Multifamily Mastermind Takeaway!
Updated: Jun 22, 2022
My Co-Founder/ General Partner, Bob Roberts and I attended the BradSumrok's Millionaire Multifamily Mastermind in Las Vegas, Nevada, last week on June 2 - 6, 2022.
We had a Blast!
A mastermind group is a group of peers who meet to give each other advice and support. Tony Robbins points out that anyone who has achieved high levels of success admit that they didn't do it alone. The concept was coined in 1925 by author Napoleon Hill in his book The Law of Success, and described in more detail in his 1937 book Think and Grow Rich.
My Big Takeaway:
Earlier this week, the experience opened up so much for me. I feel truly grateful because I feel more empowered and energized with this new, more profound level of expertise and understanding.
There were so many new things we learned, but what stood out most of all was the power of community, the growth potential that comes from sharing experiences, big breakthroughs, and the learning synergy that comes from collective intelligence.
It was a great experience as we reconnected with operating partners from across the U.S. Since we gather as a community several times a year, it was an excellent opportunity to deepen relationships and gather our collective experiences to compare notes on what is happening in the multifamily industry.
During our time together, we evaluated our goals, set new ones, engaged in team-building exercises, and we were astounded by the collective growth of assets under management as a group since our first gathering a few years ago.
At the top of everyone’s concerns was the state of the interest rate environment and the impact of rising interest rates on the multifamily industry as the FED continues unloading its balance sheet and raising rates. Specifically, we discussed strategies for mitigating risk and navigating uncertainty based on the ever-changing landscape we find ourselves in.
We also discussed how this environment has flipped markets into a buyer's market virtually overnight. This means a prime buying season is underway, and now is the time to call in our respective investor communities to prepare for a historic buying season!
Below are some key takeaways from our time at the Millionaire Multifamily Mastermind.
Regarding Real Estate:
The Multifamily market is still an excellent investment.
Don’t buy rate caps; instead, have reserves adequate to satisfy a lender.
Debt to equity is more conservative now.... 70/30 or 65/35.
Rent growth: Double-digit this year, high single-digit next year, then 3% rent growth subsequent years depending on the Market per Michael Becker.
A limited recourse loan is ok if you are sure of the deal.
Investor communication is critical - Keep investors always informed and with personal phone call updates if possible.
Have clear goals and track and measure everything.
Guest Speaker Jesse Itzler - On being bold and focusing on what matters:
Have big hairy audacious goals and even unrealistic goals, then break the goals into steps, then take the steps one at a time.
Expect to be disappointed because you will be disappointed. It’s how you deal with it that counts!
Try hard every day and feel good about yourself every day.
Step back every six months and reflect on your accomplishments and what you feel good about, then think about what you want for the next six months.
Find meaning and feel good when helping people, financial return is good but not the most important thing.
Guest Speaker Kent Clothier - On the finite resources of time and not wasting the remaining hours of our lives
The average life expectancy of males in the U.S. is roughly 78 years.
The average life expectancy of females in the U.S. is approximately 81 years.
After running through a group exercise that included deducting our age and time for sleeping, the remaining days in our lives were based on the average life expectancy data. The activity clarified the finite resource of time and that it is a resource not to squander. The next question asked, “If we know that we only have so much time left on earth, how can we live it more meaningfully every single day? What kind of positive impact can we make with the remaining time we have left on earth, and what choices can we make today to live our lives in a way that makes the most of our experiences with ourselves, our families, our communities, and for the betterment of humanity.
These were all great questions to contemplate, and they helped us clarify what matters, so we can look at each day as an opportunity to make each day, hour, and minute count.
How will you spend the precious remaining minutes, hours, and days of your life?
To learn more about apartments and how your money can work harder for you by investing passively in multifamily real estate, Then Book A Call Today, and we will be happy to have an initial conversation. We are looking to build a community of like-minded forward-thinking people interested in leveraging the collective power of syndications to help us co-create financial legacies through apartment investing.