From Bootcamp to Retirement In One Year

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 back to Multifamily Rock Stars. So, what do we do here? This is where we interview people that are absolutely crushing it in this business. And we show you guys, really the inside scoop into how multifamily investors are creating massive success in their business and in their lives. And I’ve got my co-host, again, as always, the director of my Massive Action team in our Warrior group, Mark Nagy. What’s up, Mark?

Mark
Hey, Rod. Not much. Not much. Super excited today because our guests actually met in person back at your L.A. boot camp just about a year ago. And it’s going to be awesome to hear about his progress and learn some gold nuggets.

Rod
Right. Right. No, it’s going to be a lot of fun. So, our guest today is Loren Jacobs, and I love his bio because, you know, he talked about being a proud father and a passionate husband to his smoldering wife. I love that description so well that I even told Tiffy about it, and she’s like, what’s smoldering mean? And I said, hot. And so, that was awesome. Well, Loren, he’s an entrepreneur, and he’s got his hands on a lot of pies and started out in Neuromuscular Physiology and then stem cell research, some high-level stuff. But he and his wife own a commercial gym. They’ve got single-family properties. They’re even partnered in a Black Angus cattle operation, which is really kind of unusual. But Loren is also in 403 doors, 118 of those as a General Partner. And he’s in our Warrior program, and he’s actually a 5th generation real estate investor. So I’m excited to hear about that. But welcome to the show, brother.

Loren
Thank you so much, Rod. I can’t thank you enough for being here. You know, I really just want to say that, you know, you are having such an impact on people’s lives and the work you do, and every action that you make has a massive ripple effect that’s just not quantifiable. So, you are truly changing lives, mine included. So, thank you.

Rod
Well, that’s very kind of you, my friend. That’s very kind of you. You know, today, 61 years ago, I was brought into this world today, and I’m feeling that 61, but I’ve gotten so much freaking love today. I mean, it’s truly overwhelming and it’s just, you know, it’s the greatest gift of my life, which is why I do what I do. And, you know, I was just telling Tiffy, it’s just like, ding, ding, ding, ding ding. You know, like I said, it’s almost overwhelming. But listen, enough about me. Let’s talk about– go ahead. What are you going to say?

Loren
I was going to say you sure don’t look it. Happy birthday, though.

Rod
Well, thank you, brother. Thank you. So, enough about me, let’s talk about you. Tell us– you know, 5th generation. So give us a little background on that and tell us a little about you, please.

Loren
Yeah, well, as far back as I can remember, you know, my family has always been in real estate. My grandpa is a managing broker. My mom has helped and you know, taken over, and she’s got a property management division, they’ve got an escrow division. In the past, they’ve done some in-house lending. You know, she’s a president of a local housing authority. So we’ve got fortunate to have a ton of knowledge and information to pull from. And this really got started about five years ago when my wife got pregnant with our first son. And, you know, I realized that the nine to five for the next 40 years is not– that’s not my vision, that’s not my goal, that’s not in the cards for me. So, we started doing a deep dive, did a lot of personal development and research on different investment vehicles. And of course, we landed on real estate primarily because of our family background and that experience, but also because of this nice little purple book that, you know, I’m sure everyone knows about, “Rich Dad Poor Dad”. Just a real paradigm shift there. And from then we started digging into– we’ve acquired a few single-family properties, a few commercial retail properties. You know, we bought a business and we just weren’t scaling as quickly as we wanted to. Of course, as you know, Rod, you certainly can scale quickly with single-family, but it just seemed to make a lot more sense with multifamily. So we dug into multifamily. We were fortunate enough to find your program, and it’s been over the last year, just a mad rush of excitement and learning a lot and networking and adding a ton of value and, you know, laying the foundation for a long road ahead.

Rod
Nice. I love it. Now, you said something before we started recording about how there may be a shift in your employment situation. Can you share that with us, please?

Loren
Yes. Yes. So, I went to your boot camp in January 2020, so just about a year ago, and of course, the first thing we do is we write down all these goals and you encourage us to write these massive goals. And every goal I wrote down, I was convinced that it was, you know, way too big. It was 10x what I was capable of. And, you know, just a short while into the program, I realized that they were all very achievable and I’ve achieved all of those goals.

Rod
Wow.

Loren
One of my two-year goals was to, you know, be able to hang up the hat in the day job and go full-time into multifamily. As soon as I got home, I wrote my resignation letter and I’m getting ready to hand that in here in just about a week.

Mark
Wow. Congratulations, brother. That is so exciting to hear that. I can’t tell you how you made my day today with that, but, that’s so awesome. So, you know, talk a little bit about– I know that you just closed– well, let’s drill right on into a deal. You just closed on a 72-unit in Arkansas, I think with one of the other Warriors on the program, and talk about that deal. You know, what role did you play in that– you know, most of you guys listening know that this business is a team sport, and what you want to do is bring your superpower to a team and focus on your strengths and let other people handle where you’re weak. And, you know, I know you’re an engineer, so I don’t have to guess what area of this business that your superpower is in, but talk about that for a minute and the role you’re playing.

Loren
Yeah, absolutely. And if you don’t mind, I’m going to just back up a quick step.

Rod
Sure.

Loren
And just say that you know, one of the most important things that I found when I first entered the space, multifamily is exactly– it is a team sport, and there’s a lot of areas that you can add value and be an expert in. And so my first piece of advice would be to pick an area, define you know, what type of value you’re going to add, define your niche, and, you know, really refine your ability and become an expert in that area. And something that I didn’t hear a whole lot about initially, but I think would be really helpful for up and coming and new investors is there really only a few areas that you can add value to an experienced team when you may not have that experience. One would be acquisitions. You know, finding a deal is just invaluable. If you can find a real deal, underwrite it, package it, pitch it to a sponsor.

Rod
Yup.

Loren
Two would be raising capital. You know, everybody’s always in search for money if they’ve gotten low. And three, a little more difficult would be just having that net worth and that balance sheet so you can come on and sign on debt and, you know, throw around a balance sheet. I landed on acquisitions and underwriting, specifically. So, you know, coming across opportunities, packaging them, presenting them to sponsors and to potential investors. That’s how I’ve been able to be a valuable member to, you know, the GP teams that I’ve been a part of. I have yet to– I found deals, we put LOIs, out on deals that I found, but we haven’t closed any of the deals that I found. The deals that I’ve closed on, people have brought them to me because I have defined my value. I’ve refined that skill set, and I’ve networked with people in the space, and I’ve marketed my skill set. So, I get deals brought to me to be able to help a team, put a deal together. That’s how I was able to get on the opportunity in Arkansas. And, man, that’s a great deal. Really well stabilized. It’s a performing property, you know, a lot of equity in at closing, and, you know, we’re really excited. It’s going to be a very, very light, you know, value add to be able to bring up rents a fair bit. So, there are a lot of upsides there and not a lot of risk.

Rod
Fantastic. Fantastic. Let me just add one follow-up question, and I don’t want to take– I want Mark to ask some questions, but the follow-up or really a follow-up comment. You mentioned three areas where you can add value in this business, and I want to add a fourth. Okay? You mentioned finding deals and underwriting those deals, and those could be two distinct areas by themselves, by the way. You could just be the one bringing the deals in, or you could be just the one doing the underwriting. And then you said raising capital, for sure. If you’ve got a network and you know how to, you know, build relationships, for sure. And then, of course, yes, offering your net worth of your liquidity to help someone qualify for a loan. But the fourth or the last would be if you’ve got project management experience, if you’ve got, you know, operational experience, it would be in the asset management side of the business. So I just want to add that for those of you listening, you know, you want to think about what you’re good, you know, and what you could be good at if none of these things apply yet. So, awesome. Mark, take it away, brother.

Mark
Yeah, no, I love that topic. I get that question a lot. You know, I don’t have a lot of– people say I don’t have a lot of money. How can I add value to somebody else and get into my first deal? And Loren nailed it out kind of step by step there. So, yeah, people listening, if you’re brand new in this business, pay attention and take notes on exactly what he just said, because that’s really, really important for getting the first couple of deals there. So, obviously, your strength being underwriting, kind of, that’s where you landed. Let’s look at the opposite side. Right? Weaknesses. If you could eliminate one weakness or limitation in your life, in business, whether it’s a mindset or whatever, what do you think it would be and why?

Loren
Well, looking back at a year ago, I had a whole lot of limiting beliefs. You know, but right before I went to your boot camp, Rod, I didn’t have enough time to get into multifamily. I didn’t have enough money. You know, who was I? Why would people, you know, give me their money to invest? So, I had all kinds of limiting beliefs, and fortunately, I was able to overcome a lot of those. And I’m a really, you know, big proponent of now helping other people overcome those. And I know you guys are too, and you guys do an amazing job. You don’t have enough time. Yes, you do. You know, give me a detailed breakdown of your weekly schedule, and we will find you time. You don’t have enough money, that’s okay. You don’t need a ton of money to get started. You don’t need a ton of money to learn how to underwrite, to learn how to find deals and get in front of brokers and bring those deals as sponsors. You know you learn the material, you become confident in your ability to perform and operate as a multifamily operator and you express that and people will want to invest in you if you know what you’re doing and you’re able to show them that. So to answer your question–

Rod
Please.

Loren
Sorry.

Rod
Please. Please. Please.

Loren
To answer your question, Mark, it would be, you know, identifying and overcoming those limiting beliefs is just so important and really your mindset in and around the space is just paramount. I know when I first started listening to your podcast, Rod, I would skip through and listen to all the interviews with the operators and now I’m going back and I’m skipping all those and I’m listening to all of, you know, your mindset podcasts because they’re just so– that’s truly, you know, 80%, 90% of the business.

Rod
Oh, thank you for that, buddy. Thank you. And, Mark, if you don’t mind, let me just follow up with a comment on that because obviously, this is, you know, we’re talking about what I love right now, which is, you know, describing and dealing with limiting beliefs. You know, mine was I wasn’t good enough. But of course, I’ve had all those as well. And, you know, I’m not smart enough, I’m not analytical enough, I don’t have enough money, I’m too old, I’m too young, you know. And we all have those. And there’s a reason the acronym for belief systems is BS. Because guys, 99% of them have no basis. In fact, they’re just, you know, some emotional– some events that happened in our life that we had some emotion associated with and we believe they’re fact. And so let me just say this. If you have any of these, I’m going to encourage you to recognize that they are primarily BS and bring them out into the daylight, look at them rationally and just mitigate them. And you have to do that consciously when they pop up. That’s what it was for me with I’m not good enough. I had to pull it out and say, you know, anybody that would reject me just didn’t know me. You know, anybody that would reject me, you know, had their own issues. And so, you know, that’s how you, you know, look for the antithesis to that limiting belief and it’s usually the opposite of it and you deal with it. Age, for example, I mean, Christ, I can tell you somebody I know a bunch of people in their 20s that are multimillionaires from multifamily real estate, a bunch of them. I had three at a time on my show once, and students that have made millions that are in their 20s. And then, of course, you know, I’ve got people that are quite a bit older that are killing it in this business. And money, of course. You know, the beautiful thing is multifamily takes money, but it doesn’t have to be your money, you know. And then let’s see, what else did you talk about. Time. Money. Oh, time. Oh, please don’t tell me about time. Okay? I mean, that one you’re never going to get by with me. You know, that’s just effective planning and time management and time blocking. And, you know, I do a piece on that in my training on my boot camp. By the way, this will go live here before too long. If you guys aren’t signed up for my two-day boot camp, for God’s sake, you know, the price is ridiculously reasonable and I don’t sell anything there, so it’s kind of a no-brainer. So, if you can make that, text “multifamily” to “41411” and we’ll give you the information. But anyway, I just want to hammer that home. So, Mark, please continue.

Mark
No, I mean, that’s super important. I mean, you mentioned the “Rich Dad Poor Dad” book. I mean, one thing that I always took away from that is, you know, you always think about– most people think I can’t, right, or I can’t afford it, and they always teach in that book, instead, shift your mind to how can I? Right? One thing that you mentioned, you wrote out a letter of resignation, tight, instead of thinking, I can’t leave my job because I don’t have time. I can’t do multifamily. You think, how can I leave my job in two years and look what happens, right? And I don’t know if this is where you got that from, but Jim Carrey, the actor, actually had a great story where before he got into acting, he wrote a check to himself for $10 million and it said, “acting services rendered”. And then, you know, a few years later, after he started to hit it big, he was able to cash that check for himself because he wrote it before he even got started. I don’t know if that’s where he got that.

Rod
No, that’s a great example. Another one that I love to mention that’s more recent is Demi Lovato. Ten years ago, she was in an unknown and she posted on social media, I’m going to sing in the Super Bowl and, you know, go watch the last Super Bowl. So, you know, no, that’s awesome.

Mark
Beautiful. Beautiful.

Rod
So, you know, let me ask you this. Have you had any shifts or opinions or mindset, just shifts in general about this business? I mean, we talked about limiting beliefs, of course, but did you come into it with any preconceived thoughts that you’ve turned on their ear? Think about that for a minute. You know, any positions you’ve had that have maybe shifted or changed and if so, you know, how they’ve impacted your life.

Loren
Yeah, you know, I have had the biggest shift in my life and around this specific industry occurred about 51 weeks ago when I went to your multifamily boot camp in L.A., Rod.

Rod
Well, I wasn’t fishing for that, but thank you. That’s kind of you. Thank you.

Rod
I mean, it’s absolutely true. My mindset took a massive shift when I saw people much like myself and ourselves in the business doing exactly what I wanted to do, what I didn’t think was possible for me. And, you know, you helped outline a road map of how that can be possible for anybody. And, you know, I followed the steps and here I am. So, it’s not easy, but it’s as simple as that. It takes the work. And one thing I will say is I’ve got a really interesting story about a member at our gym. There was a high school student. When we took over, we cut a really good discount for the high school students. We want to get a lot of the kids in there so they’re not out doing other unproductive things. So we cut a good discount. And this one kid, he comes in, great kid, and I’ll tell you what, I saw him in there the first few weeks and he was doing some really peculiar things in the gym. And, you know, I tried to gently offer some help or guidance and he wasn’t having it. That’s okay. So let him do his thing. And you know what? He comes in five days a week for the past two years, and guess who’s one of the biggest, strongest guys at the gym now?

Rod
No kidding.

Loren
Guess who’s training other people because he’s learned along the way. You know, he’s the go-to guy now when a couple of years ago he had no idea what he was doing, but he was consistent. He consistently went to the gym. He wasn’t– you know, a New Year’s resolutioner with a massive action plan for two months and then died down, you know. He went to the gym every single day. So I guess my point here is I think that strong, consistent action is so important.

Rod
That’s an awesome example, buddy. And let me just, you know, say that, guys, for that to happen, you have to have what Napoleon Hill calls in “Think and Grow Rich”, a burning desire, okay? And so that’s why the first thing we do at my boot camps is a goal setting. Because first of all, how are you going to get what you want if you don’t know what the heck it is? Okay? But secondly, you know, you’ve got to have something that pushes you and pulls you. So you’ve got to know what your whys are and you’ve got to know what your goals are because that’s how, you know, you get up early like this kid continued to do. He had a burning desire. Who knows what that leverage was on him, but, you know, it could be any number of things. But you’ve got to tap into that so that, you know, you push through those limiting beliefs, so that you push through those fears, so that– maybe you’re comfortable, so that you get uncomfortable because you know, the life you want is not in comfort. Comfort zone is a nice, warm place, but nothing freaking grows there, right? Anyway.

Mark
Yeah, I mean, especially right now, right? We just got into 2021 for those people listening, and a lot of people are making, you know, “New Year’s Resolutions”, et cetera. Right? And that’s great if you want to use the start of the year to make some new goals, but that can’t be the reason why, right? A turn of the page of the calendar can’t be your driving factor behind going to the gym or success in multifamily or whatever it is. What’s yours, Loren, you know, what’s your kind of burning desire, driving why that’s getting you to do this multifamily business to where you’re at?

Loren
The foundation starts at home. It’s my family. You know, it started when my wife got pregnant with our first son. We have two beautiful kids now, four and one. And, you know, they’re my why. I don’t want to miss a day. You know, I want to walk them to school every morning. I want to make every practice. I want to make everything that they do. I don’t want them to have to come home and say, dad, I wish you were there. You know, I want to create a life where I am there and I’m involved. I want to be there for my wife. You know, right now I’m working 12-hour shifts, days and nights, four to six days a week, most of the time. And it’s tough leaving the kids, leaving the wife. And to expand on that, you know, we love to give. We’re, you know, very– love to give to our friends, love to give to our family, love to give to those in need. So just to be able to do more of that and to be able to do more of that as a family and still that as, you know, a moral and guiding compass within our children is something that would just be so important. And I’ve got to be there. I’ve got to be able to be home and show them that’s what you do to be able to do that.

Rod
Oh, that’s beautiful. That’s beautiful. And I got to tell you, you know, when I’m interviewing people for our Warrior Mentorship program, one of the questions I usually ask is what someone’s why is. And when I hear what you just said as part of the answer, that you want to help other people, that you want to do something for the environment, for the elderly, for kids, for your family, for anyone but yourself, I know success is inevitable because power moves to those who serve. It’s just, you know, God, the universe, whatever you want to believe, it works and it is real. And so, you know, I’m really, really, you know, excited that you said that and I knew that about you. But I’m glad that you shared that so other people could hear it because you know, everyone thinks that they have to achieve to be happy. But when you are living your life giving and adding value to other people or anything, you’re adding value in any way, shape, or form, and you’re contributing, you know, you’re happily achieving. And so it’s just a much better way to go. And it took me till I was 40 to get that memo, I will tell you, because I was focused on success instead of giving back and had an epiphany. But anyway, really, I appreciate you bringing that up. So anyway, what’s next for you, buddy? I mean, what’s the game plan for this year? I think 2021 is going to be an awesome year. What’s on the horizon for you?

Loren
Well, as we all should have, I just got done about a week ago setting some lofty goals. I want to be a GP on at least 500 more deals, 500 more doors this year.

Rod
Nice.

Loren
And, you know, the big one that I’m really excited about is, you know, starting a foundation this year.

Rod
No kidding.

Loren
I wrote down– I want to start a foundation that has zero overhead. 100% of any donations go directly to the cause or causes, and we’re still formulating exactly what that looks like, but we know that it wants to be around, you know, kind of helping children. And you were a big inspiration for that, Rod, with a Tiny Hands Foundation.

Rod
Thank you, buddy.

Loren
I love what you do, man.

Rod
Thank you.

Loren
Just amazing. Amazing.

Rod
That’s really kind of you to give me a shout-out. Yeah, we fed 1000 families for Christmas, and I think we’ve benefited over 95,000 children now. And I cover all the operational expenses and then some. So, you know, it’s exactly what you’re describing, where every dime goes to help. You know, I want to circle back to something you said, but thank you for that. I don’t want to gloss over it. Thank you for that. But, you know, you talk about goals, and guys, if you want some help with that, I did a piece in– did I do it in a multifamily group or did I do it on my Rod Khleif official page? Darn it. Do you remember, Mark? I can’t remember where I did my goal-setting workshop on January 2nd. I want to think that I did it in the big Multifamily Facebook group, but if it’s not there, just go to January 2nd, search the feed, it’ll take you a few minutes. But if you want me to guide you through goal-setting, like goal-setting on steroids, I did it there on January 2nd. So definitely you want to see that. And there’s a goal-setting guide you can download. You know, it’s all free, and I’ll guide you and help you get associated with your goals and your whys. So, I just want to throw that in there. Go ahead, Mark.

Mark
Awesome. Yeah. So, Loren, I know you mentioned some of the different aspects to where you can build a team or what your skill set might be earlier. Tell us about building teams and how you gone about doing that in your business.

Loren
Yeah, good question. I’m going to take a little different approach to this question, you know than I’ve heard on several other podcasts, and that is to one– well, first of all, when I’m looking at a team, I know, Rod, I know who you are and what you are, and you attract a similar type of person, you know, like you mentioned someone that’s a giver, somebody who wants to add value and has high moral values and ethics. So if somebody is a fellow Warrior, I automatically know they pass the first series of filters. Right? So every deal that I’ve done, there’s been a Warrior on the team, and, you know, they’re doing excellent. And that’s great.

Rod
Nice.

Loren
After that, I asked myself one question once I get to know somebody. Is this potential partner going to help solve problems or are they going to create problems? I’ve been partnered with both, and believe me, you want to be partnered with someone who’s going to help you solve problems. And then last, you know, the most important team member that you have control over is you. And that doesn’t get talked about very much as a team member. And, so as a team member, you need to make sure that you are adding the most value you can, over-delivering on everything you do, and getting it done quicker than you say you’re going to do it. Every time that I work with anybody, I want them to leave that transaction saying, I want to work with him again. I want to find an excuse to work with Loren again, because, I mean, that’s what it’s all about. Adding value, being a valuable part of a team, and I’m okay getting my foot in the door and doing way more than, you know, some people may say that work is worth. You know, I’ve offered to go in on deals for very, very low equitable positions. You know, some people scoff off and say, oh, I would never do that. It’s too much work. You know, that’s not what it’s about. It’s not about today. It’s not about this deal. It’s about the next five and the next ten deals. And it’s about that sponsor saying, every time I do another deal, I want Loren on the team.

Rod
Yeah, nice. Over delivering. Over delivering. I love it. And you’re right. As it relates to the Warrior group, I mean, we are so blessed to have attracted this incredible group of hundreds of givers. It’s truly mind-blowing. By the way, guys, if you have any interest in applying for our Warrior mentorship program, text the word “crush” to “41411” and we’ll set up a call and we’ll see if, you know, we’re a fit for you and you’re a fit for us. But anyway, again, that’s “crush” to “41411”. Go ahead, Mark.

Mark
Awesome. So, the last thing I want to end on here for you, Loren, I know we’ve talked about, you know, kids and your family, coming from an entrepreneurial family, like what was something that you learned as a kid that has helped shape who you are today?

Loren
That’s a really good question. The value of putting in the work. I mean, to some people, some stuff may come easy, but that’s almost a detriment to them because at some point they’re going to encounter a situation where you have to put in the work. You know, reading, listening, learning, educating yourself, networking, getting to a point where you can be valuable to somebody else. You’ve got to put in the work to develop those skills. And I was fortunate enough to, you know, learn that at a young age when you know we grew up in a family that was not, you know, necessarily really well off. We had what we needed, but you know, we’re forced to go out. And, you know, I started a landscaping business when I was a kid and had my brother and, you know, a buddy working with me and for me, and, you know, we were cutting grass and doing all– you know, every summer outside of school it was– you know, we learned the value of work, and, you know, I really appreciate that because that has come to serve very, very well in, you know, my adult life.

Rod
Well, you are a testament to hard work, brother. I mean, the fact that you’re going to retire from your W-2 here in a couple– weeks or so, it’s just incredible what you’ve done. I mean, literally, it was about this time a year ago when we met, maybe a week or two later from this when we had that event in L.A. And look at you now, buddy. So very, very impressed, my friend. You’ve added tremendous value today, and, you know, you speak softly, but the impact of what you say is very powerful, brother, and I mean that as a compliment. So, we’re blessed to have you in our group, and I appreciate you coming on the show. And Mark, it was good to see you, buddy. And happy New Year, guys.

Mark
All right. Thanks, Loren.

Rod
Yeah.

Loren
Thank you guys so much. I really appreciate your time.

Rod
Alright. You bet. Take care.

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 “41411”. That’s “MentorWithRod.com” or text “CRUSH” to “41411”.