178: Capital Raising and Market Updates with David Thompson

David has strong experiences in real estate investing in both domestic and international projects covering single-family, multi-family and land development. He earned his MBA in finance from Thunderbird School of Global Management, and graduated summa cum laude with a B.A. degree from Arizona State University. David spent over 20 years in high-tech management positions at Dell, AT&T, and Lucent Technologies. At Lucent he managed a $2.5B investment portfolio and raised over $1B in funds for acquisitions.

After leaving the corporate world, David started Thompson Investing and has raised significant private equity capital. He helped provide investor funds to Ashcroft Capital (a strategic partner) to purchase over 1450 apartment units in six separate communities worth over $120M. He’s also helped fund a $50M self storage and mobile home park fund sponsored by the CoveMark Group.

David prides himself on building long-term relationships with investors and partners while providing a great customer experience. David has lived in Austin, Texas for twenty years with his wife and has two daughters.

Key Points
Investing in small multi’s (duplexes, triplexes, fouplexes) requires you to have a W-2 to qualify for loans
Raising capital for syndication deals
Identifies strong asset classes to invest in by analyzing demographics, economics, and historical performance
How you can raise capital
Lightning Questions
What was your biggest hurdle getting started in real estate investing, and how did you overcome it?
David was listening to the negatives of real estate, and let that impact his perception. He eventually listened to the right people and took the plunge.
Do you have a personal habit that contributes to your success.
David values reading and learning.
Do you have an online resource that you find valuable?
What book would you recommend to the listeners and why?
Deep Work by Cal Newport
If you were to give advice to your 20 year old self to get started in real estate investing, what would it be?
Start networking and look at different types of real estate that can provide income. Figure out what it is that you like. Also, don’t be fearful!
Contact David
Thompson Investing


177: Syndication – Friday Fundamentals

The life cycle of a real estate investor looks something like this: save up your money, buy an investment property, and repeat. Building a real estate portfolio on your own is certainly possible. You can save your money, put that money towards investment properties, and repeat that process as quickly as you are able to. What many real estate investors quickly realize is they have limited resources, whether that’s time, money, experience, or deals. Having limited resources slows your growth. It takes you longer to find that next deal, or save up the capital to invest in that next deal, or find the time in your busy schedule to look for deals to invest in.

No matter how much money, time, experience, or deal flow you might have, you’ll eventually hit a ceiling if you are active enough. You’ll eventually run out of your own capital if you are doing lots of deals. You’ll eventually run out of time. You’ll eventually run out of deals, and you’ll inevitably come across something you don’t quite have experience with. This is just the nature of the business.

So here you are, as an active real estate investor and you’ve hit this wall. What are you to do? You could slow down and wait until you personally have the resources to grow, OR you could look to pool together those resources you need. This is called syndication.

Syndication is a fancy term for pooling together resources. It’s actually quite common, but you may not realize it. When you buy a ticket on an airline to go on vacation, you are participating in a syndication. You and 100 other passengers are pooling together money in the form of air fares to travel to the same destination. Without this syndication, you would have to save up capital to afford the entire costs of travelling alone.

Syndication works the same way with real estate investing. You can syndicate not only capital, but experience, time, deals, and almost anything else that will provide value to the goal or project.

Syndicating capital, experience, deals, time or any other resource allows you to grow and scale by removing these bottleneck of these resources. You can tap into an almost unlimited supply of resources.  The role of a synidcator is to organize and pool together resources. Real estate syndicators will pool together capital for a deal, manage the project, communicate with the group, and be the general sponsor of the deal. In exchange for being the sponsor, they will receive a piece of the equity typically.

When you syndicate resources for a project, you aren’t doing so only for your own benefit. You are also providing value for others. The investors in a syndication have the opportunity to be involved in a deal they otherwise wouldn’t likely have. For example, you as a real estate investor, have found a great opportunity in a value-add 50 unit apartment community. But, you have limited capital and can’t take on the project alone. This is where syndication can be a beneficial strategy. You could raise the capital required for the down payment from investors. In return, the investors will be given an equity stake in the property. If you, as the sponsor, never syndicated this deal, then likely no one would have had the opportunity to invest in this deal alone.  This group benefit is just one of the many advantages of syndication.

As a syndicator, you are being a steward of other people’s money. This is a huge responsibility, and not one to be taken lightly. You must be diligent in preserving investors’ capital, while making sound judgments on how to best maximize returns and mitigate risks. This is a tall order. When you are handling other people’s money, there are laws that you must follow. The Securities and Exchange Commission is the governing body that regulates these partnerships and transactions. It’s vitally important that you consult with an SEC experienced attorney before syndicating deals.

Some great resources I’ve found around the topics of raising capital, syndicating deals, and following and the rules and regulations include:

Best Ever Apartment Syndication Book by Joe Fairless and Theo Hicks
Raising Private Capital by Matt Faircloth
The Art of Raising Capital by Darren Weeks
It’s a Whole New Business! by Gene Trowbridge
Syndication can be a great strategy growing and scaling your real estate empire. Done right, it can yield great results, and ones that you might not be able to acheive without the benefit of working with a group of people.

There’s no right or wrong way by either investing alone, or investing with other people. Find whichever is right for you and fits your goals, and that’s the right one for you. Remember, real estate investing isn’t a a way to get rich quick. Real estate investing is a way to build wealth and achieve financial freedom over the long-term. Scale and grow your portfolio at your own pace, as fast or slow as you want. Eventually you will have built a real estate empire and achieved financial milestones you only once dreamed of.

176: Building Wealth Through Apartments with Mark Kenney

Mark Kenney is a seasoned real estate investor, entrepreneur and founder of Think Multifamily. Mark started his real estate career over 20 years ago and has extensive experience in property valuation, acquisition, and operations. He has a passion for helping other succeed in the multifamily arena. Mark is invested in over 3,500 units and has a top-notch reputation among the multifamily investment community for providing exceptional value to investors and the community while being easy to work with.

Mark is a 1993 graduate at Michigan State University, Accounting and is a CPA. Mark has also provided IT technical and business consulting for 20 years and is leveraging his vast IT experience to bring new creative technologies that will help others in the multifamily space. He has worked for large organizations such as KPMG Consulting, EDS, SAP, and HP; he founded Simplifying-IT in 2008 which provides IT services to fortune 500 companies.

Key Points
Turning the corner from small multifamily properties to large apartment deals
How to position yourself to raise capital
What value you can bring to partnerships
 Real estate is a relationship business – you have to build personal relationships 
Be willing to be scared 
Lightning Questions
What was your biggest hurdle getting started in real estate investing, and how did you overcome it?
Mark’s biggest hurdle was the fear of raising capital. TO overcome that fear, he put himself out there by going to events and talking with people. 
Do you have a personal habit that contributes to your success?
Always stay humble and exercise. 
Do you have an online resource that you find valuable?
What book would you recommend to the listeners and why?
The ABC’s or Real Estate Investing by Ken McElroy
If you were to give advice to your 20 year old self to get started in real estate investing, what would it be?
You don’t have to start out small. Find someone who is doing what you want, and learn from them. 
Visit Audible for a free trail and free audio book download!

Think Multifamily

Email: Mark@ThinkMultifamily.com

175: Make Things Happen – Friday Fundamentals

In life you are faced with an almost unlimited number of options. In fact, some studies suggest that the average person makes up to 35,000 decision every single day. Most of these decisions are menial – what color shirt will you wear for the day, what social media app will you open on your phone, will you make coffee at home or pick it up at your local coffee shop, etc. Very few decisions you make are big picture questions, for example – what am I doing today that puts me closer to my long term goals, how do I want to spend my time in my 30’s, 40’s, or 50’s, what am I doing now that brings me gratification, etc.  We tend to just go through the motions making the small easy decisions, while avoiding the harder questions and decisions.

Anything worth pursuing in life comes with challenges. Starting that side hustle, learning that new skill, travelling to that new place, saving for that investment opportunity, or anything else you want comes with challenges. These things require your time, dedication, and mental toughness. These are the things that won’t simply just fall in your lap. You have to work for them. You have to want them enough. You have to make them happen.

Simply saying you want to achieve something isn’t enough. You have to do things today that will put you in position to achieve those goals tomorrow. If you don’t wan’t that thing enough, then the challenges and hurdles to get there may prevent you from making that big decision to pursue it.

“Nothing in the world is worth having or worth doing unless it means effort, pain, difficulty. I have never in my life envied a human being who led an easy life. I have envied a great many people who led difficult lives and led them well.”  ― Theodore Roosevelt

When you’ve made the decision to pursue something challenging, take on that endeavor with the mentality that you are going to make it happen by doing whatever it takes. If you stick with that mindset and don’t quit, then you will most assuredly achieve that goal. Understand that you can achieve any goal that you set your mind to. You just have to make the decision, stick with it, and make it happen.

Here are 5 steps to achieving any goal:

Start with your mindset. Understand why you want to achieve your goal. Use emotionally based reasoning here. Describe to yourself how you will feel if you do or don’t achieve the goal. Identify how you will feel if you don’t give it your best effort. This emotionally based reasoning will resonate with you and give you the motivation you need to achieve your goals.
Decide that you are going to make it happen by doing whatever it takes. Commit to yourself that you will stop at no barrier. You will find a way to make it work.
Write your goals down. One of the best ways I’ve found to make something happen starts with writing it down every single day. When you do this, you are keeping that fresh in your mind and reminding yourself of it daily. There’s significant research and psychological studies around this topic, if you want to learn more about it. I can speak from personal experience that writing down your goals every day does impact your mindset. If that goal is fresh in your mind every day, your mind begins to find ways to make it happen.
Take action. This is where the rubber meets the road. You’ve laid the foundation with your mindset and you’re prepared to take action. Do something every single day that puts you one step closer to your goal. Chances are it will be a long journey, and you are in this for the long haul.
Lastly, don’t give up. If you have built a strong mindset anchored by your reasons why and coupled that mindset with action, then you have a recipe for achieving any goal you set your mind to, so long as you never give up. This is where you make things happen. You will run into unexpected challenges. You have to find a way to make it happen.
Limiting beliefs are the biggest killer of dreams and goals. Limiting beliefs are the negative thoughts that creep in your mind and make you doubt yourself. These are just excuses though. Don’t let these limiting beliefs affect your decisions. This is easier said than done. Limiting beliefs will come from your conscious, from your environment, and from other people. Avoid these like the plague.

Remember that anything you set your mind to is possible. You are capable of achieving your wildest dreams if you set your mind to it, and make it happen. So what are you going to make happen?

174: Time Wealth with Mark Dolfini

Mark Dolfini is the author of The Time-Wealthy Investor.  He is a husband, father, and a veteran of the United States Marines.  He is a real person who owns several million dollars worth of real estate, and has actively managed over $40 million in real estate in his 20 years of being in the real estate business.  That is not what makes his story so compelling.  He has  Time-Wealth.  He is now able to control his calendar to do the things he wants, when he wants, and with whom he wants to do them.  What makes my story compelling is not that I have concocted the latest real estate scheme or similar nonsense.  No, he thinks what others find so compelling in his story is that:

Key Points
From Marine to millionaire real estate investor
Learning from this mistakes of managing 92 single family properties 
Being over-leveraged n 2008
VIP – Vision, Infrastructure, & Process
Lightning Questions
What was your biggest hurdle getting started in real estate investing, and how did you overcome it?
Figuring out how the banks underwrite deals. 
Do you have a personal habit that contributes to your success?
Mark is viscous about how he spends his time, by batching activities (ex. – email)
Do you have an online resource that you find valuable?
What book would you recommend to the listeners and why?
Think and Grow Rich by Napoleon Hill
If you were to give advice to your 20 year old self to get started in real estate investing, what would it be?
Value your time. Not every day is promised. 
Visit Audible for a free trail and free audio book download!


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