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