Mastering Partner Alignment and Acquisition Fees in Multifamily

Unlocking Multifamily Success: Lessons from Jens Nielsen’s Journey

In this powerful episode, Jens Nielsen shares his inspiring transition from a successful W2 career in telecommunications to retiring early through multifamily real estate investing. His story is a testament to the power of strategic thinking, intentional partnerships, and personal growth.

Key Takeaways for Multifamily Investors:

• Think Big, Start Smart: Jens began with small deals but quickly realized that small thinking limits growth. He emphasizes the importance of scaling up and leveraging partnerships to accelerate success.
• Partner Wisely: Align yourself with partners who complement your strengths. Jens, an analytical introvert, partners with outgoing dealmakers who excel at broker and investor relations. This balance is crucial to getting deals across the finish line.
• Vet Your Team Thoroughly: When investing as a limited partner, focus on the experience and track record of the sponsor team, the market dynamics, and the property’s risk profile. Understanding these three pillars helps mitigate risk and maximize returns.
• Intentional Relationships Matter: Jens highlights the importance of surrounding yourself with people on the same growth path. He advises cutting ties with those who don’t support your vision or mindset, because who you hang out with is who you become.
• Embrace the Journey Over the Outcome: A life-changing bike accident shifted Jens’ mindset from chasing trophies to enjoying the process. He lives by “high intention, low attachment,” focusing on passion and daily growth rather than fixating on specific goals.
• Acquisition Fees Are Worth It: Jens shares how acquisition fees reflect the hard work behind finding and closing deals. Charging a fair fee (like 3%) is essential to cover due diligence costs and the effort involved.
• Continuous Personal Growth: Even after retiring early, Jens is committed to improving his long-term strategic planning and public speaking skills. Growth never stops.

Words of Wisdom for Aspiring Investors:

• Find a partner who holds you accountable and pushes you to take massive action.
• Don’t be afraid to start as a limited partner to learn the ropes.
• Focus on building a strong, complementary team.
• Enjoy the process and stay passionate about what you do.

Favorite Quote from Jens:

“See yourself living in abundance and you will attract it.” — Rhonda Byrne

Jens Nielsen, a strategic real estate investor, retired from his W2 job after just five years. Embracing his introverted nature, Jens discovered his “sweet spot” in multifamily, mastering the art of selecting ideal partners, locations, and properties.

Jens is also a frequent panelist at the Multifamily Bootcamp. Click here to get tickets to see Jens live!

Here’s some of the topics we covered:

• Small thinking leads to small deals
• Vetting potential partners
• Who to align with for maximum results
• The intentions of relationships
• Life is about the journey
• Acquisition Fees
• Personal growth

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

Introduction and Background

Rod Khleif: So you know, that apartment building or complex, you drive by every day, someone owns it, and it’s probably someone on this podcast. Multifamily Rockstars. During the growing numbers of real estate entrepreneurs who have made the jump to buying multifamily properties for lifetime cash flow, multi family rock stars using OPM for an OMG ROI. Now here are your hosts, Brian Cleave and Mark.

Rod Khleif: Nate.

Mark Nagy: Welcome back to multifamily rock Stars. So this is where we interview people that are crushing it in this business. And we show you guys the inside scoop of how multifamily investors are creating massive success in their businesses and in their lives. And as always, I’ve got my co-host who’s the director of my massive action team for the Warrior Group, Mark Nagy, on the call.

Mark Nagy: Mark, what’s going on, brother? What’s got you excited lately? Hey, Rod. Nah, just I love these episodes. I mean, from what I heard just talking before we jumped on here, I heard some some pretty big door counts from our guest here today. So I’m excited to get into and learn some stuff. Yeah. Yeah. Well, he’s he’s a good guy.

Mark Nagy: He’s a good friend. He’s been in our Warrior program for years and he’s originally from Denmark and I was from Holland, so he immigrated just like I did. And he, you know, had a successful career in telecommunications and I.T.. His name’s Jens Nielsen. Forgive me. I didn’t say your name right. And but. But he just retired from his W2 to focus on real estate.

Mark Nagy: You know, he’s he’s been, you know, a key principal and a GP in over a thousand units and a limited partner. And good lord of the couple thousand mobile home park Lot 6000 storage units. You know, he does know lending and private money lending. He’s just all over this real estate space. So we’re going have a lot of fun today.

Mark Nagy: Welcome to the show. Yes.

Jens Nielsen: Yeah. Thanks, Rod. I’m really excited about this opportunity to talk to you again.

Mark Nagy: Yeah, No, I know. Yeah, that’s right. We’ve had you on the show before. Probably. It’s been over a year though, on the on the main podcast, not on this multiple only rock stars but yeah. So take a minute and talk about your background as it were. You know for those that didn’t get a chance to listen to that first episode, just bring people back up to speed and you just like just retired, I think, right?

Mark Nagy: I mean, like in the last couple of months or something.

Jens Nielsen: Yeah, even less than a month ago. So yeah, I.

Mark Nagy: Go, Wow.

Jens Nielsen: It’s very new. Yeah. You know, I’m in my I’m in my late forties and about five years ago after I’ve been in the field for many years with a successful career, I was like, man, I got to continue to do this for another 20 plus years if I ever want to, quote unquote, retire. And I just didn’t feel like I want to do that.

Jens Nielsen: Continue and trying to keep up with the innovation and all these changes in the I.T. field, I wanted something new, something exciting I could build for myself. And I looked around. I was like, what’s out there? You know, so many ways of of making money these days. But the best way I really found was real estate investing. And there’s literally it’s it’s less than slightly less than five years ago.

Jens Nielsen: I got started, I think in July of of 2015, 2016, I bought my first property and so hooked on it. And you know, it’s just been a crazy ride since then with the tremendous amount of success and just keeping focus on the and what I wanted to achieve. So, I mean, kind of is the proof, Right?

Getting Started and Early Deals

Mark Nagy: Right. You know, and you’ve got you’ve got an incredible focus for sure. I mean, and you also do mountain like biking as well. I mean, you’re really skilled at that. I remember you had a bad accident a year or two ago. I remember going through that with you. But how long have you been in the Warrior program? Refresh my memory.

Jens Nielsen: Yeah, since the beginning. And I mean, this is where you.

Mark Nagy: Actually taught me to join, right? I think. Yes. Talk to me to join. Yeah. Yeah. So that’s awesome. Yeah, that’s. That’s unusual. And so that’s. Love it. So. So you know, talk about, you know, let’s focus on multifamily. I know you’ve you’ve divested into some other asset classes as well, but let’s focus on multifamily for purposes of this call.

Mark Nagy: You know, now you have aligned with other people, coaches in the Warrior program, other people to take these deals down. Correct. Could you you talk about maybe the first deal you did and how you how you made it happen. You want to you remember? Yeah.

Jens Nielsen: So, you know, I started I started with small thinking and small deals early on because I didn’t really have any coaching. I didn’t have any, like, mentorship, like, oh, I can go and buy a four unit. I know how to do that and I can do it my own money. And I’m so, you know, kind of blessed that I, I saw the start.

Jens Nielsen: I just I listen to your podcast like, man, there’s a different way here. And when, when you started the program, I was like, Man, I got it. I got to sign up here. And the biggest thing I wanted was like, Well, I want to do coaching and the training, but I also wanted to find the right partners because, you know, you can go quickly by yourself, but you can’t go very fast in my experience, because you run out of money and you’re like, Well, I’m stuck.

Jens Nielsen: So I did a few deals and then I started when in well, back when we had live events, I would go to those and I would meet some people and I met some guys that were like, I felt like they’d done a few things that I wanted to kind of align myself and partner with them. And that’s what we kind of got started.

Jens Nielsen: We did a few syndications, but I took on a small role, but just kind of got involved and just kind of would see what it meant to be a part of a larger deal, what it meant to be part of a syndication to kind of learn from that. That’s really took off doing that.

Mark Nagy: I have a quick follow up. What role did you play in these first deals? Did you wear multiple hats or just one hat?

Jens Nielsen: Multiple hats? You know, I did underwriting, you know, onsite due diligence, raised some capital investor communication, you know, kind of taking on the areas that I felt like I’m good at. I’m an introvert by nature. So being out there and connecting with brokers is probably not my my strength. But give me, you know, let me work from the back from the back office now.

Jens Nielsen: We’ll see some good results that way. You know.

Mark Nagy: I love it. So you got started. Obviously, you were thinking some smaller deals. I know some people when I chat with them, they’re thinking, Oh, I want to start as an LP, right? Passive investor. Obviously you’ve done a lot of LP deals, passive investing. So for people listening, they might want to start that way. What sorts of things should they look for in the team that they’re investing into?

Jens Nielsen: Yeah, I did also start like LP investing before I did The Deep Side, and I think the key thing is like, who is the team, right? Who’s on a team and what is their level of experience, especially in a market, you know, have they done more deals or other deals in that market? How well have it done? If they’ve done anything that it’s done full circle or even just operated for a few years, get some historical data, just kind of see how they’re meeting their projections.

Jens Nielsen: Right. And and really figuring out, you know, what’s what’s behind this. Do they have some good sponsors? Do they have some some very experienced people on the team? That’s one of the key things, really. There’s really three things I look at is the team then is the market, what market should be investing in Right and why today? Why do they think that that market makes sense?

Jens Nielsen: And then finally, it’s the property. What’s the story about that property? What level of risk are you taking on? Right. Are you doing a heavy repositioning on a classy asset and then hopefully the returns should be reflecting that? Or are you taking that class asset? You don’t have to do too much work on and maybe if it’s lower returns, because I think a lot of people don’t recognize the risk you take on by taking on some of these lower class assets.

Mark Nagy: For sure. Yeah. By the way, since you brought it up, Mark, let me throw it out there, guys. If you want a list of questions that you’d want to ask a GP before getting into a deal, this will really help you evaluate, identify and evaluate a good GP. Text the words GP questions to 72345. And I’ve got a really nice list of all the questions you really should ask.

Mark Nagy: And you know, Jens mentioned some of them and there’s just a whole bunch more there, so that’ll be a good resource for you. So let me ask you this. You know, yes, when you were, you know, you joined the Warrior program and you started connecting and, you know, I remember you you were you were definitely introvert and you definitely pushed yourself.

Mark Nagy: And I’m really impressed with you in that regard. The fact that you’re I’ve been on my podcast now twice, you know, is is amazing. And you’re just such a such an awesome success story. What sorts of people did you align with that, you know, that you feel like helped you ramp this success for yourself? I mean, just I don’t know, you answer that any way you like.

Jens Nielsen: I love that question, right? Because and as you step back, if anybody ask me what is the the thing I love about real estate investing, I always say it’s the people I have an opportunity to work with. I mean, there’s no questions asked there. So that does kind of set maybe the stage for this question. And the people I line myself with.

Jens Nielsen: Well, typically you’ll be attracted to somebody that’s similar to you, but I realize that’s not the best choice in partnerships, right? So I’m the analytical person. I’m the kind of a back end kind of no getting stuff done. The, you know, the implementer, if you will. I aligned myself with people that were a little bit more outgoing, a little bit more comfortable going out there and connecting with the brokers and doing all those things right, because I feel like if we’re all out chasing deals and nobody can figure out how to get across the finish line, you won’t be successful.

Jens Nielsen: And vice versa. Is everybody sitting at home being a little bit introverted? Then you don’t get anywhere. So the best partners I’ve had are people that are great broker connections, really good, also investor connections and those aspects where I can kind of like, well, let me fill in the blanks, you know, on getting this deal across the line like you have, you have Robert that helps you with some of that stuff.

Mark Nagy: You actually actually. Scott now, but yes, yes. Okay. Yeah, Yeah. That’s that’s exactly right. And, and those are some of the best partnerships we’ve ever seen. So yeah, I’d actually love to kind of go the opposite way of Rod. What Rod just asked. I know he mentioned who do you align yourself with? What I love to know is what are some things or people that you had to actually cut out of your life to reach the success that you’re at today?

Mark Nagy: So I think that’s equally as important. Yeah. What did you sacrifice? That’s a good question.

Jens Nielsen: Yeah, it’s it’s very interesting. I think I learned a couple of things basically around the type of investors that you may want to partner with.

Mark Nagy: If you if.

Jens Nielsen: You take on a true limited partner, make sure that person is comfortable being completely passive. They’re not going to question every step you take and I’ve had some and I was like, man, this was probably not the right choice there. So so be aware of that before you start taking on partners and investors. What type of personality do they have?

Jens Nielsen: What did you have to cut out of my life? I mean, as as Rod said, you know, I’ve been a professional. We I really had professional racing license for year bicycle racing. And I realized, you know, ten, 12 hours of training every week was not going to cut it when I was trying to work and do my my my real estate investing.

Jens Nielsen: So that had to be reduced.

Mark Nagy: You were still writing, though? I remember, because, I mean, you would have gotten injured. You were halfway, you know, about halfway into our Warrior program, I think. And then you got that injury. Were you racing or just screwing around?

Jens Nielsen: I was racing then, and we can also get into that. Yeah, that was a pivotal moment in my life.

Mark Nagy: I wanted that and then keep going with that, that question. Then then I will, I will queue up that conversation. Yeah, yeah, yeah.

Jens Nielsen: So. Yeah. So cutting out some of the racing. Yes. I still, I still ride. I rode this morning, I did an hour and a half this morning but not nearly as much as I used to. Right. But, but also people that you know, I think early on in life you just your friends are just friends, that’s all. He’s a cool guy, girl.

Jens Nielsen: Let me hang out with that person without much intention around what’s behind it. So I didn’t like deliberately say to somebody, I didn’t want to be friends with them, but I was like, Well, this person is not in the same growth pattern that I’m in, so maybe I should decide to spend less time with that person and be much more deliberative around hanging out with people that I felt like on the same journey, same mindset.

Mark Nagy: Awesome, Awesome answer, buddy. And guys, I hope you take note of that one that’s so important. Who you hang out with is who you become. You know, I just had my multifamily boardroom, of which you’re a member now Jens and I know you could make it, but we just had it last week and a week and a half ago, two weeks ago.

Mark Nagy: And you know, I want to be around people that think what I think is hard is easy. So love it. Well, let’s go back to that accident, because I remember it was pretty serious. And so talk about what you want, what you wanted to talk about there.

Jens Nielsen: Yeah. I mean, this was it’s three years in May and I was doing my own bike race in Grand Junction, Colorado, and I had a crash so many times on my bike, but this time was pretty bad. I ended up with a friend, a crushed kidney, actually, you know, and and a couple of injured vertebrae raised my back to and, you know, internal bleeding and everything else.

Jens Nielsen: I literally was in the ICU for five days and my wife has a picture of me lining all pale and with, you know, various tubes. And but it also it was kind of a wake up call because I had always been like, oh, I can go and race my bike because then I can show that I’m better than others and I’m good at something.

Jens Nielsen: So there was a little bit of lack of self, I don’t know, worth there to some degree. And I proved that by raising my bike because I was pretty good at it. But as I realized I’m getting older, I’m not going to get fast. And I was like, Man, this is not the right approach to life. It’s not about showing that you’re better than other people.

Jens Nielsen: It’s about the journey. And you talk a lot about that too. It’s enjoying the journey. It’s being with the right people versus the outcome, because there was never a lot of satisfaction in winning races. It was just, well, it was another trophy. And I had dozens of them. I realized I was focused too much of the outcome versus the journey.

Jens Nielsen: Now it’s like, man, you know, just that the process. I’ve gotten much more deliberate around the process and intentional around the process, and I love that. Now it’s just, Hey, man, good for you. You got a deal if you do it. If not, there’ll be another one coming along. Whatever.

Mark Nagy: I still love hearing that, brother. I can’t even tell you how much I love it. Awesome. Well, obviously, you’ve had a lot of mental shifts in your life for the better, whether it was through a crash or whatever. I mean, that’s that’s that’s an insane story. But sometimes it takes a wakeup call like that. But what is what is something that you love to change about yourself?

Mark Nagy: Yes. But maybe it never will or you think never will.

Jens Nielsen: You know, I think I’m in the long term strategic planning is something that I need to get a lot better at. You know, I have a tendency to kind of be focused on right in front of me. So that’s a that’s a process that I’m certainly working on.

Mark Nagy: That answer really surprises me. And it’s kind of.

Jens Nielsen: Funny.

Mark Nagy: That that’s not the one I would have guessed. Please continue. I’m sorry.

Jens Nielsen: Well, good to surprise you, but no, I mean, it’s it’s sometimes, you know, I guess and maybe I’m better at it than other people. I just feel like I have I have a ways to go right. And, you know, I think the other thing is, you know, I’ve been on stage a couple of times at events, Ron, I, I, I’m scared and I love it, But I mean, being becoming better at going out in front and speaking to people and people and sharing my story, I mean, that would be something that would be amazing to to do more of that.

Mark Nagy: Well, I can tell you, you’re you’re 1,000% more comfortable then than the last time we interviewed. And and really, you know, even even on stage what I recall. So, you know, you’re absolutely pushing yourself. And, you know, it’s interesting because Rod’s wife Tiffany and I had a conversation about this. We just went to a mastermind in Costa Rica that some of my warriors put on, you know, garrison and them, you know, and and she’s an introvert and, you know, an introvert has to after they are in a social setting, they have to go be by themselves.

Mark Nagy: And it’s just such an interesting dynamic for someone like me that’s an extrovert that gets more energy from being out there now. I thought I was an introvert. I’m not. But but so let me ask you this. You know, there are a lot of people listening that want what you have Jens and they want to build this dream.

Mark Nagy: They haven’t taken action yet, or maybe they’ve done a duplex or something. What words of wisdom would you give them?

Jens Nielsen: Find a find a partner that you that can hold you accountable, that can help you take massive action. And that’s not exactly like you. I mean, my current partner I’m working with, without him, I would have not gotten to where we at. I mean, we were literally close for deals in the last four months, five months. I mean, that’s incredible.

Mark Nagy: When you mentioned you met through the Warrior program.

Jens Nielsen: Yes, that’s right. Yeah.

Mark Nagy: Love it, Love it, Love it. By the way, guys, if you’re interested in checking out and applying for our warrior mentorship program text and then I like the word, we want to help you crush it in this business. So text the word crush to 72345. Again, to apply, just text the word crush to 72345.

Mark Nagy: And and we’ll see if you’re a fit for us and if we’re a fit for you. And we’re very, very selective and be candid because we’ve created this ecosystem that’s just incredible. It’s just growing organically and everyone wanting to help everyone else. Would you agree? And.

Jens Nielsen: Oh, absolutely. I mean, I miss I miss going to events. I mean, I was fine. I’m glad.

Mark Nagy: Well, I’ll put it out there. I’m pretty sure we’re going to have one in November, December. So I’m putting it out there, but it’s going to be Denver or Dallas. And so that’s that’s the plan. I’m going to talk to my team about it in our leadership meeting tomorrow. But anyway, go ahead, Mark. Yeah, well, we kind of glossed over something that was huge, which is obviously retirement five and a half years.

Mark Nagy: I mean, people work 50 years in a regular job and they don’t even have the retirement that they want. You did five and a half in real estate. And I know it was funny because you just mentioned something you got to work on as more long term planning. Did you did you set out in real estate with the goal of retiring early?

Mark Nagy: And now that you’ve reached that, what’s what’s the next goal for you?

Jens Nielsen: Yeah, so I set out I remember this planning session me and my wife had actually, we do the best planning when we’re driving because he drives so hard and I sit next to her and bounce ideas off her. But we had a planning session five years ago going somewhere I don’t recall where. And I said, okay, if we buy a four plex every year for ten years, we’ll have 40 units now, probably about to replace my income.

Jens Nielsen: That was the thinking I had five years ago. And then it suddenly just accelerate. And this is the thing I think people don’t realize that there’s that thing you do. One deals like, Oh, I’m going to do something bigger and bigger, and it kind of accelerates kind of exponentially, right? I mean, I literally in this again, I mean, you’ve done four deals in the last six months.

Jens Nielsen: I made more money in those four deals than I did in a full year of working in my W2 job. Right. And I was like, man, this is just blowing my mind is incredible.

Mark Nagy: That’s just acquisition. That’s just your piece of the acquisition for you, right?

Jens Nielsen: That’s right. Yeah.

Mark Nagy: Acquisition those. I mean, that doesn’t even count the cash flow, the tax benefits, everything else. So those are either don’t know when you do a put a deal together, you charge a freaking acquisition fee because you you kiss a lot of frogs to find that deal and you know like we charge 3% and I won’t waiver on it because you know we’ve had deals fall apart.

Mark Nagy: We’ve spent a lot of money on due diligence and and so, you know, that’s that’s yeah, awesome. Awesome, awesome, awesome. Let me ask you this, buddy. What is your definition of success? How do you define success?

Jens Nielsen: I think really finding something that you’re passionate about that that doesn’t seem like work to you that you’ll just continue to do and you really focus on the and you enjoy the process, Not not necessarily the outcomes. I like to say, you know, high intention, low attachment. So it really every day I’m working on this is exciting and new ideas are generated, right?

Jens Nielsen: So just this growing every day and and achieving new things and stuff but not necessarily like, oh, I want a certain number of units by a certain date. That’s I very careful about saying that because don’t attach your self-worth to a certain number because that’s just pointless like just make sure that you really enjoy the process and learn and work with people that you truly enjoy working with.

Mark Nagy: So yeah.

Jens Nielsen: That’s that’s my definition.

Mark Nagy: What’s your what’s your just a couple more quick questions. What’s your favorite quote? Do you have a quote that that hangs on your wall? Do you have anything that you circle back to on a regular basis that really helps motivate you?

Jens Nielsen: It’s funny, there is actually one on my screen right in front of me and it says, See yourself living in abundance and you will attract it. Rhonda Drive.

Mark Nagy: It. I love it. I love it. I have one. I want one. My wall to my exercise room. God’s wealth flows through me in avalanches of abundance. Thank you, God. And that’s just meaning abundance in all forms. Not just money, but but, but people and love and friendships. And you name it. Love it. Well, listen, I’m going to end on that positive note.

Mark Nagy: Yeah. And I really appreciate you coming on, buddy. And it really great to see you. And I promise you, we will we will figure out a way to do an event this year because I miss it. Tiffy misses it and, you know, we’re going to. We’re going to make it happen, brother. But great to see you, my friend.

Jens Nielsen: Likewise. I’m super excited to see everybody in person again.

Mark Nagy: Yeah. All right. Talk to you later, Mark. I’ll see you later, buddy. All right. See you guys.

Rod Khleif: Thank you for watching. Multifamily rock stars. If you love the show, please subscribe and leave us a five star review.