Todd Dexheimer, Principal of Endurus Capital and VitaCare Living started investing in Real Estate in 2008. Today his companies own 4,000 units of multifamily and senior housing. Todd has completed over 150 flips, including a 20 unit mobile home park and a ski resort, while using those profits to build his rental portfolio. Today his focus is on syndicating value-add Senior living and multi-family in emerging markets.
- Doing It All Yourself At First
- Teamwork Can Make Your Life Easy
- Getting In Your Own Way Is The Limitation
- The Coming 2022 Recession
- The Fed Raising Rates
- Great Opportunities That Are Coming
To find out more about partnering or investing in a multifamily deal: Text Partner to 72345 or email Partner@RodKhleif.com
Full Transcript Below
Intro
Hi. My name is Rod Khleif, and I’m the host of “The Lifetime Cash Flow Through Real Estate Investing” podcast. And every 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” buttons to get notified every Monday when a new episode comes out. Let’s get to it.
Rod
Welcome to another edition of How to Build Lifetime Cash Flow Through Real Estate Investing. I’m Rod Khleif, and I am thrilled you’re here. And I know you’re going to get tremendous information from the very seasoned operator that I’m interviewing today. His name is Todd Dexheimer. He’s been on the show before and he’s the principal of Endurus Capital and VitaCare Living. You know, he’s owned over 4,000 multifamily units. He’s in senior assisted living, got 340 units there, done a lot of real estate, forgotten more about real estate than a lot of people will know, and– so we’re going to have a lot of fun today. Todd, welcome to the show. Welcome back, brother.
Todd
Yeah, thanks for having me, Rod. Appreciate it.
Rod
Yeah, sure. So, you know, since it’s been so long, why don’t you just give like a little highlight reel of your experience for those that may not have heard the initial episode, and then we’ll have some fun?
Todd
Yeah. Man, way back when I started as a high school teacher and turned into a real estate guy buying single-family homes, duplexes, triplexes, stuff like that. I flipped a lot of homes, flipped about 150 of them, and bought a lot of just that 1-4 family rentals. That’s how I was going to build my portfolio. Getting– my goal at one time was 1,000 1-4 family houses which– yeah, 1-4 family buildings, which I think you did this kind of very similar thing, just, go, go, go.
Rod
Thank God you got smart and got away from that one. Yeah.
Todd
Yeah, man. It just like started to become overwhelming. Come on a headache. Realizing my margins were going down and had to shift and go in a different direction. That was honestly multifamily. Started making a lot of sense to be buying multifamily buildings. Started kind of small buying ten, 20 unit buildings. And then eventually, the syndications that I’m doing right now is buying 100 plus units, multifamily. And we’re also buying some senior assisted living over the last couple of years, we’ve also been buying that. And just a few other opportunities that may make sense as we go.
Rod
Well, so question, I don’t want to derail the conversation here because it’s really a multifamily podcast, but on your senior living, are you actually managing the asset, or do you just own the asset and you’re leasing to an operator?
Todd
So we don’t lease to the operator. We hire a third-party property management company.
Rod
Got you.
Todd
Very similar to multifamily. They’re doing all the groundwork, the day-to-day stuff and so we’re managing that manager. So, yeah, technically, the operations are with our business, but we’re giving the third-party management away.
Rod
Got you. Refresh my memory. What did you do before real estate? I mean, do you start in real estate? Is that how you–was that your first business or did you have a different career before that?
Todd
My first business was in real estate, but no, prior to that, I was a high school shop teacher, teaching industrial tech, you know, wood tech, metals, that type of stuff. I did that for five years.
Rod
Like taking the plastic and making a bowl out of it by putting it into–yeah.
Todd
You got it.
Rod
That’s about the only thing I got accomplished– that got done in shop class. That was [inaudible]. That’s funny. That’s awesome. Awesome. So, along the way, you know, I know that you know, you’ve gone a lot of different directions. I assume you started out on your own, but now you’ve got a team put together. Yes? Would that be an accurate statement?
Todd
Yeah. Man, I mean, I could tell the stories, but yeah, I started on my own trying to do everything myself. Man, I would literally, I’d get done teaching for the day and I would drive directly to the properties and I would be the one swinging the hammer, doing all that, going to look for new properties, trying to manage everything. And it took me a long time and we can dig into that journey, but it took me a long time to really figure out that there had to be a better way. And it just, you know, a lot of little mistakes along the way and had a hard time. I think a lot of entrepreneurs, myself for sure is just a control freak. Right?
Rod
Same here.
Todd
I think I know everything better than everybody else. And quite frankly, I feel like I’m pretty damn good at a lot of things. But it takes a lot to finally realize and, you know, a lot of just lessons that you learn along the way. They go, okay, you might be okay at doing this, you might be good at doing this, but is this what you need to be spending your time doing to actually grow your business? Sure. I’m really good, Rod at that construction. I can tile a shower. I can do a great job at doing that. I can, you know, trim out an entire house and make it look beautiful. I can build a cabinet and make it look gorgeous. But is that really where I should be spending my time? And so, you just, you know, over and over, you got to always be asking yourself then, I’d still do that to this day. Like, is this where I should really be spending my time? You know, I was doing some data entry this morning. I’m like, why am I doing this? Why is this not being handed off to somebody else? Doesn’t make sense to do.
Rod
Yeah. You know, I get asked the question all the time. You know, what’s the first person I should hire when I’m getting in this business? And frankly, it’s always an executive assistant, having a VA, a personal assistant, because you know, I love to ride my lawnmower around the yard. Is that the best use of my freaking time? No.
Todd
No.
Rod
And so, you know, and as it relates to being a control freak, I am that on steroids. And it took me a long time to realize there are actually people that can do it a hell of a lot better than I can do it. Okay? And that was a little painful to come to that realization, but that’s the truth of it.
Todd
And you think– it’s so easy to think, I’m spending this money on this? But I don’t want to spend this money on this person is going to cost me, whatever, $500 or $1,000 or $10,000. So I’m not going to spend this money. I’m going to save it. I’m going to do it myself. But once you actually start giving some of that away, you realize you’re making way more money in the end. And no, I’m not telling somebody that’s just beginning, go and hire all these people and– but you need to do it as quickly as you can. And probably, 100% of the time, it’s sooner than what you think.
Rod
Well, hiring may be the wrong word. You know, I tell people, figure out what you’re good at and then hire is one option. You know, a partner is another option. You know, a joint venture is another option.
Todd
100%.
Rod
Just find people to do what you’re not strong at because if you’re playing to your strengths, first of all, you’re going to love it because you’re doing what you love, anyway. So you’re going to be good at it regardless. Second of all, if you’re doing what you love and you’re playing to your strengths, you’re going to be passionate about it. And this business requires relationships and people want to work with people that are passionate about what they’re doing. And so if everybody’s playing to their strengths– so let me ask you this. What role do you play now, Todd? And what does your team look like?
Todd
Yeah, great question. I’ve got a couple of main kind of responsibilities. One is investor relations, and so, building our investor database and then communicating with investors and then you know, just trying to continue to grow those relationships, which I actually have–you know, I’ve got a team member that helps me delegate that stuff or do a lot of that stuff so I don’t have to do a lot of the– I’m really good at maybe creating the first contact and creating that relationship, but I’m not as good at that follow through and that continued–and so, okay, I realized that, and so I have somebody that does that for me. And so, that’s one. And then the other part aspect is construction management. I’ve done a lot of construction, so construction management. So what’s my team look like? I’ve got two partners, you know, we’ve got a construction manager, we’ve got investor relations, we’ve got a couple of assistants, executive assistant, bookkeeper, and then we’ve got broker relations, or I guess whatever you want to call it. Somebody that finds properties, underwrites, and all that kind of stuff.
Rod
Okay, so you’ve got someone that actually develops the broker relationships and does the underwriting.
Todd
Yeah. And one of my business– like my business– so, I’ve got two business partners, right? And so they’re in charge of those things too. So one of my business partners is kind of in charge of that aspect. The other one is in charge of, you know, more of the financing and some of that aspect.
Rod
Bringing the deal to closing.
Todd
So, yeah. You know, we all have our roles and then we have people that kind of, I suppose, support us in our roles as well.
Rod
Will these roles apparent, right out of the gate or did you evolve into them? And I’m giving this a little more energy than maybe normal just because you’ve got a pretty well-put-together team now. And teamwork is such a– I mean, this business is a team sport. By the way, guys, I still have a few tickets left to my Denver boot camp and it’s up in two weeks. And by the way, Todd, we’re here on this one today. Okay? Just so you know, this one’s going live today. And right now it is July 18th. And so, if you DM me on any social channel, I’ll give you a code. You can still come for $197. It’s up to six or $700 now, but if you DM me on any social channel you come from $197. If you can make it to Denver because opportunity is coming. And Todd and I will talk about that before we cut loose today. But about this market that we’re in right now, but, so–
Todd
Rod, since you just mentioned that, I just want to say this to anybody who’s listening, by the way, I will say Rod’s events are phenomenal. And by the way, they’re probably better than when I was there because I think the last event of yours, Rod, that I was at was in 2018 or 2019. And it was an excellent event then, so I can’t imagine now–
Rod
Do you remember where it was?
Todd
That was in Chicago.
Rod
The Chicago one. Oh, that was ’18. Wow, that was a bit ago.
Todd
Yeah, so that was a while ago but it was a phenomenal event. Really enjoyed it. Tons of great information. Man, your energy.
Rod
Thanks, buddy.
Todd
I can’t believe you can be up on stage that long and still be like [inaudible]
Rod
Yeah, well, I’m exercising really heavily right now, getting ready for it, man.
Todd
Kudos to you.
Rod
And I got to tell you because I face planned for about a week. But yeah, so guys, you can go to “RodinDenver.com” or you can text my name, “Rod” to “72345” to get the link. Again, “72345” text “Rod” to get the link. And if you DM me on any social and I’m on all of them, you can still come from $197. I’d love to get a few more people there. We’re close to being sold out, but we’re at about 800.
Todd
Wow.
Rod
So it should be good. But, anyway, so I digress there for a moment but, yeah, back to the team question.
Todd
Yeah, I’ll answer that question. So with the team, it definitely evolved, right? It doesn’t start out as a huge team and you’re going, oh– look, you’ve got to start making money. It’s got to be a business. If you’re just going to start and you’re going to create this huge team and you’re going to be paying people, that’s not going to work. So, Rod, you already kind of mentioned it. Look, you don’t have to pay people on your payroll. You can start your team as having a couple of partners or some JV. They don’t even have to be business partners to the sense that you’re going to do every single deal and you’re marrying each other. You’re just marrying each other on this deal. You’re doing that one deal.
Rod
That’s right. Really important. I just want to hammer home what he just said. You date before you get married.
Todd
Yeah.
Rod
Okay. Now, I host the largest mastermind in this space, and I had two very large partners in there that broke up, big partnerships, male and a female, because they didn’t date before they got married, they got married, and now they had to go through divorce because that’s what a partnership is like when you break one up. Easy to get in, too hard to get out of. But I just wanted to hammer that home. Keep going, Todd. Sorry.
Todd
My two partners, we were doing business with each other ever since 2018, 2019, 2020, 2021, and then, in 2021 we said, let’s make this an official partnership.
Rod
Wow.
Todd
So we held each other’s hands for a long time. We’re JV partners. We’ve been doing deals together exclusively that whole time, but we officially formed, you know, the company in 2021.
Rod
You didn’t formalize it right away.
Todd
Yeah.
Rod
So you took three or four years.
Todd
Yeah, it took a long time.
Rod
That’s really admirable and that’s tough to do sometimes, but it’s important. So I completely agree with you.
Todd
Here’s what I can say about building the team. You need to come up with your vision, right? You need to understand what your business is going to look like, and then we can pick out some of the parts. So as we look, you know, we said, all right, we need somebody that can handle– we’ve got a lot of properties we’re underwriting, but we need more deals to actually purchase. So, that’s number one. All right, so who do we hire? Well, naturally, we hire somebody that can help us find more deals, underwrite more deals, talk with more brokers and really get that, okay, now deals are coming. Now, who do we need to hire? Well, we need an investor relations person. Okay, perfect. Well, we got so many deals going, and now we’re doing all this construction. Who do we hire? Well, we hire a construction manager. Now we’re hiring an asset manager. You know, we got, you know, a bookkeeper and so on. And so you just got to look at, okay, where are the next steps? And so we already have it laid out, who our next hires are coming up, when we feel like they’re coming, what kind of unit count and progress do we need to make before those hires happen. I think that’s really valuable. You know, you just understand your vision of where your business is at, how it’s growing, and then who gets in, and what place and when.
Rod
Yeah, and that’s by planning, guys. Okay? I hope you heard that. That’s basically, you know, fail to plan, plan to fail, right?
Todd
Yeah.
Rod
And, so, he’s talking about business planning here. You’re strategizing you know, your future needs. In any business, you’re going to do that. And this is a business, guys. So, oh, gosh. And I lost my train of–oh, that’s right.
Todd
Rod, can I tell a fun story?
Rod
Yeah.
Todd
This is from when I was– first beginning. I don’t know how much time you have, so I don’t want to do [inaudible] but–
Rod
No, we’re good. We’re good.
Todd
So when I was first beginning, I was– this was a couple of years, maybe a year-end or so. I hired people. I realized I needed to hire people to do the construction, but I was actually the guy going and getting delivery. So I would run to Home Depot or Menards or Lowe’s or whatever. So, I’d run to the– so, I get to Home Depot and I pile, and I’ve got a Nissan Altima. It’s a car. So I pile in like seven, eight bags of concrete in their sakrete, and I got 2x4s in their, shingles of who knows what. I got–this car is full of just stuff. And you can’t– those who you’re listening on the podcast, you can’t see, but my car is driving like, at a 15-degree angle, you know [inaudible]
Rod
Right. The nose in the air, butt on the ground, right on the ground, right.
Todd
And I’m driving down the road and I hit this railroad track and this railroad tracks got a big bump and I didn’t realize it with that full of a load and my car– back end just goes boom. Hear this big, like, scraping on the ground. And I lamp to the service station, everything in the back end, my shock, strats, all that had to fully be redone.
Rod
Wow.
Todd
And I’m like, this is so stupid. There’s got to be a better way. So I go to Home Depot and like, hey, what can I do? And they go, oh, we’ll just send somebody out to your job site. They’ll make a full material list for you and then the order, and we can give you free deliveries, by the way. And I’m like, what? Do you guys can do that? Oh, yeah, you just need to get this Home Depot account with us.
Rod
Wow.
Todd
Wow.
Rod
You didn’t know. Wow.
Todd
Amazing. But you don’t know if you don’t ask, if you don’t dig, if you don’t–
Rod
That’s right.
Todd
Start to ask those questions. Who can do this job for me? I think that’s the most important part. Who can do this job for me?
Rod
Great, great message there. And there’s a great learning opportunity and all of that as it relates to team. But so let’s–
Todd
Long story for being an idiot, right?
Rod
Oh, yeah, we’ve all been there, brother, let me tell you. Leaving stuff on the– stringing along the highway, going down the highway. I can’t tell you how many times I’ve gone to Lowe’s and Home Depot and then, you know, I’ll end up not getting everything that’s needed. It’s just such a pain in the ass.
Todd
Oh, yeah.
Rod
But, yeah, been there, done that. So as you’re going through this growth over these last four or five years, talk about any aha moments that you had, any epiphanies, any like, holy crap, now I get it. Well, that was an example of one right there. But any others that come to mind of any epiphanies, you know, may have caused you to pivot into a different asset class, or–I just– I’m trying to help you with the thought on this because I know I didn’t prepare you for this. Does anything come to mind?
Todd
I mean, so many, right?
Rod
Yeah.
Todd
I think as you go along this journey, you get these paradigm shifts, right? Your brain says that this is the way to go or this is the limitation. You got these limiting beliefs and all of a sudden, like, something happens. You watch somebody, you listen to somebody, you just do something and you’re like, whoa, I didn’t realize that that was even possible. The one that comes to my mind is I was buying 1-4 family houses and buying the– finally go, I’m going to buy a 10-unit building or that type of building. So I bought a 22-unit building, I bought a 10-unit building, and, you know, a couple of those types of buildings.
Rod
Where at, by the way? Just for context for me.
Todd
When is this?
Rod
No, where. Where?
Todd
So this was back in 2015 and I was buying these buildings. I’m based in Minnesota, but I was buying these buildings in Cincinnati, Ohio.
Rod
Cincinnati, okay. We’ve got several assets there. Okay. Got it. Okay.
Todd
Yeah, you do. So, I’m sitting here buying these buildings, I think it was probably 2016 when this moment happened, and I was actually talking with a mentor of mine, and I said, we were talking about a mutual person that we both know that’s buying larger buildings at the time. And I said, you know, I really want to get there. I got to keep on buying some of these buildings, kind of work my way up, and eventually, I’ll be able to buy a 200-unit building. He says, what’s stopping you from doing it right now? I’m like, nothing.
Rod
The box that you’ve painted yourself into is what’s doing it. Yeah.
Todd
It was just that simple of a question. Now, sometimes it doesn’t come that simply, but it was just that simple of a question. I said, yeah, nothing’s stopping me. You’re right.
Rod
Just fear. Just fear. That’s it. False evidence. False evidence appearing real.
Todd
Yeah, literally, Rod, the next day, I went out and started looking for bigger properties, and within, I don’t know, I mean, a month or two, I had an 84-unit under contract. I had 120-unit under contract a couple of weeks or months after that, and it had bought 204 units. All of a sudden, boom, like that. And it was just because of this paradigm shift, these limiting beliefs that you put on yourself. This kind of, you know, you got this ceiling, and you think that that’s where–or this graduating process, whatever it might be, for me, that was–somehow I had to graduate to get to the next level.
Rod
Right.
Todd
And, you want to be as you tell yourself.
Rod
So you obviously believe in mentors as well.
Todd
I love–look, mentors are– and they come in many different forms.
Rod
Oh, sure.
Todd
And you should have many different types of mentors. But, yeah, mentors are critical if you want to continue to grow your business, if you want to have success, you need to have people that can help you. You need to have people– honestly, Rod, I know you do some stuff, but I think the most value you probably add to people, it’s not teaching them the 101 of real estate. Any mentor, the most value they add is just shifting that paradigm, shifting that mindset. And I know you’re a big Tony Robbins guy, and you love that. I love the mindset stuff, too. I think it’s so powerful. We get in our own way, our limitations, because of– we get in our way, and we have to have people that look at us and can go, look, you’re in your own way because a lot of times we can’t see it.
Rod
Oh, yeah. Because you’re working inside the business instead of on your business. Yeah, and–
Todd
Yeah. You’re working so hard. You think you’re doing it right, and then–but–and you’re doing great things, probably, but it just takes that one person, that one mentor that goes, hey, did you think of this?
Rod
Take it to the next level.
Todd
Right. Yeah.
Rod
You’re absolutely right. And, you know, I’m really proud of something. You don’t know this, but my Warriors, my coaching students, we’re in the 65 to 70,000 units owned, range right now.
Todd
That’s awesome.
Rod
Between my warriors, and I haven’t even been teaching five years. Super proud of that.
Todd
Yeah. Congratulations, man. That’s amazing, man. I mean, you’re doing something that, again, like you’re teaching the 101 and all that kind of stuff. But the only reason why there are 60 to 70,000 units between these Warrior coaching students is that you’re actually teaching them more than just real estate 101, because that they can learn in a book. You’re going beyond. You’re going deeper, of course, on the real estate, but you’re also going deeper up here–
Rod
Yeah, thanks for that. Thanks for that. Yeah. That’s the truth of it. And I know that’s the reason that they’ve been so incredibly successful. You know, in the group itself, just the dynamic of the teams that have been built inside, the most of it has been done between Warriors. By the way, if you’re interested in applying to my Warrior program, text the word “crush” to “72345”. Thanks for giving me an opportunity to plug it in for a second there, Todd. So let’s talk about where we are right now in the market because it is a crazy freaking time. I don’t know about you, but I’ve gotten more emails from brokers in the last week than I’ve gotten in the last three years. Okay? I mean, it’s been insane. The deals are coming out of the woodwork. You know, moving forward, I don’t believe that the issue is going to be finding deals. It’s going to be finding money, you know, finding you know, because people are going to get scared and all that. But what are your thoughts? You know, because the Fed is supposed to raise the rates maybe even as much as the full percentage point this month. I’ve been reading in a few places, definitely, likely to be at least three-quarters of the, you know, 75 basis points. So what are your thoughts about the future, you know?
Todd
Yeah, your guess is really as good as mine in the future, but here are a few of my thoughts. First of all, the interest rates definitely are going to affect buying power, and that’s just how it is. Multifamily, although there are some emotions definitely in multifamily, it still comes down to the fundamentals. It still comes down to the cash flow.
Rod
It’s all numbers. Yeah.
Todd
So people have to have prices adjust due to interest rates, and the higher interest rates go, the more prices have to adjust. Now, again, do I expect you to be able to go and buy a ten cap on A or B class property? No, I don’t. The cap rates aren’t going to just all of a sudden, you know, expand drastically, but we’re going to see a little bit of cap rate expansion. You know, you’re going to have–I think it’s going to be a tale of two, you know, sellers, right? You’re going to have the one seller that just doesn’t care. They don’t need to sell. They got a good property. If you want to buy it, pay me. And then you’re going to have the other seller that got into some bad loan.
Rod
Bridge debt. How about bridge debt? Some of this bridge debt, huh.
Todd
Yeah. Got into a bridge debt at 80, 85% loan to cost. You know, their business plan was weak. They weren’t able to execute it, you know, extremely well. Rents didn’t go up by the crazy amounts they were underwriting.
Rod
I’ve seen pitch decks with 10% a year for all five years.
Todd
10% a year? Like, wow.
Rod
Like, really?
Todd
Yeah. You know, I saw a pitch deck the other day of a market and they were showing that the market had been going up by, I think, 14% a year and that there was projected to go up another like 9.5%. And they were showing how they’re conservative were at, you know, 7% rent increases. I mean, you’re nuts, you know, it’s–maybe [inaudible]
Rod
Yeah. There could be some opportunity there. Yes?
Todd
Absolutely.
Rod
I mean, I think some of that stuff could have some real problems and these people have to sell.
Todd
So here’s what–you know, real estate, Rod, as you know, throughout the time there’s definitely we have 2008, we have 1929. Right? We have a few of those types of markets that the bottom falls out, but for the most part, the bottom doesn’t fall out. But here’s what happens anytime a market becomes soft, there still is opportunity. The vast majority of the properties that are in non-distressed states, the values probably don’t go down. Maybe they go down a little bit, but no big deal.
Rod
Right.
Todd
Where you will find the opportunity is those distress, those bridge loans, the owners that just counted on just crazy numbers and they can’t handle it anymore and they have to sell or they’re panic sellers, too.
Rod
Or they’re not good asset managers. I mean [inaudible]
Todd
Terrible asset managers.
Rod
Yeah, that’s going to be a big component moving forward here. It’s actually how you run the property. Keep the tenants happy, keep them in the asset, and take care of them. And I think there’s going to be some issues there as well. You know, some people are saying it’s going to be as big a crash as ’08, ’09. I don’t think it is.
Todd
We’ll see.
Rod
If the demand is still there. It’s totally different now. It’s not like, you know, if you could fog a mirror, you could buy a house in 2007. Those days are over. But I do think there’s going to be some pain in our world, I really do, because I think some of these aggressive bridge loans.
Todd
Yeah, sure.
Rod
You know, we’ve been in best and final on dozens of deals and we’re like it traded for what? Are you freaking kidding me?
Todd
I was 25% under that. How?
Rod
Right. Exactly. How the hell is that ever going to work? And somebody’s lying to somebody in their investor pool. And I think there’s going to be a reckoning in there. But, you know, my kids love to tell me you’re tired of being wrong. That’s one of their favorite lines. So I’m wrong all the time. I am fairly bearish right now. I’m just going to tell you, I think there’s going to be a great opportunity to buy deals and, you know, over the next couple of years, but who knows?
Todd
I’m probably–I don’t know. I would definitely call myself extremely bearish. Here’s– again, what I think is going to happen in the market, I think there’s going to be opportunities, but I think the people that are going to be able to buy those opportunities are well positioned. They’re experienced.
Rod
Right.
Todd
They are coming to the table with very strong offers. And I don’t mean by putting together a ton of money into the deal.
Rod
Right.
Todd
I’m saying it’s going to be a strong like they’re financially backed the seller.
Rod
Right.
Todd
That they can perform [inaudible]
Rod
Lower loan to value.
Todd
[inaudible] Has to sell.
Rod
Right.
Todd
Right? And so they’re going, hey, is this buyer going to close? Oh, surety of close is going to be huge and that’s how you’re going to find the deals.
Rod
Agreed.
Todd
But I don’t think ever– and again, this is my personal opinion, I don’t think there’s going to be deals falling all over in the market that are going to be great. I think there’s going to be some that are going to be phenomenal and the rest of them are just going to be status quo.
Rod
Yeah. Which is still better than it’s been for the last two years. Okay?
Todd
Way better than it’s been.
Rod
Right?
Todd
Way better.
Rod
I mean, we’re under contract on a beautiful asset in Nashville right now. I mean, it’s gorgeous. And, you know, we’d have never gotten it if this shift hadn’t happened. And we’re getting long-term, fixed-rate debt and super stress testing it, and, you know, it breaks even at very low economic occupancy. And just all of these things, you know, six months of operating reserves, including the debt, just really being super conservative.
Todd
It’s funny you mentioned Nashville, Rod because I actually– that’s where I think opportunities will end up coming out more often than not is markets that have seen a pretty significant rise. Austin, Texas, Phoenix, Arizona, Nashville, Tennessee.
Rod
Florida. Damn near the whole state. Yeah.
Todd
So I see those markets as– these are markets that are going to be strong markets in the future. But in the meantime, you’re probably going to find some of those great deals like you found in Nashville. If you go into those markets, you’re going to find some of those deals because people are being so aggressive in those markets.
Rod
Right.
Todd
And even though they’ll have some pain right now, the beautiful thing is those are good, well-positioned markets to have [inaudible]
Rod
And they’re going to continue to grow. They’re Southern, they’re, you know, politically advantageous in many cases, these markets you just described. And so, you know, there are a lot of reasons that over the long haul, they will do extremely well.
Todd
Yeah.
Rod
Yeah, I agree completely, brother. Well, listen, I appreciate you coming on the show, my friend. It’s good to see you. We had to reschedule this thing. I had a family emergency. But I’m glad you were flexible enough to come back. It’s great to see you and I’m sure we’ll cross paths soon, my friend.
Todd
Yeah, absolutely. Good to see you as well, and love everything you’re doing. So keep on doing it. Keep crushing it. It’s a lot of fun to see your journey along the way.
Rod
Likewise, brother. Take care. See you.
Outro
Rod, I know a lot of our listeners are wanting to take their multifamily investing business to the next level. Now, I know you’ve been hard at work helping our Warrior students do just that, using our “ACT” methodology, which is Awareness, Close, and Transform. Can you explain to the listeners how they can get our help?
Rod
You bet. Guys, we’ve been going non-stop for three years building an amazing community of like-minded people, and our coaching students which we call our Warriors, have had extraordinary results. They’ve purchased thousands and thousands of units and last year we did over 1000 units with our students. And we’re looking to grow this group and take it to the next level. We’re looking for people who want to follow a proven framework that’s really step by step and then leverage our systems and network to raise equity, to find and close deals, and to build partnerships nationwide. Now, our Warrior community is finding success in any market cycle. So if you’re interested in finding out more about how you can become more of our incredible network and take advantage of the incredible opportunities that are coming very soon, apply to work with us at “MentorWithRod.com” or text “CRUSH” to “72345” and we’ll set up a call so you can check us out and we can check you out. That’s “MentorWithRod.com” or text “CRUSH” to “72345”.
