Ep #1,053 - MFRS - The Fastest Way to Get Started in Multifamily Investing In 2025

[00:00:03] So you know that apartment building or complex you drive by every day? Someone owns it. And it's probably someone on this podcast. Multifamily Rockstars. Join the growing numbers of real estate entrepreneurs who have made the jump to buying multifamily properties for lifetime cash flow. Multifamily Rockstars. Using OPM for an OMG ROI. Now, here are your hosts, Rod Khleif and Mark Nagy.

[00:00:28] This is Multifamily Rockstars. And if you guys don't know, this portion of our podcast is people that are just killing it in the business. I've got my co-host Mark Nagy, who's the director of our massive action team for our incredible warrior program as a co-host. And we just have a lot of fun on this show. If you haven't listened to it, I know you'll enjoy it. Mark, what's up brother?

[00:00:47] What's going on, Rod? And I would say even more importantly than that, this show is where we walk through people's first deals and people that have gotten into the business from brand new. So if that's you, this is what you want to listen to.

[00:00:58] Absolutely. So today we've got John Potts. And John is a warrior, but he's also, he started in house flipping and he is in over 150 units now. And we're going to have a lot of fun today. John, welcome to the show, brother.

[00:01:14] Thanks. Thanks for having me, Rod. I appreciate it.

[00:01:16] Absolutely. So why don't you give us a little background on, you know, why real estate, you know, how long you've been at it. If you did anything before that, that might've lended to some skill sets related to real estate and, and just kind of bring us current, give us a little bit of your history.

[00:01:34] Yeah. Yeah. So, so I'll go back to kind of, to the beginning, how I got into real estate. So, you know, like a lot of people, I, excuse me, I, you know, went to college and then after college got into a W2 job, met my wife, Pam, who was a nurse at the time.

[00:01:53] And so we, you know, we were both in our W2 jobs and we decided, you know, we looked at each other one day and we're like, you know, this isn't really the life for us, you know, having to wake up to alarms and, you know, not see each other.

[00:02:07] And so we wanted more out of life. We wanted more for ourselves. So our first year of marriage, we decided, Hey, we're going to start a company flipping houses.

[00:02:17] So, you know, we go into it. We get educated. We ended up spending all of our wedding money. We cleared our bank accounts to get educated and, you know, we dove all in. Right.

[00:02:30] Right. We found our first house to flip and, you know, we start working on that project. And then my wife's like, Hey, I want to become a real estate agent.

[00:02:39] So she goes to classes, becomes a real estate agent. And she's like, I think I'm going to leave my nursing job and go full time at real estate. Right.

[00:02:48] So now here we are, and I were living off of one income and that one income is very small.

[00:02:56] Well, my salary was not big at the time. And so what ends up happening is, you know, we're flipping this house.

[00:03:04] Now we got this credit card debt because we're using leveraging credit for the materials of the house that we're flipping.

[00:03:10] Well, finally we flipped the house, we get it on the market, it gets sold and we were able to recoup some of our money back.

[00:03:18] So then my wife started doing a little bit better in her real estate career. And so I was like, Hey, I'm going to quit my job now.

[00:03:25] So we're back to one salary again. Right. Well, so I focused my attention on the house flipping and she focused on her real estate agent business.

[00:03:35] And we decided, you know, and, you know, one house turned into another and another and another.

[00:03:40] And now, you know, to this day where, you know, we've flipped over 20 houses.

[00:03:45] But then we had that aha moment again, we looked at each other again and we're like, man, we just created another job for ourselves.

[00:03:52] And the income was very inconsistent. So then we're like, okay, we need to do something else.

[00:03:59] So that that's when we kind of started looking into multifamily and came across Rod and the warrior program.

[00:04:06] And my goodness, it was incredible that his program.

[00:04:10] So again, like we, you know, we always do.

[00:04:13] We jumped in head first and, you know, started learning and I joined the warrior program.

[00:04:18] And it has been life changing.

[00:04:21] The amount of people I've met in the warrior program are just amazing.

[00:04:27] I've had some great relationships with people.

[00:04:29] And that's actually how I found the partners that I am partnered on in my 84 unit.

[00:04:35] So, you know, thanks to you, Rod, your program is incredible.

[00:04:39] The people you attract are just some amazing people that are doing such good things in this world.

[00:04:46] So, so that's kind of, I really appreciate that brother.

[00:04:49] I really appreciate all those kind words.

[00:04:52] Well, let's, let's get, let's get micro for a minute and let's talk about that 84 unit deal.

[00:04:57] By the way, where were you flipping houses?

[00:04:59] First question.

[00:04:59] So I'm in the Pittsburgh market.

[00:05:01] So I'm, I gotcha.

[00:05:03] Yeah.

[00:05:03] So older, older property, I take it then.

[00:05:06] Correct.

[00:05:06] Yeah.

[00:05:06] And that's, that's much more challenging than, than, than newer stuff.

[00:05:10] I mean, those older, you know, you deal with any antebellum hoses or 50s, 60s, early 2000s, early 1900s.

[00:05:19] What?

[00:05:19] 50s, 60s is, is kind of where we stick to.

[00:05:23] Okay.

[00:05:24] There's anything can go wrong and you know, they're older built.

[00:05:27] So every house is different.

[00:05:29] Right.

[00:05:29] Yeah.

[00:05:30] And you don't know what you're getting into in many cases with an older one like that.

[00:05:34] You start tearing stuff out and you're like, holy crap.

[00:05:36] We didn't anticipate this.

[00:05:38] I mean, so, okay.

[00:05:40] So, so let's talk about that 84 unit.

[00:05:43] Where is it?

[00:05:43] How'd you find it?

[00:05:44] Let's start there.

[00:05:45] Yeah.

[00:05:46] So it's outside, like about an hour outside of Pittsburgh.

[00:05:50] So, you know, kind of boots on the ground there, but you know.

[00:05:54] So that's what that's, did you find it and did you bring it to the team?

[00:05:58] Is that how it started?

[00:05:59] And then said, Hey, I can be the boots on the ground here is just want to clear that.

[00:06:03] Yeah.

[00:06:03] As crazy as it is, no, I did not find it.

[00:06:06] So another warrior brought it to me, knew I was in the Pittsburgh area and brought it to me.

[00:06:11] And then a second warrior came to me and brought it to me.

[00:06:15] And I was like, wait a minute, why are we competing here?

[00:06:17] Let's all work together.

[00:06:18] So they didn't know each other at the time.

[00:06:21] So I introduced them and said, Hey guys, why don't we kind of pull a team together and

[00:06:25] work on this together?

[00:06:27] So that's actually kind of how it all started.

[00:06:30] Now real quick, why did they bring it to you?

[00:06:33] What was the relationship?

[00:06:34] What was the value add that you had that made them say, Hey, I'm going to bring this to John.

[00:06:38] Cause this is important.

[00:06:39] The listeners always ask these questions.

[00:06:41] Number one, they knew I was in Pittsburgh, so they knew I could be boots on the ground,

[00:06:44] but there was a second guy also in Pittsburgh as well.

[00:06:47] So that was number one, but number two is, um, you know, I met one of the warriors at,

[00:06:53] at one of Rod's events and we just seemed to really click.

[00:06:57] Um, and you know, we hit it off and we aligned correctly.

[00:07:01] And I think that, you know, his weaknesses were my strengths and my strengths were his,

[00:07:05] you know, vice versa.

[00:07:06] Right.

[00:07:06] So I think that, um, through relationships is kind of why they brought it to me and,

[00:07:14] you know, how it all kind of started.

[00:07:16] Was it a warrior event that you met him at, or was it a bootcamp?

[00:07:19] Yeah, it was a warrior event.

[00:07:21] Warrior event.

[00:07:21] Yeah.

[00:07:21] And we just had one in Phoenix.

[00:07:23] If, uh, if you're not familiar with what that means, we pull, you know, I don't know,

[00:07:27] three, 400 of, of my warriors together and we do deep dives on underwriting.

[00:07:31] But the main reason we get together is for everyone to meet each other.

[00:07:34] We even break up the room based on geographic area.

[00:07:37] We put a map on the screen and like, okay, if you're in California, you're on the left side

[00:07:41] of the room and vice, you know, whatever.

[00:07:43] And, and, uh, so that's awesome that, that just, it feels good to hear that, how effective

[00:07:49] what we planned to be effective in is, is, uh, in, as it relates to this deal for you.

[00:07:55] So that's, that's really kind of, uh, uh, gives credibility to, you know, or validation

[00:08:00] to the hard work we put into putting you guys together like that.

[00:08:03] So I appreciate that.

[00:08:04] So, so you found the deal, um, how keep going, who underwrote it?

[00:08:11] How did you do it together?

[00:08:11] Was it collective?

[00:08:12] How did you determine it was a deal?

[00:08:14] Two of the other partners underwrote it and we kind of all looked at it.

[00:08:19] I mean, it was a little bit of a no brainer when it came, uh, when it came to the deal,

[00:08:24] it was, you know, the 84 units was purchase priced at 1.45.

[00:08:29] So, uh, uh, what is that per unit?

[00:08:33] What is that?

[00:08:34] It was like 17 or 18,000 per unit.

[00:08:37] Yeah.

[00:08:37] Oh my God.

[00:08:38] A little bit of a no brainer.

[00:08:39] Um, so, you know, now it is a low income, um, property, but it has to be at that price.

[00:08:46] Yeah.

[00:08:47] Yeah.

[00:08:47] But the contract ends in 2025.

[00:08:49] So, you know, at some point we might go to market rents.

[00:08:53] Um, but you know, so that, so two of the other warriors underwrote it and we all just were

[00:08:58] like, yeah, this is kind of a no brainer.

[00:09:00] Let's, you know, put in an LOI, you know?

[00:09:02] Okay.

[00:09:03] How did you finance it?

[00:09:04] What sort of debt did you put on it?

[00:09:06] So we got bank debt.

[00:09:07] Um, and then all of us, um, you know, we, all the partners brought, brought our own money

[00:09:12] in as well.

[00:09:13] Okay.

[00:09:13] So you JV, this was a JV deal.

[00:09:15] It was, yes, it was a JV.

[00:09:17] Okay.

[00:09:17] So you didn't, you didn't syndicate it.

[00:09:18] So it's a joint venture.

[00:09:19] So, so just so let me explain to the listeners, if all of the partners in a deal are active,

[00:09:25] you can, it's a joint venture.

[00:09:27] Okay.

[00:09:28] Um, uh, but if you have, you can't, you can't raise money from somebody and, and not have

[00:09:32] them be active, um, uh, in a joint venture.

[00:09:36] So, um, that's super important, but, uh, you know, that kind of pricing, yeah, I'd be

[00:09:42] crazy to syndicate it and divide it up.

[00:09:44] I mean, dilute it even further.

[00:09:46] Um, so that was a really smart way to buy it.

[00:09:49] So you got bank debt, which of course has recourse, you know, you, that does is recourse

[00:09:54] debt, but what sort of loan to value did you get or loan to purchase?

[00:09:58] You know what?

[00:09:58] I do not know that, uh, off the top of my head.

[00:10:01] How much money did you guys put into the deal?

[00:10:02] Let's do it that way.

[00:10:04] Uh, yeah.

[00:10:05] So we brought in, um, like 800,000 into the deal.

[00:10:08] Okay.

[00:10:09] Um, and that, and that included, that included the CapEx that included the operating, some

[00:10:14] operating reserves.

[00:10:15] You know, you always have to want to have some money in the bank that included the closing

[00:10:18] costs and, and the difference between the loan, you know, and the loan to value.

[00:10:22] Okay.

[00:10:23] Well, that's, that's, that's reasonable.

[00:10:24] Walk us to what you're going to do to it.

[00:10:26] Was, was this just, was it distressed?

[00:10:28] Was it, are you going to rehab the units?

[00:10:30] Was it under rent?

[00:10:31] What are you going to do to increase the value?

[00:10:33] And then what do you think that's going to look like when you're done?

[00:10:35] Yeah.

[00:10:35] So the whole goal is to, as units become vacant, we are going to renovate units.

[00:10:40] Um, I believe we're putting, you know, 8,000 or something into each unit.

[00:10:45] We're also doing, uh, new roofs on three out of the seven buildings.

[00:10:50] We're doing all new electrical work in it.

[00:10:52] So, you know, we're doing quite a heavy lift on the, uh, you know, on the rehabs.

[00:10:57] Um, and then the whole plan is really to increase the rent by at least 50 to $75 right now.

[00:11:06] Um, since we are in a, um, low income contract.

[00:11:10] And then what we're going to do is, uh, go to market when it's up and then the rents by

[00:11:16] that, that much more.

[00:11:17] So.

[00:11:17] Yeah.

[00:11:18] It's probably significantly more, honestly, you know, and so it comes due in 25.

[00:11:22] So you've only got a couple of years, really one, one, a little over one year left unless

[00:11:26] it's late in 25, but, but regardless that, so who is managing the asset?

[00:11:30] Are you doing it internally or you have a third party property management company?

[00:11:33] Yeah, we have a third party property management company.

[00:11:36] It was actually the property management company.

[00:11:37] We just kept them on.

[00:11:39] They were currently managing the property.

[00:11:42] Doing a decent job.

[00:11:43] Okay.

[00:11:43] Yes.

[00:11:44] Okay.

[00:11:45] Um, do you know what the projected value is when, when you're done with all those rents?

[00:11:49] I don't know if you mentioned that.

[00:11:49] So when we go to market and everything, we're projecting that it should really be worth 4

[00:11:55] million, uh, when, when we're done with it after five years.

[00:11:58] Yeah.

[00:11:59] So more than double, I love hearing stuff like that.

[00:12:01] Questions I get all the time is like, how, how do you make money in multifamily?

[00:12:05] How does it all work?

[00:12:06] And just hearing the numbers, like from one and a half million to 4 million with what

[00:12:10] you put to set 50 to $75 in rent bumps.

[00:12:13] That's obviously why we love doing this.

[00:12:15] Right.

[00:12:16] Yeah.

[00:12:16] And, and honestly, those are not significant rent bumps.

[00:12:18] I mean, uh, very often you'll see higher rent bumps than that, but they, they have to

[00:12:21] limit them because they're under contract with, you know, low income housing.

[00:12:25] Um, and, and there are a lot of, uh, restrictions there, but the fact that that expires in 25

[00:12:30] is very exciting because, you know, you can probably upgrade the demographic.

[00:12:33] You can improve the tenant demographic tenant profile and, uh, and really, and really push

[00:12:39] the rents.

[00:12:40] Um, so, so who is managing the renovations as units come due?

[00:12:44] Is, is, is the, is the management company proficient in that?

[00:12:48] Or, uh, you know, how, how are you handling the asset management piece?

[00:12:51] Cause guys, when you buy one of these assets, yeah, you may give it to a management company,

[00:12:54] but you're still managing them.

[00:12:56] It's called asset management.

[00:12:57] You still got to manage the managers.

[00:12:58] So speak to that a little bit.

[00:13:00] The property management company is we're definitely working very closely with them, um, on all the

[00:13:05] renovations of the units.

[00:13:07] Um, we have one of the partners and myself that are close.

[00:13:10] So we're kind of, um, you know, back and forth helping out with the, the asset management.

[00:13:16] Um, but yeah, so we're, we're kind of working closely.

[00:13:20] Everybody's kind of working together with property management and then us, uh, with all the renovations

[00:13:25] happening.

[00:13:26] So what are you best at John?

[00:13:29] What are you best at?

[00:13:31] So, so my whole like, you know, strength or, or, or anything is definitely

[00:13:35] asset management, uh, just because flipping houses, I've, you know, I I've definitely had

[00:13:40] a background in managing, you know, projects and, and different things like that property

[00:13:45] management and stuff like that.

[00:13:47] Um, and then, you know, kind of bringing capital and stuff, uh, to deals and helping raise capital.

[00:13:53] You know, I raised money for all of my flips.

[00:13:56] So, uh, that's something that, that I can definitely be an asset to, to a team, uh, in the

[00:14:02] multifamily space.

[00:14:03] What are the other members do?

[00:14:05] Sorry, before you move.

[00:14:06] Sorry, Mark, what, what, what are the other team members do on the team?

[00:14:09] Like you said, it's a joint venture.

[00:14:11] So everybody has to have a role.

[00:14:13] Um, we all brought money to the deal, but we all are, you know, kind of, I mean, we're

[00:14:17] jumping on calls every week and every month with property management where every person

[00:14:22] is kind of, you know, helping out with the renovations and calling contractors and, um,

[00:14:30] you know, was, was, was it played a role in the financing and, you know, getting all the

[00:14:34] debt.

[00:14:34] And so like every single person has had a job and continuously has a job in the role because

[00:14:42] it is a joint venture.

[00:14:43] You have to make sure that, that you all have a role, uh, in the property.

[00:14:48] Since it is, do you plan to sell at that point or do you guys plan on refinancing, holding

[00:14:54] forever and just rinse and repeat that?

[00:14:57] Yeah.

[00:14:57] I mean, I, I definitely think that, you know, we would like to keep it.

[00:15:01] Uh, we're, we're going to take a look at it after five years and see what we kind of want

[00:15:05] to do and see where we're at with the market.

[00:15:08] But I, I definitely think that it's something we would like to refinance and possibly keep,

[00:15:13] uh, cause why not?

[00:15:15] Is it a C C area?

[00:15:16] What is it C area or D area?

[00:15:18] It's C it's a C area.

[00:15:20] Okay.

[00:15:21] Now coming into this, you mentioned a couple of things in terms from your flipping business,

[00:15:25] the project management, and then the raising money.

[00:15:27] One thing that I think is really important.

[00:15:29] Did you know that when you jumped into multifamily, were you thinking, Hey, these could be my potential

[00:15:34] skill sets or did you not know?

[00:15:36] And you kind of figured it out as you went.

[00:15:38] I, I definitely didn't know.

[00:15:40] Right.

[00:15:41] I didn't know where I would play a role.

[00:15:43] Um, you know, I, I think just getting tapped into Rod's program and then kind of figuring

[00:15:48] it out and doing some self discovering, uh, really helped me figure out like where I would

[00:15:54] fit in and where my place would be in the business.

[00:15:57] So yeah, I didn't know coming in.

[00:15:59] It was something that I had to take a look at and really figure out.

[00:16:02] What were some of the hurdles?

[00:16:04] I mean, everybody thinks it's easy.

[00:16:05] Okay.

[00:16:05] Yeah.

[00:16:05] You're only paying 17 grand a door.

[00:16:07] That's pretty hard to screw that up, but, uh, I'm sure you had some hurdles.

[00:16:12] Talk about, talk about, uh, one or two of the big ones.

[00:16:15] One of the big ones was really, um, the property has aluminum wiring.

[00:16:20] And so it was really, really difficult to find an insurance company to ensure something with

[00:16:27] aluminum wiring.

[00:16:28] So that was something that we really kind of weren't expecting.

[00:16:33] And then, you know, we had to, you know, come up with a plan for CapEx to really fix all

[00:16:41] the aluminum and transfer.

[00:16:44] Yeah.

[00:16:44] Yeah.

[00:16:44] Yeah.

[00:16:45] The pigtail, pigtail everything.

[00:16:46] Yeah.

[00:16:46] Either pigtail it or go complete copper, um, and do a full rewire.

[00:16:51] So we're going to do a full rewire on it.

[00:16:53] Oh, wow.

[00:16:54] Wow.

[00:16:54] Yeah.

[00:16:54] So it's, it's quite extensive.

[00:16:56] Um, but that was a huge hurdle.

[00:17:00] I mean, we went through so many different companies to try to find this, um, you know,

[00:17:05] get insurance on the property.

[00:17:07] So that, that was a major hurdle, uh, especially, you know, towards getting it closed out.

[00:17:11] So, yeah, I'm sure your premium for your premium, uh, reflects that hurdle.

[00:17:17] Now, now, uh, what is just out of curiosity for my own edification?

[00:17:20] What is a complete rewire on 84 units going to run?

[00:17:24] So we're at like, I want to say 450,000, which wasn't too bad.

[00:17:29] Uh, but you know, the, the contractor is, you know, going a little slower than, than we

[00:17:36] expected.

[00:17:37] So, you know, we might have to re dive into getting some other, other people in there

[00:17:42] as well.

[00:17:42] So it could go up.

[00:17:44] So what do you feel like is your next plan for the next deal?

[00:17:47] Do you want to continue to JV these deals and stick with this strategy?

[00:17:50] Do you want to syndicate, raise money?

[00:17:52] What are you thinking you want to do next?

[00:17:54] I would love to joint venture continuing forward, but, um, you know,

[00:17:59] in this type of market, I don't know if that's feasible.

[00:18:01] I think that what, you know, I definitely want to syndicate.

[00:18:05] That's, that's kind of one of the main reasons I joined Rod's program.

[00:18:08] Um, it just so happened this, this deal was a joint venture, but, um, you know, I would

[00:18:13] love to raise money and, you know, kind of jump in on that end of the things and syndicate

[00:18:18] a deal for sure.

[00:18:19] Uh, I mean, obviously when you join venture at some point, unless you have a bottomless

[00:18:24] well of money, you know, you're going to run out of money.

[00:18:26] And so, you know, that's why syndication makes sense, uh, using other people's money.

[00:18:31] By the way, guys, if you're listening and, and you have any interest in exploring our warrior

[00:18:36] program, text the word crush to seven, two, three, four, five.

[00:18:40] Um, and, uh, just, uh, you'll find out just how extraordinary it is.

[00:18:43] Again, you text the word crush to seven, two, three, four, five, uh, to apply.

[00:18:47] What's next for you, buddy?

[00:18:49] Besides syndication, I mean, what, what, what are your goals in this business?

[00:18:52] Talk about, talk about your goals in this business and why they're your goals.

[00:18:56] Yeah.

[00:18:56] I mean, obviously my goals are to scale.

[00:18:58] Um, that was one reason why I started going down the multifamily, you know, avenue is because,

[00:19:04] uh, flipping houses and different things like that, you know, single family homes isn't

[00:19:08] as scalable.

[00:19:10] So, you know, obviously I just, you know, got this 84 unit I'm invested passively in,

[00:19:15] in, you know, 66 units as well.

[00:19:18] And, you know, so my goal really is to just kind of scale this up, um, keep working with

[00:19:25] other warriors and kind of grow my business, grow my cashflow.

[00:19:30] Um, you know, and then kind of go from there.

[00:19:33] Now, what, what are you seeing with the market?

[00:19:35] Obviously prices are coming down in multifamily across the country, right?

[00:19:38] That's just what's happening because of interest rates and they've kind of stabilized out, but

[00:19:42] they're going to continue to come down, right?

[00:19:44] That's what everybody's talking about right now.

[00:19:45] How are you viewing that for your own business?

[00:19:50] Are you, does that worry you?

[00:19:51] Are you excited about that?

[00:19:53] What's, what's your mindset around what's going on in the multifamily market at the moment?

[00:19:57] I'm really optimistic about what's coming, um, in the multifamily space.

[00:20:02] I think right now I'm not seeing as many, you know, the prices are dropping, but I still

[00:20:08] think sellers are being a little unrealistic on some of their listings and, and their prices.

[00:20:13] I think it's, you know, the, you know, what's going to hit the fan at some point.

[00:20:18] Um, and we're going to see some major decreases in prices.

[00:20:22] And I, I think really good things are happening in the market and I'm extremely excited about

[00:20:28] what's to come.

[00:20:29] Yeah.

[00:20:30] We're, we're, I will tell you, I just came from San Antonio yesterday.

[00:20:32] We've got a 200 unit there that was under contract for 26.

[00:20:37] We're getting 26 million.

[00:20:38] We're getting for 20.

[00:20:39] Okay.

[00:20:40] And, and so, uh, yeah, screaming deal a hundred, a hundred grand a unit.

[00:20:45] And the one right next door recently sold for 137 a unit and it ain't got nothing on

[00:20:50] ours.

[00:20:50] And so Lakefront just spectacular.

[00:20:53] By the way, if you're listening and you're accredited and you want to check out the deal,

[00:20:56] text the word partner to seven, two, three, four, five, and we'll talk to you about

[00:21:00] it, but it's a absolute screaming deal.

[00:21:03] Um, so real quick on that topic with on your deal, if you could speak for the listeners,

[00:21:08] was that a deal that got price decreased because there was distress or was it just because cap

[00:21:12] rates have gone up and the price came down?

[00:21:15] It's a distressed deal.

[00:21:16] I mean, they, they sell or ran out of money.

[00:21:18] Uh, they won't admit it, but they ran out of money and, and, and we're just, uh, you

[00:21:23] know, the, it was under contract twice previously before they fell through, they couldn't raise

[00:21:28] the money or they, um, one was something to do with crowdfunding that screwed up or something,

[00:21:33] uh, involving the sec.

[00:21:35] But the bottom line is it's a screaming deal.

[00:21:37] We just, we, we really, uh, I just spent the last two days there and just further affirmed

[00:21:43] what a great deal it is.

[00:21:44] And, and it's an, it's a mile away from one of our other assets, the 296 unit asset we

[00:21:49] have in San Antonio.

[00:21:50] So we've got economies of scale.

[00:21:51] It's on a lake.

[00:21:52] The units are huge.

[00:21:53] They have fireplaces.

[00:21:54] All of my washer dryer hookups.

[00:21:55] I mean, I can just go on and on.

[00:21:57] It's got so many incredible benefits that, that, um, very, very, we're assuming low interest

[00:22:02] rate debt.

[00:22:03] It's still got interest only period on it.

[00:22:05] It's long-term, uh, you know, uh, low interest debt at, I think 4%.

[00:22:09] Um, so, you know, it just, it, it checks off all the boxes.

[00:22:13] It's just a fantastic deal.

[00:22:15] Um, but, uh, anyway, so, so let me ask you, do you have kids, John?

[00:22:19] I do.

[00:22:20] I have a, uh, one-year-old.

[00:22:21] Oh, congratulations.

[00:22:23] How, how freaking cool is that, man?

[00:22:25] That's a fun age.

[00:22:26] Well, listen, let, so that ties into the next question.

[00:22:29] I want to ask you, what have you had to give up to get involved in this business?

[00:22:34] And in fact, before you answer that question, I want to, I want to, I forgot to circle back

[00:22:38] to something you said where you, you quit your job.

[00:22:40] Your wife went on a commission only job guys.

[00:22:43] I get asked all the time.

[00:22:45] Should I quit my job to do this?

[00:22:46] And my answer is always hell no.

[00:22:48] Why?

[00:22:48] Because you get, you can get caught up in fear and fear paralyzes you.

[00:22:52] Okay.

[00:22:52] And I don't know if that was your experience or you just pushed through in spite of it.

[00:22:56] It sounds like you pushed through in spite of it, but, um, but you know, you could speak

[00:23:00] to that, but I also want to find out what you may have had to sacrifice if anything, uh,

[00:23:05] to get into this business.

[00:23:06] Yeah.

[00:23:06] I mean, we've definitely had to, you know, sacrifice some finances for sure.

[00:23:11] Um, but then, you know, time is, is something I had to sacrifice.

[00:23:15] I mean, when you're starting anything, when you're starting a new business or a new venture,

[00:23:19] you know, time, you, you, you gotta, you gotta babysit it, right.

[00:23:23] You gotta, when you're starting a new business, you really have to spend some time on growing

[00:23:27] it.

[00:23:27] Right.

[00:23:28] So I, I definitely think that, you know, sacrificing my time to start something new has,

[00:23:34] has, uh, you know, been something, but, but yeah, I mean, honestly, like it's been amazing.

[00:23:41] I've, I've been enjoying coming to all your different events, you know, flying around the

[00:23:45] country.

[00:23:46] It's, it's really been a fun experience.

[00:23:49] It's just been, um, you know, like I said, a little bit of a sacrifice here and there.

[00:23:54] I mean, like everything though.

[00:23:55] So John, if you were a coach right now, teaching somebody who's just getting started into the

[00:24:01] business, let's say they have no experience.

[00:24:02] They haven't flipped any houses.

[00:24:04] They haven't done any real estate.

[00:24:05] What do you think you would make sure that they learn in that first 30 days jumping into

[00:24:11] this business?

[00:24:12] Jeez, that's a tough question.

[00:24:14] I mean, yeah, I, I definitely think you really have to educate.

[00:24:18] Um, education is, you know, nobody can take education away from you.

[00:24:23] And so I really think you, you can't just jump in not knowing anything.

[00:24:28] And I think going back on the education is mentorship, right?

[00:24:33] You have to find a mentor, somebody that will lead you there.

[00:24:37] You know, I don't think it's, you know, the best scenario to just jump into something

[00:24:43] without really knowing something.

[00:24:45] So educate and then find somebody that is going where you want to be.

[00:24:49] Right.

[00:24:49] I think that's so, so important.

[00:24:52] And that's why, you know, you got people like Rod out there that are teaching you and

[00:24:57] holding your hand through it, you know?

[00:25:00] Yeah.

[00:25:00] Yeah.

[00:25:00] If not a mentor, ideally a mentor, but if not, at least get in a group that's doing

[00:25:05] it so they can mentor you or, or, or, you know, and, and like this joint venture you did,

[00:25:10] you had multiple people involved that can, you know, basically spell check each other.

[00:25:16] Right.

[00:25:16] And, and look to see if, for lack of a better way to describe it, but, you know, you're,

[00:25:20] you're, you're really just, uh, you know, when you've got that many eyes on something,

[00:25:24] you know, like, like I like to say, um, you get, you get two minds together.

[00:25:29] They're greater than the sum of the parts.

[00:25:31] They create this third, almost intangible third mind.

[00:25:33] You get four or five people together.

[00:25:35] You've got, you've got some serious intellectual prowess to evaluate, you know, um, uh, situations

[00:25:42] and like in your case, evaluate a deal.

[00:25:45] So yeah, that's, that's one of the huge benefits of getting into a group, uh, that's doing this.

[00:25:50] So go to your local meetup groups, whatever, find multifamily meetup groups.

[00:25:54] Certainly check out our warrior program if you're interested, but, but, but get around

[00:25:58] people that want more out of life.

[00:25:59] They're not afraid of your dreams.

[00:26:01] They're not going to crush your dreams that are going to, you know, get around people

[00:26:03] that think what you think is hard is easy and success is inevitable.

[00:26:07] So, so by the way, if you're listening and you'd like to reach out to John, John, what's

[00:26:11] your, what's your email for someone to reach out to you if they've got a question?

[00:26:15] Yeah.

[00:26:15] So my email is johnpots at movementcapitalgroup.com.

[00:26:20] And that's P O T T S right.

[00:26:22] J O N right.

[00:26:23] J O N P O T T S at movementcapitalgroup.com.

[00:26:26] Okay.

[00:26:27] Now I appreciate you offering to do that.

[00:26:29] Listen, I really appreciate you coming on, John.

[00:26:31] I know this is the first time you've ever been interviewed.

[00:26:33] So, you know, go big or go home.

[00:26:35] Cause this is the largest in the world for what we do.

[00:26:37] And you did a great job, man, which I knew you would, but it's great to see you again,

[00:26:42] brother.

[00:26:42] And if I don't see you before the holidays, have a wonderful holiday with that little bundle

[00:26:46] of joy, a one-year-old.

[00:26:47] Oh my God, how exciting is that?

[00:26:49] So thanks brother.

[00:26:50] It's great to see you, man.

[00:26:51] Thank you so much.

[00:26:52] Appreciate it.

[00:26:53] So one other quick thing we encounter so many people that are frankly frustrated, you know,

[00:26:58] they're looking in the mirror and they're frustrated that they haven't been able to escape the rat

[00:27:02] race.

[00:27:02] They haven't been able to build cashflow to the point where they're able to have financial

[00:27:06] and time freedom with their families, you know, and maybe they see other people buying

[00:27:10] real estate and creating, you know, incredible cashflow.

[00:27:13] And they think, well, it's just scary.

[00:27:15] You know, buying apartments is intimidating and I get it.

[00:27:17] See, that's why we created our warrior mentorship program.

[00:27:21] They're our coaching students and they've had extraordinary results.

[00:27:24] My students, I've been teaching about five years and they own upwards of 140,000 units now

[00:27:29] that we know of, right?

[00:27:30] And we feel like it's just getting going.

[00:27:32] Now we're looking to grow this group and really take it to the next level.

[00:27:36] And honestly believe that the greatest transfer of wealth could be upon us right now with this

[00:27:40] current economic environment.

[00:27:42] Everything's going on sale.

[00:27:43] So we're looking for people who want to follow a proven framework, really like a blueprint

[00:27:48] or a map, literally step-by-step.

[00:27:50] And then they're able to leverage our systems and our incredible network to raise money

[00:27:54] and equity, to find deals and close those deals and build partnerships really nationwide.

[00:27:59] So if you're interested in finding out more about how you can become more in our incredible

[00:28:04] network and take advantage of the unbelievable opportunities that are upon us, you can apply

[00:28:08] to my warrior mentorship program by texting the word CRUSH to 72345.

[00:28:13] Or you can go to mentorwithrod.com.

[00:28:16] And what we'll do is we'll set up a call so you can check us out and we can check you

[00:28:20] out and see if it's a fit.

[00:28:21] Now, again, you can go to mentorwithrod.com or text the word CRUSH to 72345 to apply.

[00:28:27] And we will speak soon.