Karl Schlobohm, a devoted teacher and single parent, joined the Warrior Group in 2021 to build a financial legacy for his daughter and beloved charities while seeking personal financial freedom. Passionate about travel, guitar building, cycling, coffee roasting, and adventure, he has focused his real estate pursuits on RV/Boat Storage, Self Storage, and RV Parks. Notable achievements include a storage expansion project in Gainesville, FL, with fellow Warrior Scott Gimbert, and a partnership with Charlie Peters in acquiring a 27-unit apartment complex in Kingsland, GA. Karl’s story resonates with those longing to break free from the rat race for family time and community impact. Despite successes, he remains dedicated to teaching until his real estate income surpasses his W-2 earnings.
Here’s some of the topics we covered:
- Getting Your First Deal Through Distressed Property
- Massive Value Add To A Self Storage Facility
- Partnering With Other Warriors For Great Success
- Elderly Sellers And Building a Bond With Them
- Educating Yourself To Move Forward In Life and Business
- What To Look For In a Purchase Price
- Long Term Holds That Cashflow Like Crazy
If you’d like to apply to the warrior program and do deals with other rockstars in this business: Text crush to 72345 and we’ll be speaking soon.
For more about Rod and his real estate investing journey go to www.rodkhleif.com
Full Transcript Below
00:00:00:11 – 00:00:17:11
Speaker 1
I think for the first 90 days it’s educating yourself and then expanding your network. And that also include finding the mentor. Like I said, you want to find somebody who you know can dedicate the time that he would need to learn in this business. So education and networking.
00:00:17:12 – 00:00:35:01
Speaker 2
Hi, my name is Rod Cleve, and I’m host of The Lifetime Cash Flow through Real Estate Investing Podcast. Now, each week I interview multifamily rock stars and we talk about how they built incredible wealth for themselves and their families through multifamily properties. So hit the like unsubscribe button to get notified every Monday when a new episode comes out.
00:00:35:05 – 00:00:57:08
Speaker 2
Let’s get to it. Welcome back to the new version of multifamily rock stars and because of feedback from you guys and the fact that we’re always trying to make things better, we’ve decided to make these episodes more about deep diving into our guests deals, which we’re going to do again today and give you more practical and really actionable items for getting started and and ideally do in your first deal, especially if you’re new to multifamily.
00:00:57:13 – 00:01:00:00
Speaker 2
And of course, I’ve got my co-host, Mark Nagy, here with me.
00:01:00:05 – 00:01:10:04
Speaker 3
On Rad, Excited and curious because our guest here was telling us some kind of unique ways that we maybe haven’t talked about, that he’s got to do deals today, so I’m excited to hear.
00:01:10:06 – 00:01:21:11
Speaker 2
Yeah, for sure. So we’ve got Carl Schlobohm here today and he’s a teacher by trade, a single parent, so he’s got his hands full and welcome, brother. Glad you’re here, man.
00:01:21:16 – 00:01:24:13
Speaker 1
Thanks so much for having me, Aaron. It’s a it’s a pleasure.
00:01:24:15 – 00:01:33:09
Speaker 2
Absolutely. Well, why don’t you give our listeners just a little background of who you are and why real estate and and we’ll we’ll start there.
00:01:33:12 – 00:02:08:02
Speaker 1
Yeah. So, you know, as you know, teaching doesn’t really provide for a strong prospect for financially, for future. So I started looking into the prospect of investing in real estate on the side just to kind of supplement my teaching income and kind of build a portfolio. As I work towards retirement, I came across the opportunity to join your Warrior program and quickly discovered that, you know, I actually don’t have to teach forever and I can go ahead and start my own way of doing things.
00:02:08:04 – 00:02:16:17
Speaker 1
And that real estate is really a powerful tool to provide the kind of cash flow that you would need to live on, you know, financially.
00:02:16:17 – 00:02:38:01
Speaker 2
For me, yeah, it’s an absolute travesty what we pay teachers in this country. So, you know, I I’m really glad that you’re here with us. So you we were starting to talk about some of these deals that you’ve done, which are intriguing. I talk about the self-storage deal you just did and kind of give us the background on that thing.
00:02:38:04 – 00:02:38:10
Speaker 2
Yeah.
00:02:38:10 – 00:02:57:11
Speaker 1
So I kind of discovered a love for RV parks. That’s part of my why I love the outdoors. And of course that that cash flows by the unit just like apartments do and just like storage. I started a meetup through the Warrior group just to kind of see who else would be interested in looking at this kind of asset class.
00:02:57:13 – 00:03:17:10
Speaker 1
And one of the people I’ve met through that meetup actually brought up a good point that there’s a lot of RVs and boats parked along the highways that there are a lot of, you know, subdivisions and homes here in Florida that don’t allow you to store those kind of vehicles on your property. And this actually runs a route.
00:03:17:11 – 00:03:43:05
Speaker 1
Neo becomes a municipal problem where a lot of people were kind of parking their these vehicles on road frontage is taking away from the look of the community. So we started to look at opportunities to either acquire an existing distressed business or to just develop from scratch. And we quickly learned that it’s better to get to start with a distressed property because the zoning is already there.
00:03:43:06 – 00:04:08:19
Speaker 1
The a lot of the environmental approvals are already there. And so we just started looking and actually found an opportunity on bids by sell out. A couple of owners of a 27 unit storage facility on a major highway frontage that are also about extra acreage. So that kind of hit a lot of our major criteria, our acquisition criteria that we were looking for at the time.
00:04:08:19 – 00:04:26:03
Speaker 1
And we we went under contract through a seller finance deal so that it would be seller financed until we get the proper approval, at which point a construction loan would come, come and take over covering the asset and the construction of it.
00:04:26:08 – 00:04:27:05
Speaker 2
Well, I have a I.
00:04:27:05 – 00:04:42:19
Speaker 3
Have a couple of follow ups real quick on this, if I could, Rod, that you mentioned. You mentioned distressed. What is distressed look like in self-storage because obviously you’re not dealing with tenants necessarily in there. It may be different. What does that mean exactly for the people listening that have interest in self-storage?
00:04:42:21 – 00:05:06:19
Speaker 1
I mean, I guess you can relate it to apartments in the aspect where if you’re looking at it, does it does it capture the current demand of that market? And so we were looking at the market. There are there were really weren’t any storage facilities in the area when they were they were 100% occupied. And yet there’s this 27 unit building here that’s also fully occupied.
00:05:06:21 – 00:05:34:00
Speaker 1
You can see right away that there’s extra demand and these guys just weren’t prepared to expand and capture that demand. So we came in. The facility isn’t in the best condition, but that also be part of our upgrades. And so when I say distressed, it’s it’s more it’s not performing the way it should and therefore it creates kind of a value going in value.
00:05:34:02 – 00:05:43:13
Speaker 1
That’s, you know, it’s easy to it’s easier to go in and with an undervalued property and just go in and start making improvements.
00:05:43:13 – 00:06:01:08
Speaker 2
Yeah, well I wouldn’t, I wouldn’t call it distressed. I’d actually call it a value add opportunity, incredible value add opportunity because you haven’t even you haven’t even hit the home run here as part of this conversation that you told us about before we started recording. So talk about what you’re going to do with this piece of property.
00:06:01:08 – 00:06:24:24
Speaker 1
So we have 2.7 extra acres and we also have Billboard right? So we’re going to put up a billboard on our own property and we will have a monthly advertising fee is because will already be advertising to 30,000 vehicles a day. And on the extra 2.7 acres we’re putting in, while total it will be 291 units as per our pro forma.
00:06:24:24 – 00:06:42:18
Speaker 1
But we have the opportunity to go to 313. That will also include some RV and boat canopies, since that’s basically where we’re starting off looking for RV and boat storage. The feasibility study recommended that that just be a small portion of our unit mix.
00:06:42:18 – 00:07:04:04
Speaker 2
So self-storage of 291 and you’ll have boat can’t boat an RV canopies which people love so they are not getting beat up by the sun, especially in Florida. Love it. Absolutely love it. You got you got seller financing to pull it together. You did this with another warrior and you said you brought in another warrior as well. Talk about.
00:07:04:05 – 00:07:25:11
Speaker 1
Why. I mean, we all love the tax implications of investing in real estate. And you just as my partner and I are trying to scale up, we realize our accountants are a little too good at what they do and aren’t really showing the actual, you know, taxable income that you could possibly show. And banks don’t really like that when they look at guarantor.
00:07:25:11 – 00:07:31:02
Speaker 1
So we brought in another warrior to help us guarantee this loan and get it to the finish line.
00:07:31:05 – 00:07:51:09
Speaker 2
Yeah, somebody I care deeply about. Charlie Charlie’s a wonderful guy and he’s actually he’s he’s an interesting story, you know, by himself, because he already had been in real estate for, I think, 20 years, maybe 30 years before he joined the Warrior program. He just wanted to go bigger. And he’s a beautiful guy. Love, love Charlie. So let me ask you this question.
00:07:51:15 – 00:08:04:17
Speaker 2
What types of listeners do you think would relate to you and your story and where you came from, your background and all of that? And maybe really whatever your your skill set is, your superpower. So speak to that, if you would.
00:08:04:17 – 00:08:28:24
Speaker 1
So I think any listeners that have kind of gone through several hardships getting up to this point just kind of feel stuck in their jobs. I have a hard time seeing the kind of future that you want to imagine for yourself. People who are devoted to their families. Real estate’s really a great opportunity to to address all of those whys, as we call them.
00:08:29:01 – 00:08:49:24
Speaker 1
I think my superpower would be I’m devoted to relationships. So first comes my family. And that’s really my why I of doing this. I want to be able to spend more time with them and also provide them with a better life. Secondly, that would be relationships with with brokers, with sellers, and with, you know, other investors in the network.
00:08:49:24 – 00:09:06:20
Speaker 1
There are many different kinds of investors that you might want have, you know, people who raise capital or people who are great with the asset management and just having, you know, maintaining strong relationships with that entire network is kind of where I feel my superpower is.
00:09:06:24 – 00:09:24:24
Speaker 3
I want to start there real quick because, Carl, you you’re like many of our listeners, you’re a teacher, right? Nothing to do with real estate. I get that question all the time. I’ve never done any real estate. How do I get into this? So how did you take that superpower and then bring that into the first deal? Where did you have the relationship with the broker or did you call the seller?
00:09:24:24 – 00:09:28:10
Speaker 3
How did you get it? How did you take that superpower and get you into this deal?
00:09:28:11 – 00:09:52:02
Speaker 1
Yeah. So a lot of the relationships were actually already established, except for the seller. So when we found this opportunity, that was our goal. We knew that, you know, it wouldn’t be the smartest decision to just buy the property outright as they were wanting. So we kind of got to know the sellers needs, what their goals were for, for the sale of their property and just for their lives in general.
00:09:52:04 – 00:10:16:15
Speaker 1
And we were able to structure a kind of a proposition that would help them meet their financial needs and also kind of see a benefit of having that extra, you know, interest income flowing through the property that they’ve technically already sold that they don’t have to touch anymore. So the seller relationship in that regard, when you want to go after seller financing is pretty important.
00:10:16:18 – 00:10:19:19
Speaker 2
I was just going to say, were they elderly sellers or.
00:10:20:00 – 00:10:41:10
Speaker 1
In this case, I guess one of them was pretty elderly. The other is still working in real estate, but it’s just not. I guess he got tied up in the partnership. So I guess that’s another talking point is partnerships and okay, we’re in a partnership but haven’t experienced that yet on my end. But I think that was the case here where they just weren’t weren’t working well together.
00:10:41:10 – 00:10:47:20
Speaker 1
They had let the finances slide, stopped doing their books and just anything that you can imagine.
00:10:47:23 – 00:11:04:08
Speaker 2
So it was a it was a partnerships problem as well. Interesting. Yeah. The reason I brought up elderly is one of the things I teach at my bootcamps is, you know, seller bonding. When you’re dealing with an elderly seller and you in you bond with them, you know, they’re more interested in the relationship very often than they are the actual deal.
00:11:04:08 – 00:11:28:00
Speaker 2
And certainly initially they’re very relationship driven. So, you know, I, I think that especially especially one on one with sellers, if, you know, when when I teach the marketing side of this business direct to seller marketing and you do mailers and so on and so forth, I tell people mail somebody that’s owned a property for 20 plus years because you’re going to be dealing with elderly sellers free and clear property taxes.
00:11:28:02 – 00:11:38:14
Speaker 2
If they sell, they’re going to pay taxes because they’re fully depreciated. And so there’s just a lot more opportunity to get seller financing if you if you go after that, that particular demographic.
00:11:38:16 – 00:11:50:10
Speaker 3
Well, that was going to be my question. What were some of those clues as you’re talking to the seller that made you even bring up seller financing? Because if they had partnership problems, obviously that they can sell and get out of it. Why seller financing?
00:11:50:12 – 00:12:10:24
Speaker 1
To tell you the truth, that’s actually always one of my first questions, even if I’m dealing with a broker. So that was another point I was going to make. Even if you’re going through a broker and you’re not just direct a seller, you don’t want to use the broker to pitch your seller financing deal because they’re never going to understand all the nuances of that, of that offer.
00:12:11:01 – 00:12:39:03
Speaker 1
And so that’s what I always ask the broker is, Hey, how can we get a line of communication with the seller so that we can get to know their needs more and so we can communicate how this might be structured to benefit them. Brokers are generally more oriented towards institutional lending, and so that’s why even in this case, we we were dealing with a seller’s broker and we were able to still kind of establish that with the seller.
00:12:39:04 – 00:12:58:03
Speaker 2
That’s great. That’s great. Sometimes they won’t let you go through them. But but that’s fantastic the way you do, the way you articulated that was very non-threatening and really well, well stated. So, you know, what’s one action item? You know, we got so many listeners that haven’t done anything yet and they go, they want to go do something.
00:12:58:03 – 00:13:08:07
Speaker 2
But what’s one action item you could deep dive into that you think would benefit a listener so they could literally get started immediately. What would you tell them?
00:13:08:09 – 00:13:29:16
Speaker 1
Yeah, I think well, that’s the answer I think to this is kind of twofold. I think first, you always need to start with a Y, some sort of y that that’s more than, I just want more money because that’s never going to give you enough motivation to follow through with the things that you need to do every single day to be successful in this business.
00:13:29:18 – 00:13:50:01
Speaker 1
And once you discover your why, I think it’s important to really think of, okay, what kind of investment strategy, what kind of pursuit really fits my why? Because, for instance, I realize I love the outdoors. Am I going to be able to spend all this time outdoors pursuing apartments? Maybe RV parks is a better fit. It’s a similar financial model.
00:13:50:01 – 00:14:18:09
Speaker 1
And so I started asking myself these questions and I found that really a quite a few different asset classes fit my why. And so I decided to educate. I’m a teacher. I love the idea that education is is how we move forward in life, how we make a success out of ourselves. So the first is to find a mentor who can help educate you because they’ve already made all the mistakes.
00:14:18:11 – 00:14:47:15
Speaker 1
They can help guide you through the process of what should you be teaching yourself first, maybe make suggestions on how to structure your entity or how to find leads or, you know, whatever it is to get started. I really think that educating yourself, finding a program like this, finding a mentor, will really kind of help you save time on which steps to take first and so my first step here was just to go through the modules to introduce myself to the network.
00:14:47:17 – 00:15:15:02
Speaker 1
We’re kind of my first two steps that I took, and once I got a better idea of what the strategy is here, what the underwriting looks like and what the whole what the whole process looks like, I started you know, having more conversations with people who I introduced myself with, and I started establishing relationships there because I knew that, you know, there were a lot of experienced people in this group, much more experienced than I am.
00:15:15:04 – 00:15:23:10
Speaker 1
And I really think that, you know, education is centered on other people sharing their knowledge and their skills with.
00:15:23:10 – 00:15:48:08
Speaker 2
You know, Well said. Well said. Yeah. And by the way, guys, if you are interested in a mentor or interested in applying to our Warrior program, text the word crush to seven two, three, four or five and we’d love to help you crush it in this business. And I don’t say that lightly. I Warriors now own, I believe, upwards of 200,000 units, definitely over 190,000 somewhere in the middle there and that we know of and which are just super proud of.
00:15:48:10 – 00:16:05:24
Speaker 2
So again, if you’re interested in applying text the word crush to seven two, three, four or five and we’ll will look you over, you look us over and if it’s a fit or be probably the best decision you ever made in your life, And if it’s not, you’ll still leave that call better than you got on it. So let’s shift gears.
00:16:05:24 – 00:16:19:02
Speaker 2
I mean, I really dig dig deeper, you know, Can you talk about some of the underrated basics on that first deal that you got? Just to just talk about, you know, what your what you paid for it? Just give a little more detail. Yeah, if you would.
00:16:19:02 – 00:16:48:17
Speaker 1
So we found the where the purchase price was 425,000 and that’s and you’re thinking, you know, it’s already a business that’s earning income. So the property itself was is more likely to be worth more than that. We’re still getting an appraisal done even though we don’t technically need it. But just looking at those metrics, we knew we had a good deal, especially the fact that we could go in with 40% down on a seller financing.
00:16:48:17 – 00:17:21:01
Speaker 1
We weren’t even paying that much for it up front. And then knowing that a lender could come through once we get everything approved to fund the construction and that’s basically what we looked for as far as purchase price. Is is the is the price undervalued or the asking maybe a little too little for it because we are also looking at location and the highway frontage aspect of this, especially since the majority of people will look for self-storage too do so within a five mile radius.
00:17:21:03 – 00:17:48:04
Speaker 1
Everyone in that neighborhood is driving on that road and will see a presence of our business there. And then the extra acreage obviously is our major way of adding value by by building new units that will have remote management. So you can let yourself in through the gate with your Bluetooth on your phone. And then the remote management can either grant you access or lock you out depending on if you’ve paid your rent.
00:17:48:04 – 00:17:55:13
Speaker 1
And it does that automatically. So that’s one of the reasons we love storage, is the low operating expenses. If you set it up right.
00:17:55:17 – 00:18:17:21
Speaker 3
And the numbers I’m seeing here, so you bought it for four for 25, construction cost 2.1 million. And you think after that it’s going to be worth 3.8. So that’s what, a $1.3 million value add. And if I heard you correctly, you said you put 40% down on what, 425? Okay. So that’s what to 200,000 roughly out of pocket to close on this.
00:18:17:21 – 00:18:24:16
Speaker 3
And it’s going to be a $1.3 million value add when you guys are all done. How long is that going to take the construction, do you think?
00:18:24:18 – 00:18:27:19
Speaker 1
So the construction will be done before the end of the year.
00:18:27:21 – 00:18:29:19
Speaker 2
Wow. Yeah. So testing.
00:18:29:22 – 00:18:36:24
Speaker 3
So 200 K down and then 1.3 million and a year projected almost to not a bad deal.
00:18:37:01 – 00:18:48:14
Speaker 1
And the cool thing is the the construction lender is looking at this and saying we already have equity in the deal that we put and the down payment on the property so we don’t have to put anything else down to get everything else done.
00:18:48:16 – 00:18:53:15
Speaker 2
Wow. No kidding. Wow. Good for you. So you thought you found a local bank to do this?
00:18:53:17 – 00:18:54:21
Speaker 1
Yes. Correct.
00:18:54:23 – 00:19:00:16
Speaker 2
good job. Yeah, I was going. I assume that had to be a local bank. What? That what? That what you just said? Fantastic.
00:19:00:18 – 00:19:12:12
Speaker 1
And that’s actually pretty conservative. That’s at a seven cap. So if you actually get a if you look at it, a26 cap, which is also kind of conservative, it’s more like four and a half million.
00:19:12:12 – 00:19:19:02
Speaker 3
Wow. And then so what, you just refinance the money out and pay off the construction loan, Is that kind of the end goal and then hold on to it.
00:19:19:04 – 00:19:23:03
Speaker 1
Correct. This will be a long term hold for us because it’s going to cash flow like crazy.
00:19:23:09 – 00:19:28:04
Speaker 3
And that’s a five. It’s time to return in a year on a new construction deal.
00:19:28:06 – 00:19:48:17
Speaker 2
Yeah, the values push in 2 million. I’m sorry the value I’m sorry the value push pushing four and a half million at a six cap, which could be very realistic. And, you know, that’s a that’s a $2 million value add. Awesome deal, brother. Awesome deal. So so how’d you find it, by the way?
00:19:48:19 – 00:19:52:09
Speaker 1
So we actually found this one on Best Buy Sell since we. That’s right.
00:19:52:09 – 00:19:53:11
Speaker 2
You said that. That’s right.
00:19:53:11 – 00:20:01:07
Speaker 3
So that’s just a website, kind of like Z and loot net where deals are listed or because I’ve never heard of this. Or is it just for businesses?
00:20:01:09 – 00:20:09:02
Speaker 2
Not just for businesses. Businesses. Yeah. Interesting. Wow. And would look there for a real estate. One would look there for real estate. Awesome job, man.
00:20:09:04 – 00:20:15:21
Speaker 1
Yeah. So we just switched our criteria to businesses. So we had more platforms to search for an opportunity.
00:20:16:02 – 00:20:39:12
Speaker 2
that’s a great idea. Businesses that own the land, love it, absolutely love it. So that sounds like a Charlie suggestion to me because he’s he does that. You know, he is you know, he’s one of these guys I love I love to say that you you know, he loves deals that have hair on them. It’s called, you know, where where you where you got to be creative and innovative to make something happen and love it, love it, love it.
00:20:39:14 – 00:20:41:07
Speaker 3
You want to jump in to the multifamily deal?
00:20:41:09 – 00:20:55:16
Speaker 2
Yeah, let’s jump into the multifamily deal. So. So I understand that you did kind of a unique deal with Charlie as well on a on a 2727 unit multifamily that he owns. Is that correct? Yeah. Talk about that.
00:20:55:18 – 00:21:16:11
Speaker 1
Pretty unique story, at least from what I know in the few years I’ve spent in the Warrior program, I actually came across this listing in a for a property in a town that’s about 30 minutes from me just across the Georgia border. I live in the Jacksonville area, and I was just asking around, Hey, would you like to look at this?
00:21:16:11 – 00:21:53:19
Speaker 1
When are the returns look decent? Even though I think it’s pretty you know, they’re asking way too much for it. I asked Charlie and he’s like, yeah, that one’s mine. And and so I was like, okay. I started getting in a conversation of, you know, what? What are your goals for the sale? And he was just honest that, you know, management was charging too much and he used the listing price was a little high because it should, it should be more valuable than it is because the operating expenses, that ratio is just kind of thrown off kilter by the management expenses.
00:21:53:19 – 00:22:13:01
Speaker 1
So he actually made me an offer and said, Hey, why don’t you step in for management if you’re up for it and you can have an equity stake in all the value add. So our strategy for that is kind of keep rents where they are, maybe bump them up a little bit and clean the place up a little bit.
00:22:13:03 – 00:22:37:21
Speaker 1
And he is he owns it outright, so he’s financing the property to our partnership. And then in turn, I’m getting equity through the active management part. So that’s why I would tell the listeners is, you know, even if you don’t have a large investment account or a large bank account and you don’t feel like you can buy an apartment building, you know, you can be resourceful, I call it sweat equity.
00:22:37:23 – 00:22:57:07
Speaker 1
And I’m also learning that I don’t want to be in active property management for the rest of my life. It’s a really good learning opportunity and it’s also teaching me that it’s something that I don’t want in the future. But our strategy for that is, is hold on to it for the next year or two. Interest rates are going down.
00:22:57:09 – 00:23:10:00
Speaker 1
We can show a trailing 12 without the management expenses. It’s small enough property that, you know, a potential buyer could come in and self-manage just 27 units and achieve the numbers that we were getting.
00:23:10:02 – 00:23:31:19
Speaker 2
And like you said, it’s an incredible learning opportunity for you. So so you know, you’ll get you’ll learn more just managing that 27 unit then then you can imagine. So love that. So what’s you know, what is a hot topic, you know that you feel like you want to talk about in this business that we’re in right now in this multifamily space there?
00:23:31:20 – 00:23:34:02
Speaker 2
And what jumps out at you when I ask that question?
00:23:34:02 – 00:24:08:09
Speaker 1
You know, I think a lot of people would probably say interest rates, you you know, we’ve been getting good news recently that are that interest rates are going down. I think the other the other thing would be would be all of the new build activity. So just right after COVID, you know, people’s investors started building new assets that were kind of, you know, kind of drowning out all the competition in these other markets and kind of watering down the rent in in each market.
00:24:08:09 – 00:24:34:03
Speaker 1
So I was reading recently that, you know, the new construction is actually way down compared to last year. Finally, I think the whole lending situation is kind of caught up with investors that are seeking to build new properties because it’s just not realistic right now and it’s actually not really serving the markets that they’re intending to serve because they’re becoming oversupplied now.
00:24:34:05 – 00:25:02:12
Speaker 1
And you can see that happening out in Arizona particularly. So I think that would be the two hot topics interest rates are poised to go down. So I really think the time right now is to buy look for something that you can add value to where the sellers need to sell or they’re in a position where they’re ready to get rid of it for maybe less than it would be worth at the end of this coming year when interest rates go down.
00:25:02:14 – 00:25:10:09
Speaker 1
Because this is the time where you can acquire something, where you can really add value to it, especially for the short term.
00:25:10:11 – 00:25:30:02
Speaker 3
And for the people listening that may or may be afraid to get in for some of the reasons that you just mentioned. But see the opportunity. Just in your opinion, how quickly do you think those two things are going to create opportunity that’s going to come and go in multifamily for their quote unquote best time to buy or the bottom of the market, whatever you want to call it?
00:25:30:03 – 00:25:51:15
Speaker 1
Yeah, I’m I don’t have any I don’t have a lamp. I’m not a genie. But of course they I would say cap rates are going to start going back down a little bit over the next six months. And by the end of the year, I think the cap rates are going to be going down a little more and that just means, you know, less opportunity to get good value for what you’re paying for.
00:25:51:15 – 00:26:02:00
Speaker 1
In my opinion, that’s going to become more of a seller’s market again. Right now it’s a buyer’s market and the buyers have the leverage, especially if sellers are needing to sell.
00:26:02:04 – 00:26:21:08
Speaker 2
Now, I couldn’t agree more. Let me ask you kind of an off topic question, because you’re a teacher and if you were teaching or coaching someone you really cared about about this business, what would you make sure they learned in, say, the first 30, 30 or 90 days? What would you have them focus on in this multifamily space?
00:26:21:12 – 00:26:47:22
Speaker 1
Yeah, I think for the first 90 days, it’s like I said, it’s the educate, educating yourself and then expanding your network. And that also include finding the mentor. Like I said, you want to find somebody who you can trust and who who, you know, can dedicate the time that he would need to to learn this business. So education and network, I think you get both in the Warrior program.
00:26:47:22 – 00:27:10:12
Speaker 1
So they kind of started me off with a huge head start when I joined, just knowing that there are all these trainings, there are all these modules that I could look up in any time. And at the same time there’s this close network of experienced real estate investors who are looking to meet new investors. I just can’t think of anything that would be more valuable to me as a new investor.
00:27:10:13 – 00:27:15:24
Speaker 2
Well, thank you for that. I’ll slip you a toe later. That was good for the research and.
00:27:15:24 – 00:27:30:13
Speaker 3
Honest project this out for for where you’re going now here, Carl, you’ve told us kind of what you’ve done, the two deals. What do you think it’s going to take for you to get to financial freedom or leaving your teaching job, whatever that is? And how are you going to do it? Are you going to do it through RV parks?
00:27:30:13 – 00:27:33:09
Speaker 3
Multifamily makes it both. How do you see that going?
00:27:33:09 – 00:28:00:21
Speaker 1
Yeah, so I’m I kind of have a mixed approach to the future, I think. Well, eventually I want to start expanding the storage. We like to build a chain of storage facilities in, in the Gainesville area. And so one thing I was thinking is I could use the equity from this partnership on the apartments and do a 1031 exchange into a brand new facility and kind of upscale from there.
00:28:00:23 – 00:28:20:24
Speaker 1
As far as the RV parks and and campsites, that’s something I’d like to do by myself, I feel like. So I just want to get in a stronger financial position to take on those opportunities myself. And just this storage deal alone will replace my teaching income by the end of the year.
00:28:21:01 – 00:28:42:12
Speaker 2
Just the fact you were able to accomplish this on your salary, you know, with, with, with as a single parent, you know, it’s just it’s it’s I salute you, brother. And I mean that sincerely. So let me ask you this. Where do you see yourself in five years? What’s the what? I know it’s crystal ball stuff, But but, you know, I know if you’re if you’re in my program, you’ve done your goals.
00:28:42:12 – 00:28:45:05
Speaker 2
So talk talk about where you see yourself in five years.
00:28:45:05 – 00:29:22:07
Speaker 1
So I think in five years I’ll have a bus built out that I’ll use to travel around the country in the in the summers with my daughter just to different RV parks and other assets that I’ve acquired over that that time. And I also want to start a nonprofit. So I’m if I, if I ever do have a mind to leave teaching, I want to continue that through through a way where I have a choice in it and where I can, you know, kind of custom tailor what how I want to give back specifically and use my background in teaching to do that.
00:29:22:09 – 00:29:46:11
Speaker 1
So I’d like to start a nonprofit that that serves adolescents in the community, teaches them about finance, about life skills, growing your own food, cooking, all these things that just aren’t taught in school anymore, that if you do it in a practical and a fun way, you know, I think students would flock to it and it would really serve the community.
00:29:46:11 – 00:30:00:01
Speaker 1
So that’s another one of my whys is right now I just feel like I can’t give back in the ways that I would love to. And having that kind of financial freedom would allow me to make a bigger impact than I am right now.
00:30:00:07 – 00:30:14:18
Speaker 2
What a great answer, brother. What a great answer. Well, it’s been a real treat to spend this time with you, my friend and I. There’s no question in my mind you’re going to achieve that five year plan. But thank you for coming on. I really appreciate it. Real quick. Yeah.
00:30:14:19 – 00:30:19:12
Speaker 3
Carl, where can people that like your story want to reach out, talk to you? Where can they reach you?
00:30:19:14 – 00:30:31:00
Speaker 1
yeah. So Facebook is probably the best way. That’s where I do most of my networking. And if you just search my name that you see on the episode here, you’ll see I’m friends with Rockcliffe and that is good.
00:30:31:02 – 00:30:41:05
Speaker 2
We meet and it’s all, all downhill from there. Yeah. Okay, good. All right. Thanks. Thanks, brother. I appreciate you coming on. It was it was a lot of fun. It’s great to see you. Thanks, Carl.
00:30:41:07 – 00:30:43:08
Speaker 1
Much for having me, guys. It was a pleasure.
00:30:43:10 – 00:31:03:00
Speaker 2
So one other quick thing. We encounter so many people that are frankly frustrated. You know, 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, You know, and maybe they see other people buying real estate and creating, you know, incredible cash flow.
00:31:03:03 – 00:31:22:17
Speaker 2
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. There are coaching students and they’ve had extraordinary results. My students, I’ve been teaching about five years in own upwards of 140,000 units. Now that we know of. Right. And we feel like it’s just getting going now.
00:31:22:17 – 00:31:40:07
Speaker 2
We’re looking to grow this group and really take it to the next level. And I honestly believe that the greatest transfer of wealth could be upon us right now with this current economic environment. Everything’s 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.
00:31:40:13 – 00:32:03:19
Speaker 2
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 seven two, three, four or five.
00:32:03:23 – 00:43:24:23
Speaker 2
Or you can go to mentor with Broadcom. 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 mentor with Broadcom or text the word crush to seven two, three, four, five to apply and we will speak soon.
00:43:25:00 – 00:43:42:15
Speaker 2
Hi, my name is Rod Cliff and I’m host of the Lifetime Cash Flow through Real Estate Investing Podcast. Now, each week I interview multifamily rock stars and we talk about how they built incredible wealth for themselves and their families through multifamily properties. So hit the Like and subscribe button to get notified every Monday when a new episode comes out.
00:43:42:18 – 01:00:11:08
Speaker 2
Let’s get to it.
01:00:11:10 – 01:00:28:21
Speaker 1
Yeah, I think for the first 90 days it’s educating yourself and then expanding your network. And that also include finding the mentor. Like I said, you want to find somebody who you know can dedicate the time that you would need to learn this business. So education and network.
