Bouncing Back Strong: How Nick DeLeon Built a 1,000-Unit Multifamily Empire! | The Movers and Shakers Podcast

[00:00:00] [SPEAKER_00]: Are you serious about creating financial freedom through investing in multifamily?

[00:00:06] [SPEAKER_00]: Then you need to be at Jake and Gino's Multifamily Takeoff this October 25th, 26th, and 27th

[00:00:12] [SPEAKER_00]: in Denver, Colorado.

[00:00:14] [SPEAKER_00]: Learn how the implementation of the proprietary three-step framework of buy right, manage

[00:00:19] [SPEAKER_00]: right, and finance right has allowed our members to close on over 80,000 units.

[00:00:25] [SPEAKER_00]: This is the results-based education that you're looking for.

[00:00:29] [SPEAKER_00]: Now's the time to take your next steps towards financial independence.

[00:00:32] [SPEAKER_00]: Don't wait any longer.

[00:00:34] [SPEAKER_00]: Seats are limited to the first 300 people to register.

[00:00:37] [SPEAKER_00]: Follow the link below to reserve your ticket today, and we'll see you in Denver on October

[00:00:42] [SPEAKER_00]: 25th, 26th, and the 27th for Jake and Gino's Multifamily Takeoff.

[00:00:58] [SPEAKER_00]: Hello and welcome to the Movers and Shakers Podcast.

[00:01:01] [SPEAKER_00]: My name is Gino Barbaro, one of the co-founders of Jake and Gino Multifamily Investor Educator

[00:01:07] [SPEAKER_00]: Father and Mentor.

[00:01:09] [SPEAKER_00]: My guest today has been a Jake and Gino student since 2019 and was featured on our quarterly

[00:01:15] [SPEAKER_00]: closures club webinar, CC5.

[00:01:18] [SPEAKER_00]: Nick DeLeon has 20 years of commercial real estate experience as a senior asset manager

[00:01:23] [SPEAKER_00]: at one of the largest real estate owners in the world, Nuveen Real Estate.

[00:01:26] [SPEAKER_00]: Today, he's a full-time investor running all aspects of his company, Leon Real Estate,

[00:01:32] [SPEAKER_00]: which should actually be Leone.

[00:01:33] [SPEAKER_00]: What a great Italian name, which he launched in 2020.

[00:01:37] [SPEAKER_00]: Today, he owns over 1,000 multifamily units and RV park lots as a GP.

[00:01:43] [SPEAKER_00]: Welcome to the show, Mr. Nick.

[00:01:45] [SPEAKER_00]: How are we doing, brother?

[00:01:46] [SPEAKER_00]: Thanks for having me, Gino.

[00:01:48] [SPEAKER_00]: Doing awesome.

[00:01:49] [SPEAKER_00]: I remember the first time we got on the phone call, Mr. Nick DeLeon working as 20 years,

[00:01:55] [SPEAKER_00]: and he's like, how do I get into this multifamily thing for myself?

[00:01:59] [SPEAKER_00]: I'm making money for others.

[00:02:01] [SPEAKER_00]: How do I do it for myself?

[00:02:03] [SPEAKER_00]: And I'm like, this guy's in California.

[00:02:05] [SPEAKER_00]: Don't know how we're going to bridge that gap, but he's smart enough to figure it out.

[00:02:09] [SPEAKER_00]: And four years later, he's on another podcast with us in 1,000 units.

[00:02:13] [SPEAKER_00]: Nick, why multifamily?

[00:02:14] [SPEAKER_00]: What drove you to pick up the phone, call Jake and Gino, and want to do it for yourself?

[00:02:18] [SPEAKER_01]: Yeah, I've been thinking about...

[00:02:20] [SPEAKER_01]: Thanks again for having me, Vino.

[00:02:22] [SPEAKER_01]: I've been thinking about doing something on my own for a while.

[00:02:26] [SPEAKER_01]: And it took three punches in the gut to really do it.

[00:02:29] [SPEAKER_01]: I worked for Nuveen Real Estate for 15 years.

[00:02:33] [SPEAKER_01]: They have $150 billion assets under management.

[00:02:36] [SPEAKER_01]: First in New York, got a job transfer out to San Francisco, and I got laid off from that

[00:02:40] [SPEAKER_01]: job.

[00:02:41] [SPEAKER_01]: It's like, oh crap.

[00:02:42] [SPEAKER_01]: Then I quickly got another job as a asset, heading up asset management at a value-added

[00:02:47] [SPEAKER_01]: industrial shop in San Francisco.

[00:02:50] [SPEAKER_01]: Two years later, got laid off from that job.

[00:02:53] [SPEAKER_01]: Oh crap.

[00:02:54] [SPEAKER_01]: So my wife was like, and I was listening to the podcast, and it's really kind of the inspiration.

[00:02:59] [SPEAKER_01]: Your podcast.

[00:03:01] [SPEAKER_01]: Seeing these other kind of people doing multifamily, I was like, you know what?

[00:03:05] [SPEAKER_01]: I want to do this on my own.

[00:03:06] [SPEAKER_01]: I'm going to move to a really great market.

[00:03:08] [SPEAKER_01]: My wife is like, we got to get out of California.

[00:03:11] [SPEAKER_01]: There's a lot of reasons why we don't like California.

[00:03:14] [SPEAKER_01]: Moved to Dallas, Texas, and then COVID hit.

[00:03:16] [SPEAKER_01]: That was the third punch in the gut.

[00:03:18] [SPEAKER_01]: We moved a month before COVID hit.

[00:03:21] [SPEAKER_01]: So after three punches in the gut, it really took...

[00:03:23] [SPEAKER_01]: Because I was scared to start this up on my own because I had the safety net of a W2.

[00:03:29] [SPEAKER_01]: That's what pushed me to launch the company.

[00:03:32] [SPEAKER_01]: So I launched the company through COVID.

[00:03:35] [SPEAKER_01]: Multifamily, it's a great asset class.

[00:03:37] [SPEAKER_01]: I had background in that.

[00:03:38] [SPEAKER_01]: I was an asset manager.

[00:03:40] [SPEAKER_01]: Some class A multifamily properties in Portland and Redwood City in California.

[00:03:45] [SPEAKER_01]: So I had some background in it, along with other property types.

[00:03:48] [SPEAKER_01]: But everyone talks about it, but there's a shortage of housing, right?

[00:03:52] [SPEAKER_01]: So it's just a great asset class to get into.

[00:03:56] [SPEAKER_01]: And it's always going to be there with strong returns.

[00:03:58] [SPEAKER_00]: Let me ask you, Nick.

[00:04:00] [SPEAKER_00]: You said 15 years at the first company.

[00:04:02] [SPEAKER_00]: How did it feel?

[00:04:03] [SPEAKER_00]: I mean, to be let go, what was that feeling like?

[00:04:06] [SPEAKER_00]: Even the second one.

[00:04:07] [SPEAKER_00]: You say punch guts, but I've had students who have said that...

[00:04:12] [SPEAKER_00]: I remember one comes to mind.

[00:04:13] [SPEAKER_00]: His name is Mark.

[00:04:14] [SPEAKER_00]: I remember him at one of the boot camps.

[00:04:15] [SPEAKER_00]: It was in July.

[00:04:17] [SPEAKER_00]: And he's saying that when he got let go, he was sitting outside his office.

[00:04:23] [SPEAKER_00]: He'd been working there for 20 years.

[00:04:24] [SPEAKER_00]: He had built...

[00:04:26] [SPEAKER_00]: And it wasn't just the money, but it was his life.

[00:04:29] [SPEAKER_00]: He had put so much energy and effort and love into his job.

[00:04:33] [SPEAKER_00]: And he's out there sitting on the curb, looking up the building,

[00:04:36] [SPEAKER_00]: saying to himself, I'm never going to be able to get back in there.

[00:04:38] [SPEAKER_00]: All that I built was for them and not for me.

[00:04:41] [SPEAKER_00]: How did it feel for you after 15 years saying, you know what?

[00:04:45] [SPEAKER_00]: See, we don't have room for you here anymore.

[00:04:48] [SPEAKER_01]: Honestly, I fell into a depression.

[00:04:50] [SPEAKER_01]: It was part of my identity.

[00:04:51] [SPEAKER_01]: I mean, men oftentimes identify themselves through their business and their work.

[00:04:58] [SPEAKER_01]: And it was part of my identity.

[00:04:59] [SPEAKER_01]: So it was very, very hard.

[00:05:00] [SPEAKER_01]: It wasn't really reflecting back upon it a few years later.

[00:05:05] [SPEAKER_01]: I'm like, wow, I was depressed because it was part of who I lost.

[00:05:08] [SPEAKER_01]: It was a death.

[00:05:09] [SPEAKER_01]: It was a warning.

[00:05:10] [SPEAKER_01]: I lost a part of who I was.

[00:05:12] [SPEAKER_01]: So thankfully to you guys, listening to the podcast kind of gave me that boost

[00:05:18] [SPEAKER_01]: I needed to kind of launch it 100%.

[00:05:22] [SPEAKER_00]: You had a lot of the moving parts already.

[00:05:25] [SPEAKER_00]: You had the skill.

[00:05:27] [SPEAKER_00]: You had the intelligence.

[00:05:29] [SPEAKER_00]: You got the last name, Dillion of Lion, bro.

[00:05:32] [SPEAKER_00]: I mean, like, come on, you can't get a better last name than that

[00:05:35] [SPEAKER_00]: if you want to take action.

[00:05:37] [SPEAKER_00]: Let's talk about the asset management aspect of it

[00:05:40] [SPEAKER_00]: because we talk about buy right, finance right and manage right.

[00:05:44] [SPEAKER_00]: And to me, I think one of the things that separates

[00:05:47] [SPEAKER_00]: Jake and Gino from almost every other educator

[00:05:50] [SPEAKER_00]: is that we don't focus on the beach.

[00:05:52] [SPEAKER_00]: We focus on doing the work and being an asset manager.

[00:05:56] [SPEAKER_00]: And if you're not going to be an asset manager or property manager,

[00:05:58] [SPEAKER_00]: not saying that you have to be, but you have to have someone in that seat

[00:06:02] [SPEAKER_00]: and you have to have expectations with that person

[00:06:04] [SPEAKER_00]: and you have to know how to drive that seat.

[00:06:06] [SPEAKER_00]: So your experience coming from that part of the business,

[00:06:10] [SPEAKER_00]: how did that translate into multifamily and asset management as well?

[00:06:14] [SPEAKER_01]: Yeah. So, you know, when I started moving,

[00:06:17] [SPEAKER_01]: I started building out computer systems and processes.

[00:06:20] [SPEAKER_01]: So I was a process IT person that pivoted,

[00:06:23] [SPEAKER_01]: got my master's degree at NYU in real estate,

[00:06:26] [SPEAKER_01]: made that pivot to the business side.

[00:06:27] [SPEAKER_01]: But I always have that mindset.

[00:06:30] [SPEAKER_01]: And it's the less sexy part of real estate.

[00:06:33] [SPEAKER_01]: I'm a deal junkie.

[00:06:34] [SPEAKER_01]: I love doing deals and get excited over the deals, right?

[00:06:38] [SPEAKER_01]: But things don't sit right with me if the operations aren't going well.

[00:06:42] [SPEAKER_01]: And that was kind of my background.

[00:06:43] [SPEAKER_01]: I learned a lot of institutional processes

[00:06:47] [SPEAKER_01]: that I was able to apply to some of our properties.

[00:06:50] [SPEAKER_01]: You know, standard stuff like you protest,

[00:06:53] [SPEAKER_01]: especially in Texas, you protest taxes every year.

[00:06:56] [SPEAKER_01]: We engage with professional companies, CMI,

[00:06:59] [SPEAKER_01]: they're a big outfit here in Dallas.

[00:07:02] [SPEAKER_01]: They do a lot of the tax protests in Texas.

[00:07:05] [SPEAKER_01]: We protest taxes and we're going to talk about our Waco deal,

[00:07:07] [SPEAKER_01]: but that was one of the things they weren't doing.

[00:07:10] [SPEAKER_01]: They didn't protest taxes.

[00:07:11] [SPEAKER_01]: It was the standard out of state California owner,

[00:07:14] [SPEAKER_01]: not focusing on the property.

[00:07:16] [SPEAKER_01]: We protest taxes.

[00:07:17] [SPEAKER_01]: We always bid out insurance,

[00:07:19] [SPEAKER_01]: make sure we get the lowest insurance, right?

[00:07:22] [SPEAKER_01]: We have metrics in place.

[00:07:23] [SPEAKER_01]: We go over the delinquency every single week

[00:07:26] [SPEAKER_01]: and we make sure in Texas,

[00:07:28] [SPEAKER_01]: thankfully, you know, we can get tenants out there aren't paying.

[00:07:31] [SPEAKER_01]: In some of the blue states,

[00:07:33] [SPEAKER_01]: it's a little bit more difficult to do that.

[00:07:35] [SPEAKER_01]: So we have certain metrics that we follow every single week

[00:07:37] [SPEAKER_01]: with our property managers, where I got calls.

[00:07:39] [SPEAKER_01]: And a lot of those metrics come from my Duveen days

[00:07:43] [SPEAKER_01]: and from my other job at the industrial value add shop.

[00:07:49] [SPEAKER_00]: When you say you listen to the podcast and that inspired you,

[00:07:53] [SPEAKER_00]: what else did the community give you when you joined?

[00:07:57] [SPEAKER_00]: Because if anybody out there saying now is not the right time,

[00:08:01] [SPEAKER_00]: you're going to compare 2020, the uncertainty,

[00:08:04] [SPEAKER_00]: the shutdown, the fear back then

[00:08:07] [SPEAKER_00]: and taking the leap back then,

[00:08:09] [SPEAKER_00]: as opposed to now when there is uncertainty in the market,

[00:08:12] [SPEAKER_00]: but it's much better for buyers right now in the market,

[00:08:16] [SPEAKER_00]: especially if you're going to start.

[00:08:17] [SPEAKER_00]: What did the community give you?

[00:08:19] [SPEAKER_00]: How did it help you out to launch your company?

[00:08:22] [SPEAKER_01]: Yeah, I mean, well, there's two things.

[00:08:23] [SPEAKER_01]: I will say one, we always talk about

[00:08:25] [SPEAKER_01]: there's never a good time just to start.

[00:08:28] [SPEAKER_01]: But I will say this is one of the best times to get in

[00:08:31] [SPEAKER_01]: and learn if you're new to multifamily, learn.

[00:08:35] [SPEAKER_01]: I have three analysts on my team

[00:08:38] [SPEAKER_01]: and I'm teaching them how to underwrite deals

[00:08:41] [SPEAKER_01]: and I'm spending a lot of time teaching them.

[00:08:44] [SPEAKER_01]: But this is a great time to learn

[00:08:45] [SPEAKER_01]: because there's less deals than there typically are.

[00:08:48] [SPEAKER_01]: It's maybe a little harder to get deals done.

[00:08:51] [SPEAKER_01]: That's the best time to learn, right?

[00:08:53] [SPEAKER_01]: Because maybe you have a little bit more downtime

[00:08:55] [SPEAKER_01]: and you can make mistakes and brokers are more willing.

[00:08:58] [SPEAKER_01]: I have brokers calling me all the time.

[00:09:00] [SPEAKER_01]: I saw you download that CA.

[00:09:02] [SPEAKER_01]: Are you going to make it R for the deal?

[00:09:04] [SPEAKER_01]: No, you're still asking too much for that deal.

[00:09:06] [SPEAKER_01]: I'm not going to make an offer the deal.

[00:09:07] [SPEAKER_01]: But the fact that brokers are calling you is amazing.

[00:09:11] [SPEAKER_01]: You weren't getting that a few years ago.

[00:09:13] [SPEAKER_01]: So it's a great time to do it.

[00:09:16] [SPEAKER_01]: As far as the community is concerned,

[00:09:18] [SPEAKER_01]: I would say 70% to 80% of my partnerships,

[00:09:21] [SPEAKER_01]: I have 10 deals as a GP,

[00:09:23] [SPEAKER_01]: 70% to 80% of my partnerships

[00:09:24] [SPEAKER_01]: are either through Jake and Gino students

[00:09:27] [SPEAKER_01]: or people that worked at Jake and Gino.

[00:09:30] [SPEAKER_01]: So you've minted a lot of great entrepreneurs

[00:09:34] [SPEAKER_01]: to your company that I partnered with.

[00:09:37] [SPEAKER_01]: So this is a limiting belief.

[00:09:41] [SPEAKER_01]: I thought I was coming from the institutional background.

[00:09:45] [SPEAKER_01]: I didn't have acquisitions background,

[00:09:46] [SPEAKER_01]: but I have asset management background.

[00:09:48] [SPEAKER_01]: I could just do it myself.

[00:09:50] [SPEAKER_01]: I don't need anybody else.

[00:09:51] [SPEAKER_01]: I can do it myself.

[00:09:52] [SPEAKER_01]: And you learn through the community.

[00:09:53] [SPEAKER_01]: No, you have strengths and weaknesses.

[00:09:55] [SPEAKER_01]: My background was asset management operations.

[00:09:57] [SPEAKER_01]: I was really good at it.

[00:10:00] [SPEAKER_01]: I wasn't good at the acquisitions piece.

[00:10:01] [SPEAKER_01]: I kind of touched on it lightly in my other jobs.

[00:10:04] [SPEAKER_01]: I needed someone that can kind of do that piece.

[00:10:06] [SPEAKER_01]: I also learned through the community

[00:10:07] [SPEAKER_01]: that I'm really good at capital raising.

[00:10:09] [SPEAKER_01]: I love the capital raise and talk to people

[00:10:11] [SPEAKER_01]: and make money for people through their investments.

[00:10:14] [SPEAKER_01]: But that was the main kind of blind spot.

[00:10:18] [SPEAKER_01]: I thought I could just do it on my own.

[00:10:19] [SPEAKER_01]: You really need, it's so cliche.

[00:10:22] [SPEAKER_01]: They say real estate is a team sport,

[00:10:24] [SPEAKER_01]: but it's so true.

[00:10:27] [SPEAKER_01]: That's the main thing I got from the community.

[00:10:29] [SPEAKER_00]: I need to highlight what you said

[00:10:31] [SPEAKER_00]: because we were just on a monthly Mastermind call

[00:10:33] [SPEAKER_00]: last night with the community.

[00:10:34] [SPEAKER_00]: Every month, we host a Mastermind call

[00:10:36] [SPEAKER_00]: with all the students in the community.

[00:10:38] [SPEAKER_00]: And it was said a couple of times

[00:10:40] [SPEAKER_00]: what you just said about brokers reaching out.

[00:10:42] [SPEAKER_00]: If you're going to sign that confidentiality,

[00:10:45] [SPEAKER_00]: they're going to reach out to you within 10 minutes.

[00:10:48] [SPEAKER_00]: It's amazing.

[00:10:49] [SPEAKER_00]: Whereas a year ago,

[00:10:51] [SPEAKER_00]: you would be good luck

[00:10:53] [SPEAKER_00]: trying to get somebody to call you back.

[00:10:55] [SPEAKER_00]: And that's a great thing.

[00:10:56] [SPEAKER_00]: Transaction volume is down 60%,

[00:10:58] [SPEAKER_00]: but that's because sellers

[00:11:00] [SPEAKER_00]: maybe are not motivated enough to sell.

[00:11:03] [SPEAKER_00]: You see these lenders extending, extending, extending.

[00:11:06] [SPEAKER_00]: How much longer can they extend?

[00:11:08] [SPEAKER_00]: How much longer is this economy going to be

[00:11:10] [SPEAKER_00]: what I call in a silent recession?

[00:11:11] [SPEAKER_00]: We don't know.

[00:11:12] [SPEAKER_00]: But once prices tend to adjust,

[00:11:15] [SPEAKER_00]: you need to be there.

[00:11:17] [SPEAKER_00]: Brokers are putting deals on LoopNet.

[00:11:18] [SPEAKER_00]: Go on LoopNet right now.

[00:11:19] [SPEAKER_00]: You're going to find deals on LoopNet.

[00:11:21] [SPEAKER_00]: This is very similar to what we had back in the day.

[00:11:25] [SPEAKER_00]: So it's really important to look at what's going on

[00:11:29] [SPEAKER_00]: and really to focus on creating those broker relationships

[00:11:33] [SPEAKER_00]: because those deals will be coming.

[00:11:35] [SPEAKER_00]: I promise you, as Nick is alluding to you,

[00:11:39] [SPEAKER_00]: it may be challenging to find deals,

[00:11:41] [SPEAKER_00]: but there's so many other things you could be doing.

[00:11:42] [SPEAKER_00]: You could be learning the asset management side of the business.

[00:11:45] [SPEAKER_00]: You could be finding other partners to partner up with.

[00:11:48] [SPEAKER_00]: You could be finding investors.

[00:11:50] [SPEAKER_00]: You can start up an amazing group,

[00:11:52] [SPEAKER_00]: amazing mastermind group that Nick has,

[00:11:55] [SPEAKER_00]: a monthly meetup right now

[00:11:57] [SPEAKER_00]: to get yourself going to make those connections.

[00:11:59] [SPEAKER_00]: So there's so many things you could be doing

[00:12:00] [SPEAKER_00]: other than just sourcing for deals.

[00:12:03] [SPEAKER_00]: And I think this is a great time to get yourself going

[00:12:05] [SPEAKER_00]: because when the floodgates open

[00:12:07] [SPEAKER_00]: and there's going to be a lot more deals,

[00:12:09] [SPEAKER_00]: you are positioned properly.

[00:12:12] [SPEAKER_00]: Now you talked about on Closest Club 5

[00:12:14] [SPEAKER_00]: that deal that you want to talk about right now.

[00:12:17] [SPEAKER_00]: Let's get into it a little bit

[00:12:18] [SPEAKER_00]: because I remember when you showed us a deal,

[00:12:20] [SPEAKER_00]: I can't believe the price point you got.

[00:12:22] [SPEAKER_00]: And go back to Closest Club 5 on the YouTube channel.

[00:12:25] [SPEAKER_00]: Go listen to Nick's presentation.

[00:12:26] [SPEAKER_00]: It was awesome.

[00:12:27] [SPEAKER_00]: He takes a much deeper dive into that deal.

[00:12:29] [SPEAKER_00]: But let's talk about the specifics

[00:12:31] [SPEAKER_00]: because it seems as if you're going full cycle

[00:12:32] [SPEAKER_00]: on that deal right now.

[00:12:34] [SPEAKER_01]: Yeah, no, it's a great deal.

[00:12:39] [SPEAKER_01]: So kind of a little background too.

[00:12:41] [SPEAKER_01]: My wife, when I was kind of starting this business,

[00:12:43] [SPEAKER_01]: we're used to kind of W-2, getting a salary.

[00:12:46] [SPEAKER_01]: For a year, I didn't get a deal.

[00:12:48] [SPEAKER_01]: At DFW, I just got back from a conference.

[00:12:51] [SPEAKER_01]: This one guy on this panel is making an argument

[00:12:53] [SPEAKER_01]: that the DFW market is the most competitive

[00:12:56] [SPEAKER_01]: multifamily market in the world.

[00:12:59] [SPEAKER_01]: And it's arguable.

[00:13:02] [SPEAKER_01]: But at the time, it was super competitive.

[00:13:04] [SPEAKER_01]: So my wife's like,

[00:13:05] [SPEAKER_01]: look, you might have to go back to get the W-2 job.

[00:13:08] [SPEAKER_01]: We don't get a deal.

[00:13:09] [SPEAKER_01]: So I'm like, okay, she's busting my chops here.

[00:13:12] [SPEAKER_01]: I need to kind of think outside the box.

[00:13:14] [SPEAKER_01]: Let's look outside of DFW.

[00:13:16] [SPEAKER_01]: Within Texas, let's look in some tertiary secondary markets

[00:13:20] [SPEAKER_01]: like Waco, Waco, Texas.

[00:13:23] [SPEAKER_01]: It's still along the I-35.

[00:13:25] [SPEAKER_01]: It's about two hours south of Dallas.

[00:13:27] [SPEAKER_01]: So we started looking at this deal.

[00:13:30] [SPEAKER_01]: I ended up partnering with somebody that lived in Waco.

[00:13:33] [SPEAKER_01]: His wife was a professor at Waco.

[00:13:35] [SPEAKER_01]: So he was a really good partner.

[00:13:36] [SPEAKER_01]: He had a institutional background like I did.

[00:13:39] [SPEAKER_01]: And it was a fully marketed deal,

[00:13:41] [SPEAKER_01]: but we were aggressive in pursuing it.

[00:13:43] [SPEAKER_01]: And we ended up getting almost $300,000 retreat

[00:13:46] [SPEAKER_01]: because there was some issues with the financials.

[00:13:49] [SPEAKER_01]: And we also did a loan assumption through Fannie Mae,

[00:13:53] [SPEAKER_01]: which allowed us to get a good price per door, 61 per door,

[00:13:58] [SPEAKER_01]: because the interest rate was a little bit higher than market.

[00:14:01] [SPEAKER_01]: Market was about 3%.

[00:14:02] [SPEAKER_01]: This is about 4.76.

[00:14:05] [SPEAKER_01]: So we got a great deal.

[00:14:06] [SPEAKER_01]: But a lot of value add investors were scared of this deal

[00:14:11] [SPEAKER_01]: because they thought it didn't have enough value add.

[00:14:14] [SPEAKER_01]: Not scared, but they're just like,

[00:14:15] [SPEAKER_01]: there aren't enough units to renovate.

[00:14:17] [SPEAKER_01]: I need to push rent.

[00:14:19] [SPEAKER_01]: But through our institutional background, we saw,

[00:14:21] [SPEAKER_01]: we looked at the financials, we saw that

[00:14:24] [SPEAKER_01]: the real estate taxes were too high.

[00:14:26] [SPEAKER_01]: Insurance was too high.

[00:14:28] [SPEAKER_01]: This guy didn't protest taxes for two years.

[00:14:30] [SPEAKER_01]: We ended up buying this thing for almost the price he bought it for

[00:14:34] [SPEAKER_01]: because he just ran into the ground.

[00:14:37] [SPEAKER_01]: And then a little story was the property manager,

[00:14:40] [SPEAKER_01]: when we visited, she had a little post-it note on her monitor

[00:14:42] [SPEAKER_01]: that was basically her rent card.

[00:14:45] [SPEAKER_01]: And it was like, okay,

[00:14:46] [SPEAKER_01]: that's a little bit old school.

[00:14:48] [SPEAKER_01]: I'm like, when's the last time you updated that rent card?

[00:14:50] [SPEAKER_01]: She's like, it's been about a year.

[00:14:51] [SPEAKER_01]: We haven't pushed rents because we can't push rents through COVID.

[00:14:54] [SPEAKER_01]: I was like, this deal is going to be solid.

[00:14:57] [SPEAKER_01]: This is going to be good, right?

[00:14:58] [SPEAKER_01]: So, so we just, it was really just a management play.

[00:15:01] [SPEAKER_01]: There wasn't a lot of value add.

[00:15:03] [SPEAKER_01]: We did Nick Abeluxan, who's also part of the community.

[00:15:06] [SPEAKER_01]: He, he implemented some laundry machines.

[00:15:09] [SPEAKER_01]: He got CSE kind of kicked out, bought his own laundry machine.

[00:15:12] [SPEAKER_01]: So we kind of talked with him and collaborated with him on that.

[00:15:15] [SPEAKER_01]: Did that, we had a lot of value to the property,

[00:15:17] [SPEAKER_01]: but it was really just a manager play.

[00:15:19] [SPEAKER_01]: And when we bought the property, the trailing 12,

[00:15:23] [SPEAKER_01]: so trailing 12 months income statement was 250,000.

[00:15:27] [SPEAKER_01]: We have the NOI up to almost 700,000 at this point.

[00:15:32] [SPEAKER_00]: Wow.

[00:15:32] [SPEAKER_01]: It's 170% NOI growth, like amazing, amazing NOI growth operationally.

[00:15:40] [SPEAKER_01]: It's really just focusing on that asset management piece

[00:15:44] [SPEAKER_01]: and chipping away at wood and just, you know, really crushing that property.

[00:15:48] [SPEAKER_00]: And your exit strategy was to buy, I don't want to just say renovate,

[00:15:52] [SPEAKER_00]: because this is valuation, not through renovation, but through operation.

[00:15:58] [SPEAKER_00]: And I think Nick, that's one of the things that we preached a couple of years ago.

[00:16:01] [SPEAKER_00]: Everyone's just fixing, flipping, going in, changing, fixing a few units.

[00:16:05] [SPEAKER_00]: Great.

[00:16:05] [SPEAKER_00]: That works until it doesn't work.

[00:16:08] [SPEAKER_00]: And we've seen that not work over the last year or two.

[00:16:11] [SPEAKER_00]: You've got this thing up.

[00:16:12] [SPEAKER_00]: What was your exit strategy for this asset?

[00:16:15] [SPEAKER_01]: Yeah.

[00:16:15] [SPEAKER_01]: And to your point, you know, you talk about finance, right?

[00:16:18] [SPEAKER_01]: Every single one of our deals was a fixed rate loan.

[00:16:23] [SPEAKER_01]: 10 deals, fixed rate loan, no issues, no floating rate debt.

[00:16:27] [SPEAKER_01]: And that's where everyone's having the trouble.

[00:16:28] [SPEAKER_01]: They bought the past two years, one year, floating rate loans.

[00:16:32] [SPEAKER_01]: They're in trouble.

[00:16:33] [SPEAKER_01]: So the business plan was to refine about two years.

[00:16:38] [SPEAKER_01]: Interest rates are much higher right now.

[00:16:41] [SPEAKER_01]: But because we increased the NOI so much, we reached our exit price, right?

[00:16:46] [SPEAKER_01]: So our exit price is around EDE, the door.

[00:16:49] [SPEAKER_01]: We got there, right?

[00:16:51] [SPEAKER_01]: Now on the back end, kind of talking about the sale,

[00:16:56] [SPEAKER_01]: we heard that the Fed was going to raise interest rates.

[00:16:59] [SPEAKER_01]: No one knew how fast they would.

[00:17:01] [SPEAKER_01]: But at the tail end of 2021, maybe two or three months after we bought the property,

[00:17:07] [SPEAKER_01]: we're like, holy cow, they're going to raise interest rates.

[00:17:09] [SPEAKER_01]: And the prices are going through the roof.

[00:17:11] [SPEAKER_01]: We bought that property for 61 a door.

[00:17:14] [SPEAKER_01]: There was a property on the market similar to our property,

[00:17:17] [SPEAKER_01]: three months later for 120 a door.

[00:17:21] [SPEAKER_01]: So the market just went crazy.

[00:17:22] [SPEAKER_01]: So we're like, let's try to sell this thing fast.

[00:17:26] [SPEAKER_01]: So we put it on the market.

[00:17:27] [SPEAKER_01]: We had it in contract for 106 a door.

[00:17:29] [SPEAKER_01]: But because the Fed kept raising interest rates,

[00:17:33] [SPEAKER_01]: the buyers kept decreasing the price.

[00:17:35] [SPEAKER_01]: So we're like, okay, let's take it off the market.

[00:17:37] [SPEAKER_01]: The property is still performing well, fixed rate debt.

[00:17:39] [SPEAKER_01]: We're good.

[00:17:41] [SPEAKER_01]: Take it off the market.

[00:17:42] [SPEAKER_01]: We put back on the market in 2023, summer 2023.

[00:17:46] [SPEAKER_01]: Again, it was a fully marketed deal.

[00:17:47] [SPEAKER_01]: A lot of times the off-market deals are broken in some way.

[00:17:51] [SPEAKER_01]: Fully marketed deal.

[00:17:52] [SPEAKER_01]: We had 20 tours.

[00:17:53] [SPEAKER_01]: I think we had 10 offers.

[00:17:55] [SPEAKER_01]: And we picked the strongest buyer.

[00:17:58] [SPEAKER_01]: And this guy is a big Texas guy.

[00:18:02] [SPEAKER_01]: He lives on a ranch and his word is his bond.

[00:18:05] [SPEAKER_01]: He's like, look, I never retrade deals.

[00:18:07] [SPEAKER_01]: Price that I put in, I'm not gonna try to nickel and dime me

[00:18:11] [SPEAKER_01]: or reduce the price before the due diligence period ends.

[00:18:14] [SPEAKER_01]: And he kept his word.

[00:18:15] [SPEAKER_01]: I'd still try and sell to this guy if I could.

[00:18:18] [SPEAKER_01]: But supposedly he had a really big investor

[00:18:21] [SPEAKER_01]: who was gonna write a $2 million check.

[00:18:23] [SPEAKER_01]: He got served forced papers two days after Christmas.

[00:18:26] [SPEAKER_01]: That guy's like, I'm out.

[00:18:28] [SPEAKER_01]: And they had to back out.

[00:18:29] [SPEAKER_01]: So that was our second buyer.

[00:18:30] [SPEAKER_01]: So now we're in contract with a third buyer.

[00:18:32] [SPEAKER_01]: Thankfully, we got to keep almost 100K of earnest money,

[00:18:36] [SPEAKER_01]: not our fundable earning money.

[00:18:37] [SPEAKER_01]: So that helps our investors.

[00:18:39] [SPEAKER_01]: And we just had another 70K go hard last week on it.

[00:18:43] [SPEAKER_01]: And they say they're gonna close early.

[00:18:45] [SPEAKER_01]: And we should, we're projecting maybe a 16, 70% IRR.

[00:18:49] [SPEAKER_01]: We should hit about 22, 23% IRR.

[00:18:53] [SPEAKER_01]: The 1.7 equity multiple with some really happy investors.

[00:18:57] [SPEAKER_00]: And what the crazy thing about it is,

[00:18:59] [SPEAKER_00]: that deal that traded for 120 at door,

[00:19:01] [SPEAKER_00]: I'm assuming they probably got bridge financing on it.

[00:19:03] [SPEAKER_00]: And that thing is gonna go from a four cap to a foreclosure,

[00:19:08] [SPEAKER_00]: as the Bill Hamms likes to say.

[00:19:10] [SPEAKER_00]: And it's really important.

[00:19:11] [SPEAKER_00]: I want everyone to stop and reflect

[00:19:14] [SPEAKER_00]: on what Nick just said about the finance right portion.

[00:19:19] [SPEAKER_00]: We have not been preaching at all with short-term bridge debt.

[00:19:24] [SPEAKER_00]: Unless you are really experienced,

[00:19:27] [SPEAKER_00]: you can really have a team that moves their ass

[00:19:30] [SPEAKER_00]: and can get the job done real quick.

[00:19:33] [SPEAKER_00]: That's the only way I would use short-term bridge financing.

[00:19:37] [SPEAKER_00]: We've been preaching longer term fixed rate financing.

[00:19:40] [SPEAKER_00]: We use something called loan to cost,

[00:19:42] [SPEAKER_00]: where we get a five year term with a community bank

[00:19:45] [SPEAKER_00]: or a credit union.

[00:19:46] [SPEAKER_00]: It gives us the ability to have a little bit of time.

[00:19:49] [SPEAKER_00]: Because there's two ways you lose money in this business.

[00:19:51] [SPEAKER_00]: You either run out of money, or you run out of time.

[00:19:54] [SPEAKER_00]: And there's a lot of people right now

[00:19:56] [SPEAKER_00]: that are running out of time and money as well.

[00:19:59] [SPEAKER_00]: So the finance right portion is really important.

[00:20:02] [SPEAKER_00]: That fixed rate long-term financing.

[00:20:04] [SPEAKER_00]: Your 10 deals, you can sleep at night.

[00:20:06] [SPEAKER_00]: If values drop, you don't care.

[00:20:08] [SPEAKER_00]: The only time you care about the value of your property

[00:20:12] [SPEAKER_00]: is when you buy it,

[00:20:14] [SPEAKER_00]: and when you either sell it or refire exit it.

[00:20:17] [SPEAKER_00]: Every other time, the value doesn't matter.

[00:20:19] [SPEAKER_00]: As long as you can pay your debt

[00:20:20] [SPEAKER_00]: and you got a little more cash flow going on, that's great.

[00:20:24] [SPEAKER_00]: I'm excited about this brother, man.

[00:20:25] [SPEAKER_00]: You got me fired up over here.

[00:20:27] [SPEAKER_00]: This question is really important

[00:20:29] [SPEAKER_00]: because I want you to walk me through the psychology

[00:20:32] [SPEAKER_00]: of what you look for in a buyer.

[00:20:35] [SPEAKER_00]: You have been a buyer,

[00:20:36] [SPEAKER_00]: and now you're a seller looking to sell to a buyer.

[00:20:40] [SPEAKER_00]: What do you need to exhibit as a buyer

[00:20:43] [SPEAKER_00]: to show up to have Nick DeLeon sell you his property?

[00:20:48] [SPEAKER_01]: Yeah, no, it's a great question.

[00:20:50] [SPEAKER_01]: I went through...

[00:20:52] [SPEAKER_01]: The first time I was introduced to syndication

[00:20:54] [SPEAKER_01]: was my last W-2, the industrial fund.

[00:20:56] [SPEAKER_01]: We went through these buyer interview processes,

[00:20:59] [SPEAKER_01]: and we're selling a property in Plano, Texas.

[00:21:01] [SPEAKER_01]: And the guy was like,

[00:21:03] [SPEAKER_01]: we're like, where are you getting your capital from?

[00:21:05] [SPEAKER_01]: Because I used to be dealing with big funds,

[00:21:07] [SPEAKER_01]: big institutions, right?

[00:21:10] [SPEAKER_01]: Texas Teachers was like a big LP and whatever.

[00:21:12] [SPEAKER_01]: He's like, we're syndicating the deal.

[00:21:14] [SPEAKER_01]: I'm like, you don't have the funds raised yet?

[00:21:16] [SPEAKER_01]: What is that, right?

[00:21:18] [SPEAKER_01]: So right now it's very hard to raise capital.

[00:21:21] [SPEAKER_01]: I know some really big investors

[00:21:25] [SPEAKER_01]: that can raise $100 million just going on Instagram

[00:21:29] [SPEAKER_01]: because they have a big following before.

[00:21:31] [SPEAKER_01]: Now they're having trouble raising capital.

[00:21:33] [SPEAKER_01]: So the first question is,

[00:21:34] [SPEAKER_01]: where is your capital coming from?

[00:21:37] [SPEAKER_01]: Do you have a fund?

[00:21:38] [SPEAKER_01]: A lot of people are raising funds, right?

[00:21:40] [SPEAKER_01]: And have the equity pre-raised.

[00:21:42] [SPEAKER_01]: Where's the capital come from?

[00:21:43] [SPEAKER_01]: Are you a family office that just has a lot of money

[00:21:46] [SPEAKER_01]: that can kind of put money to work, right?

[00:21:49] [SPEAKER_01]: And as part of the buyer interview process,

[00:21:51] [SPEAKER_01]: you have a questionnaire.

[00:21:53] [SPEAKER_01]: Have you retraded a deal?

[00:21:54] [SPEAKER_01]: Which means like right before the due diligence period expires,

[00:21:57] [SPEAKER_01]: did you try to lower the price?

[00:21:59] [SPEAKER_01]: And was it a justified retrade versus our current buyer?

[00:22:04] [SPEAKER_01]: If you try to retrade a ton,

[00:22:06] [SPEAKER_01]: I went through like a fact-based process

[00:22:10] [SPEAKER_01]: and basically went through each item

[00:22:14] [SPEAKER_01]: and made sure that like, does this make sense?

[00:22:16] [SPEAKER_01]: Most of the items didn't make sense

[00:22:17] [SPEAKER_01]: and we kept the low retrade very, very low.

[00:22:21] [SPEAKER_01]: So all of these questions,

[00:22:23] [SPEAKER_01]: you have this question and you go through the broker,

[00:22:25] [SPEAKER_01]: all these questions, where's your deck?

[00:22:26] [SPEAKER_01]: How are you financing the debt?

[00:22:28] [SPEAKER_01]: How are you financing the property?

[00:22:30] [SPEAKER_01]: Are you gonna use bridge debt?

[00:22:32] [SPEAKER_01]: How much CapEx?

[00:22:33] [SPEAKER_01]: You can ask them this.

[00:22:34] [SPEAKER_01]: How much CapEx do you have projected?

[00:22:37] [SPEAKER_01]: Number one, you wanna kind of know that generally

[00:22:39] [SPEAKER_01]: how they're underwriting.

[00:22:40] [SPEAKER_01]: But number two, do they have buffer

[00:22:43] [SPEAKER_01]: if interest rates pop up, right?

[00:22:45] [SPEAKER_01]: Can they continue to kind of like perform

[00:22:47] [SPEAKER_01]: and buy the property?

[00:22:49] [SPEAKER_01]: And then just overall, like their track record, right?

[00:22:52] [SPEAKER_01]: So the JTGNO community has a lot of experienced people.

[00:22:56] [SPEAKER_01]: There might be new people.

[00:22:57] [SPEAKER_01]: Some of the new people might partner

[00:22:58] [SPEAKER_01]: with the experienced people.

[00:23:00] [SPEAKER_01]: They leverage their background.

[00:23:01] [SPEAKER_01]: You wanna see that person's track record,

[00:23:03] [SPEAKER_01]: how many deals they've done.

[00:23:05] [SPEAKER_01]: Are their deals performing well, right?

[00:23:08] [SPEAKER_01]: Right, I know a lot of people that might meet up,

[00:23:10] [SPEAKER_01]: DFW, they have floating rate bridge debt.

[00:23:13] [SPEAKER_01]: They're too busy to even look at deals

[00:23:15] [SPEAKER_01]: because their deals are so distressed.

[00:23:18] [SPEAKER_01]: Our deals are performing well.

[00:23:20] [SPEAKER_01]: No LP capital calls, still distributing capital.

[00:23:24] [SPEAKER_01]: Our LPs are happy.

[00:23:27] [SPEAKER_01]: So that's another question.

[00:23:30] [SPEAKER_00]: Nick, you touched upon the difficulty of raising capital.

[00:23:34] [SPEAKER_00]: And as we're recording this in quarter two,

[00:23:36] [SPEAKER_00]: we just had Perry Zhang on a masterclass

[00:23:38] [SPEAKER_00]: on a Monday masterclass with the JTGNO community.

[00:23:41] [SPEAKER_00]: It was great.

[00:23:41] [SPEAKER_00]: I love Perry.

[00:23:42] [SPEAKER_00]: He has Cashflow Portal.

[00:23:44] [SPEAKER_00]: And he made a really interesting observation.

[00:23:47] [SPEAKER_00]: That I didn't even think of.

[00:23:50] [SPEAKER_00]: But right now, a lot of operators are having problems

[00:23:53] [SPEAKER_00]: with capital calls, like you said,

[00:23:55] [SPEAKER_00]: and distributions being paused.

[00:23:57] [SPEAKER_00]: Limited partners are in their own little community

[00:24:00] [SPEAKER_00]: talking to each other.

[00:24:02] [SPEAKER_00]: Your input shapes your outlook.

[00:24:05] [SPEAKER_00]: So when you have LPs talking about deals not going good,

[00:24:09] [SPEAKER_00]: it creates fear.

[00:24:11] [SPEAKER_00]: And when you're listening to the TV and the news

[00:24:14] [SPEAKER_00]: and interest rates are high, there's a lot of fear.

[00:24:17] [SPEAKER_00]: So that's one of the main reasons, I think,

[00:24:20] [SPEAKER_00]: why it's difficult to raise capital.

[00:24:21] [SPEAKER_00]: It's not because of the deals.

[00:24:23] [SPEAKER_00]: It's because of the sentiment.

[00:24:25] [SPEAKER_00]: And you have a lot of negativity.

[00:24:26] [SPEAKER_00]: And when people get together and LPs share war stories,

[00:24:30] [SPEAKER_00]: and this is not all LPs, and this is not all operators,

[00:24:33] [SPEAKER_00]: but it tends to be a lot.

[00:24:35] [SPEAKER_00]: And when you hear it, I mean, it's very easy early on

[00:24:38] [SPEAKER_00]: to raise money when deals are working really well.

[00:24:40] [SPEAKER_00]: But as they start to be not performing like they were,

[00:24:45] [SPEAKER_00]: and this is something else that's optimistic as well.

[00:24:48] [SPEAKER_00]: This is why you need to get in right now,

[00:24:50] [SPEAKER_00]: because there's less demand for these assets.

[00:24:53] [SPEAKER_00]: Because if you can't raise capital,

[00:24:54] [SPEAKER_00]: and there's gonna be less people

[00:24:56] [SPEAKER_00]: where we have these calls to action,

[00:24:58] [SPEAKER_00]: and brokers know that.

[00:24:59] [SPEAKER_00]: So just hang in there, everybody.

[00:25:00] [SPEAKER_00]: If you're listening to this right now,

[00:25:02] [SPEAKER_00]: give yourself some more time,

[00:25:03] [SPEAKER_00]: because this will all shake out.

[00:25:05] [SPEAKER_00]: I mean, deals will come back online.

[00:25:07] [SPEAKER_00]: And then I've noticed in the perfect world,

[00:25:11] [SPEAKER_00]: there is never a deal and money.

[00:25:15] [SPEAKER_00]: You either have a bunch of deals and no money,

[00:25:18] [SPEAKER_00]: or you have a bunch of money and no deals.

[00:25:21] [SPEAKER_00]: Very, very limited time to have both of them come together.

[00:25:25] [SPEAKER_00]: So don't make excuses, because like Nick said early on,

[00:25:27] [SPEAKER_00]: it's never the right time to get in unless you're ready.

[00:25:30] [SPEAKER_00]: Until you have the ability to say,

[00:25:32] [SPEAKER_00]: wow, I got fired twice, started during COVID.

[00:25:35] [SPEAKER_00]: I mean, that's it.

[00:25:36] [SPEAKER_00]: I had to start.

[00:25:37] [SPEAKER_00]: It wasn't the right time for Nick to start as well.

[00:25:40] [SPEAKER_00]: But Nick, as you're exiting this deal,

[00:25:43] [SPEAKER_00]: talk to me about the future for you in multifamily.

[00:25:45] [SPEAKER_00]: How do you see yourself building?

[00:25:46] [SPEAKER_00]: Because I see yourself building what we call Jake and Gino,

[00:25:49] [SPEAKER_00]: an enduring organization.

[00:25:50] [SPEAKER_00]: I love the scalability you have.

[00:25:52] [SPEAKER_00]: I love the market you're in.

[00:25:53] [SPEAKER_00]: Hey, every market is competitive.

[00:25:55] [SPEAKER_00]: Go to Phoenix, go to Nashville.

[00:25:57] [SPEAKER_00]: I mean, go to New York City, go to Miami, all these markets.

[00:26:00] [SPEAKER_00]: If it's a great market, it's going to be competitive.

[00:26:03] [SPEAKER_00]: People want to be there.

[00:26:04] [SPEAKER_00]: I mean, that's the reality.

[00:26:05] [SPEAKER_00]: Low cap rates, less risk, more demand.

[00:26:10] [SPEAKER_01]: That's the reality.

[00:26:11] [SPEAKER_01]: You got to stick with it.

[00:26:13] [SPEAKER_01]: The book by Angela Duckworth, Grit,

[00:26:17] [SPEAKER_01]: it's like the number one trait in being successful.

[00:26:20] [SPEAKER_01]: Can't give up.

[00:26:21] [SPEAKER_01]: Most people give up right before they're about to hit it big.

[00:26:25] [SPEAKER_01]: In a competitive market, non-competitive market,

[00:26:27] [SPEAKER_01]: you have to be consistent every single day.

[00:26:31] [SPEAKER_01]: Hitting the faults, talking to brokers,

[00:26:33] [SPEAKER_01]: underwriting deals, making offers.

[00:26:36] [SPEAKER_01]: Our pipeline is very light right now,

[00:26:38] [SPEAKER_01]: but we're still making offers.

[00:26:39] [SPEAKER_01]: We're using opportunity to build relationship with brokers.

[00:26:42] [SPEAKER_01]: I tell the brokers, send us every single deal you have

[00:26:45] [SPEAKER_01]: because my analysts need to kind of underwrite deals.

[00:26:48] [SPEAKER_01]: And I'm learning too.

[00:26:50] [SPEAKER_01]: I'm getting to be a better underwriter

[00:26:52] [SPEAKER_01]: because that wasn't my strength before.

[00:26:54] [SPEAKER_01]: One of the things we're doing is kind of a little tidbit.

[00:26:57] [SPEAKER_01]: I'm having my analysts, every single OM we get

[00:27:00] [SPEAKER_01]: and they underwrite, they're putting into a database

[00:27:02] [SPEAKER_01]: with all the different ideas for value add.

[00:27:06] [SPEAKER_01]: So it's like hard core.

[00:27:07] [SPEAKER_01]: There's a standard stuff, hard parts,

[00:27:08] [SPEAKER_01]: hard ports, renovated units, all that stuff.

[00:27:12] [SPEAKER_01]: Now we have this database and kind of like

[00:27:14] [SPEAKER_01]: how much rent premium you can get for these things,

[00:27:18] [SPEAKER_01]: the cost of these things.

[00:27:19] [SPEAKER_01]: And now they can just kind of go to that database

[00:27:21] [SPEAKER_01]: and kind of underwrite.

[00:27:22] [SPEAKER_01]: Look at Google Maps and kind of figure out

[00:27:24] [SPEAKER_01]: can you put the car ports in there, all this other stuff?

[00:27:27] [SPEAKER_01]: And they're getting smarter better.

[00:27:30] [SPEAKER_01]: So overall it's an opportunity to grow in some way.

[00:27:33] [SPEAKER_01]: Maybe not growing your portfolio,

[00:27:34] [SPEAKER_01]: but you're just getting smarter at real estate.

[00:27:37] [SPEAKER_01]: I will say, it has been frustrating

[00:27:40] [SPEAKER_01]: because the deal flow has been light.

[00:27:42] [SPEAKER_01]: So I've been looking at RV Park Strategy.

[00:27:44] [SPEAKER_01]: I've been looking at single tenant triple net deals.

[00:27:49] [SPEAKER_01]: We looked at a deal in Houston, we just drove down to.

[00:27:53] [SPEAKER_01]: Another thing, this track record that we have

[00:27:55] [SPEAKER_01]: is very strong, no building LP capital calls,

[00:28:00] [SPEAKER_01]: happy investors.

[00:28:02] [SPEAKER_01]: We're looking at some distressed deals

[00:28:04] [SPEAKER_01]: directly with a lender.

[00:28:06] [SPEAKER_01]: So that's a pipeline.

[00:28:07] [SPEAKER_01]: And I've been using that with some really big

[00:28:10] [SPEAKER_01]: limited partner partners to say,

[00:28:12] [SPEAKER_01]: hey look, we have this pipeline of off market deals

[00:28:15] [SPEAKER_01]: directly with a lender.

[00:28:16] [SPEAKER_01]: This is the type of stuff you will look at.

[00:28:18] [SPEAKER_01]: Of course, you're gonna say, yes,

[00:28:19] [SPEAKER_01]: this is exactly what the type of stuff they wanna look at.

[00:28:22] [SPEAKER_01]: So we're looking at a bunch of different strategies

[00:28:25] [SPEAKER_01]: just because it's a little bit slower

[00:28:27] [SPEAKER_01]: in the multifamily space.

[00:28:29] [SPEAKER_01]: And the yields are higher in some of these other spaces.

[00:28:31] [SPEAKER_01]: My investors are kind of looking for different product types,

[00:28:33] [SPEAKER_01]: but always love the multifamily space.

[00:28:36] [SPEAKER_00]: Excellent.

[00:28:38] [SPEAKER_00]: And before we sign off,

[00:28:40] [SPEAKER_00]: where can the listeners find out more about you?

[00:28:43] [SPEAKER_00]: Email, website and give them the information

[00:28:46] [SPEAKER_00]: to join that monthly meetup in Dallas as well.

[00:28:49] [SPEAKER_01]: Yeah, so if you wanna email me,

[00:28:52] [SPEAKER_01]: my email is nickatleonreparkers.com.

[00:28:56] [SPEAKER_01]: So it's my last name.

[00:28:59] [SPEAKER_01]: My phone number is 646-334-4989

[00:29:03] [SPEAKER_01]: if you wanna text me or email me.

[00:29:05] [SPEAKER_01]: I just joined Instagram.

[00:29:07] [SPEAKER_01]: I'm kind of like, one of my analysts calls me a dinosaur.

[00:29:11] [SPEAKER_01]: So just joined Instagram.

[00:29:12] [SPEAKER_01]: So I'm posting and using AI a little bit

[00:29:15] [SPEAKER_01]: to kind of create some shorts.

[00:29:17] [SPEAKER_01]: So I'm on there as the institutional syndicator is my tag.

[00:29:23] [SPEAKER_01]: We have a Facebook group

[00:29:24] [SPEAKER_01]: that kind of helps promote the meetup.

[00:29:26] [SPEAKER_01]: We have it every third Thursday of the month at DFW.

[00:29:29] [SPEAKER_01]: We get over a hundred people sometimes.

[00:29:31] [SPEAKER_01]: It's a great way to connect with people.

[00:29:34] [SPEAKER_01]: The Facebook group is facebook.com slash groups

[00:29:37] [SPEAKER_01]: slash C-R-E-M-N-D-M.

[00:29:42] [SPEAKER_01]: So it stands for commercial real estate mastery

[00:29:44] [SPEAKER_01]: and work combined.

[00:29:46] [SPEAKER_01]: But if you want more information, reach out to me.

[00:29:48] [SPEAKER_01]: I love helping people.

[00:29:50] [SPEAKER_01]: One of our core values is servant leadership.

[00:29:53] [SPEAKER_01]: So we love connecting people, helping people.

[00:29:56] [SPEAKER_01]: Feel free to reach out.

[00:29:57] [SPEAKER_01]: I'd love to connect with you

[00:29:58] [SPEAKER_01]: and see how we can help each other.

[00:29:59] [SPEAKER_00]: So Nick DeLeon worked 15 years in Nuveen, got fed up.

[00:30:03] [SPEAKER_00]: Then he started working for another job.

[00:30:05] [SPEAKER_00]: Two years after that, they gave him the ax.

[00:30:07] [SPEAKER_00]: Then he said to his wife, we got to get out of here.

[00:30:09] [SPEAKER_00]: Let's move.

[00:30:10] [SPEAKER_00]: Let's get out of New York.

[00:30:11] [SPEAKER_00]: Move.

[00:30:12] [SPEAKER_00]: I mean, I'm sorry.

[00:30:12] [SPEAKER_00]: Let's get out of...

[00:30:13] [SPEAKER_00]: I'm confused because he was in New York, went to San Fran

[00:30:17] [SPEAKER_00]: and then from San Fran goes to Texas.

[00:30:19] [SPEAKER_00]: But it's interesting

[00:30:21] [SPEAKER_00]: because he does it right before COVID hits

[00:30:23] [SPEAKER_00]: and most people would have made an excuse.

[00:30:26] [SPEAKER_00]: But Nick said, the third time's the strike.

[00:30:28] [SPEAKER_00]: I've already been making these excuses.

[00:30:31] [SPEAKER_00]: I got to stop making these excuses.

[00:30:32] [SPEAKER_00]: I'm smart enough.

[00:30:34] [SPEAKER_00]: I know enough.

[00:30:35] [SPEAKER_00]: I just need a little bit of help to transform what I'm doing.

[00:30:38] [SPEAKER_00]: And then when he joined Jake and Gino,

[00:30:39] [SPEAKER_00]: just being in front of people and being with people,

[00:30:43] [SPEAKER_00]: surrounding yourself with people that are aspiring

[00:30:45] [SPEAKER_00]: to do what you want to do.

[00:30:46] [SPEAKER_00]: And as I said, your input shapes your outlook.

[00:30:50] [SPEAKER_00]: So if you're around people who are excited, motivated,

[00:30:53] [SPEAKER_00]: want to grow, want to learn more.

[00:30:55] [SPEAKER_00]: And it's interesting because you don't just join a community

[00:30:58] [SPEAKER_00]: and the community is going to do the work for you.

[00:31:01] [SPEAKER_00]: Nick has put in a tremendous amount of work.

[00:31:05] [SPEAKER_00]: He's talking about core values.

[00:31:06] [SPEAKER_00]: So obviously he spent time building in his organization

[00:31:09] [SPEAKER_00]: with the core values.

[00:31:10] [SPEAKER_00]: We teach on that as well.

[00:31:11] [SPEAKER_00]: He talks about the buy right, the finance right,

[00:31:14] [SPEAKER_00]: the manage right,

[00:31:15] [SPEAKER_00]: short-term versus long-term fixed rate financing.

[00:31:18] [SPEAKER_00]: We discussed that as well.

[00:31:19] [SPEAKER_00]: He's created his own meetup for people to come

[00:31:23] [SPEAKER_00]: and to share ideas,

[00:31:24] [SPEAKER_00]: to actually have that go-giver mindset.

[00:31:27] [SPEAKER_00]: He comes to all of the events.

[00:31:29] [SPEAKER_00]: I mean, this is time and capital that he's invested.

[00:31:33] [SPEAKER_00]: So don't think you're just going to join a group

[00:31:35] [SPEAKER_00]: and things are going to happen for you.

[00:31:36] [SPEAKER_00]: The group is great because it can teach you,

[00:31:38] [SPEAKER_00]: it can hold you accountable,

[00:31:40] [SPEAKER_00]: but you need to put in the time

[00:31:42] [SPEAKER_00]: and the effort and the work.

[00:31:43] [SPEAKER_00]: And I think Nick had a strong enough why.

[00:31:45] [SPEAKER_00]: He was sick of working for other people.

[00:31:47] [SPEAKER_00]: He was sick of creating wealth for others.

[00:31:49] [SPEAKER_00]: He wanted to do it for himself.

[00:31:51] [SPEAKER_00]: He wanted to create impact for himself.

[00:31:52] [SPEAKER_00]: And now he's creating impact for others

[00:31:54] [SPEAKER_00]: with hundreds of people going to his meetup

[00:31:57] [SPEAKER_00]: and continuing to spread the word.

[00:31:59] [SPEAKER_00]: And on top of that,

[00:32:00] [SPEAKER_00]: continuing to give his investors the opportunity

[00:32:03] [SPEAKER_00]: to invest in multifamily

[00:32:05] [SPEAKER_00]: when they couldn't do it themselves.

[00:32:07] [SPEAKER_00]: So brother, I want to thank you for being on the show.

[00:32:09] [SPEAKER_00]: This was awesome.

[00:32:10] [SPEAKER_00]: And once again, what's your email address again?

[00:32:12] [SPEAKER_00]: Shoot it out for me.

[00:32:14] [SPEAKER_01]: Nick at leonrepartners.com.

[00:32:17] [SPEAKER_01]: I just want to say one thing,

[00:32:18] [SPEAKER_01]: just kind of commend the community.

[00:32:21] [SPEAKER_01]: Been in it for four years,

[00:32:23] [SPEAKER_01]: kind of been a little disconnected,

[00:32:24] [SPEAKER_01]: wanted to reconnect.

[00:32:25] [SPEAKER_01]: You connected us together in a new GoPod.

[00:32:29] [SPEAKER_01]: So I'm going to give a shout out to Cody Laughlin,

[00:32:31] [SPEAKER_01]: Brad Sweat and Matt.

[00:32:33] [SPEAKER_01]: We formed this GoPod now,

[00:32:35] [SPEAKER_01]: this pod where it's not just accountability for real estate.

[00:32:40] [SPEAKER_01]: It's accountability for wealth,

[00:32:43] [SPEAKER_01]: wealth relationships,

[00:32:45] [SPEAKER_01]: how to be a better dad,

[00:32:46] [SPEAKER_01]: better father,

[00:32:48] [SPEAKER_01]: keeping each other accountable for working out.

[00:32:50] [SPEAKER_01]: It's been awesome.

[00:32:51] [SPEAKER_01]: So thank you, Gino.

[00:32:53] [SPEAKER_01]: I mean, you put in,

[00:32:54] [SPEAKER_01]: whatever you put into, you get out of it.

[00:32:56] [SPEAKER_01]: This little pod that we were doing,

[00:32:58] [SPEAKER_01]: it's all through the community.

[00:32:59] [SPEAKER_01]: It's been awesome.

[00:33:00] [SPEAKER_00]: But thank you.

[00:33:01] [SPEAKER_00]: I'm so happy that you mentioned that

[00:33:03] [SPEAKER_00]: because multifamily is the amazing vehicle,

[00:33:05] [SPEAKER_00]: but it's not just a vehicle you want to be in.

[00:33:08] [SPEAKER_00]: We as the Jake and Gino community really focus on family.

[00:33:12] [SPEAKER_00]: That's the important aspect, right?

[00:33:15] [SPEAKER_00]: And you're focusing on wealth,

[00:33:17] [SPEAKER_00]: you're focusing on health

[00:33:18] [SPEAKER_00]: and you're focusing on relationships.

[00:33:19] [SPEAKER_00]: And when you get off that pod,

[00:33:21] [SPEAKER_00]: I'm sure you're jacked up.

[00:33:22] [SPEAKER_00]: You love those guys.

[00:33:23] [SPEAKER_00]: And you know what?

[00:33:24] [SPEAKER_00]: You get off, you're excited.

[00:33:26] [SPEAKER_00]: And I want to just leave this with everyone else.

[00:33:28] [SPEAKER_00]: This is what the mantra that I've been speaking about

[00:33:31] [SPEAKER_00]: the last few months.

[00:33:32] [SPEAKER_00]: And this is what we've been sharing

[00:33:33] [SPEAKER_00]: on the Julian and Gino show.

[00:33:35] [SPEAKER_00]: If you want to change the world,

[00:33:37] [SPEAKER_00]: go home and love your family.

[00:33:40] [SPEAKER_00]: It all starts with the family.

[00:33:42] [SPEAKER_00]: That's where it starts with.

[00:33:43] [SPEAKER_00]: And then from there,

[00:33:44] [SPEAKER_00]: man, multifamily is awesome.

[00:33:46] [SPEAKER_00]: Let them, it's the family in multifamily, right, Nick?

[00:33:49] [SPEAKER_00]: That's right.

[00:33:50] [SPEAKER_00]: Thanks, brother.

[00:33:51] [SPEAKER_00]: Everyone, thank you for spending part of your day with us.

[00:33:54] [SPEAKER_00]: Reach out to Nick DeLeon.

[00:33:56] [SPEAKER_00]: He's the real deal.

[00:33:57] [SPEAKER_00]: If you're in Dallas, go to his meetup.

[00:33:59] [SPEAKER_00]: Take care, everyone.

[00:34:00] [SPEAKER_00]: Thanks, Gino.

[00:34:13] [SPEAKER_00]: Are you serious about creating financial freedom

[00:34:16] [SPEAKER_00]: through investing in multifamily?

[00:34:17] [SPEAKER_00]: Then you need to be a Jake and Gino's multifamily takeoff

[00:34:20] [SPEAKER_00]: this October 25th, 26th and 27th in Denver, Colorado.

[00:34:25] [SPEAKER_00]: Learn how the implementation

[00:34:26] [SPEAKER_00]: of the proprietary three-step framework

[00:34:29] [SPEAKER_00]: of buy right, manage right and finance right

[00:34:32] [SPEAKER_00]: has allowed our members to close on over 80,000 units.

[00:34:36] [SPEAKER_00]: This is the results-based education you're looking for.

[00:34:40] [SPEAKER_00]: Now's the time to take your next steps

[00:34:42] [SPEAKER_00]: towards financial independence.

[00:34:44] [SPEAKER_00]: Don't wait any longer.

[00:34:46] [SPEAKER_00]: Seats are limited to the first 300 people to register.

[00:34:49] [SPEAKER_00]: Follow the link below to reserve your ticket today

[00:34:52] [SPEAKER_00]: and we'll see you in Denver on the 25th, 26th

[00:34:55] [SPEAKER_00]: and 27th of October for Jake and Gino's multifamily takeoff.