure they know what they are doing. Look for long-term fixed debt with a 3-year minimum. Ask about rent escalations and expense projections.
• It is important that the sponsor has confident and transparent answers to these questions and knows what they are talking about. Lack of answers or transparency is a red flag. 
• Senate loves high-interest rates and buys deals that make money with current rates. He anticipates rates will come down around election time. Higher rates help decrease competition to buy a property at a low price and allow refinance later when rates come down. 
• Senate’s first proud moment: Senate bought a junkie property and raised rents with improvements. The tenant was initially anxious about rent increases, but after 9 months, she appreciated that he gave her a nicer home. She was happy to pay more, rather than an impersonal apartment in poor repair. 
• Senate’s second proud moment: Real estate student came to Senate, wanting a big portfolio. They dove deep into the “why” behind the goal, and the student realized he wanted to retire but had been building a second job. Senate helped build a plan, so he could completely retire in less than 5 years with mailbox money. 
• “Master your one thing, and partner with people who have mastered their one thing.” 

Links and Resources:

Senate Eskridge

The best way to reach Senate is through is website, which includes contact information and a free course: 

https://senateeskridge.com/

Join us for Passive Investor Coaching, the course by CREI Partners and Wayne Courreges III that teaches you to confidently passively invest in real estate syndications in order to meet your wealth building goals: 

https://www.passiveinvestorcoaching.com/

CREI Partners LLC

https://www.creipartners.com  https://www.passiveinvestorcoaching.com linktr.ee/creipartners 

• Multifamily Underwriting: Basic overview, key metrics, sensitivity analyses, stress tests, comparables, cap rates 
• Partnership Structures: How to structure deals with investors, waterfalls, preferred equity, matching your strategy
• Raising Capital: How to partner with institutional investors, how to form joint ventures and co-GPs 
• Financing: Overview of debt options for multifamily, matching debt product to investment strategy, loan term nuance

Topics on Today’s Episode: 

• Rob got an early start in real estate through his parent’s brokage firm that focused primarily on construction and fix and flips. This led Rob to dive into multifamily as the best way to accumulate wealth and assets.  
• At 20 years old Rob, alongside his partner Kent Piotrkowski, started Loan Star Capital about 7 years ago. In that span of time, the firm has acquired close to $400M worth of multifamily properties.  
• Growing up around real estate and his father’s mature conversations contributed immensely to Rob’s entrepreneur mindset and his ability to lead and inspire others.  
• You really do not understand business until you are in business. Higher education is only textbook knowledge, real-life business is the best teacher.  
• Risk factors are so important when starting a business, however the stakes become higher when you have a family and other responsibilities. The best time to take a risk is early in life when liabilities are less.  
• Being Bullish on Houston makes sense because it’s a diverse city. Houston is not only an oil city, but also the largest medical center in the world and the busiest port in the US in terms of foreign tonnage. It is often overlooked, making it one of the most accessible large markets to penetrate.  
• Insurance is one of the biggest obstacles in today’s Houston market. Not to mention that interest rates have affected all markets.  
• Rob and Wayne discuss the main factors behind high insurance premiums. The spike of property insurance in Houston has been caused by:  

• Rob talks about what the risk is in today’s market. Being mindful of risk is key. Consider whether a value-add deal will yield the same return as a clean stabilized deal. If you are not getting paid for the risk, it’s better not to take it. There are cycles in the market that will recenter prices and insurance costs. 
• Operational headwinds are likely to approach in the near term, such a recession which will impact collections, rents, occupancy. This makes it critical to be tighter on proforma rents, growth assumptions and wider exit cap rates.  
• Good Underwriting fundamentals are key when considering Cap Rates. Taking the current market cap rate and widening returns by 50 basis points (0.5%) is a good strategy.  
• Debt is the biggest strategic difference, focusing only fixed rate permanent financing. No more bridge loans. Doing 70% LTV Ration is typically the sweet spot, where there is a long-term view but short term enough to be an opportunistic seller or refinance into a better capital market.  
• In today’s climate, it is hard to know exactly where the market is since very few deals are getting done.  
• There is so much liquidity in the market right now that we are not going to see a deep and prolonged buying opportunity. Buying when the market is going down will be the best option.  
• What is the best deal you’ve ever done? It is the one you don’t do. The best deal is walking away from the wrong one. Its better to walk away from that wrong deal that can break you.  
• On the retail side of capital raising, private high net worth investors, we are still seeing a sustainable amount of capital, despite a 75% transaction decline. Capital is available but there are few places to put it.  
• On the institutional side, however, it is completely dry since institutional investors pay attention more to “headline risk” and tend to operate in unison, waiting to see what the next person will do.  
• The Dallas market is very competitive and forces you to spread your numbers when underwriting.  
• Rob talks about his book, “The Definitive Guide to Underwriting Multifamily Acquisitions” which has sold almost 15,000 copies. He felt there was a gap in the industry to show the true process of underwriting multifamily from someone doing it in real life.  
• Rob recorded the audio version of the book himself to take advantage of the opportunity to highlight his personality and build a relationship with the audio listener.  
• When underwriting a deal, it is important to leave room for failure. If you are aggressive on some parts and conservative on others, it can balance out.  
• There are 2 ways to stretch the numbers in underwriting.  1. To get more aggressive on assumptions.  2. Accept a lower return.  
• However, #2 is less likely to excite the investor hence over-promising by deal sponsors.  
• Under-promising and over-delivering is the name of the game. This is the way you win in the long term.  
• Rob’s lesson learned: It is best to have your team in place prior to getting the property under contract. It is a mistake to put the property under contract and then go look for a managing partner.  
• Rob’s proudest moment was when they closed their first deal in Houston. It validated everything he had been working for. He was prouder closing the deal than selling it.  

Links and Resources: 

Rob Beardsley

CREI Partners

Topics on Today’s Episode: 

• Ginny’s Journey into Real Estate began early in childhood with her parents being real estate investors involved in flipping and selling. After studying marketing, she entered the governmental arena, participating in real estate purchases for the state of Florida and negotiating complex settlements.  
• After leaving the governmental arena, Ginny moved into commercial real estate syndications. Covid presented a great opportunity to get into Syndication as renters were defaulting and sellers were looking to get rid of properties.  
• It is less important to time the market than to “buy right” with solid underwriting and have the 3-legged stool of commercial real estate syndications.
  • 1. Location
  • 2. Team
  • 3. Business Plan
• The darling investment of the day is still multifamily, generally value-add. Ginny’s acquisition team is mostly focused on Multifamily because of a long-term housing shortish. 
• Additional opportunities in Commercial space include potential to build, medical office, mobile home park, self-storage, and assisted living.  
• The “Silver Tsunami” is coming and there will be opportunities to invest in assisted living facilities. There is potential to invest as an owner and hire complete management. 
• The 2 biggest factors to consider when underwriting are taxes and insurance 
• You should assume that the property will be appraised after purchase to 80-90% market value.  
• Insurance estimates can increase by 40-60% higher than initial underwriting in coastal cities.  
• Get real insurance estimates before you close, and assume the taxes will increase due to assessor valuation increase. 
• It is becoming harder in Florida to find insurance options because many companies have left the state. Florida recently signed legislation to mitigate potential lawsuits for insurance companies to open competition and reduce rates.  
• The new law signed by Florida Governor DeSantis gives funding to two major funding programs and tax credits. These will allow for a 4-9% tax abatement dedicated to the affordable housing market. This will create opportunities for multifamily investment. Incentive is toward solving the affordable housing problem-Investors are incentivized to build affordable housing complexes. They are also possibly offering additional services, like financial literacy classes, to improve the lives of residents. 
• The current market presents an amazing opportunity for investors as the debt service cover ratio rises due to the increase in interest rates on variable loans. It will be harder for owners to re-finance, moving forward, so they may be more inclined to sell.  
• Future challenges for property owners will include the inability to refinance or will need to bring in more capital to do so. This is due to higher debt-to-loan ratio and interest rates.  
• For Investors out there listening: This is a great time to forge broker relationships and find properties off market that might be suffering because it’s getting harder and harder to refinance.  
• Investment companies need to build key relationships with lenders to explore whether they know about a property that might be in distress, that they don’t want to take back. 
• Key idea to learn: It is possible to invest in multifamily with retirement savings, rather than cash savings. You don’t have to limit yourself to the stock market. Using custodian accounts, such as 401K, retirement funds could be a fantastic way to get started in passive investment.  
• The Jobs Acts of 2012 and 2017 paved the way for current models of syndication. The 2017 TCJA created opportunities for syndication. Current business models have been called the “information age” by Harvard and other experts. Trends have moved away from packaging a product to shipping it out. 
• Its important to know, like, and trust syndicators that you passively invest with. It is a long-standing relationship with a lot of moving parts, so positive feelings between parties helps the process. 
• Real Investment Firms must follow SEC guidelines. These require that you formalize a joint venture opportunity through a Private Placement Memorandum. This allows investors and the management team to understand their responsibilities and liabilities. 
• If you are not in the game, you can’t play. It’s always a good time to buy real estate if you buy it right. The syndication model allows people to control their risk better than stocks and other assets as a shared risk model.  
• Proudest moment: Florida DOT success story-Ginny was involved with negotiations in which a 2 story, L-shaped condominium building. She was able to negotiate a settlement with the building to remove and replace an entire wing. Negotiations took more than a year but were successful. 

Links and Resources: 

Virginia “Ginny” Bolling

CREI Partners

Topics on Today’s Episode:

• The Motley Fool definition: Passive real estate investing is when you give someone your money and they do all the work for you. A real estate investment trust (REIT) or real estate partnership where you do not play an active role are good examples. The key point is that a passive investment requires little work on your part. 
• Determining your risk tolerance will require that you identify where you fit in the risk versus tolerance spectrum. There are 4 levels to consider-Core, Core-Plus, Value-Add, Opportunistic. Each provides distinct levels of risk/benefit. Core is less risky with more cash flow, but less opportunity for equity growth. Opportunistic is the riskiest with potentially no cash flow, but the highest opportunity for equity growth. 
• Are you primarily looking for cash flow or equity growth? Click this link for a brief explanation of the difference. https://www.youtube.com/shorts/3WkyRnc_BBE 
• Assessing the partnership team requires that you also know who will be managing the property and executing the business plan.  
• Assessing the financial returns. Wayne discusses 3 common deal scenarios and the pros and cons of each. Your goals determine which deal structure makes the most sense for you.  
• Important metrics to consider include average annual returns, operation cash flow, equity multiple, and internal rate of return. 
• Assessing the market location and demographics. Google can be your best friend in searching out property reviews. Below are some additional tools that can be useful: 
  • Google Earth https://earth.google.com/web/  
  • Justice map https://www.justicemap.org/ 
  • FEMA Flood Maps https://www.fema.gov/flood-maps 
  • Best Places https://www.bestplaces.net/  

• Assessing the underwriting and business plan. The Private Placement Memorandum (PPM) could potentially scare many investors, but it details opportunities, risk, compensation, and other data points. Be sure to attend the investor webinar to get a good feel for the location and potential. Having the PPM reviewed by your attorney is always a good idea. It is also great to sit down with the deal sponsor to go over deal assumptions. 
• Deals should be looked at as a business. Revenue minus expenses equals income. Do the estimates make sense? 
• Having a generous amount of capital reserves can make the deal look less attractive, by the numbers, but it reduces the risk in the case of an unforeseen event. 
• Consider tax implications. Real estate investment attracts high-net-worth individuals due to its ability to provide paper losses through depreciation and cost segregation. For a detailed discussion on tax planning check out our previous monthly meetup with Susan Geist. 

Links and Resources: 

• Susan introduces herself and provides a disclaimer. Susan is not a lawyer, CPA, or certified financial advisor, and does not offer legal or tax advice. The information she shares is only for educational purposes, and everyone should do their own due diligence. 
• How Susan went from a humble beginning in rural Appalachia to building a current portfolio that generates over 5 figures monthly passive income. She found inspiration to grow wealth and promote financial independence, through her mother’s experience. Susan also provides some details about her personal portfolio. 
• What is tax optimization and why you should do it? The 2 biggest wealth killers are taxes and inflation. 
• Tax laws were fundamentally put in place to shape the economy; tax shelters were put in place to promote housing and job creation. The government rewards investment into these sectors and not utilizing the tax deductions legally available to you is stealing from yourself and your family. 
• Most CPAs are not trained in real estate investment so they can only offer limited advice, it is up to each individual investor to become educated in real estate specific tax shelters. Knowledge is power over your personal tax situation. 
• “Tax buckets” and Depreciation. The IRS splits your income into 3 distinct buckets: active, portfolio, and passive. Gains and losses in each bucket are separated and typically cannot be combined. 
• Active income: W2 income, running a business or an LLC, or if you have Real Estate Professional status. Short-term rentals are considered an active business if self-managed, as is active house flipping as your primary job. Active income incurs income taxes as well as 15.3% self-employment tax. 
• If your AGI is below $100,000 per year, you can take up to $25k in passive real estate losses-One of the few places passive and active income might interact. 
• Portfolio income: Stock and bond sales, dividends, interest from accounts or owner financing interest, and sales of non-business assets such as a non-rental home. These are taxed as capital gains or losses. 
• Passive income: Rental income whether single family homes or syndication, royalties, and short-term rentals if you have a management company. 
• Real estate (buildings only), equipment, or capital asset depreciation, allows you to generate a paper loss on the tax return without losing money. The depreciation amount changes with lifespan divided by value. Building lifespans are either 27.5 or 39 years. 
• Cost Segregation separates components of the business asset that depreciate faster than the building overall such as appliances, flooring, fixtures, etc.  
• Bonus depreciation allows more of the depreciation loss in year 1. 
• Depreciation recapture at the sale of the property is taxed at the ordinary income rate up to 25%, rather than lower capital gains tax. Because of potentially higher tax rates, consider taxes at exit and opportunity for 1031 etc. 
• Tax loss harvesting can be a helpful technique to reduce capital gains tax on passive income. A limit of $3k in losses can be used on active income and the remainder of loss can reduce capital gains on stock, non-business property sale, etc. 
• Investing in real estate syndications offers passive losses through depreciation and cost segregation. 
• A work vehicle over 6000lb also provides another opportunity for depreciation losses, without recapture under certain circumstances. 
• For couples involved in real estate, one partner without a W2 could obtain REPS (Real Estate Professional Status) could be a great strategy to avoid taxes. This would allow you to take all passive real estate income and move it to active earnings to offset W2, much like self-managing a short-term rental. 
• Online training and Workshops offered by Susan Geist:  
  • Sensational Investing the Financial Security Formula-How to set up an income generating portfolio) 
  • Tax strategies and Planning-Expands on topics mentioned here 
  • Personal Coaching Sessions

Q&A: 

• Does 27 ½ years exclude the age of the residential property? No matter the age, 27.5 years is the depreciation time for residential property. 
• Can we extend the depreciation to W2 income? Most of the time, no, unless you have Real Estate Professional Status 
• What is the tax effect of participating in real estate syndication? K-1s are issued from the syndication LLC listing passive income and losses generated through depreciation after a cost segregation. Losses can carry forward to offset future gains. 
• I thought losses were limited to $3,000? How did you get more? Capital losses up to $3,000 can be used to reduce W2/active income, but additional capital losses can be used to offset capital gains. 
• How do you see solar panels and associated tax credits? Solar panels take a lot of time, if they ever make your money back. So, do your math to make sure the investment makes sense. Otherwise, check with a CPA on this tax credit in your situation. 
• Did you purchase the short-term rental for tax benefits? It is not cash flowing very well due to the economy, but yes, it was purchased for tax benefits. As a short-term rental being used as an active business, it is a 39-year depreciation. Susan also did a cost segregation study and used accelerated bonus depreciation on that property. Leverages debt to utilize tax benefits that yield funds available to reinvest. 
• Does depreciation affect the land value or just the property? Just the structure is depreciated, not the land. 
• Are there specific cost segregation firms? Yes, there are specific firms. Engineering-based firms focus on commercial properties, and some online firms will perform cost segregation for single-family homes at lower cost. The cost is also deductible. 
• How much time is spent actively managing the active short-term rental? At least 100 hours per year must be spent on the property and it must be documented. 

Links and Resources: 

CREI Partners

• Introducing and welcoming Ruben Greth.
• Relationships and partnerships matter: Wayne and Ruben are partnering on a build-to-rent community, and Ruben has a new partnership with Richard Wilson. Networking benefits all parties.
• Ruben Update. He is now in the process of co-authoring a book and is working on capital raising for 3 deals. There are 100-unit, 150-unit, and 220-unit 506(c) deals in the progress. He is involved in the leadership of Legacy Acquisition and working on a mentorship coaching program.
• Ruben mentions the concept of teaching other capital raisers how to extract themselves out of the capital raising model to have others run the operations for them while they kick back and enjoy life.
• Compare yourself, in a positive way, to who you were 1 year ago instead of comparing yourself to other people. Avoid unhealthy comparisons through social media.
• The power of vision boards and intention statements to track and reach goals. Write your goals down and review them as often as possible, daily if you can.
• Ruben talks about the process of speaking books into existence. Pros and cons of different methods.
• Wayne discusses 2 main book topics that he would like to write about: 1. Passive investing education 2. Successful asset management.
• Re-defining Success: Loving what you do, working less (not more), being 3-5 times more productive, and helping people along the way.
• 2023 Goals in growth and scaling.
• The current market landscape
• An ABCD breakdown of multi-family subclass types.
• The tough economic climate is forcing many investors to move into sub-niches such as: Built-to-rent, assisted living, RV parks, storage units, and mobile homes.
• Market opportunities in built-to-rent development, whether vertical or single-family homes. Build-to-rent homes are beneficial for tenants, investors, and institutional buyers.
• A synopsis of current built-to-rent market forces and opportunities.
• Specific market is incredibly important for build-to-rent communities: Secondary, pro-growth cities facilitate on-time project completion with high desirability for renters.
• Expected returns in a development project would allow you to double your money in a 5-year period.
• Completion timing and renting rate differences for multi-family vertical and multi-family horizontal.
• For people coming up in real estate syndication or asset management, Ruben recommends partnering with larger companies or funds to add value for all parties.
• Partnering with a Managing Principal by bringing value to the table: Many prospective partners will ask, “How can I be of service to you?” Instead, up your game and ask, “What’s preventing you from scaling to 10x your current size?” Listen to the answer and find the way you can contribute and add value.
• Ruben’s proudest moments of 2022: 1. Over 1.3 million Podcast Downloads 2. Partnership with Richard Wilson
• Breaking Through limiting beliefs: Go out and do it, and don’t be afraid. Stop analysis paralysis and take some action in order to self-actualize.

Resources:

Ruben Greth

CREI Partners

• How Raj began investing in real estate. Education is key, and Raj is passionate about educating professionals in his field on how to properly vet real estate syndicators and make the right decisions.  
• How to build relationships with syndicators to help doctors find the correct Real Estate Syndicator. 
• What should doctors look for when vetting a sponsor?  
• Why might physicians hesitate to invest? 1. No time for a learning curve 2. Fear of recession 3. Too good to be true 4. Stocks are easier 
• Have you had the experience of an offer that is too good to be true? Past performance cannot guarantee future results. Covid also created unusual growth. 
• Why real estate syndication is ideal for doctors? Top 3 Reasons: 1. Diversification 2. Tax Benefits 3. Higher Returns 
• Doctors become high earners later than most professionals because of the length of education. Doctors are high-income earners but not necessarily wealthy. They have significant med school debt, and the health care system is enlarging so they expect lower W2 income. Furthermore, Doctors are motivated by the ability to have financial independence and focus more on helping patients and healing. Finally, covid has made doctors rethink priorities, most would like to be able to spend more time with family since death can come earlier than expected.  
• Raj’s online course for passive investors: Doctor Syndication School (link below)  
• How Raj balances w2 job, family, and syndication. 
• With the current state of the economy, are there certain markets Raj is focused on? Texas and the southeastern US due to population growth, job growth, and landlord-friendly laws. Raj diversifies within this market by assessing each deal on its own merits. 
• What to look for when underwriting a deal. Raj has become more conservative regarding rent growth and increase in cap rate or final sale price. 
• What is Raj finding is one of the most overlooked aspects of real estate investing? Expenses are shifting due to inflation, as well as insurance details. 
• Reach Raj through LinkedIn or other social media through searching ReiDoc Capital, feel free to reach out. 

Resources:

Rajkumar Venkatraman

CREI Partners

• What Adam’s real estate journey has been up to this point.
• Media marketing and how it ties in at the commercial real estate level
• Adam’s LinkedIn strategy
• Hacks for LinkedIn
• Social media platforms where there is the most success
• The importance of YouTube as a platform
• Adam’s thoughts on outsourcing and how to make it easier from a time commitment standpoint.
• What people do right or wrong when it comes to nurturing investors
• What’s going on with NFTs and blockchain, and how it fits into real estate
• Adam’s proudest moment

Links and Resources:

Adam Carswell

CREI Partners

• Willingness to Learn: How Nonna got started in real estate investing
• 8-Unit Property: Challenge of not knowing who is going to take out the trash
• Refinance and Reinvest: Scale quicker in real estate with syndication
• Nonna’s Strategy: Passive to active investing and listening via partnerships
• Why Oakland, CA? Make multifamily properties perform in rent-controlled space
• Section 8: Government help with housing, but landlords uncomfortable w/ government
• Property Calculations: Review and evaluate cash flow, principal amortization, and value
• Eviction Moratorium: People unable to pay rent and landlords not able to do anything
• Smart Oak: Nonna’s next-generation multifamily real estate investment company
• Mission: Buy, operate, stabilize, and exit multifamily rental properties with shares    

Links and Resources:

Nonna Pikiner

CREI Partners

• Self-Taught: How Keishia got started in investing tax-free money into real estate assets 
• Family Effort: Blessing to have someone you know and trust to help take care of the property
• Veterans Administration (VA) Home Loan: Resource to purchase the home you reside in
• Refinancing and Tax Benefits: Build equity and take capital/money to redeploy into deals
• Lessons Learned: Be strategic with who you rent your property to and get better results
• Contractor Issues: Be mindful when hiring and realize the cheapest is not always better
• Team Sport: Rely on referrals, contracts, insurance, deadlines, materials, and family
• Kennedy Remedy Investments: Why Keishia decided to focus on multifamily real estate
• Partnership: Do due diligence and leverage to invest someone else’s money into deals
• Roadblocks: Takes time to build a great relationship with someone for multifamily deals
• Coach/Mentor/Mastermind: Invest in yourself to ensure others’ experience and referrals
• Multifamily Mistakes: Don’t be too eager to invest in a deal, take time to do due diligence 

Links and Resources:

Keishia Kennedy

CREI Partners

• Comcast: How Kevin got started in multifamily investments and settled into cable niche
• Profit-Sharing: How Kevin’s contracts work for multifamily tenants and property owners
• Buy in Bulk? You buy and pay for 100% of your unit whether amenity is used or not
• Bulk Agreement: It’s a fixed expense, so find out if there’s a contract via financials
• Right of Entry: Compensation given for permission/authorization to be on the property
• 100: When to add revenue to NOI with new or renewal agreement/contract opportunity
• Future of Cable: Streaming is inevitable but broadband pipe is critical to have for access
• FCC Ruling: Protect consumers and not eliminate or limit their choices for financial gain 

Links and Resources: 

Kevin Gardner

CREI Partners

• Backstory: Why Palmy and Nancy transitioned from world of fashion to real estate
• Why real estate syndication? To escape daily grind for stability, reliability, and scalability
• Why start small?! Takes too much time, money to buy houses, make comfortable living
• Why apartment syndication? From flipping business to passive investors for cash flow
• Hurdles: Culture, not immigration status was challenge to buy large, multifamily assets
• Inflation: How Kitti Sisters underwrite with federal loan rate changes, supply challenges
• Multifamily Markets: Consider cap rates, affordability, supply, demand, other variables
• Risk Mitigation: Any investment comes with risks, try your best to mitigate known factors
• Additional Asset Classes: Diversify in multifamily but concentrate to build wealth

Links and Resources:

Kitti Sisters

CREI Partners

• How Christopher shifted from a tech background to getting started in real estate
• What Christopher would have done differently to scale faster and smaller
• Onboarding Process: Press and push as much as possible with operators
• Project Communication: Builds trust with operators and passive investors
• Mentors and Masterminds: Where you tell personal brand stories and solve problems
• Cyber Security: New frontier of crime where email, devices w/out passwords aren’t safe
• Investing in 2022: 
  • Equity vs. Cash Flow: What is more important right now?
  • Do you want investments and partnerships where capital is cycled in 2-3 years? 
  • What kind of hold period are you wanting with asset classes?

Links and Resources:

Christopher Nelson

CREI Partners

• Duplex Days: How Chris got started in real estate was not intentional part of grand plan
• Mentor/Partner/Father-in-Law: Chris connected with retiree making serious cash flow
• Commissions: Put money down on multifamily properties to increase cash flowing assets
• Caution – Shiny Objects: Leverage basic tech platforms and tools to scale business
• Workflow: Follow steps in processes, make it consistent, and checklist everything
• Avatar: Why Chris focuses on raising capital, growing with high-tech sales entrepreneurs
• Property Challenge: Buying is more competitive but more info is available/accessible
• Metrics: Are we growing? How are the expenses? Are meetings and investor calls up?
• Motivation: Big goals and big dreams to own 300 units all paid off to generate cash flow
• To Do: Plan and map out daily, weekly, yearly goals – include revenue-generating activity 
• Moving the Business Forward: Is what you are doing matter or just keeping you busy?
• Primary Partnerships: How Chris builds relationships and sources deals to grow portfolio
• Lessons Learned: Feel sorry for yourself for a few minutes, then start working again
• Overlooked Aspects: Numbers game – don’t let emotions/assumptions get in the way 

Links and Resources:

Chris Freeman

CREI Partners

• Inheritance: How and when Stewart became interested in real estate, long-term assets 
• Carleton Sheets: Who inspired Stewart to transition from taxes to real estate investing
• Lessons Learned: Financial crisis, pandemic changed view on value of equity/reserves 
• 840/565 Corridor: Stewart chooses market based on competition, growth, and familiarity 
• Inflation and Interest Rates: What to expect and how they will impact real estate
• Real Estate Cycle: Consumer demand, labor shortages dictate where businesses locate
• Real Estate Metrics: Stewart recommends various resources to research interest rates
• Financial/Tax Strategies: Use retirement accounts, credit unions for better terms/deals