Carrie Zatelli is a versatile professional, excelling as an attorney, entrepreneur, investor, and mother. As the founder of Sky Capital, LLC, she demonstrates a keen understanding of the real estate market, specializing in multifamily housing. Previously, she co-founded Walkway Restoration, Inc., addressing sidewalk safety for both low-income and fair market rate multifamily housing. With nearly a decade as a prosecuting attorney at the Cuyahoga County Prosecutors Office, Carrie has a strong legal background, and she continues to practice law alongside her entrepreneurial pursuits. She holds a B.A. from The Ohio State University and a J.D. from the University of Toledo, calling Cleveland, Ohio, her home.
Here’s some of the topics we covered:
- Carrie’s Background In Law
- Switching From Law To Multifamily Real Estate
- Getting From The First Thought To Taking Action
- A Task To Start Doing Today To Help Your Journey
- Failure To Plan Is Planning To Fail
- Figuring Out Your Superpower In Multifamily Real Estate
- Carrie’s First Deal With The Warrior Group
- Knowing When Your Property Isn’t The Right Fit
If you’d like to apply to the warrior program and do deals with other rockstars in this business: Text crush to 72345 and we’ll be speaking soon.
Full Transcript Below
00:00:29:09 – 00:00:48:15
Rod
Welcome to the new version of multifamily rock stars. And you know, you guys may not know, but because of feedback from you, we’ve always tried, you know, we’re always trying to make things better. We’ve decided to make these episodes really more of a deep dive into actual deals and give you more practical and actionable items for getting started on your first deal, especially if you’re new to multifamily.
00:00:48:18 – 00:00:52:15
Rod
And of course, I’ve got my co-host, Mark Nagy, with me. Mark, what’s up, man? Good to be here.
00:00:52:15 – 00:00:57:19
Mark
Again and just happy to see another familiar face for our guest here today.
00:00:57:21 – 00:01:20:09
Rod
Yeah, today we’ve got Kerry’s Italy and Kerry’s a former attorney. We won’t hold that against her. She’s she’s she’s she’s a mother of a four year old girl, but she is killing it in the Warrior program. I know she’s already in 123 doors. She’s got another deal in a 66 unit. JV just went under contract and just really making things happen.
00:01:20:09 – 00:01:23:00
Rod
So we’re going have some fun today. Cory, welcome to the show.
00:01:23:02 – 00:01:25:24
Carrie
Thank you. Thank you very much. I’m excited to be here.
00:01:26:01 – 00:01:45:02
Rod
Oh, I’m glad you’re here. And you know, it’s it’s great when, you know, we can see successful women and inspire other women to what’s possible. So it just it really you know, I think a lot of women are think feel like, you know, they have hurdles in getting into this business. And we’ve got so many successful female warriors.
00:01:45:02 – 00:02:04:15
Rod
So it’s just such a treat to have you on and and and add some value today. So why don’t we start with having you kind of tell us a little better version of your story. I glossed over so much. So please tell us who you are, where you came from and and why you’re in our program and why you’re doing real estate.
00:02:04:19 – 00:02:05:08
Rod
Yeah.
00:02:05:10 – 00:02:26:02
Carrie
I grew up in a military family. My father was in the military for a really long time. We lived all over this country and we also moved overseas and came back and kind of landed in Ohio, which is where I went to college and got out of college after four years with a degree in English and kind of thought, Now what?
00:02:26:04 – 00:02:49:17
Carrie
I don’t have a lot, you know, I don’t want to be an English teacher. So I went back to law school, and when I came out of law school, I worked about a decade as a prosecutor in Cuyahoga County. I’m in the felony court there, and I did that for probably about ten years and then moved into to a civil firm thinking that it would make a little bit more, more money and it’d be sort of a change of pace.
00:02:49:17 – 00:03:11:11
Carrie
And there was a lot of hours and a lot of time, a lot of weekends, a lot of evenings spent, you know, in an office. And so I did that for a couple of years. And it was I liked I love being a prosecutor and I loved all the trial work and being a trial attorney. It was just a lot of you’re you’re an hourly employee.
00:03:11:13 – 00:03:36:23
Carrie
I mean, that’s it. You’re making a lot more hourly than you could dream about. But you’re still an hourly employee. And it was taking a lot of time. So I met my husband at the time and wanted to cut back on the hours as far as weekends and evenings. And we started a construction company together fixing sidewalks for affordable housing for their inspections across the country.
00:03:36:23 – 00:04:05:00
Carrie
So we work nationwide, and that’s how I started to get into the multifamily. I was around a lot of people that were owners of these properties for low income housing and worked with a lot of housing. Authorities started talking to people about being a limited partners on some of their deals. It’s kind of a different ballgame with assumption of the government loans and things like that, and I didn’t do it at the time.
00:04:05:02 – 00:04:38:10
Carrie
So my husband and I’ve had that company now about ten years. And so then I had my child and I had a single family home in Cleveland that was just a ton of work and realized immediately that that wasn’t something I would ever want to do more than just that one. So I actually started reading books and I was going to buy a smaller apartment complex, you know, sort of and be able to stay at home with my child and just do something that was smaller.
00:04:38:14 – 00:05:00:22
Carrie
And as I started reading, it just didn’t make any sense. Know, as you start, you know, I’ve gotten a loan from the bank and started talking to different, you know, management companies and it didn’t make sense to have a manage something small. And so I just started reading books and figuring it out. Then the pandemic hit and I didn’t want to start anything at that time.
00:05:00:24 – 00:05:24:13
Carrie
So I actually got a hold of your book and read it, and I was like, This is exactly what I want to do, and I don’t want to do single family homes. I don’t want to get, you know, in these 80, I had been looking at, you know, 15 to 20 unit apartment complexes around where I lived. And it just wasn’t making sense to hire a management company for that.
00:05:24:13 – 00:05:33:15
Carrie
So I wanted to go bigger. And I read that book. I mean, I read probably 50 books on apartments, but that one, I was like, This is it. This is what I’m doing.
00:05:33:16 – 00:05:56:10
Rod
So no, thank you for that. Let me interrupt you for one second. So guys, I still give that book away for free. If you pay the shipping, it’s like six bucks or something. You can get it at rods, links, AECOM, Roads, L.A. and cars.com and and, you know, I’ve never had a negative word said about it, so I never I mean, knock on wood, it’s all been positive.
00:05:56:10 – 00:06:03:06
Rod
So I’m glad that was a little impetus if it helped at all. I appreciate you mentioning that. Please continue. I’m sorry, I interrupted.
00:06:03:06 – 00:06:33:05
Carrie
Yeah. So, you know, I read the book and then I started by realizing how much more I needed to know about, you know, if I was going to do something bigger. This was probably a a year before I joined your program. And I started to really think about it and read about it and learn more about it. And then I had my mind set on a larger apartment and doing a syndication, and that was in.
00:06:33:07 – 00:06:58:11
Carrie
But I and so I was like, Now I just have to figure out how I get from what I want, what do I need to get there. And so I came across your program and thought, this is I mean, it’s exactly you know, I looked at a few of the other programs that are out there. And, you know, I had talked with the people in your program and.
00:06:58:16 – 00:07:22:00
Rod
And here we are. Here we are as well. I tell you, we get a lot of people actually had come over to us after they joined other programs said But now I’m very, very proud of of what what’s happening in our group. So you joined in January of last year. It looks like you’re you’re in 123 doors as a general partner.
00:07:22:02 – 00:07:42:07
Rod
You know, we have lots of different types of people that listen to this show. And and so and there’s lots of different hats, as you know, that you can wear in this business. We’re going to talk about the hats that you’re wearing right now, which I read in your bio, which are awesome. And you’re definitely playing to your superpowers as I read that.
00:07:42:09 – 00:07:50:14
Rod
But you know, what types of listeners do you think would be able to relate to you as it relates to this business?
00:07:50:16 – 00:08:15:12
Carrie
You know, I think that when I started to do this, I really I mean, I had spent almost I, you know, 15, 20 years doing something different. And there’s really a lot to learn. And in the very beginning, I think it’s very overwhelming. And you think to yourself, how am I going to learn this? And I got to learn this and I you know, you felt like you could just work like 70 hours a week just learning what you need to learn.
00:08:15:14 – 00:08:29:01
Carrie
And so I think that when you start or if you decide to come into it, you really have to sort of like, what do they say? How do you eat an elephant? Just like one bite at a time. You have to pick your wife and their.
00:08:29:01 – 00:08:31:23
Rod
Big bites, their big bites. But yes.
00:08:32:00 – 00:08:50:03
Carrie
Now you got to pick instead of getting overwhelmed. I think the first couple of months, you know, I came to the first Warrior event and I didn’t know a soul. And I’d been, you know, in your group for almost a month or less. And I kind of sat down and everybody’s like, What’s your superpower? And everyone’s coming up to me.
00:08:50:03 – 00:09:10:08
Carrie
And I, you know, you almost like, feel like you have nothing to say because you don’t know what to do, but you kind of learn a little at a time how to how to navigate everything. And you pick out what it is that you can do. You kind of got to learn what spokes are in the wheel before you can pick your, you know, the one that you think you’re going to be good at.
00:09:10:08 – 00:09:24:20
Carrie
So I think really for me at telling somebody new, you really need to listen for really listen to what everybody’s doing and what they’re saying and really learn and sort of apply it to what you know and see where you fit in.
00:09:24:20 – 00:09:43:06
Rod
Well, you’ve got so many skills that that I mean, you know, little legal work. I mean, for God’s sakes, I mean, that’s that’s a huge piece of this. And a lot of money gets spent on legal fees, and you could certainly help save that in your group. And you’re a great communicator and so on and so forth. By the way, guys, she mentioned the warrior event.
00:09:43:06 – 00:09:58:02
Rod
You know, in our program, we typically do at least two of those a year where we just meet with warriors and, you know, and of course, we do deep dives on underwriting, deep dives on area analysis. But the biggest benefit is meeting other warriors, because, you know, I got to tell you, and this is going to sound crazy.
00:09:58:02 – 00:10:19:12
Rod
I say this in my boot camp, it’s in this business. It’s more who you know than what you know. Candidly, you want to if you want to grow in this business, it’s all about connections. And my most successful warriors by far, are the ones that are the most connected in the warrior community. And so we do everything we can to facilitate those connections and and get people together when we discovered that.
00:10:19:12 – 00:10:23:23
Rod
So the warrior events is just one of the biggest ways we do that. And we have other ways too, But that’s the biggest.
00:10:23:24 – 00:10:46:09
Mark
When we talk about eating the elephant there that you mentioned, what helped you take that first bite? Because there’s a lot of people listening that I talk to that have similar backgrounds, that have demanding businesses work a lot of hours. Kids as well as you do. What helped you make that decision of, Hey, this is where I want to put my limited time into multifamily to take that first bite.
00:10:46:09 – 00:10:47:11
Mark
What helped you overcome that?
00:10:47:11 – 00:11:08:03
Carrie
I think I sort of had a mindset for a long time that, you know, you work more hours and, you know, I worked at a firm that had billable hours. And so your it wasn’t, you know, your time is valuable as far as that firm or how much and I mean you can work is just endless. It isn’t like a completed a task.
00:11:08:03 – 00:11:24:15
Carrie
You know, you got to build as many hours, you got to get this done, this has to happen. And you kind of realized when you live your life in those sort of chunks of time that you sort of lose some of it. And I really was looking for something that had a better balance for me and after especially after having a child.
00:11:24:20 – 00:11:32:15
Carrie
But I’m not gone at seven and home at 730, you know, like crushing it with billable hours, but you’re not, you know, Yeah.
00:11:32:17 – 00:11:33:22
Rod
You have no life.
00:11:33:24 – 00:11:57:20
Carrie
But yeah, I think that was a big that was sort of a big shift for me. And when you’re younger, I mean, that’s. It doesn’t bother you? It didn’t bother me as much to be busy on the weekends and you know, busy at night and getting ready for a monday trial started on the weekends. But as you get older, you realize and you your priorities shift not away that you want to work, you don’t want to work hard.
00:11:57:23 – 00:12:19:14
Carrie
You just realize that there’s a little bit more to your life, you know, then. So I think that that shift for me was I also really like what I really like about the syndications is how much I don’t want to say control, but you really can use your brain to figure out how you make it the best syndication you can with all the problems you have.
00:12:19:16 – 00:12:22:08
Carrie
And I really like that piece of it where.
00:12:22:08 – 00:12:23:17
Rod
You see strategy.
00:12:23:19 – 00:12:41:01
Carrie
Yeah, where you have a problem and that’s something that is that my brain works that way. Like, okay, we have a problem, these are our solutions. What’s going to work the best and come out there? I really like that sort of strategy way of looking at things and saying, This is the outcome as we do this, this is the outcome as we do that.
00:12:41:07 – 00:12:58:22
Carrie
And that’s something that I kind of missed about trial work, which is, you know, you look at the big picture and say, okay, how are we going to put this together? And that’s something that I really, really loved about, you know, the syndications. And even starting this first one, it was like love at first syndication. It was like, Oh, my, you know, I just really like that.
00:12:58:23 – 00:13:16:20
Rod
Yeah. No, I love that part. I, I love that part as well. The strategy is just and, you know, and that’s, that’s a major superpower, by the way, for you to be able to look at a deal and look at it from different sides, different angles, because a lot of deals have what we call hair on them. And, you know, and you yeah, you know, you’re you’re a problem solver.
00:13:16:20 – 00:13:36:11
Rod
You put on your problem solver hat and you in and then the the some of the most successful people in our program are the ones that do that very, very well. You know so let, let me let’s offer something to the listeners. What’s one action item that you could talk about that you think that would benefit the listeners that they could literally start doing today?
00:13:36:11 – 00:13:40:05
Rod
If you can think back to, you know, when you got rolling here.
00:13:40:07 – 00:14:01:12
Carrie
One action item that’s really, really important that I had done in the past, but not with dedication is the goal setting the goal setting for your year, your week and your day or even your afternoon to really be able to focus in. And it’s something that you can do that doesn’t cost anything and you can make it a priority.
00:14:01:12 – 00:14:26:19
Carrie
I have an alarm set on my phone so that every day at the same time I sit down and figure out how my day is going to go. And when I write it down for whatever reason, that’s how it goes. If I don’t write it down, that’s not how it goes. And I really think that that was something early on, especially in the Warrior program that I sort of rededicated myself to, because sometimes you get so busy, you’re just ready to start to start the day.
00:14:26:19 – 00:14:43:07
Carrie
Let’s get going. I got this. I got to knock this out. This has to happen. And the goal setting, you know, sitting down and sort of taking a breath, even for just 15 minutes and say, okay, this is what I’m going to accomplish today. And you can do that without money, without you know, you don’t have to have a fancy office.
00:14:43:07 – 00:15:01:11
Carrie
You don’t have to I mean, you can do it, you know, when you’re still sitting in bed for a minute if you want to write it down. But for me, I come down to my home office sit down. And that’s really something that has propelled my success forward and my brain forward because you don’t get lost on, Oh, I need to get this done.
00:15:01:11 – 00:15:17:02
Carrie
Oh, I forgot I was going to get that done. That goes on tomorrow, this list. And that’s that’s really been a powerful tool. And I a lot of that came from listening to you on that first you know thank you. Really it sets your feet in the right spot.
00:15:17:04 – 00:15:40:24
Rod
One of the gifts that I give the Warriors is a book called The Miracle Morning, and it speaks to starting your day off. Right. You know, with with with an action plan, with with journaling, with prayer or meditation, with exercise and all these things that you do to to really crush the day. In fact, I just had Hal Elrod, the author, on again on the show, because he put out a second version of that book.
00:15:40:24 – 00:16:01:20
Rod
But yeah, if you you know, you’ve heard the adage, fail to plan, plan to fail. You know, if you’re not if you’re not moving forward and proactively looking at your day, you know, it goes away from you. You’re like a ship drifting in the wind. You know, you need that action plan. You need those outcomes in front of you to actually achieve those things.
00:16:01:20 – 00:16:05:05
Rod
And have clarity and focus. The big thing is focus as.
00:16:05:05 – 00:16:25:24
Mark
That relates to multifamily. Carrie, were there daily goals or tasks that you were writing down over this past year that you would say maybe came up multiple times that you find yourself consistently doing in multifamily and even maybe some on there that helped you get into this first deal that you could share with the listeners that are thinking they don’t even know where to start?
00:16:25:24 – 00:16:46:19
Carrie
Yeah, you know, in the beginning I didn’t even really know what my I don’t I mean, I had a bigger goals, but I didn’t even know exactly how to reach them at first. You know, when I came to the so I started with the academy that you all put together that has all the pieces in and I could at least start organizing in my mind what it is I had to learn.
00:16:46:19 – 00:17:02:21
Carrie
So I would go through those and say, I’m going to spend 2 hours at this time and do you know I want to do part of the asset management to spend? And that was a big part of getting started. And at least you start to learn all the language and how it works. And you know, then you’re like, Oh, this isn’t so foreign.
00:17:03:02 – 00:17:16:20
Carrie
I mean, you know, you, you see how it all starts to piece together. And then I would also say that one of my goals was to figure out what what piece, what part I would play in those. And the super.
00:17:16:20 – 00:17:18:01
Rod
Important piece.
00:17:18:03 – 00:17:36:01
Carrie
Of my goals was to write down everything you would need, like all the pieces you’d need for a syndication and say, okay, I’m, you know, I don’t like spreadsheets, I can read them, but I don’t, you know, the scraps that went off, you know what I mean? And then, well, I do you know, I’m pretty good at talking to people and I have a lot of, you know, friends.
00:17:36:01 – 00:18:00:02
Carrie
And in my business community that would probably be interested. So I could probably see, you know, look at raising capital and, you know, so you kind of that was my original goal was to figure out like what my, you know, superpower was going to be or what it is that I would be good at and what I could tell people, I can do this in this group and I could manage this part of what we need to take care of.
00:18:00:06 – 00:18:20:11
Carrie
So that was sort of my goal in the beginning. And then as I narrow that down, I scratched out all the other ones and I thought, okay, now I’m going to be talking to people. And every time I talk to somebody, I’m just going to, you know, say, Hey, I sort of shifted gears last year and, you know, so that’s sort of been and building up in an investor base.
00:18:20:13 – 00:18:48:14
Rod
You just helped me, by the way. You just helped me. And I’ll tell you why, Carrie, because I can now explain helping warriors discover their superpower better because of what you just said. So I really appreciate that. And I’m very serious. So so because it is a discovery process. And I think I think, you know, I just you know, at the events at the boot camp, at my boot camps and at the warrior events, I just say get up, tell everybody what your freaking superpowers, they may not know yet.
00:18:48:18 – 00:18:56:10
Rod
So you know what? I’m going to do a little more pre framing before I do that next time. So thank you for that. Well, let’s talk about your first deal as a warrior. By the way, did you get your sword yet?
00:18:56:10 – 00:18:57:11
Carrie
Yes, I.
00:18:57:11 – 00:19:12:15
Rod
Have. You did. Awesome. Awesome. By the way, anybody that gets their first deal with us, they get this awesome freaking sword. I don’t have it here to show you, but it’s it’s a real sword. It’s cool. But anyway, so. So talk about that first deal. I know it’s in Texas. Can you describe it a little bit?
00:19:12:17 – 00:19:45:21
Carrie
Yeah, it’s 123 units. It’s a C class property. It’s pretty much a Hispanic tenant base. And I was brought in by another lawyer. There was a group that had already been together that was they had found the deal on Foxy from an owner put it right on their and they negotiated it. And so I kind of came in a little bit after that because I had actually been on a deal with some other warriors that the sellers backed out.
00:19:45:21 – 00:20:12:11
Carrie
So I had already had some investors kind of ready to go. And then when the sellers backed out of that deal, one of the warriors said, Hey, how would you, you know, take a look at this. I looked at it and I, you know, said, let’s do it, and came into that. So it’s 123 units. We bought it for 11 million, 11 to fives.
00:20:12:13 – 00:20:31:05
Carrie
The cash on cash is about 7%, IRR is 19 and air is 20%. And we’re looking to hold it for three years, probably buy closer to four and sell it at 14 seven.
00:20:31:07 – 00:21:16:14
Carrie
The market rates were our the average rents were 1159 and it looks like the market was between 1213 hundred at the time when we bought it. Awesome numbers. Yeah. And so then it was and it didn’t doesn’t really need a lot. We’re doing some minor interior maybe some and some of that the doing a little bit of the flooring and maybe some paint but it doesn’t need that you know a lot and it also maybe some just some things on the outside some of the like re striping and resurfacing the outside and fixing some of the painting the outside kind of making it look better.
00:21:16:16 – 00:21:37:06
Carrie
And we might add a unit because our certificate of occupancy has one more to go. And so our leasing office is really big. So we’re kind of looking into possibly adding a the market down there right now is the one bedroom, one bath are really are going kind of fast. So we were thinking about adding maybe possibly one of those.
00:21:37:11 – 00:21:56:05
Mark
I want to take a quick step back because there’s one thing you kind of glossed over that a warrior are somewhat they brought this deal to you because the question I get all the time is like, oh, a brand new I’m into real estate. Why would somebody want to work with me? I don’t know what I’m doing. Why did they bring this deal to you through that relationship?
00:21:56:05 – 00:22:01:07
Mark
What what was the situation? Why did they come to you to help you bring this deal across the finish line?
00:22:01:10 – 00:22:26:23
Carrie
Well, I had gone to that first warrior event. I met a lot of people and probably said, you know, five words. I mean, you try to do your best to say, I’m interested and then some of the warriors had just, you know, through sort of after you get back and you schedule some Zoom calls and you talk to everybody and you get in the group and you, you know, start talking to everybody that you can.
00:22:27:00 – 00:22:51:06
Carrie
And one of there was a warrior here that was here for lunch, had just flown in to Cleveland, had a layover, was here for a couple of hours, was here for lunch. And then I met up with the Warrior group down for lunch. And it was one of those, like I said, one of those one of those guys asked me if I wanted to be on a deal in Cleveland and looked at it and said, yes.
00:22:51:06 – 00:23:18:16
Carrie
And, you know, also having come in with the Warrior program to have a coach that you get to talk to. So he was very involved with me and looking at these deals. And you really start to you learn a lot quickly. If you can absorb it all, you know, insults met with with here with my with the coach and went over everything and he you know, helped me go through it, make sure I was looking at everything correctly and was you know, was going to be on that deal.
00:23:18:18 – 00:23:38:23
Carrie
That deal didn’t end up going forward through no fault of our team and so when we when I met up with the Warriors for lunch, some you know, I didn’t know about the deal at that time but months down the line and because of that connection later, that person knew that I had investors that were kind of ready to go.
00:23:39:03 – 00:24:00:10
Carrie
It’s really about all the connections. I mean, it just kind of links and links and links. You just, you know, as your pool gets bigger and bigger and bigger, you know, you kind of make a bigger splash there with love talking to people. And so I think they picked me because, one, I had met him then now a couple of times and I had met some of the other people, you know, a couple of times and had raised some capital.
00:24:00:10 – 00:24:21:12
Rod
And so one of the one of the exciting things about the, you know, the group or any group that you join is the ability to share notes and compare ideas and compare notes and align on on things. And, you know, if you’re ever networking at one of these events, guys, and I tell the warriors that they warrior events this, but just for a general knowledge, the work starts after the event.
00:24:21:15 – 00:24:41:00
Rod
Know the the meeting people at the event is not the work. The work is is setting up calls afterwards and building relationships, deep relationships, and seeing how you can add value. That’s the work. And so don’t think you’re going to go to one of these events, collect a bunch of cards and your work is done. No, you’re going to go to those, collect a bunch of cards, take pictures if you can’t see.
00:24:41:01 – 00:25:02:19
Rod
Remember who they are, write notes on the cards and then you follow up. And that’s when you know you build those relationships. But, you know, that’s that’s what I tell people at the Warrior event. And by the way, if you’re interested in applying to the Warrior program, text the word crush to seven two, three, four or five, and we’ll set up a call and we’ll see if you’re a fit and you’ll see if we’re a fit.
00:25:02:19 – 00:25:29:19
Rod
And if it is, I can tell you it’ll likely be one of the best decisions you ever made in your life. So so back to that unit, because I did some math as you guys were talking. So if you turn that leasing space into a unit based on I think I did a thousand a month, that is a 265,000 $264,000 increase in value to that complex set of five cap.
00:25:29:21 – 00:25:57:12
Rod
And so, you know, I don’t know what it cost to do that to do the actual remodel, but could very well be worth it. And, you know, whenever you buy an asset like this, you’re looking for ways to to increase the net operating income. And another thing I may mention to you, and I don’t know how effective this would be on a asset, but you know, on our assets, we always number the parking spaces now because and we do offer reserve parking.
00:25:57:12 – 00:26:20:06
Rod
So, you know, what you could do is you could do a survey and ask the residents if they like that, see how many would be interested. And if they are, then, you know, it’s not a very big expense. And, you know, that goes right to the bottom line. I talk about it on the show where we did a 296 unit asset and we got an $800,000 bump in value from painting some numbers on the frickin parking spaces.
00:26:20:08 – 00:26:48:10
Rod
You know, very exciting, because we have another one under contract a mile away from that one. That’s even a better deal. So very exciting times. But anyway, so, you know, if you were going to project in your purse, this is a personal question, you know, at your current pace, if you were going to take a guess or projection, how long it’s going to take for you to reach financial freedom, you know, answer that question.
00:26:48:10 – 00:27:01:05
Rod
Give us a shot. You know, as and I don’t know what your definition of that is, if it’s just covering your expenses or if, you know, if it’s actually living the life you’ve always dreamt about. So take take that question any way you like.
00:27:01:06 – 00:27:20:14
Carrie
You know what I’ve thought about it. I think it’s probably going to be somewhere 5 to 8 years where I’ve been maybe through to, you know, where the syndications have gone all the way through and you’re kind of re investing that money. So I’m going to say 3 to 4 or 5 to 8 years in my mind.
00:27:20:16 – 00:27:41:23
Mark
And moving forward. I know you mentioned a couple of deals, obviously, that are going to help you get there, because obviously, yes, interest rates are still holding steady, lots of debt coming due. There’s so many opportunities I have my inbox right now is just filled with price reduction emails from brokers and everything. And you mentioned to allies that you have sent out one accepted.
00:27:41:23 – 00:27:57:18
Mark
And one thing that caught my attention that you said earlier was you had one ally that got accepted, but you guys actually backed out of that. And I’d love to hear just for the listeners, what was the reason you guys backed out of that and what did you see that made you decide, Hey, we want to we don’t want to touch this deal right now?
00:27:57:20 – 00:28:22:00
Carrie
You know, that was one of my partners. She found the deal and she she’s phenomenal. She’s she’s experi es and she’s just a phenomenal person to partner with and talk to, I believe, the management company. And I want to see the management company kind of said this is kind of a higher crime and sort of roundabout, you know.
00:28:22:02 – 00:28:25:14
Rod
Yeah, they have to be careful. They have to be careful. Yeah.
00:28:25:16 – 00:28:45:16
Carrie
Yeah. So it’s, you know, some, some, some things just aren’t the right fit. So that one, was it going to be the right right set and in the right area. And, you know, some things on paper aren’t always what they are. You know, you can look at something and when you start looking a little deeper, you know Yeah.
00:28:45:18 – 00:28:52:22
Mark
So, Carrie, what is the biggest thing that’s got you excited about multifamily moving forward in this business?
00:28:52:22 – 00:29:20:20
Carrie
You know, I think that one of the hot topics that everybody’s talking about is, you know, with interest rates high and that coming down at this point, but there’s a lot of debt coming due and people that didn’t foresee this lasting this long are being there are going to need to do something to sort of sell their sell their investments and their assets.
00:29:21:01 – 00:29:40:06
Carrie
And I think that, you know, that’s just going to be a good time for people having to either sell faster or at a lower rate. And especially for me, I don’t have any, you know, since I haven’t been doing this for five, ten years, I don’t have any of those coming, coming due. I’m getting in when those people need to get out.
00:29:40:08 – 00:29:59:07
Carrie
So for me, that’s exciting because I don’t I don’t have the downside of it. I only have the upside of it. So, you know, and I’ve heard through just in the pipeline and people talking about their deals and what they’re seeing, that there are some people I wouldn’t say they’re in a panic, but they just have to do what they have to do and, you know, get those.
00:29:59:07 – 00:30:18:18
Mark
So, yeah, And by the way, for people listening, because I get this question a lot that don’t understand this, what she’s talking about when she’s saying debt coming due, commercial debt is not like single family debt. Commercial debt typically comes due every three, five, seven, ten years, whatever the loan is or whatever the term is. And so they have to refinance or sell.
00:30:18:22 – 00:30:37:08
Mark
And so when you refinance in, interest rates are higher. Obviously your payment goes way up where you have floating debt that changes versus single family. The reason why I’m sure you guys have probably noticed is single family is just completely flat and hasn’t really dropped. They just have 30 year debt and it’s, you know, stable and they don’t have to change anything, which is why people are not selling.
00:30:37:14 – 00:30:54:01
Rod
And so the reason they’re not selling the is not selling is because they could sell and they have 3% interest. Now, if they accept, they’re going to have seven or 8% interest. So it’s like so there’s a big stopgap right now. You know, I just interviewed an economist on the show yesterday, probably won’t go live for a few weeks here.
00:30:54:03 – 00:31:15:12
Rod
But, you know, he doesn’t think we’re going to see some big interest rate reductions for quite a bit because inflation is still high. So it’s going to be interesting to see how this this is just we’ve got a lot of conflicting things happening right now. It’s very difficult to have, you know, clarity on on where things are going.
00:31:15:12 – 00:31:30:10
Rod
And I wish I had that crystal ball. But it’s going to be really interesting to see how things shake out. I believe they have to drop the interest rates some just for the election. They’re going to put pressure on that, the current administration. But you know, how it all shakes up is going to be very, very interesting at this point.
00:31:30:12 – 00:31:36:07
Rod
So, Carrie, are you okay with people reaching out to you just to ask questions about multifamily?
00:31:36:09 – 00:31:36:22
Carrie
Yeah.
00:31:36:24 – 00:31:45:21
Rod
Okay. All right. So I think I’ve got your your stuff here. Or if you want to just let people know where they can reach you, that’d be great. Yeah.
00:31:45:23 – 00:32:06:14
Carrie
Instagram is just at sky syndication. My website is Sky and Sky Capital LLC dot com. You can also email me at Invest or Carrie at Sky Capital LLC dot com and Facebook is Invest Sky Capital LLC.
00:32:06:16 – 00:32:33:04
Rod
Now thank you for that. Thank you for that. So you know she’s happy to answer questions for you guys. So one last question for you, Carrie. You know, what suggestions do you have for someone that wants to do this that hasn’t taken action yet? And I’m not trying to have you plug the warrior group, but just just in general, what sorts of things would you suggest they do if they’re serious about this and they want to take advantage of what we see as economic opportunity coming?
00:32:33:04 – 00:32:47:02
Rod
Because it’s definitely here. I’ve got a deal under contract. It’s mind blowing right now. But but and they’re coming and we’re seeing them. But but for someone that’s like not sure what to do, where to get started, what you know, what suggestions would you have?
00:32:47:04 – 00:33:23:01
Carrie
I would say I mean for me, I’m not a jump in without knowing anything kind of person. I’m more of a I got to learn it and then I’m going to jump in. And so start, you know, reading, listening to podcasts. There’s so much information on the Internet. I mean, you can learn this. You just are so much information and just start narrowing down what it is, You know, that sounds good to you and resonates with you and just really an every day turn your car into a little, you know, college, you know, just you play the podcast and listen and I, you know, think, oh, that sounds like something I could do or can’t
00:33:23:01 – 00:33:30:01
Carrie
do or would like and wouldn’t like it just every day do something to move stuff, you know, move the ball to the goal. Post for yourself.
00:33:30:01 – 00:33:47:05
Rod
Great advice. Great advice. Great advice. Carrie, it’s a treat to see you again. I appreciate you stepping up and adding some value here today. And and can’t wait to see you again in a couple of years and and see you in the thousands of units instead of the hundreds. So, yeah, thanks.
00:33:47:07 – 00:33:48:07
Carrie
But it’s.
00:33:48:09 – 00:33:52:13
Rod
All right. Thanks for coming on.
00:33:52:15 – 00:33:59:07
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