Ep #407 – Building lasting multifamily partnerships – Feat. Jake and Gino

Here is some of what you will learn:

    • Developing world-class partnerships
    • The importance of responsive communication
    • People, systems and culture
    • The power of your why
    • The 4 P’s of marketing
    • You attract what you are
    • Three pillars of real estate – Market cycle, debt, exit strategy
    • The importance of meditation
    • Becoming better for your team
    • The power of giving back
    • Education x Action = Results
    • B.S. = Belief System
    • Conquering Limiting beliefs, Interpretations, assumptions, and gremlins
    • Why multifamily is the right vehicle 

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Full Transcript Below:

Building lasting multifamily partnerships – Feat. Jake and (Ep407)   

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 rockstars. 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. Let’s get to it.

Welcome to another edition of how to build lifetime cash flow through real estate investing abroad cliff and I am absolutely thrilled you’re here because this is gonna be a really fun episode. So I’ve got my friends, Jake and Gino on the show and if you don’t know who they are, they’ve got an incredible multi-family podcast. I think they’ve got different iterations of it now their best-selling authors they wrote a book called “Wheelbarrow Profits”. We’re also going to talk about their book the new book, “The Honeybee” and they’ve got over 1,400 doors South East near us and they’re just great guys. Welcome to the show guys.

Jake & Gino: Rod, thanks for having us on bro. Thanks a lot.

Rod: Yeah we’re gonna have a lot of fun today a lot of fun. So it’s Jake Stanziano and it’s Gino Barbero forgive me, I didn’t say their full names cuz I just think about it was cheeky but anyway welcome guys. Let’s have some fun today but let’s start you know like we always do in talking about how you guys got started because it’s a fascinating story.

Gino: So Rod picture this, it’s 2009 my brother is in the restaurant with me. I’m in the kitchen making some chicken on the grill. I’m sauteing some zucchinis, my peppers, broccoli, and this dish is called Jake’s chicken. And I’m a little pissed because I don’t have a dish named after myself in the restaurant and this guy Jake’s Indiana’s got a dish and like, what a prick. Who is this guy? My brother walks in the kitchen goes this is Jake. I’m like hey Jake and Jake probably sees me I’m all sweaty I’m working on the grill and I’m like this is the guy we cooked his dish for? I like this guy. He looks like a pretty cool dude. Next couple years, Jake’s coming in every month to the restaurant. He’s got his whole list that means a diligent worker. I love the way he works. He’s got his calendar by the way. He’s the only pharmaceutical rep that would tell me two weeks ahead that he needed an order. So I’m in Putnam County. I have to deliver to the Bronx into Manhattan and can you tell me at least the week ahead so I can schedule. So I love the guy from the beginning. 2011, he comes in he goes, Gino, I’m leaving. So what do you mean leaving? He goes, I’m going to Knoxville, Tennessee. I’ve got to get out of here. These taxes are crazy. So he’s a forward thinker already. In 2011 he knows that a one-bedroom in Fishkill is going for 1,300 bucks a month. He’s like that’s my mortgage payment in Tennessee. So he packs up his bags but before he does, I sit there in my restaurant, I’m at a table and I’m like Jake let me open this computer up let’s look at Loopnet. Let’s see what’s going on in Tennessee. I’m like these things just trading for 30,000 a unit I didn’t know what I was talking about. I, by the way taught him everything he knows so I take credit for that

Rod: That’s the second version of that story

Gino: And the third but I’m excited. I’m like, when you get down there, let me know, he gets down there, by the way everybody, he leaves without his wife for six months. So there’s a lot of pain and there’s a lot of struggle in this right. He’s a young guy. He goes down there by himself. He feels isolated. He goes in an apartment complex by himself for six months. We take about 18 months to find a deal because his wife ends up moving down there. They end up buying a house. We put her on pause. You got Stanziano and Barbaro, a little tough in Tennessee right. We don’t have any assets. We don’t have any credibility going on. We stick it out. I have a strong enough why, his why is as strong as mine. I wanted to go out of the restaurant. I want to surround myself with better people. Jake just wanted to get out of this pharmaceutical rep job, 18 months later we land a first deal with a great broker who actually has brought us multiple deals since then. What do we learn since then? It’s patience, persistence, willing to walk away. We’ve walked away from a lot of deals when we first started. That first deal is think big, start small. It was only 25 unit. So when I say only, for us it was only a $600,000 asset. We got 10% owner financing on the deal so it was a true mom-and-pop and I don’t say we got lucky but I think it was just the harder you work, the lucky you get. The luckier you get, the harder you work. And I mean I probably made this story a little bit longer than I should have but to me I’ve never really thought of it that way. That one meeting you never know that’s why you need to go to live events. You need to just talk to people and network and get out of your comfort zone because I didn’t have the relationship with Jake. Actually my brother did and ironically enough eight years later nine years later. I talked to Jake like five times a day. So he’s a business partnership. Its like a marriage. You like the person you’re partnering with. I love the guy, he loves me. I feed his family. He feeds my family. We go away on vacations together. We hang out together. When I fled on Tennessee, I’m sleeping at his house all the time. His wife actually, I walk in, she’s got the half and a half in the fridge for me. So it’s great. I love it. It’s been a great 10 years for me and I think the next 10 years are gonna be even better. But it’s all about partnerships. It’s all about that you know not that scarcity mindset Rod, like you said it’s that abundance mindset and just really trying to build something with somebody

Rod: Love it. I love it. You dropped so many bombs in that little intro. I was trying to take some notes here you know like one of the first things you said was actually let me recap what you just said and then Jake I want to give you the floor but you know you talked about pain and struggle and Jake, I mean to leaving your family for six months. And guys, those you listening, that’s what it freaking takes. You gotta be willing to suck it up. I remember you know even when I had 500 doors I lived in a one-bedroom apartment. With my wife and my daughter and it was because I was in growth mode. I was gonna suck it up and make it happen and that’s what it takes. You’re gonna have some pain and some struggle but it’s frickin worth it. I love that and then you talked about partnership and I will tell you partnerships are like marriages. They’re easy to get into but they’re not so easy to get out of and you guys obviously have a world-class partnership now. You know I had good ones and I’ve had a couple of bad ones and every time I’ve had a bad one has been because I haven’t paid attention to my gut and I haven’t asked all the hard questions up front. Guys, I have a list of questions if you’re going to get into a partnership. Since we’re on the topic of partnerships, let me just say something really important. First of all they’re easy to get into like a marriage but they’re very very hard to get out of. So it’s critical that you ask the hard questions up front. You ask the difficult questions and I’ve got an incredible list of questions that you would want to ask if you’re even considering getting into a partnership and it’s free. It’s a free download just text the word “partnership” to 41411 and get that list of partnership questions just because it’s so important you know. This business is a team sport so there’s lots of partnerships happening. And if you’re just getting started. You’re likely going to start in a partnership. So you can use someone else’s balance sheet to get rolling. So get that list of questions from me so that you don’t make any mistakes. The other thing I want to say to this is trust your gut. Anytime I’ve ignored my gut, you know trust your intuition when you’re getting into a partnership. Anytime I’ve ignored that, I’ve regretted it. Your stomach doesn’t feel good about this person you’re communicating with, just go on to the next one trust it okay. So anyway to get that list of questions text “partnership” to 41411 and they’ll really help you in this piece. You should ask all the hard questions up front. Did you guys do that? or you just developed a friendship and got right into it? or did you did you actually you know sit down and decide who was gonna do what and all those things and what happens if something happens to one of you? Did you have that conversation?

Jake: So we definitely have operating agreements for you know the various businesses that were involved in together but we were fortunate and there was definitely some dumb luck involved that we had similar values. We had similar work ethic and we had a similar vision and that’s where we think personally those are the three areas where partnerships go wrong. If I wanted to fix and flip deals and Gino wants to buy and hold multi-family, we’re probably gonna hit a crossroads. If he’s a dirtbag and I’m an ethical guy, we’re probably gonna hit a crossroad and the thing is gonna blow up. So I think that

Rod: And if he’s lazy and works half the time and you work all the time you know

Jake: And that’s huge too. And I talked about this non-responsiveness a lot. And I think that’s where people really fail and I call these people that 80 percenters. A lot of these people are doing 80% of the work but they’re non-responsive at times. There’s no time of day where I can’t pick up the phone and call Gino. I know he’s working to 8 o’clock every night not because he has to because he’s a passionate guy and so it’s that work ethic and those values and those shared beliefs that are aligned that make a good partnership and that’s why the things been so successful. And I want to take a step back a little bit because there’s a few things that Gino said he’s dropping bombs

Rod: Wait before you do, I’m sorry sorry you know I just want to add one thing to the partnership because what you said is fantastic you gotta have the same values, have the same work ethic, and you’ve got to be aligned on your vision. The other thing is you you said it but you didn’t you didn’t like him our home you’ve got to have great communication, bottom line. And that’s where my partnerships have failed is because of a lack of communication I’ve had a couple dates I look back on them and it was always communication. So forgive me I just did

Jake: No worries. Even with vendors right now you know and I tell the team if someone’s not getting back to you there’s plenty of folks out there just cut the head off we’re done with it we don’t have time for this too many moving parts you have to move on and then Gino touched on it earlier, patient, persistent, but willing to walk away. You need to be willing to walk away from vendors at times you need to be willing to walk away from employees because if you don’t get your people right, we talked about this a lot within our businesses, people, systems, and culture that’s what business comes down to I don’t I don’t care what business you’re in, it’s people systems and culture and you have to nail those and if one of those pieces is not serving you, you have to walk away from it. The piece that I wanted to get to earlier was having a strong enough why because this is a very tough business. We call it a full contact sport and early on you know we’ve been sued we’ve had employee theft and so if you don’t have that strong enough why, me personally, when I was in the pharmaceutical company, they were doing layoffs every year. They said Jake it was typically December right around Christmas time, go home, sit by the phone, we’ll call you between 11:00 and 12:00 the result of that call will be do you have a job or not going into the next year. Fortunately, I was a high performer. They didn’t really like me because I was a bombastic even had a you know kind of a big attitude at times because I wanted things to change and so I was always like on the ledge they kept me around because my numbers were good but I was a pain in the ass to them. So there’s like, in an effort there’s always at risk. So for me it was

Rod: Not good to live like that you know with the hammer you know over your head, hell no man you know I tell the story about my dad. We’re from Continental Airlines for 36 years okay and I don’t know if you remember continental they have that golden tail on their planes and when I tell you, this is absolutely the truth, when we were kids, if one of those planes flew by we were had we had to put our hand over our heart and look at it that’s how much he loved that frickin airline and they laid him off. I mean come on, there’s no job security. I’m really glad you brought that up brother because it’s all between your ears. So back to strong enough why

Jack: Yes so if you don’t if you don’t have a strong enough why because this is a very intense business and getting started in the beginning can be very challenging, you’re not gonna make it through those hard times, you’re not gonna make it through the first two years that it took us to get our deal. You’re not going to make it the first time someone Sue’s you an employee steals from you you know the plumbing system goes up because all this stuff happens but that’s where it comes back to the people, systems, and culture; putting good people around you, have a great culture so people will go to war with you, and then having those systems in place that when things go bad it becomes another one of those as Ray Dalio says, “And that’s how we’ve systematized our business” And just to see it in my partner’s you know eyes and his demeanor here he comes on, he’s passionate, he’s energetic today. I’ll tell you this and I share this about Gino sometimes, when I met him it was he was in the, I knew Marco, his brother very well, we were great friends. We go to Yankees games all the time. Gino was in the back show him the pose

Rod: I saw you cross your arms I’m thinking holy shit he just got defensive

Jake: No he will because she knows gone through an amazing evolution as an entrepreneur because he was an entrepreneur but he was a solopreneur in that business, in that restaurant. And you see him in that in the back with his arms crossed and it was because he was dealing with things the dishwasher would call in, who would have to pick up? Gino. The cook would call in, who was there holding it down? The G dad. And so when you’re in that type of environment it was soul sucking. We’ve all had these soul sucking you know different W-2 jobs if it over even as an entrepreneur Gino had it. So if you you’re able to figure out multifamily, you’re able to get into it, it is life changing but you have to have that long view going back to the partnerships. It’s not going to happen overnight. You have how you willing to put the work in and grind it out and believe in your vision if you want to see this through. And that’s the thing that people have a hard time because they see it up there it’s this pie-in-the-sky it’s for somebody else and I suffered that limiting belief because I was from a small town. I didn’t think that you know owning a business was for me. That was the limiting belief that I struggled with but I had a strong enough why to push through and I have someone like Gino with me that was able to really open my eyes to these limiting beliefs. So Rod, Rod, let’s not let’s not overwhelm the listeners because this is

Gino: I’m passionate guy

Rod: I’m sorry I mean I’m writing notes because these are things that are so pretty important. I tell people a business is nothing but people and systems but that culture piece is freaking huge. And so I’m really glad that I heard you say that because you’re right that without the culture the people and systems fail. So that’s awesome

Gino: No, what I mean by that is when you buy your first property, focus on buying your first property maybe even your second but have this in the back of your mind and let me expand on what Jake said write that down the people, systems, and culture. The other one I would write down the 4 P’s. It’s People, Product, Price, and Promotion. One of those four things, if it’s often your business it’s not gonna work. If you don’t have the right people in your business, you’re gonna crap out. If your promotion or your marketing is not working, you’re not gonna sell your product whether it’s an apartment complex whether it’s education whatever you’re selling. The price, if you’re pricing your apartments too high you’re not gonna rent them and the product if you’re delivering a crappy product. So look at those 4 P’s. Now for me in the restaurant when I first started out, it was a little bit of people but I was there all the time. So I couldn’t scale up. So I was looking at as you know what, I have to be there and people, everyone listen to this, you don’t attract what you want you attract what you are. So I was a crappy employer and it’s like a partnership, people blame their partners. Maybe you suck as a partner, maybe some of the partnerships that I came on, I was the problem also it wasn’t just the other side. So look within yourself and the last thing I’d like to say about it is my turning point in my life is when I went to life coaching school the personal development. I didn’t want to become a life coach I just needed that personal development and that’s when everything changed like Jake said, all of a sudden you start opening you become aware of things you become aware of how you resonate with somebody you know you come into a discussion and you’re a jerk, all of a sudden the conversations over. So that was huge life coaching

Rod: That’s really really powerful and it’s very interesting because that parallels my kind of metamorphosis as well was you know I spent 20 years following Tony Robbins around the planet. He’s probably one of the best coaches on the planet in and I actually got Certified as a High Performance Coach myself and I know you’re a life coach which is you know such an incredible because really when that happens you’re really looking in the mirror which is what everyone needs to do. But I’m going to circle back on a couple of things that you said Jake that are really powerful or Gino I think you said the long view and like one of you I’m sorry but that’s so critically important in this multi-family space. There is no get-rich-quick. There’s a become super freakin wealthy over time but you know you get into multifamily, you’re gonna do it the rest of your life. It’s decades and that’s the, and when you approach it like that first of all there’s no incredible urgency and or stress around it. You just realize that it’s a complete shift but also you have the right expectations because the big money comes overtime would you guys agree?

Gino: I would and I make the analogy. My dad was an immigrant from Italy. He was a farmer. So think of it this way, every entrepreneur has to have the longview. The farmer plants the seed. He has to water the seed. He has to weed the seed. He has to pray to God that he doesn’t get a hailstorm and six months later if everything works out, he can cultivate and harvest the crop. My dad left Italy because it’s life and death if the potatoes don’t grow six months later, you don’t have any food. Us, if we don’t make money in six months we can still figure something out. So for us you want to buy for cashflow today really if it’ll cashflow, we’ll let the grass grow obviously but you got to take the long view. I mean like it takes us at 12 to 18 months to refi these deals sometimes maybe I’ll take you 24 to 36 months and our generation right now, with the instant gratification it’s a little bit harder because you want it right now. Brokers wanting make that 2%. They want to sell the deal in 60 days. They don’t want to have that long view. So if you can and you can put it off and you can really think of the long you 30 years and that’s why it’s great to start part time. We started part time. We didn’t need that money. For us it was sort of on the side kind of money. Jake managed the first deal. He got that property management fee he was able to his job a lot sooner because of that and we all of a sudden were able to build a business. Put our cash back into these properties, build them out and then refi get those big checks and then roll it into the next deal. I saw I think everyone should start. Don’t start I think you’ll get rich in the first 12 months. Think about it as a long game and actually work on those. There’s three pillars you need to work on, you need to work on the market cycle, the debt, and the exit strategy. Those are the three pillars of real estate. It’s important because the market cycle is hot right now but think of your exit strategy, what are you doing with these assets? Jake and I when we first started, we’re gonna be buy and holders forever. As you’ve learned, you have to take what the market gives you whatever the defense gives you you’ve got to take. If you’ve made a ton of equity in the deal maybe you sell it out maybe you refi it. So look at every deal uniquely and see what happens but like you said Rod I totally believe it is a long game you have to plan long. Don’t think you’re gonna get rich in that something

Rod: So let me circle back to something else you talked about and that is having a strong enough why. Do you have any strategies for identifying and/or grabbing on to that why and or keeping it in the forefront of your mind?

Jake: Yeah I can answer that and I think it comes from like not to get to whoo or you know to mention the weeds but I think it can definitely come from you know meditation and one of the things that I’ve you know been doing over the last five or so years is meditating and then the you know there’ll be times especially in guided meditations where they will ask you you know what are you doing, why are you doing this. And then so it’s, for me you’re in that state of peace and you’re able to just relax enough to allow those ideas to come to the surface and if the same thing keeps knocking on your door time and time again you start to realize, wow I am here to create a life of abundance for my daughter, for my son, for my wife, for my family, and that’s my burning desire and that’s what’s most important to me. That’s what’s driving me day in and day out you know we’ll just I’m so passionate about my family and that’s what goes back to that partnership because you know Gino, he’s got me beat a little but he’s got six kids that are home-schooled so you think he’s not gonna that a burning desire and some motivation to make it happen for the family and it’s just fortunate you know again a little bit of dumb luck that we stumble upon each other you know however the universe works that we worked out well for us. In regards to that but you got to be open and being able to identify these things when they come knocking on your door too because it’s if you’re not open and you don’t have an open mind, these things will not present themselves to you. And Rod, it’s important everybody out there, if you are a self-motivated individual, I challenge you to look around and who is relying on you. If you’re a father, you’ve got a wife, couple of kids, or an employer, they’re relying on you. Your employer’s relying on you to produce. So look within and look outside of you and if you are not working to your potential, you’re letting that person down. We’re more willing to work for somebody else than we offer ourselves. So that’s how it was self-motivated Jake. He’s got Emma and he’s got a little boy Chase and I have to work for them and his wife and that I don’t eat that motivation because I already got it but as far as our other businesses now, I’ve got to become better at certain skill sets and if I don’t become better, I’m letting my team members down. So I challenge everyone out there if you’re not motivated, look around and who are you letting down. And then put that picture in your mind and say I’ve got to work harder to become better for them. And that’ll get you on the path

Rod: Yeah, will do more for others than we’ll ever do for ourselves. No that’s you know that’s a critical piece of your why for sure.

Jake: Rod can I chime in on that for a second because I’ve had a little bit of a realization over the last few years is we’ve gotten heavier into charitable giving and you know donating things and if there’s ever a time and I really want to challenge everybody on this where you’re in a position and there’s a charity that’s bringing something to you and you’re right on the fence about it or there’s an opportunity to help someone else out and you’re on the fence don’t even think about it. Go in either give the money, give the time, whatever it is because you will it literally will be a sense of relief and it’ll be something that’s it’s good either put out into the universe and if you don’t do that you’re gonna walk away kicking yourself in the ass and feeling awkward about not doing it. So the next time you’re presented, and I’m not saying just give to everything but if you’re presented with something and you’re on the fence whether you should do it or not, just give the money out, just let it go. I’m telling you it’s gonna come back one way or another and you’re gonna be at peace with yourself

Rod: And even, and that is that is absolutely accurate and you know I had an epiphany 20 years ago floating in a pool in my mansion that I built and I talked about this and I’ve been totally focused on myself and decided to feed families that year enough. Now I’m tellin that 75 thousand children over the last 20 years. And the point is you know and I get these guys wet behind the ears or blood dripping from their teeth, they want financial success so much and I’m here to tell you, when you incorporate giving back, that financial success actually comes quicker because you guys know the law the universe God with it whatever you want to believe you get back multiples of whatever you give. You want love, give love. You want happiness, give happiness. You want money, give up your time and money and it multiplies on the way back. You guys know this and this is the only things work I’m really glad you brought that up Jake. But I want to circle back to meditation for a second you know it’s funny I only listen to one podcast you know but I talked about the Power of Focus. Focus is everything. What you focus on grows and the people that have the ability to enhance their focus are the most successful people out there. And I listen to Tim Ferriss. That’s the only podcast I listen to and deconstructs world-class performers you know best-in-class. Ray Dalio, he’s in a head on the show. He’s had, you know Arnold Schwarzenegger the best actors Jamie Foxx he’s had the best CEOs the best in every genre and this isn’t a plug for him it’s just I wanna I’m circling the reason I’m bringing this up is I noticed a pattern in all these people he’s interviewing they all freaking meditate because it enhances their focus as well not just helps with the why but it helps with that. So I wanted to mention that. Well let’s now talk about the journey. Let’s talk about the you know there’s so many people that listen to my show and your show that they want to get started, they know they want to do something, they want to get out of the grind, they want to build that side hustle, they don’t know how to start maybe you guys can speak to that? You guys are experts that speak into that. Let’s go there

Gino: So for me it was real simple. We’ve come up with education times action equals results. That’s what it comes down to and from me back in ’06, I was taking massive action. I guns from mobile home park that crapped out I met a guy named Maserati Mike. That was not a good plugin

Rod: Talk about Maserati Mike.

Gino: This is story time with a cheetah I think people need to hear this

Rod: you know I hate that you using that car as an example because

Gino: I love that car too. I do I love the Maserati I’m but you know what it was my fault like I said that partnership. I was lazy with my money a person with money meets a person with experience. The person with the experience gets the money and the person with the money gets the experience and that’s what happened to me back in 2006. I was lazy I didn’t do my due diligence. I didn’t know the asset class. I didn’t fly down there I didn’t do the proper paperwork blog goes on and on and on. The deal was great I wish I owned that deal right now though those mobile home parks he lost them because he was an incompetent. I don’t think he was a thief I think he’s just an incompetent idiot my fault. Two years later, I go buy a strip mall in Putnam County in New York bad market, bad market cycle, bad tenant base, there’s just no population growth, I didn’t have the education, so what did I do I went there right after I said I want multi-family because Jake what is multifamily food, clothes, and apartments. That’s the three needs and I realized back then, this is ten years before now with demographics going on I just realized that people want a rent back then they need a place to live. You can’t live in the Internet even back then I said the internet wasn’t as big as it is now. So I said, let me focus on multifamily. I don’t want to fix and flip I learned I go and got educated with two different mentoring programs. I really learn the system and there’s so many educators out there just pick somebody you like but you need to spend, you need to invest in your education once you invest in your education in the personal development and the nuts and bolts you need both you need somebody to personally develop you and you need the nuts and bolts education. And once you do that all that, you focus on it you find a partner you find a market and then you just go ahead because for me, I didn’t want to invest in New York I knew that my backyard sucked so I ended up going down to Tennessee so I found my chance once I met Jake I said, okay let’s go down there but you need to be educate your selecting you need to know how to analyze and underwrite a deal, you need to know how to talk to brokers, you need to do property tours, you need to go down there and start putting LOIs, and you need to start doing due diligence all of these things you can learn within the next six months to a year but have to take the time do all this work. You don’t want to just jump in there and say you know what like I did, I had the massive action but I wasn’t educated and then that was my results and I can sat there and blame my partner or blame myself but I said you know what that was my why. I’m like, if this guy can do it, I can do it

Rod: When was the retail? Was that like ’09 or 10 as well?

Gino: I closed that I deal in 11.06, in November of 2006 and then right in ’07-‘08 was that crash but you know what it was more the market because most of New York is really elevated but that’s that’s about an hour and a half north of New York City and the office space up there sucks especially now because no one’s renting these little offices you’re doing it in your house I’m in my house Jake’s in his house. We don’t need to go to offices right. The retail up there is terrible because it’s a bedroom community nobody goes on up there and the industrial in the back it just crapped out because once the recession hit for the next years nobody was renting it. If I had known all these factors, I would have been a lot less than that asset. I probably would come out even but I didn’t know that and what I didn’t know? Hurt me.

Rod: I love it Maslov’s hierarchy you know between the shelter and food. And so education in action love it love that too and that’s it guys. Dabblers get crushed guys. Those of you listening, you’ve got to educate yourself and bottom line and suck it up and you’ve gotta have a strong enough reason why so you actually take action with what you learn you know let’s circle back to something else you talked about limiting beliefs and you know so many people have them and you know there’s a reason that the acronym for belief systems is BS because 99% of them are BS but you know our juvenile brain, we have this emotional occurrence it may even be subconscious we don’t remember consciously but our brain place makes it actual when in reality there’s no basis in fact you know so you know what I tell people and I don’t know what you guys do but I tell people if you recognize that you’ve got one of these limiting beliefs, drag it out into the frigid daylight shine your adult spotlight on it and think about it rationally and make sure number one, that it’s not a story as well because you know we tell these stories to ourselves to as a circuit breaker so we don’t get disgusted with ourselves, I’m too young, I’m too old, I know I’m not analytical enough, I’m not outgoing enough, I’m not, whatever and those are stories but then these limiting beliefs you know they hold so many people back and so I just encourage you if you’re listening pull them out look at them and unconsciously realize that they’re BS and it takes time. I mean I used to be a massive introvert I and I didn’t think you know I was good enough and that was my limiting belief I’m not good enough. And that’s a common one honestly and I had to try it out in the daylight and say to myself you know I’m a gift from God. So you know bottom line you guys have any comments on that?

Gino: Yeah at coaching school, we learned that limiting beliefs are one of the four energy blocks. An energy block is anything that’s internal right. Everything else is external, ninety-five percent of our energy blocks are internal. External would be the environment, the economy, who was running the presidency, the four energy blocks, I’ll go real quick. The first one’s a limiting belief. Roger Bannister, runs the four-minute mile before Roger Bannister limiting belief was if anybody runs a four-minute mile my heart’s gonna blow up. Two weeks after he runs it, we’ve got people running the four-minute mile. I can’t make money. I need money to get into real estate. Money takes money to make money. Those are all limiting beliefs once you shatter that limiting belief,  it’s gone. The next one, write it down everybody, limiting belief is one. The next one is an interpretation. What an interpretation basically is someone who’s interpreting something but is that the reality. I’m sitting on the beach, my wife texts me, she says, Gino, I’m dying. I want to go into life coaching school. What do you think about it? I don’t text her back because I don’t have my phone on. So her interpretation ten minutes later was he thinks it’s the stupidest idea I’m not gonna do it. I talked her 10 minutes later I said, that’s a great idea. So her interpretation can screw up her whole paradigm right. The third one is assumption, your assumption. How are you assuming things, if I get into a partnership and I crap out my assumption is the next partnerships gonna be terrible. If I had assumed that, I would never have got into partnership with Jake. So look at your assumptions in life, what are you assuming? Are you assuming a bad relationship with somebody? Are you assuming that real estate is risky? I could have said that also it is risky but it’s risky because of me. So watch out for your assumptions those are really hold because those are really personal and the gale which is the gremlin that’s the highest one everybody. What Rod is talking about in your mind that little inner voice that inner critic. I’m not good enough. I’m too ugly. I’m not smart enough. For me, I had my chef coat on in the restaurant with pizza stains, am I good enough to talk to an investor or to a banker to a broker about a deal? That was holding me back but what did not hold me back as you like to say with Tony Robbins, I love Tony Robbins, I had the two types of motivation I was moving away from pain. So I hated my restaurant job so I crushed my gremlin my inner voice by saying I hate my situation. I’m gonna do something. And then partnering with Jake obviously that accountability piece that person who actually helped me out and actually push me and actually made me a better person really helped my gremlin. So everyone out there you got limiting beliefs, interpretations, assumptions, and gremlins. Just google it it’s from iPad.

Rod: I love it and you know Tony spins it a little differently and that is he speaks about a life of meaning where people can have the same thing happen to them that from the outside could be horrific and one of them comes out stronger, the other one comes out destroyed because it’s the meaning that you place on what happens to you. So when something happens, it’s really important that you pay attention to the meaning you’re placing on it. And it’s very similar to your assumption you know it just going differently but love it absolutely love it. Great content

Jake: Guys, I wanna chime in here for a minute because I feel like there’s so much of this that’s between the ears and so much of really real estate investing is mindset but I want to throw a little bit a little bit more meat on the grill here because I think one thing that got glossed over a little bit was Gino was talking about the right vehicle essentially. He touched on basic human needs, being food, clothing, and apartment and obviously we’re making a joke there that you know like many people said it’s food, clothing, and shelter but if you look at today’s economy and you look at the demographic shifts, people are moving to the southeast. There’s jobs, there’s tax advantages, and they’re renting, there’s this mobility factor that’s involved in today’s society and one of the things that we’ve learned from our you know demographic research and the people that we’ve interviewed is that people thought that the older generation was going to go live in on golf courses. So they set up these communities and they’re gonna go live on golf courses what’s happening is their kids are moving to areas. They’re moving to Florida and then they’re saying what the hell we got to sit here in this house and talk to our wife and husband all day? So they’re like no screw that we’re moving to where the kids are. So now those areas are surging so what we’re talking about right now is the right vehicle. We touched on the mindset piece okay you’ve got to get over these limiting beliefs but then you have to get into the right vehicle and the reason we believe multifamily is the right vehicle is because of the demographics and because of what happens with the banks if we want to, look I love hating on the banks but if we’re really being honest with ourselves they don’t have any money, they’re creating money out of thin air they’re lending it to you and then if you crap out on your deal, they’re taking it back. That’s a bunch of shit the reason we love multifamily is because it keeps up with inflation. There’s a demand for it, it’s a basic human need and you’re going to be able to kill that little thing that no one looks at or talks about which is inflation which they say oh it’s 2%-3% bullshit. I’ve seen the price of beef it’s gone up a lot more than that so I think that you know this is the right vehicle and we’re pairing it with getting our mind right, the 90% between our brain but then let’s get into the right vehicle and take that long view

Rod: No I’m really glad you said that brother I mean sure there are other asset classes we talked about mobile home parks and you know my great friend Kevin you know does really well with those but you know that in this course there’s retail where you might have got slapped back in ‘11 but multifamily has historically just done incredibly well. And that’s the reason I got into it back into a night when I lost 50 million dollars in 2008. I had 800 houses and I had multiple apartment complexes it was the houses that pulled me down because I was too spread out I don’t need to dig into that now but just –

Jake: Great point

Rod: But the point is, my partner’s did just fine through that. They pulled back but I would have had them if I hadn’t cross-collateralized and I still have them and so no I’m really glad you brought that up and we are becoming a renter nation. I think renters have exceeded home ownership for the first time in history like this last year. I’m pretty sure I read that. And so we you know the Millennials they won’t they don’t want to be tied down like you said the seniors they want to follow their children and so you know

Jake: It’s a sharing society. People are buying clothes that are used. They’re doing Uber. Everybody’s sharing everything and there’s just it’s what it is

Rod: I love it I love it. Well listen guys it’s really been a treat guys. Jake and Gino, they’ve got a great podcast. You gotta check it out. They’re good guys you know we really didn’t get into real estate but I think oh, yeah I forgot to mention “The Honeybee” book definitely wanna go get that. Yeah they wrote, oops you know Jake is waving the book right. So they wrote this book, it’s a parable. Do you want to describe it?

Jake: No, it’s just a really cool book. We got the audible coming out soon. The G-dad read it in studio came out fantastic and it’s just about a sales reps journey and it’s probably the journey that many of us have been through whether we’ve been in a shitty W-2 job. We’ve had the solopreneur ship like Gino and just the journey that goes through creating this vertically integrated real estate business and this multifaceted approach where you can really spread out your risk and you can you know create the property management company to serve your investments. You can create the capital company and then it all comes to you know what’s the sole purpose of this this you know individual and you know what it comes down to is you know ultimately he wants to give back and you know he’s able to do that through his real estate journey. So I think everyone should definitely check it out. It’s on Amazon now. The Honeybee and we’re very proud of this one

Rod: Love it love it. Yeah awesome. Well make sure you guys get that and listen guys, thanks so much for being on the show. This has been a real treat Gino and I crossed paths that we were both speaking at an event in Orlando recently. I haven’t seen Jake. I mean quite a while and I just really great to see you guys and see how successful things are going for you

Jake & Gino: Thanks. Thanks Rod. Appreciate it.

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