Avoid Learning Multifamily The Hard Way

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Intro
Hi, my name is Rod Khleif, and I’m the host of “The Lifetime Cashflow Through Real Estate Investing” podcast. And every week, I interview Multifamily Rock Stars and we talk about how they build incredible wealth for themselves and their families through multifamily properties. So hit the “Like” and “Subscribe” buttons to get notified every Monday when a new episode comes out. Let’s get to it.

Rod
Welcome to another edition of The Lifetime Cashflow Through Real Estate Investing. I’m Rod Khleif, and I am thrilled you’re here. And I know you’re going to get value from the gentleman I’m interviewing today. His name is Chad Schieler. And Chad is in several things, credit card processing, but he’s also a multifamily operator. And he’s in 139 doors as a General Partner. He’s got 900 plus as a Limited Partner from Indianapolis. And so let’s have some fun today. Chad, welcome to the show, brother.

Chad
Thanks, Rod.

Rod
Take a minute and do a much better job of telling my peeps who you are and where you came from and why multifamily.

Chad
Yeah, thanks, Rod. I would say it all started five years ago. Well, it’s good before that. I started doing credit card processing back in ’07. And for a long time, did sales, you know, learned that process, got very good at that. Built a nice little portfolio myself for residual income. But I learned over time that you know, there was a ceiling to that. I didn’t have full ownership over that business, and I wanted to provide more security and more stability for my family long-term. Started to get more into personal growth. That was my turning point there as reading some books like “Rich Dad Poor Dad”, getting into mentoring and coaching. And I learned that real estate was really a path that I wanted to be on that had a lot of potential. It could make a big impact with other people and communities. Great wealth-building tool. It could happen very, very quickly actually, I learned. And I knew I wanted to move away from the sales-type business to something I could control and own. So, I knew it was a path I wanted to be in for a long time and it just finally happened after many years of researching.

Rod
Well, I got to circle back on a couple of things you said. You said personal growth. Did you do anything in that vein besides read “Rich Dad Poor Dad”? Because I mean, that’s like crack cocaine for me, personal growth, motivation. So, elaborate if there’s anything to elaborate on there.

Chad
I knew for a long time I should spend time on personal growth every day and every week. I just never did it. I think what changed for me is realizing that I had to start my day with what is most important to me. So shifting my day to starting with personal growth, so it always got done, that’s what changed. If you wait till the end of the day, life happens, right? The world gets in front of you, emails, TV, family, and it never got done. So shifting to– starting personal growth started your day. I feel like that was a turning point for me.

Rod
You also alluded to coaching. So you got a mentor like me to grow in this business and got into an environment where people are talking shop all the time. And how long ago did you do that?

Chad
That was about a year ago.

Rod
Year ago. And you did 139 doors since then. Congratulations, brother. That’s awesome.

Chad
Yeah. Thank you.

Rod
And you see the value, obviously, in that. I mean, I’m always talking about it, you know, for my peeps. You basically pay for speed is what you’re doing. You know, you get a mentor, you get an environment to work in. And would you say you got great value from that environment?

Chad
100%.

Rod
Yeah.

Chad
Rod, a few things on that. I knew that while it costs money, obviously, to get a coach, I knew that that alone I would save the mistakes, learn from somebody else. I would accelerate my learning curve by years, right? And I was, you know, 41 years old last year, I had some time to make up there. I had to learn as fast as I could. So having a coach on board was truly monumental for me.

Rod
Yup. No, that’s great. Well, if it makes you feel any better, I’ve got socks that have two decades on you, so you’re– so, anyway, we were talking about team a little bit before we started recording and really the role that you play in your business. And you’re obviously coming from a sales background. And I asked, you know, what parts of the business do you enjoy talking about? And you told me relationship. So, you know, broker relationships, investor relationships because you’re a great communicator. Do you want to elaborate on that a little bit?

Chad
Yeah. You know, the two parts of this business that really drives it is either getting deals in your funnel, right, getting more revenue, more deals, or getting capital. It’s like chicken and egg. Which one comes first? You got to have the deals, you got to have the capital. So, the two tasks that I work best at, that I deem are the most important tasks is getting deals under contract, spending the LOIs, and getting investors on board. So I’ve determined that building this relationship with brokers is so key. Being in front of them to where when they have a deal that comes off-market, they’re thinking of you right away. It’s like the squeaky wheel gets the grease, right? If you are in front of their face talking to them, you won’t– and then with investors, that’s a relationship all in itself. You’ve got to always talk to them. It’s not a one-and-done type thing because that’s a revolving door. As you get them involved in one deal, that’s a repeat business. That’s a repeat customer again and again.

Rod
And basically, you focused on what you’re strong at, right? I mean, in this business, it’s a team sport. I’m sure you’ve discovered that already. And, you know, there are different hats a person can wear. There’s obviously what you’re doing, which is the initial outreach and the investor relations, broker relations. Then there’s the underwriting, you know, and you need somebody that’s super analytical to review the numbers and bounce the numbers back around. Like I’ve got a whole board of people that do that on our deals. And then you’ve got the operational piece, you know which takes somebody that loves management or has maybe done construction, done project management, done things like that. So all those pieces come into play. Now, of course, the two most important are finding deals and finding money or raising money. But those other ones are still very, very– they’re required. I mean, they’re not just valuable, they’re necessary. So let me ask you this, talk about some of the good decisions you’ve made and then maybe some of the bad decisions you’ve made after you got started this business in the last year.

Chad
Probably a bad decision was actually right before I got in the mentoring program. And that’s what prompted me to find a mentor. I’m like, this is not going to happen again. I can’t make mistakes again. This has got to change. So the mistake I made initially was I think having the wrong person in charge of doing the underwriting, reviewing the inspection reports, finding the contractor, and we had a property that– I mean, we didn’t underwrite properly, our capex budget was not big enough. We underwrote to a fixed-rate debt. We are on a floating at first. I didn’t know that. So my fault for not reviewing the loan details. The contractor, we lost about 40K on. He was a friend of my partner at the time. So a lot of lessons there. But all in all, we had to put about $160,000– I’m sorry, $170,000 extra into the deal we hadn’t planned on. So a lot of extra capital costs to me and my other partner. But even with that happening, it will still be a good deal, a 10-plus IRR. That won’t be a 20 like I anticipated, but it’ll still be a good deal and a great learning experience.

Chad
Well, you know, I call them seminars. You know, they’re learning experiences. Sometimes they’re failures, but, you know, if they’re just setbacks and blips, I mean, we all have them. And, you know, that’s one of the questions I always ask my panelists in my boot camps is, you know, what went wrong? Talk about a failure, talk about a setback, talk about a seminar, because that’s where you learn. You really learn. In fact, I have shirts that I give away in my boot camps that say, #AskMeHowIKnow. A student, a Warrior gave me one because I’m always saying, don’t do that, ask me how I know. And, you know, that’s how you learn. I’ve made every freaking mistake you could possibly make. So let me ask you this, Chad, what advice or suggestions would you have for someone starting out in this business? They know they want to do it. They’re sitting on the fence, they haven’t taken action yet. You know, what would you suggest for them?

Chad
I looked at probably 50 deals over a three-year period of time before I bought my first one. I kept looking at deals, passed on it, didn’t fit the 1% rule. Well, now we’re like, oh, wow, that’d be a great deal nowadays, right? 1% rule. I couldn’t even get a deal to really get a take-off. Finally, I bought a deal, sight unseen, paid too much for it. 10K over [inaudible] is a fourplex. It was unoccupied, fully vacant. I didn’t get an inspection, like all the red warning flags, right? And ended up being in a really good deal. But I knew I would pay more for the property and get it because I knew getting the first deal started was the most important part, getting the first deal done. So I would say for someone else to get started, do your first deal, no matter what it costs you. Don’t go overboard. Right? But if you have to make too much for it, go do it because it’s your learning experience.

Rod
It’s the law of the first deal, you know. It’s the scariest, it’s the hardest, it takes the longest, it’s the most stressful. And then once you get it, it’s like, is that all there was? And I see it with my students all the time. You know, they’re bitching and moaning because it’s been six months or, you know, they haven’t gotten a deal and they get one. The next thing I know, they have four. I’m like, what just happened here, you know?

Chad
Yeah.

Rod
So let me ask you this. You know, I do these clips every week called Own Your Power, and that’s really what they are. They’re motivational clips for you to own the power that’s inside of you and, you know, things like goal-setting, visualization, motivation, you know, discovering your purpose. So I like to ask sometimes, you know, where do you get your drive? You know, what makes you jump out of bed in the morning to go conquer the day, Chad?

Chad
My drive comes from my why. That’s my family, my wife, and my daughter. You know, providing a life for them that we want to live and owning a business that I truly get more control over than being bound by some other company that is part of the sales organization that I was part of previously. Just having my own control, my own destiny is so important to me, and that’s what real estate has provided the vehicle for me in.

Rod
So how did you put together your team to take down the first larger deal that you did? How did you discover them? Were they inside of the environment that you joined with that’s mentor or were they outside of it? And what qualities did you look for in those partners that you aligned with?

Chad
Some made mistakes, Rod.

Rod
Okay.

Chad
There are a couple of deals I did before I realized what I should do. And I had a couple of partners on a couple of deals. They were JVs. And what I learned after the fact is these partners were kind of similar to me. We were all kind of visionaries. We didn’t have complementary skillsets, so I learned, right? And then after my first syndication, which our capital raised didn’t go as planned. We had a shortfall. I had to put in capital as a short-term little bridge there. So lesson learned there. Then I started to form my company and have my own team. That’s where I learned that I’m a visionary. I need to have an integrator, somebody else opposite of me, or just have my own team, my own people. So I decided to find an analyst within my mentoring program as a part of. And he has a complementary skillset. Today, he’s still with me. He’s my analyst. So I’ve removed all the underwriting off to him. He does an excellent job. So I could focus on capital raising and looking at deals.

Rod
No, that’s fantastic. No, that’s fantastic. You said integrator. You obviously have adopted the EOS system from “Traction”, right?

Chad
Yeah, parts of it. Yeah.

Rod
Yeah. That’s where that word comes from. That’s an awesome system. I will use it in all my businesses. Fantastic. When you are looking– I asked the question, what qualities do you look for? And you said complementary. That’s absolutely critical. Let me just share a free resource for my listeners. If you go to “RodsLinks.com”, the free book’s there. There’s a partnership– List of Questions You Should Ask Before You Get Into a Partnership”, because, you know, getting into a partnership is like getting into a marriage. Easy to get into, hard to get out of, and you need to ask all the hard questions upfront. And Chad, I think you’d find it useful as well. So it’s at “RodsLinks.com”. It’s a free book. So it is there, right Matt? Yeah, it’s there. And it’s every question you should ask because, you know, you get caught up in the emotion of a deal. You find a deal, you meet somebody, you connect with them. And like the mistake you made, you found people that were like you. Of course, you’re going to love people that are like you, you know, outgoing, type A, extraverted, you know. I get it. But, you know, when that happens, you got to take a deep breath and say, okay, let’s ask these questions to make sure what happens if this happens, this happens, or this happens. And then the other thing I’ll mention– so get that book at “RodsLinks.com”. But the other thing is trust your freaking gut. You know, when your gut feels a certain way, trust it because your brain is so powerful it’ll pick up on these micro nuances that you’re not consciously aware of. And a great example of this is there’s a book called “Blink”. And in that book, they give examples of art experts, some of the best in the world, that will look at a painting and they’ll know it’s a fraud. They just don’t know why they know it’s a fraud.

Chad
They feel it.

Rod
Exactly. They feel it. In the same way when you meet somebody, if something feels off, don’t ignore it. Every time I’ve ignored it, I’ve regretted it. Every single time. Because your brain is that powerful. So hopefully, that will help you guys. I know it helped me when I got my new partner, Scott, he’s not new anymore, but we went through every single question on there and it really made a big difference. So let me ask you this, what’s some of the best advice you’ve ever received, Chad?

Chad
I think the best advice I ever received was getting a mentor. That was one of the best ones.

Rod
Yeah.

Chad
It changed my path tremendously. Another of the best advice was reading books constantly and just investing in myself. That’s been the best investment so far. Like, you can go to all the seminars in the world. You can go read all the books you want. But if you’re not investing in yourself to grow yourself, your mind can only think as far as your mind can absorb, pressing it a little bit.

Rod
Right.

Chad
You know, there’s so much more you don’t know that you don’t know.

Rod
Right.

Chad
So I like to absorb whatever I can, learn from whoever I can, talk to billionaires and people that are smarter than me just to learn from them because there’s so much more in this world that could be offered to you if you just expand your horizons and just grow your mind.

Rod
Yeah. No, I agree completely. In fact, I was just looking at by my recliner in my other office. I’ve got a stack of five books there that I’m reading right now, and I thought you know, I should do a little Facebook post and flag these five books. But let me ask you this, in that vein, is there a book that you have gifted to other people more than another? And if so, what is it?

Chad
Yeah. “Who Not How” by Dan Sullivan.

Rod
That is actually one of the five books next to my– I swear to God, it’s one of the five books next to my– yeah, it’s an awesome book.

Chad
So, Rod, I actually gifted that book to 50 of my top clients, and I got like emails and texts and pictures of the book, and they caught me on Instagram, huge reviews. They loved it. They’re like highlighting pages of their favorite parts in the book. It was great.

Rod
No, that’s fantastic. No, it really makes a difference to focus on who you need instead of how to go about it. No, I absolutely love it. Is there a tool or resource that you use that you like? What do you use inside of your business?

Chad
So right now, we are using parts of EOS. I’m not large enough yet to implement the whole entire system, but we will eventually.

Rod
Got you.

Chad
We just use parts of that. But I use a CRM called “Monday.com”.

Rod
Monday? Yeah, we use that too, actually. Sorry to interrupt. That actually works really well for inspections when you’re inspecting assets. I know that there have been management companies that we’ve used that used it. They put it on their iPads and they actually use it for their inspections. And it tracks– in fact, we’re using it right now for my asset in Nashville to track the work that we’re doing. And you can throw chats in there and things like that. I just got off a call, literally just 15 minutes ago, using Monday. So use that as a CRM. I didn’t realize it was a CRM. We use HubSpot. We love HubSpot for a CRM.

Chad
I actually use it for both of my businesses. So the CRM, I manage my customers but also manage our projects. And my analyst is actually really good with that CRM already. So he’s helped me implement more of the features of it for our program.

Rod
It’s great for projects. I mean, again, we’re using it. We have this, you know, massive renovation project and we just had a fire at this asset in Nashville. It’s been really helpful in that regard. Let me ask you this. How did you get over the fear of doing your first larger deal or whatever, first deal, whatever. How did you get over that fear to get going or to– you know maybe it was a big raise, you know, maybe it was a big deal. Speak to what it was and how you got over it.

Chad
Yeah. Because that was a big hump because I had done a four-unit, a 15, a 20, a 25. Then I’m like, all right, I want to do a bigger one. And that’s when I got the mentoring program involved. And that’s what really changed because now I can have the confidence because I have had a mentor looking on my shoulders with my underwriting, helped me understand the whole syndication model, raising capital, what to do, how to do the DD process, the closing process, asset management. So that gave me the confidence then to go do it. And I had somebody to go back and fact-check all my stuff. So I think– again, getting that mentoring program involved was crucial because hadn’t I done that, I would have been still stuck in that same rut. Like looking at smaller deals and thinking that I could and raise capital. But that opened my eyes a lot.

Rod
That’s the benefit of one of these– and by the way, guys, if you are interested in our Warrior program, text the word “crush” to “72345”. Again, that’s “crush” to “72345”. You know, my Warriors now, we’re doing a count and it’s looking like they own somewhere between 160 and 170,000 units that we know of so far.

Chad
Wow.

Rod
And I’ve only been teaching five years. I’m super proud of that. Yeah. But let me ask you this, do you have any favorite quotes? Any quotes that juice you and get you going? You’re obviously a type A personality, so I’m guessing there’s something.

Chad
Okay. I would say one would be “Your network is your net worth”.

Rod
For sure.

Chad
That’s one.

Rod
Especially in this business. Especially in this business. Yes. In fact, I tell my Warriors, I say my most successful Warriors by far are the ones that are the most connected inside the community, inside the Warrior community. By far. So we started doing all sorts of things to facilitate those connections. We have Warrior-only events and we do speed dating every other week. And then we tell new Warriors, the Warriors that live in their state because we’ve got Warriors all over the– you know, thousand all over the country now. So that’s how we build those connections. So net worth is the network. Is there another one?

Chad
Yep, I’ve got one more. “The rate at which your company can grow is directly dependent on your ability to find great people”. So you can’t grow faster than you build it to find good people. And I learned this two weeks ago and just hit me, the book “Good to Great”.

Rod
“How the Mighty Fall”. “Good to Great” is James Collins, for those of you that don’t know. Which is kind of funny that you’ve got two authors that I’m reading right now. No, it’s all about the people, man. Every business is nothing but people, good people, and systems, and, you know, that’s it.

Chad
But even beyond that, great companies hired self-disciplined people who didn’t need to be managed. So then they just manage the system, not the people. So it’s not just finding great people, but also ones that are self-disciplined.

Rod
Yeah, no question. So let me ask you this, as it relates to school children, if you could teach them one thing for an hour a week, what might it be?

Chad
Financial literacy. Stop being taught in schools. They have to learn it. There’s so many kids that need to be taught at a young age. You know, just like Robert Kiyosaki says in his books, you know, you’ve got to teach kids about money, about responsibility, how money works. You’ve got to teach them that. You have to. I even feel like there should be a school program in even high school to where a kid learn this. Because come out [inaudible]

Rod
Don’t get me started. I mean, it’s just ridiculous that they’re not teaching this stuff. It really is. I mean, they’re teaching people to go become workers, not to go build their own– become an entrepreneur and build their own business. It’s just sad to me that they’re not doing it. Do you have any early failures that contributed to– you know, you mentioned some of the setbacks you had, but did you have any failures that contributed to your future success? Anything come to mind when I ask that?

Chad
Yeah, I feel like the people are successful, at one point in life, they’re up against the wall, and it’s either sink or swim. Like that’s when true grit comes into play. And there’s a point during Covid where you know, we’re under a quarantine, we couldn’t leave the house, and I was in the sales job back then you know, and trying to get in the real estate, trying to figure out what I want to do. And I just decided that I was going to go out and be the only sales guy in my company that was actually going to go out and work. Everyone else stay at home. I was just going to do what it took. You know, I had to go on some weird sales calls with the mask on and try and do things over Zoom. It was tough. It was really tough. But I pushed through it and just got so much further ahead for my peers. Well, they had a year and a half off, and I feel like that propelled me forward. I had that time then to spend on personal development as well to grow myself. And that was a big time in my life, big change.

Rod
Good for you. You know, I spent 20 years following Tony Robbins around the planet, impacted every area of my life. I literally went to his events every year. In fact, I just did one six months ago, his business mastery for probably the 10th time. Because you know, every year you’re becoming better and you’re changing and growing. That’s why people ask, why do you go back to the same event? Because I’m a different person every time I go back because I’m growing and learning. And if you’re not growing, frankly, respectfully, my friend, you are dying. And those of you listening. Yeah, so let’s talk about leadership for a minute because I know if you’re listening to me or watching this on YouTube or wherever, you’re a leader. And let me tell you, in what’s coming, the world needs leaders. The you know proverbial, you know what is hitting the proverbial you know what. And there’s going to be an incredible opportunity. I’m not saying that to scare anybody, but I got to tell you, there’s some really onerous stuff happening. Hopefully, right now when we’re recording this, they’re trying to pass the debt and raise the debt ceiling, and we won’t get started on the political pieces of that. But, you know, there’s just a lot of potential catalyst to some real pain and again, opportunity. But let me ask you this, and the reason I bring that up is right now the world needs leaders more than ever. It is so important that you pay attention to what you focus on. But what’s one characteristic you believe that every leader should possess, Chad?

Chad
I think you’ve got to be self-disciplined. You’ve got to have determination. You’ve got to have drive. You have to have a why. You’ve got to be methodical. You got to be deliberate, systematic. You’ve got to find good people, be a connector, be a networker. It’s a lie. I can’t just give you one.

Rod
Those are all fantastic. And I will tell you, the why is so freaking important. And you’ve got to create what Napoleon Hill calls a burning desire. You got to want it. That’s how you push through the fear and the limiting beliefs or get uncomfortable. That’s why one of the first things we do at my boot camps is goal-setting on steroids, because how do you get anything if you don’t know what it is. Right? And you’ve got to have that, especially in what’s coming. And if you’re listening, guys, and you haven’t done your goals in a while, get your butt over to Rod’s Links and go to the bottom. My goal-setting workshop is there, or come to my boot camp. I got a boot camp coming up in Orlando in September. But regardless, if you can’t make the boot camp, go to Rod’s Links, do my goal-setting. I did it it– I do it every year at January 1st is down at the bottom there. It’s got a guide you can download because through this period of fear and frustration and pain and upset, and it’s coming, guys. All of that’s going to be happening. It’s starting to happen already. We’re going to see a lot of it in commercial real estate. There’s 1.6 trillion in commercial real estate debt coming due by the end of next year. And sales have dropped through the floor. We all know it’s happening with interest rates and cap rates have gone up. So the refinancing is hard, selling is hard, and there’s going to be some pain. But, you know, you’ve got to make sure that you’re focused on positive things, and that’s why the goals are so freaking important. Do the goals, get pictures of them, put them around you. So that’s what you’re looking at instead of the crap on the news right now. So, super important. Is there a question I didn’t ask you that you wish I had, Chad? You’re a real dynamic guy. I’m really glad we met, brother.

Chad
Yeah, thanks, Rod. I am too, man. I’m trying to look through my notes here to see if I had anything else to cover with you.

Rod
Well, you know, you didn’t– oh, you know, you answered my question. Yeah, that’s right. You gave me all sorts of characteristics, discipline and drive.

Chad
Back to your thing on the leader. So goal-setting, obviously. This is probably my second nature that I’ve got. I mean, I think setting a one year target, three-year target like EOS, right? And then setting your rocks, your 90-day goals, and then breaking it down the two week increments. If you have no roadmap, you’re not sure where you’re going, like you said. Right? You’re not going to ever get there. So you’ve got to have plans in place and then break down your KPIs. What are you going to do? What’s the actual items every day to get there? I like numbers. I like bringing it down to the day. What do I have to do today? I have to make three phone calls a day to get to my plan. So to break it down, it’s not a big, big task.

Rod
You chunk it down. Yeah. By the way, guys, when he mentioned rocks, that’s from the book “Traction”. They really just call it goals. They’re 90-day goals. They call them rocks in the book, but they’re 90-day goals. When you determine– and you do one-year, three-year and ten-year goals in that process as well. But once you determine what it is you want, you know, that big ultimate goal can seem really intimidating and onerous. But what you just said, Chad, is brilliant. You just break it down. What do I need to do this month, this week, this day, this hour to get that freaking thing done? And how do you eat a whale? You know, right, one bite at a time. It’s the same thing with your goals. So that was really helpful. Well, listen, I appreciate you coming on, brother. This has been a fun interview for me because we didn’t get too, you know, in the weeds with the technical side of things. But, you know, I think there’s an incredible opportunity coming in this world we live in. Do you feel the same way?

Chad
I do, yeah. And we’ve only been a few years into this, you know, obviously, I’ve been through a few of these cycles like you have, obviously.

Rod
Right.

Chad
So I’m kind of curious what your thoughts are on what’s come in the next 12 months.

Rod
Well, I think there’s going to be a lot of distressed commercial real estate. I really do. And honestly, I think we’re going to see more bank failures because a lot of– you know, I didn’t realize that a third of all commercial debt right now is adjustable rate. And, you know, I just did this Facebook Live on the financial bomb that’s in place right now. Of course, I was a drama queen. I called it financial bomb, but I think it is a financial bomb. And that is rate caps. Because back– you know, I’ll give you some stats. Three years– I’m sorry, in 2020, yeah, three years ago, you could get a rate cap on a hundred million dollars loan, 3% for three years, and it was $23,000. Okay? So 100 million, three year, 3% rate cap for 23,000. That hundred million dollars rate cap for one year right now is 2.3 million. So rate caps are one other piece of this puzzle that I think are going to create an incredible frustration and pain and distress for property owners. And I hate to say it, but the truth of it is it’s going to be an incredible opportunity for people to buy assets. You know it’s cents on the dollar, and that’s why I’m excited. I’m in a lot of cash right now and, you know, we’re getting a fund put together, an opportunity fund to take advantage of some of these opportunities. I believe there’s going to be some real opportunity. I really do. And I think you know, we’re already seeing– the Fed has already indicated they’re likely to raise the rate again. If you read the notes from the last meeting, it’s common consensus is they’re going to do another bump.

Chad
You’re exactly right. We saw two deals in the last two weeks that had similar issues. The seller’s bought a deal three years ago. The loan is coming due this year. Just will rate mortgages on both bridge debt. They did not buy a rate cap on both of these. They can’t afford the debt. The real estate taxes doubled in their assessment the first year of owning it, and they’re forced to sell. They have no option at all. Now, even people that did buy a rate cap back then, like you said, if their plan was to refi in three years, they have to capitalize somewhere to pay that rate cap or sell the property. They can’t leave [inaudible]

Rod
They either do a capital call or they distress sell. And if they don’t raise the money from their investors in a capital call, big problems. You know, I mean, I’m not trying to scare you guys because honestly, I’m trying to get you excited because honestly, it could be the greatest transfer of wealth in our lifetimes if you get up to speed. You know, if it’s going to be multifamily, get your butt to my September boot camp in Orlando. It should be about a thousand people there. And what’s cool about that? That’s the only Live Event I do a year. So a great opportunity to meet your team, meet other investors and get connected with, you know, people that are making things happen or want to make things happen. Your peer group is so freaking important. What’s sad is most people default to a peer group they went to school with or they work with, and they may not have your best interests at heart. That’s why coming to an event like this, like mine that I’m talking about, I’m going to an event tomorrow, actually, IMN Conference, midmarket conference in Atlanta, and getting around people that are making things happen, want to make things happen. And you need to do the same. Those of you listening or watching. Very, very important. Surround yourself with people that want more out of life. Well, listen, Chad, I appreciate you coming on, brother. It’s been a real treat. And hopefully, I’ll get to shake your hand one day soon.

Chad
Yeah, I’m sure you will. Thanks a lot, Rod. This has been great.

Rod
Thank you, buddy.

Outro
So one other quick thing. We encounter so many people that are frankly frustrated. They’re looking in the mirror and they’re frustrated that they haven’t been able to escape the rat race. They haven’t been able to build cash flow to the point where they’re able to have financial and time freedom with their families. And maybe they see other people buying real estate and creating incredible cash flow and they think, well, it’s just scary. You know, buying apartments is intimidating. And I get it. See, that’s why we created our Warrior Mentorship Program. They’re our coaching students and they’ve had extraordinary results. My students, I’ve been teaching about five years and they own upwards of 140,000 units now that we know of, right? And we feel like it’s just getting going. Now, we’re looking to grow this group and really take it to the next level. And honestly, believe that the greatest transfer of wealth could be upon us right now with this current economic environment. Everything is going on sale. So we’re looking for people who want to follow a proven framework really like a blueprint or a map, literally step by step. And then they’re able to leverage our systems and our incredible network to raise money and equity. To find deals and close those deals and build partnerships really nationwide. So if you’re interested in finding out more about how you can become more in our incredible network and take advantage of the unbelievable opportunities that are upon us, you can apply to my Warrior Mentorship Program by texting the word “CRUSH” to “72345” or you can go to “MentorWithRod.com” and what we’ll do is we’ll set up a call so you can check us out and we can check you out and see if it’s a fit. Now, again, you can go to “MentorWithRod.com” or text the word “CRUSH” to “72345” to apply and we will speak soon.