Jimmy Diorio is a top commercial real estate broker in New York City with a track record of over 120 successful transactions and more than 40 businesses represented across the city. Leveraging his deep market knowledge and deal-making expertise, he recently launched Diorio Capital, a real estate investment firm dedicated to delivering consistent cash flow and strong returns for investors.
Here’s some of the topics we covered:
- From College Football to Closing Millions in Multifamily
- The Networking Plan You Need For Your First Deal
- The Deal-Breaker Detail Most Investors Overlook
- The #1 Power Move Every Aspiring Investor Must Take
- Jimmy’s First Deal Exposed with Leverage Applied & Big Wins Achieved
- Elite-Level Value-Add Hacks to Skyrocket Your NOI
- What the Smartest Multifamily Investors Are Doing Right Now
- How to Find Your Power Players and Make Them Want to Work With You
- The Southern Markets You Should Watch Out For
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
00:00:29:01 – 00:00:49:11
Rod
Welcome back to multifamily Rockstars. So as you guys know, this is where we deep dive into deals that our guests bring. Typically they’re actually they’re always warriors. In this case on this on this episode, on these episodes. And you know, we give you but we give you practical and actionable items to get started and, and do your first deal, especially if you’re brand new, to multifamily.
00:00:49:11 – 00:00:53:09
Rod
And I’ve got my co-host, Mark Nagy here with me. Hey, bud. What’s going on, rod?
00:00:53:13 – 00:00:55:00
Mark
Good to be here for another one.
00:00:55:02 – 00:01:14:12
Rod
Yep yep yep. I was just telling you guys I was late to record this because I was getting this Nad+. Yeah. I’ve. That’s supposed to be awesome biohacking thing. I’ve been doing a lot of biohacking stuff. Methylene blue and, you know, crazy stuff like that. Peptides. And, you know, when you get old, you gotta you gotta bring in anything you can.
00:01:14:12 – 00:01:33:17
Rod
So that’s what I do it. But anyway, we’ve got Jimmy Diorio on today. He’s, 28 year old, real estate broker, commercial real estate broker in New York. And, has done that, we’ll find out how long, here in a minute. But, we’re going to dig into his, the deal that he’s done so far as a warrior.
00:01:33:19 – 00:01:35:14
Rod
Welcome, bro. Good to see you.
00:01:35:16 – 00:01:38:07
Jimmy
Yeah. Thank you guys for having me. Good to see you guys.
00:01:38:09 – 00:01:53:09
Rod
Absolutely. So why don’t you take a bit and just. Let’s start with having you tell a little bit of your story. You know why? Real estate, if you know, if you came from some other business prior to that, you know, maybe mention that and this maybe bring us current.
00:01:53:11 – 00:02:23:02
Jimmy
Yeah. So born and raised in, upstate New York, Saratoga Springs, small little horse racing town up there. We, went to school, University of Rochester in Western New York. And my whole childhood, everything growing up was all about, football. So I played football growing up, played football in college at the University of Rochester. And, I was able to get connected to a alumni who was there probably about 12 years before I was.
00:02:23:04 – 00:02:38:19
Jimmy
And he saw my resume. He saw athletes, same college. And, he interviewed me and I ended up, taking the job as a commercial real estate broker in New York City. And that was in 2019. Okay.
00:02:38:23 – 00:02:41:24
Rod
So you were 22, 23, something like that,
00:02:42:01 – 00:03:12:12
Jimmy
I was 22. Yeah. And as we all know, you know, a few months later, the whole world got, got stopped. And, I was doing primarily office leasing, commercial office leasing throughout New York City, landlord representation, tenant representation. And, you know, Covid hit. And it was kind of like, okay, pencils down. Like, everyone go home and.
00:03:12:14 – 00:03:20:16
Rod
Pencils down and offices empty. I mean, I think what the vacant the vacancy, the occupancy rate hit like 50% or some crazy frickin number.
00:03:20:16 – 00:03:37:16
Jimmy
There it was. Yeah, it was, it was. No one knew what was going on, but, I went I went home, actually, for, like, six months. The city shut down. You know, I thought I was gonna be home for a few weeks, but, that was six months into my career, and I was just. I just got my first deal done.
00:03:37:16 – 00:03:45:13
Jimmy
I was just starting to get rolling. So that was, a big kind of shock, you know, to get started with, the commercial real estate.
00:03:45:15 – 00:04:04:24
Rod
Absolute. Yeah. No good. No question. So let me ask you this before we get rolling, what type of listeners would do you think would be able to relate to you and your personality? You know, your your experience or really your skill sets? What type of listener do you think would, would most connect with you?
00:04:05:01 – 00:04:34:01
Jimmy
Yeah, I think for the most part, you know, I’m 28, as you mentioned, younger sales focused, I think kind of kind of people, the commercial real estate world, and especially on a commission basis, really teaches you a lot, especially as like a young kid, 22 coming out of school, there’s no guaranteed paycheck. You get dropped in New York City with a laptop and a cell phone, and it’s kind of like, go ahead, you know, see what you can do.
00:04:34:01 – 00:04:54:17
Jimmy
And, I really like that aspect of it. I really like the no ceiling on the commissions and how much you can earn. And, I didn’t really like trading my time for money. I’d done that previously and work jobs as internships, and I really wanted something where I was motivated to perform, and it was based on my performance more so than just my time.
00:04:54:17 – 00:05:08:21
Rod
So, so so you you, had to eat what you killed. So that’s it. Basically, let me ask you this. How do you feel like your athletic background helped you in real estate?
00:05:08:23 – 00:05:28:24
Jimmy
Yeah, I think tremendously. Okay. Just as far as the competitiveness, the teamwork, and just, you know, setbacks, failures, like in football, especially you, you you lose a lot, you get knocked down a lot. And it’s all about kind of how you come back and, I think just.
00:05:28:24 – 00:05:30:08
Rod
No good metaphor.
00:05:30:10 – 00:05:46:02
Jimmy
Yeah. Just overall like, the teamwork, and just the overall competitive nature of sports, I think, really pushed me to, to be and have like the, the, the priorities that I, that I have today.
00:05:46:08 – 00:05:56:18
Rod
Discipline you competitive and and this is definitely a team sport. So yeah I that’s what I was hoping you’d say because I, I assume that was the case. Yep.
00:05:56:20 – 00:06:25:17
Mark
So bring us into I know we’re going to talk about your first deal here in a minute, which was what, 7 or 8 months into this thing, which is fantastic. But before we get to that, in that, that first 7 to 8 months. So you can give the listeners just a little bit of an idea of what, what this journey looks like, what what what is kind of your, your day to day, the things that you were doing, whether it was mostly education, whether it was networking, whether it was learning different pieces of the business, what were all those things that you did to get up to the point of, you know, looking and closing
00:06:25:17 – 00:06:27:16
Mark
on your first deal?
00:06:27:18 – 00:06:52:17
Jimmy
Yeah. So, my mindset was totally shifted just solely due to my coach who was, Max shore and I came I came in thinking like, okay, I’m going to I was telling Max, I was like, yeah, I’m going to send out mailers. I’m going to call the owners. I’m going to, I’m going to pick this market. And he’s like, no, no, no, no, no, no, stop these like don’t do any of that first six months.
00:06:52:19 – 00:07:23:19
Jimmy
All I want you to do is just focusing on the networking piece. And so that was a big shift for me because I wouldn’t have expected to take that route. But, I was scheduling, you know, 4 to 5 warrior calls every day after work, 6 to 830 every single day, just nonstop. So just always talking about real estate, the kind of deals I was looking for and having those conversations just over and over again, just kind of in my head.
00:07:23:19 – 00:07:51:07
Jimmy
I had to force myself to think about what I was focusing on and what size deals and with markets. So that’s the route that I took. I just went to every single event. Orlando, Sarasota, met everyone in person, ended up meeting one of my, GP’s at the Orlando event and another one of the co GP’s on this deal.
00:07:51:09 – 00:07:58:00
Jimmy
One of the warrior calls, just the zoom calls after work and, yeah, I mean, that was that was a game changer for both.
00:07:58:02 – 00:08:13:16
Rod
Yeah. You know, one of the things I tell every warrior when they first sign up and I know I told you this, is that the most important thing you can do is get connected in that community. And and I’m really glad you brought that up, because that doesn’t come up that often. But it really is even more important than learning the business.
00:08:13:16 – 00:08:32:21
Rod
Which sounds crazy, but it is. It’s in this business to to, you know, and as you’re having these conversations, you start to, you know, start to get a feel for what you’re going to go after, start to get some, you know, get some real, reality around, you know, where you want to go, the size deal, you know, and, and start to get a feel for how you can add value as well.
00:08:32:21 – 00:09:01:00
Rod
Now, Max saw right away that, you know, you’re a great communicator and you can you can raise equity. Hello. And you’ve dialed for dollars before, if you were a commercial, real estate broker, you know, that’s that’s part of the game there. And I don’t know how much you had to do in the leasing side of things, but I know if you’re in the sales side, you’re literally on the phone cold calling like crazy, which, you know, you get good at, rejection and dealing with rejection and, and, you know, and pushing through in spite of, rejection.
00:09:01:01 – 00:09:04:00
Rod
So, now I’m curious.
00:09:04:00 – 00:09:19:12
Mark
Did you, did you think that was was what was going to happen? Did you come into the group thinking, okay, I’m good at maybe sales? I could do capital raising or did the opportunity present itself in a deal? And then you kind of had to pivot a little bit there and get into that.
00:09:19:14 – 00:09:42:20
Jimmy
Yeah. Totally. Not. Was what I was expecting at all. I’m like a, you know, a commercial broker by nature. So all calling, cold emailing, sending out mailers. I was more thinking the route of like, I’ll source a deal, I’ll find a deal or t something up. I’ll get an Loi accepted or close to accept it, and then I’ll loop in some of the contacts that I’ve made.
00:09:42:22 – 00:09:47:12
Jimmy
But I have not even focused on finding a deal at all.
00:09:47:12 – 00:10:03:23
Rod
By the by the way, guys in Loi is a letter of intent and, and let me just for those of you don’t know what it is, bear with me if you do b, I’ll be brief, but, you know, whenever you do a real estate deal in commercial real estate, you’re always going to have an attorney review the contract or write the contract or both.
00:10:03:23 – 00:10:24:23
Rod
Never write one yourself. And I’ve written thousands of them, and I would never do a large commercial contract yourself. But attorneys aren’t free. They cost money. So prior to that, you need to you use what’s called a letter of intent, which lays out the major deal points on a deal. The purchase price closing, earnest money financing, things of that nature and anything major.
00:10:25:00 – 00:10:34:17
Rod
And you agree on that with the seller? Sometimes via the broker. And then they then you spend the money and let the attorneys work out the purchase and sale agreement. So that’s an Loi.
00:10:34:19 – 00:10:51:14
Mark
Well, I just wanted to add one little piece because your journey actually Jimmy, was similar to mine, focusing on finding deals but then shifting over to networking because I found it. I don’t know if you found this as well as that. You can go talking to brokers and all these things, but if you’re new into the business, inevitably there’s going to be someone else who has a better relationship.
00:10:51:18 – 00:11:08:08
Mark
A better track record is going to beat you out on these other things. And me shifting from working with other people in the group that already had that track record and building that relationship got me into so many more deals than me trying to find deals on my own. And I don’t know if you agree with that, but I found the exact same thing.
00:11:08:10 – 00:11:16:12
Jimmy
Yeah, yeah, 100% agree. And using the track record of the more experienced GPS is is probably one of the most pieces.
00:11:16:14 – 00:11:33:00
Rod
In the way a group. Yeah. Fantastic. So what’s what’s one action item that maybe you could deep dive. And we’re going to do the deal next. But before we do that what’s one action item. Maybe you could do a deep dive on that you think will benefit our listeners, just based on what you’ve experienced so far?
00:11:33:02 – 00:12:01:22
Jimmy
Yeah. So one thing that I’ve done, obviously, in addition to the networking piece, has been starting, my own newsletter and just, you know, started with like 50 to 100 contacts that I had kind of in my inner circle emails, up to like, you know, a few hundred people now, but just demonstrating knowledge, experience. And really what I was focusing on was real time, real life.
00:12:01:24 – 00:12:22:16
Jimmy
The deal that we were working on. So I was just updating on some of the progress and, you know, whether it was underwriting or some of the CapEx stuff that we were doing renovating the pool, doing the landscaping, I did one newsletter that was about our rent bumps that we were getting and the kind of valuation that, you know, we were hoping to see.
00:12:22:18 – 00:12:42:18
Jimmy
And, yeah, I think just starting the newsletter. And I was pretty surprised, how many of my contacts, like, reached out to me, like, pretty quickly and were like, hey, like long time no speak. Like, I hope everything is going well. I see that you started, you know, your own company or you guys just bought this property and, pretty cool.
00:12:42:18 – 00:12:48:05
Jimmy
Like, would love to learn more about what you guys are doing. And I mean, that’s that was, that was pretty cool.
00:12:48:07 – 00:13:06:10
Rod
Yeah. So what you did is something that a lot of the Warriors do with that newsletter is they find a way to create reach. And, you know, some people do it through building a Facebook group or a LinkedIn profile or, or YouTube channel, or we’ve got dozens of podcasters in the warrior Group. And, and by the way, I want to brag for a minute.
00:13:06:10 – 00:13:24:12
Rod
We just found out that our warriors now own over 260,000 units that we’ve documented. We know it’s more than that, but I was just blown away. We found that out just a few days ago, which I’m very, very proud of. But here’s the thing that I teach the Warriors about creating reach. And that is two things. One, you have to be consistent, okay?
00:13:24:12 – 00:13:44:05
Rod
Don’t be a once and done thing. And two, you have to add value, okay? And that’s so easy to do. Now with ChatGPT. And you know there’s so many things you can do. You can host something and interview people. And then you’re perceived as an expert because you’re the one asking the questions. You know, and like a podcast or a you know, YouTube channel or, or whatever, doing interviews, meetup groups.
00:13:44:05 – 00:14:03:09
Rod
We’ve got dozens of meetup groups as well. And so I just want to let people know that, you know, you decided to do a newsletter, which is candidly, a little more rare than the other strategies that I’ve seen, although I did just see one from John on, industrial flex space. A warrior just did one on industrial flex space.
00:14:03:09 – 00:14:11:12
Rod
I don’t know if you saw that, but, but anyway, yeah, tip it. A lot of people are doing more video and stuff like that now, but, but anyway, I just wanted to interject that.
00:14:11:16 – 00:14:26:10
Mark
And by the way, you don’t have to be in the real estate world like Jimmy is, because I know people are thinking that we’ve had people on here that have done, a podcast for nurses helping people in the health care industry get into real estate, people in the tech world. So you can come from any industry.
00:14:26:10 – 00:14:27:02
Rod
Athletes.
00:14:27:07 – 00:14:40:02
Mark
Strategy. Yeah, exactly. Whatever you come from. Now, bring us into this first deal here. Jimmy. Where is it? How many units? How did you find it? How did it all come together? Let’s just give it. Give us the lowdown on this first one here.
00:14:40:04 – 00:14:44:18
Jimmy
Yeah. So it’s, 44 units in Saint Petersburg, Florida.
00:14:44:20 – 00:14:56:10
Rod
What? It’s right up the freaking street, man. You didn’t even call me to get in on it. Oh, man, I’m not feeling the love right now. Okay. Keep going.
00:14:56:12 – 00:15:03:00
Jimmy
Right on. Like the southern tip of, Saint Pete in, like, the Marina district. Maximo area.
00:15:03:02 – 00:15:03:12
Rod
Nice.
00:15:03:18 – 00:15:11:04
Jimmy
Across the street from the maximum elementary school. Starbucks, Publix, CVS. All right there. Nice.
00:15:11:10 – 00:15:26:24
Rod
Let me interject. Let me interject something we like to see big national retailers around our properties we don’t want to see I like to say Bob’s Burgers and Sushi. We want to see the Starbucks and the Whole Foods and all that stuff. So anyway, awesome. Keep going.
00:15:27:01 – 00:15:54:22
Jimmy
Yep. And so it was, sourced through another warrior, local to the market. He lives about 20 minutes away from the property. And he had a relationship with one of the brokers there, and, he got the deal locked up with another guy, and he roped in another cop, which was also a warrior. So on this deal, it’s like six of us, all warriors.
00:15:54:24 – 00:15:58:22
Jimmy
We all raised the capital together, and we all took down the deal together.
00:15:58:24 – 00:16:19:24
Rod
And you’re all involved in other things than just raising the capital as well? Which is very important. I mean, you were involved in the due diligence. You did, other things as this thing, and and that’s that’s very, very important. But you cannot just be a capital raise. You have to be actively involved. So I’m sure you know, you’re all in the asset management calls, you work in the CapEx, getting bids, doing all sorts of things like that.
00:16:20:01 – 00:16:40:06
Rod
So talk about the rents, what were the going in rents and what do you project? And and from what I read here, they’re all townhouses. Right. 1984 build, which is fantastic. I love townhouses because nobody’s living above you are below you. I’m really getting FOMO right now on this deal. But anyway, so, so talk about the rents and what you’re anticipating because rents here have gone nuts.
00:16:40:08 – 00:16:56:07
Jimmy
Yeah, yeah. So they, average rents were about 1850 a month throughout the, the complex going in. Also, they were all townhouses, but they also all they have each unit has its own private garage.
00:16:56:09 – 00:16:57:05
Rod
Oh, nice.
00:16:57:05 – 00:17:02:09
Jimmy
Which was like a big bonus. You get like a nice. Oh, yeah. Roughly a bonus for that.
00:17:02:09 – 00:17:19:02
Rod
I want that’s what I want to build. That is exactly what I want to build. I’m telling my son, get off your ass. Get your general contractors licenses moving here. I just found out. And so, I say get your GC license. And that’s exactly what I want to build. Those townhouses, little garages. They’re they’re always in demand.
00:17:19:02 – 00:17:25:04
Rod
Anyway, I digress, so, you know, what do you think the rents are going to be? Did you say that already?
00:17:25:06 – 00:17:37:11
Jimmy
Yeah. So they were, about 1850 when we bought it. We’re going to get them up to about 2100 or so. So nice. Nice. A nice run up on that.
00:17:37:14 – 00:17:43:15
Rod
What are you doing to get that ramp up, buddy? You know, you’re doing any upgrades. Just talk about that briefly.
00:17:43:17 – 00:18:09:03
Jimmy
Yeah. So when we bought the property, out of 44 units, the previous owner had renovated about 19 of them. So you had 25 units to that were in classic condition that we are planning now. We’re upgrading all of them. So we’re going to be renovating them with modern stainless steel appliances, vinyl plank flooring, just new paint and just kind of give it a whole new refresh.
00:18:09:05 – 00:18:32:16
Jimmy
That’s the interior. We’re also we just finished resurfacing the pool area with the whole new nice blue liner, all new pool furniture. Just cleaned up all the landscaping, new signage just went in. We’re replacing one of the roofs. It’s more of a CapEx item, but making a lot of a lot of improvements, to the whole complex.
00:18:32:18 – 00:18:35:06
Rod
Nice. Go ahead.
00:18:35:08 – 00:18:54:05
Mark
I have to ask about Florida. I’m a Florida investor myself as well. And I know, I’m sure you know, Florida some pockets of it has been very tough with insurance and inventory and everything like that. Now, I know you’re only two months into this deal, but even two months in, you probably have a decent pulse on your property and everything that’s going on.
00:18:54:05 – 00:19:08:19
Mark
How are you feeling about Florida in general, Saint Petersburg, this deal in terms of, you know, the vacancy, the rents, how has and just the, I guess, your long term outlook on Florida as well as well as the short term.
00:19:08:21 – 00:19:33:12
Jimmy
Yeah, I’m, I’m a huge fan of Florida. My favorite markets are, definitely Tampa and Orlando. I think, just the population growth. The overall job growth, I think is tremendous. A lot of the, migration south, whether it’s the baby boomers flocking south as, as they get older and the retirees. But, Florida is on fire.
00:19:33:12 – 00:19:57:05
Jimmy
I think a lot of the markets there were somewhat overbuilt over the last few years, and it’s been very competitive. And a lot of the years that I’ve been seeing have not made a ton of sense. So it’s a little bit harder. It’s a little bit more competitive to find a deal. But I think if you find a deal that pencils and it’s cash flowing from day one, I think, I think there’s nothing but upside.
00:19:57:07 – 00:20:18:09
Rod
No brainer, no brainer. I, I say exactly the same thing. If you can make a deal, make work with it, with today’s insurance, you’re going to you’re going to do just fantastic in Florida. Now I want to circle back to something you talked about. We said classic units. So guys when you buy a complex very often the owner will renovate some of the units to prove price increasing.
00:20:18:09 – 00:20:35:22
Rod
And I’m assuming that’s what happened here. And so that they can show hey yeah this is what you can get if you do these upgrades. And so the you said he done 19 of them. And the units that haven’t been upgraded are called classic. Just so you know okay. I just wanted to elaborate on that. So as you guys can hear, the Warrior Network is just extraordinary.
00:20:35:22 – 00:20:56:12
Rod
And if you’re maybe considering getting some guidance, you know, so that you can experience the life you want this year rather than later. You know, text the word crush to seven, two three, 4 or 5. That’s how you apply to the warrior program. Again, text the word crush to seven, two, three, four, five and to see if we can help you, you know, move forward with with you know, the life that you want.
00:20:56:12 – 00:21:06:03
Rod
And, as we have for hundreds of people. So, yeah, that’s that’s how you apply text crush to seven, two, three, 4 or 5.
00:21:06:05 – 00:21:30:01
Mark
Now, Jimmy, on this deal, obviously raising capital was one of the things that you did. Obviously, right now the stock market is up and down. Cryptos going crazy. Have have you noticed certain trends with your investors on this deal of, you know, maybe why they’re getting into multifamily, why they came to you or certain things that you’ve noticed so so people can hear maybe what are the right people to talk to?
00:21:30:03 – 00:21:54:04
Jimmy
Yeah. I think one of the trends that I was noticing and, and going through the process of raising capital for the first time and, and, and offering this opportunity, a lot of the investors that I was, that I was speaking to, they were very focused on the immediate, short term returns. So they were very focused on, you know, if I invest X amount of money, what’s my return looking like?
00:21:54:04 – 00:22:33:21
Jimmy
Year one. And year two and like, what is what is the next year’s return look like? And, the other thing I noticed was at first, I think that I was, not portraying the, the, the process of a value add multifamily deal in the simplest, just clearest way. So I kind of found the way that was helpful for me was to kind of lay out the projected returns and here’s, you know, the cash flow examples of, example return and, you know, the exit after five years and then kind of backing into how the business plan supports those returns.
00:22:33:23 – 00:22:35:05
Rod
Fantastic.
00:22:35:07 – 00:22:44:14
Mark
People focusing on the first year was that it was that it was that more of a challenge that you’re bringing up of people wanting to not thinking long term? Or what did you mean when you said that?
00:22:44:16 – 00:23:05:02
Jimmy
Yeah, I think, just like understanding, like we have a business plan to go in and take a property over time are going to increase the rents and therefore increase the value. And that’s kind of like the down the road upside, if you will. But people that I was were speaking to and like they were very focused on, you know like what’s my preferred return.
00:23:05:02 – 00:23:07:06
Jimmy
What’s the year one cash on cash.
00:23:07:08 – 00:23:35:09
Rod
Yeah. See, see what what a lot of them don’t realize is that when you’re doing the value add process, you’re going to have vacancies, okay. You’re going to have empty units. So the the cash on cash return the first couple of years very often is lower than the than the remaining years. And it balances out to get them the preferred return that whatever you’ve promised and you know by the way the preferred return guys just you understand is when you bring in investors, you’ll very often give them what’s called a preferred return.
00:23:35:09 – 00:23:52:02
Rod
It can be anywhere from 5 to 8%, and that comes off the top. So they get that first before and you get anything okay. And then after that is called the promote. And that’s the split. The split can be anywhere from 5050 to 8020. Yeah. What’s the split on your deal, buddy? What’s the promotion?
00:23:52:04 – 00:23:55:13
Jimmy
We did a 6% preferred return with the 7030.
00:23:55:15 – 00:24:02:07
Rod
Yeah, that’s very common. That’s a sweet deal for the investors. A good deal for you. And you got an acquisition fee, I’m sure. Yes.
00:24:02:09 – 00:24:03:04
Jimmy
Yep.
00:24:03:06 – 00:24:18:10
Rod
Yeah. Yeah, that’s what you do. And and so that’s how it works, guys. This is they get that preferred return. Everything above that is split and whatever you know whatever you’ve agreed to or whatever makes sense for the deal. And and last year we did was was very similar 7030
00:24:18:12 – 00:24:35:12
Mark
Also net worth as well. Right. Is that you know, what they may not even think about or realize is that after 12 months or 24 months, let’s call it is everybody’s because the NOI goes up, everybody’s net worth skyrockets, but they don’t see that right. In a typical stock, they may see, okay, the value goes up so they can look at the number.
00:24:35:12 – 00:24:51:18
Mark
You can’t you can’t see the number of net worth on a multifamily property until you appraise it. But that’s one thing. Also that investors don’t realize is that even though the cash flow may be up, down, left, right, whatever is that their net worth is going up on paper because the value of the property has increased instantly because of that NOI.
00:24:51:21 – 00:24:53:21
Mark
So also something to think about is because.
00:24:53:21 – 00:25:12:11
Rod
The increase in the NOI. Yeah, correct. Any any increase in anywhere in the NOI is an exponential increase in the value. And so, you know, I was you know, and that’s, that’s, that’s the whole name of the game is, is in this business, you’re able to force appreciation through your efforts, through the work that you do. And that’s what you did on this 44 unit.
00:25:12:13 – 00:25:32:21
Rod
So what’s, what’s a hot topic in multifamily that you’re seeing people talk about other than the tariffs and, and, and that, I just saw Trump trash Greenspan today over, not lowering the interest rates. That was literally today. But, you know, what’s a hot topic? That that, you can chat about? Jimmy.
00:25:32:23 – 00:25:59:08
Jimmy
Yeah. Something that we kind of touched on earlier, especially in these markets in Florida. But a lot of the Sunbelt markets in Texas, there’s a topic, you know, that all of these, these best markets are overbuilt. And I think in some cases, it looks like it’s probably accurate on like the Austin’s and maybe like, oh, yeah, the Nashville’s and like some of these super high vacancy markets, I would agree.
00:25:59:08 – 00:26:29:05
Jimmy
And I think maybe it’ll take another year or two to kind of balance out. But overall I think that, these markets aren’t slowing down anytime soon. The population growth is there. The job growth is there. They’re expanding rapidly. And, I think, you know, kind of like what we were discussing earlier, rod, is if you can get a deal in one of these hot markets that is cash flowing on day one, and it looks like pretty good returns, there’s only, you know, phenomenal upside.
00:26:29:07 – 00:26:44:13
Rod
It’s only going to go up. Yeah I agree completely. And you know I actually have an asset in Nashville that’s struggling a little bit right now because of all the, overbuilding that was done there. But but I but I’m bullish on Nashville because I know it’s going to kick ass in the next couple years. Same with San Antonio, which is right down the street from Austin.
00:26:44:19 – 00:27:03:24
Rod
You know, we’ve got assets there. And one of those is is, you know, struggling a little bit. But I’m bullish on San Antonio I love that market. And I know it’s going to it’s going to you know really do well moving forward. But there’s been a lot of overbuilding. There’s also, you know, a lot of, a lot of deals are struggling right now because of the adjustable rate debt.
00:27:03:24 – 00:27:20:11
Rod
And, you know, we’ve got a lot of, a lot of, debt coming due and a lot of opportunity coming. So if there was ever a time to get in this business, whoever, you know, those of you listening, now is the frickin time because the deals are coming. So if you’re not coming to my bootcamp, get your butt to my bootcamp.
00:27:20:11 – 00:27:32:02
Rod
And and if you want to, you know, move quicker than text crush to 723, four five and talk to us about the warrior program because it is the best time I think I’m going to see in my lifetime to get into commercial multifamily.
00:27:32:02 – 00:27:52:15
Mark
So, and we know this, by the way, it’s not a guess because you can hold the information anywhere on on building permits. You can see that after 2023, they fell off of a cliff. And those typically take two years to come online. And so 2026, we already know inventory is going to have a steep decline pretty much across the United States.
00:27:52:15 – 00:27:56:07
Mark
And I think rents are going to shoot through the roof everywhere, including all those markets.
00:27:56:11 – 00:28:17:02
Rod
So that’s the thing. Inflation increases everything, including rents. Now you buy a property, now your debt stays the same. But too much inflation is going to bring your rents up. It just it’s a fact of life. And you know, and so much currency was created in this last administration, 80% of the current currency in circulation was created in the last four years.
00:28:17:04 – 00:28:29:16
Rod
That’s why we have inflation. It’s not going away anytime soon. And if Trump is, is successful in lowering the interest rates, that’s going to continue. But rents will go up. So, you know, there you go.
00:28:29:18 – 00:28:37:18
Mark
So, Jimmy, where people that like your story want to reach out, chat here about, you know, just just anything where, where where can they reach you?
00:28:37:20 – 00:28:51:13
Jimmy
Yeah. Easiest way is probably, LinkedIn or Instagram. Also, my emails. Jdi, diorio cap.com, and, they can all reach out, you know, that were perfect.
00:28:51:14 – 00:28:56:17
Mark
By the way, real quick on your social media is is it Anthony Diorio or is it Jimmy so they can find you?
00:28:56:19 – 00:29:04:00
Jimmy
It’s it’s it’s going to be all Jimmy. Probably, but, Okay. Anthony. And it’s Jimmy on some.
00:29:04:02 – 00:29:17:20
Rod
Okay. Super. Well, thanks, brother. Was good to see you. I’m sure we’ll see you here shortly at the warrior event in May. The warrior only event that’s coming up and, I appreciate you coming on. And some value, my friend.
00:29:17:22 – 00:29:21:06
Jimmy
Yeah. Thank you guys. See you in, Sarasota. And thank you for having me.
