002: Discovering the Secret Language of Apartments
If you are here listening to this podcast, you are probably tired of flipping properties each and every month. I am so excited that you are here, and I am so excited to help you think a little bit bigger and focus on multifamily apartment buildings. For me, the shift came when I asked, “how can I own apartment buildings?” I am here to help you make that mindset shift that will help you to think bigger and to invest bigger. I’m also going to be sharing a lot of secret techniques with you.
In the last episode, I talked about the big picture, I shared my story, and we talked about why you should invest in apartments and the three ways to get paid when investing in apartments. The first episodes of these podcasts are going to be pillar podcasts. There are really six secret pillars for cash flowing apartments. In future episodes, I’ll be talking about the secrets of finding apartment deals, analyzing apartment deals to make money, making offers, funding deals, and how to become a great operator. Today, I am going to talk about discovering the secret language of apartments.
Topics on Today’s Episode:
- The six secret pillars for cash flowing apartments
- ABCs of buildings and grading apartments
- Newer apartments with a lot of amenities are developer and REIT games
- Properties built in the 80s and 90s are B properties
- C properties built in the late 60s and 70s – no washer dryer hookups
- D properties are the war zone, where you don’t want to go at night
- Making money with B and C properties and doing discovery to find them
- Areas are graded A, B, C and D or the war zone areas
- Market cycles and being mindful of current cycles
- Apartments are based on cash – flow not appreciation
- Looking for the best opportunity to make good money and finding emerging markets
- Buying and holding for 3 to 5 years or forever and selling at the peak of the market
- Capitalization rate and buying at a high cap rate
- Managing expenses and having consistent income
- Looking for deals at a good return, making improvements, and making value
Links and Resources Mentioned:
Don’t forget to download my Free Workshop Quickstart Video Series, and if you like what you have heard please leave a review on iTunes. On the next episode, I am going to give a quick shout out to some of my reviewers.
001: The Power of Cashflow in Real Estate Investing
Welcome to the multifamily apartments investing podcast, I am your host Corey Peterson. I am so excited to launch this podcast because it is going to do amazing things for people. I believe that what we do is done for sunsets and palm trees. We want to create the life we dream of, and we do that through apartments and cash flow. This podcast is for anyone who is tired of doing single family flips and doing it each and every year.
The power of cash flow and the vehicle of apartment investing has changed my life radically. Being in the apartment industry has been a great and inspiring journey. I just want you to know that you can buy these amazing assets and create a wealth like you have never known. Before I get into the main episode, go download my free video series that shows you how to get started in apartment investing using other people’s money.
Today, I am going to share who I am and what my story is. First off, I am a country boy at heart who grew up in West Plains, Missouri. I grew up on a farm, and I am quite proud of that upbringing because it made me the man and the investor that I am today. Out of High School I didn’t have any direction. I also didn’t have a degree, so I became a car salesman. I learned a lot about selling, but my future wife didn’t want to marry a car salesman. I called in all of the favors I could and ended up becoming a restaurant manager.
I then dabbled in restaurant sales. Before I got married, my mom invited me and my fiance to Hawaii. The trip was beautiful, amazing, and eye opening. Bruce, my stepdad, had a magical house in Hawaii. His house was on a cove that had a freshwater stream running into the ocean. He had the house, the cars, and the life. When I asked him what he did he said real estate. This was the beginning of my lifelong love of the potential and power of real estate investing.
Topics on Today’s Episode:
- How I grew up in the Ozarks like the ones in Deliverance
- The 5 years that I spent selling cars really taught me how to sell and communicate
- How I went from selling stuff to managing stuff and what I learned in the process
- A trip to Hawaii had a profound effect on my future and opened my eyes to the power of real estate
- Bruce was a real estate investor in multifamily properties with cash flow
- Starting with the dream as my goal and opening Kahuna Investments
- Being a financial advisor for Edward Jones and my commitment story
- How the best time to jump into real estate is at the bottom
- Wrestling with the man in the mirror
- The high stakes for the level of commitment I made
- Searching for a real life mentor and taking massive action
- Meeting Bob Norton by accident and wholesaling
- Finding OPM other people’s money
- Letting investors self select and asking who they know
- How private money opened the opportunity for multiple deals
- Funding my first apartment deal that I still own today
- How there are multiple ways to get paid with apartments
Links and Resources Mentioned:
Corey Peterson on Raising Private Money (and Closing on the Biggest Deal of his Life)
Corey Peterson started his real estate career in 2012. He raised enough private equity to acquire an apartment complex, and now, five years later, he’ll be selling it for a $5.6 million profit. How on earth did he do this? Corey shares his personal tips on how he was able to raise capital early on and get into the real estate business, despite being someone who struggled throughout high school.
The power of cash flow and the vehicle of apartment investing has changed my life radically. Being in the apartment industry has been a great and inspiring journey. I just want you to know that you can buy these amazing assets and create a wealth like you have never known. Before I get into the main episode, go download my free video series that shows you how to get started in apartment investing using other people’s money.
Key Takeaways:
- Corey is 13 days away from closing and profiting $5.6 million!
- Corey closed his first deal in 2012.
- Who is Corey and how did he get started in real estate?
- Corey spent a whole year learning about real estate. In 2012, he bought his first apartment complex and raised $1.4 million (bought it for $3.2million) and is about to sell that property for $8.8 million.
- How did Corey learn how to raise private money?
- Corey didn’t know private money was possible for a guy like him, who struggled throughout high school.
- So, how did Corey find the apartment complex in 2012 and what did he do to acquire it?
- Remember, there is no magic pill.
- Corey explains his ‘Godfather’ moment. He HUSTLED!
- Corey unfortunately got into some bad legal battles because he did not cross all his T’s and dot his I’s, Be careful! Get a lawyer!
- Corey discusses the different property classes: A, B, C, and Warzone.
- What advice does Corey have for the real estate guys out there who are just on that hamster wheel and can’t get out of it?
- How passive is ‘passive’ income, really?
- Corey explains his process and how he gets things done!
Homes for Wholesale
Most people, when they are wanting to do real estate quickly run out of gas for 3 reasons. 1. No money 2. No Credit or 3. Can’t find a deal. I can solve 3 very easily because I have homes for wholesale. And, I can teach you how to get past no money and no credit. Click play to learn more.
Short Sale Realtor in Arizona
Short Sale Realtors in Arizona are a dime a dozen. But a professional Short Sale Realtor, now you have narrozwed the field. The “Kahuna Team” at West USA Realty Revelation is dedicated to not only provide you help in the short sale process, but to give you great sources of information. If you are looking for a superb Short Sale team, then please consider us. Please click on the video below to learn more about Short Sales.Real estate investing can be a lot of fun. But it is also a skill that is learned and sharpened all the time. On the video below, I talk about 3 steps you need to acheive to help become successful in dealing with Bank Owned properties, short sale properties and anyReal estate investing can be a lot of fun. But it is also a skill that is learned and sharpened all the time. On the video below, I talk about 3 steps you need to acheive to help become successful in dealing with Bank Owned properties, short sale properties and anyReal estate investing can be a lot of fun. But it is also a skill that is learned and sharpened all the time. On the video below, I talk about 3 steps you need to acheive to help become successful in dealing with Bank Owned properties, short sale properties and any