Juan is the principal, founder, and managing partner of Blue Path Holdings. With a Bachelor’s degree in Information Systems Security and over 20 years of experience, he currently works as an information security engineer for a Fortune 100 corporation. Since 2012, Juan has owned and operated multiple single-unit properties in South Florida and has experience building homes in North Carolina and Florida. He has lived in Colombia, CA, NC, and FL, and is actively involved in charitable work supporting children, cancer patients, and animals. Recently, Juan has shifted his real estate focus from single-family rentals to commercial multifamily apartment buildings and mobile home parks.
Here’s some of the topics we covered:
- From Tech to Multifamily Investing 00:00
- Diving Deeper into Multifamily Investing and Deal Discovery 5:18
- Inside the Savannah Deal 11:27
- Navigating Loan Assumption and Owner Financing 13:43
- Tips for New Investors 18:44
- Overcoming Analysis Paralysis 21:47
- Current Market Trends 25:06
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:
00:00:36:24 – 00:00:54:20
Rod
Welcome back to Multifamily Rockstars. And so as you guys know, these are the episodes where we dive deep into guest deals and really give you some practical and actionable items and strategies for getting started and doing your first deal, especially if you’re brand new to multifamily. And I’ve got my co-host, Mark Nagy with me here as usual. What’s up Mark.
00:00:54:20 – 00:01:00:17
Mark
What’s going on? Rod happy to be here for another one. And, another familiar face here with, our guest one.
00:01:00:18 – 00:01:14:19
Rod
Yeah. So we’ve got one cruise today, and, the name of his company is Blue Path Holdings, and, he comes from information Security Systems. yeah, I guess that’s online stuff. We’ll have him tell us about it. welcome to the show, brother.
00:01:14:19 – 00:01:32:19
Juan
Hey. Thank you, thank you. for having me here. Hey, Mark. He brought everybody listening. Very excited to be here. this actually was one of my goals to to at some point in my life be, you hear in this podcast with you guys. So, excited about it.
00:01:32:21 – 00:01:49:06
Rod
good for you. That’s awesome buddy, I love it. Well, listen, why don’t you tell us your story? Because I, I could have given you a little more detail here, but I think you do a much better job than I would. So why don’t you tell us who you are, where you came from, why real estate? Just kind of, you know, give us an overview.
00:01:49:08 – 00:02:16:21
Juan
Of course. Yeah. So I’m an immigrant, from South America. I emigrated to the US in 2002, and I just came here, with my. Basically, my parents brought me here. I had the American dream to work, get ahead of myself and do better than my previous generations. Right. so I just went into school, did, information security, and I’m an engineer, by trade.
00:02:17:01 – 00:02:42:02
Juan
So I have that analytical mindset, and, I like to get into the details of things, and, and to tell us about 2008 through that crash, well, years before we have purchased or home with my wife. And we were excited about it. And then the crash hit us. We lost the property, to a foreclosure. And that’s when I said, this is not going to happen to me again.
00:02:42:04 – 00:03:06:05
Juan
I went deep into studying real estate and I started, I thought I was going to get into single family, right? And rentals. So I acquired one and then another one. And I realized, the overhead was a lot, and I was just managing and, and I didn’t have time for my W-2. So that’s when I started pivoting to, I should be able to do this bigger so we can the management fees and all that.
00:03:06:07 – 00:03:25:13
Juan
Got into multifamily, started listening to your podcast, Ron. and from there I joined the warrior groups, which was a huge help. a leap, that where I could and was able to get into my first deals. And, that’s how I ended up in multifamily.
00:03:25:16 – 00:03:41:02
Rod
Nice. So, I think I know the answer to this, but, you know, we like to talk about superpowers, on this show. what what would you say is your superpower as it relates to this business? Because, you know, a lot of different hats you can wear in this business.
00:03:41:04 – 00:04:06:12
Juan
Yeah, actually, I like underwriting, I’ve been since I joined the war. That’s what I thought I was going to be focusing on. And, I started underwriting in the last two years, have on the road on I’ve been underwriting hundreds of deals. but I will tell you first, at least one of the deals. I also joined the team helping them, raise some capital.
00:04:06:12 – 00:04:26:02
Juan
I it was my first time. I didn’t know how to do it, and I actually enjoyed it. I enjoyed, doing the presentations, trying to get people to get to, to, podcasts or meetings where we’re going to present, and talking to the family and trying to teach people and explaining people how these works so they can make money and all those things.
00:04:26:02 – 00:04:32:06
Juan
So, okay, I enjoyed that. I don’t I’m not saying I’m good at it, but, yeah.
00:04:32:08 – 00:04:35:20
Rod
Okay. Well, you’re able to raise a little bit. Were you able to raise a little bit of money?
00:04:35:22 – 00:04:37:12
Juan
Yeah. Yeah, yeah. Okay.
00:04:37:14 – 00:04:56:19
Rod
All right. Well then then, you know, don’t sell yourself short, brother. That’s fantastic. Some people can’t raise a dime, you know? So. So now I know you’re in some deals, and, I believe the first deal you did was as a limited partner. Can you speak to why you did that and the benefits of investing? I think with another I think with a couple of other warriors.
00:04:56:19 – 00:05:08:03
Rod
And in fact, I know, I know with a couple of the Warriors because I love the I love one of them, that that family is a sweetheart, your seniors family. But, talk about why. Talk about why and and what you got out of it.
00:05:08:06 – 00:05:26:10
Juan
So I was in the warrior program, and I my my goal was to get into IGP positions and start doing up. But, I was hesitant, I guess I, I’ve always suffered from, not believing I could do it or, imposter.
00:05:26:15 – 00:05:30:19
Rod
Imposter analysis. Analysis paralysis. Yeah, all of the above.
00:05:30:19 – 00:05:54:15
Juan
So I wanted to get a deep understanding of how these things are done. So, thanks to the warrior group, I. I got out with just any I would, man, and other warriors, great people. And, they told me. Okay, you can be an, an LP, and we’re going to be doing it occasional monthly, podcast or meetings with other warriors.
00:05:54:15 – 00:05:57:16
Juan
I want to be help other people that wants to learn more.
00:05:57:18 – 00:06:00:13
Rod
yeah. Not podcast. It was more webinars, right? She was doing a.
00:06:00:15 – 00:06:23:14
Juan
Webinar for for the investors. And they go deep into this is what we’re doing and this is how we run things. This is how you asset manage. This is, the property management. This is why we’re renting rents. This is why we’re fixing this unit or not that one of those details. So once I have that information, it gave me the, the understanding, I realized, oh, well, it’s not that complicated, really.
00:06:23:14 – 00:06:35:18
Juan
It’s you have to do it and be analytic, analytical about it and, execute your plan. So once I was doing that, it was easier to get into a Jeep after that.
00:06:35:20 – 00:06:42:22
Rod
Yeah. So what did you learn? You learned how to asset management. What? What specifically got you over the edge?
00:06:42:24 – 00:07:02:13
Juan
the asset management part was like, and also we’re doing a little bit of probably even property management. So we’re going through okay. We have this section eight units and this is how we’re renting rents. And this is the actual property manager. And we’re using one of the tenants that is helping us with the property management and stuff like that.
00:07:02:13 – 00:07:25:04
Juan
So I realize it’s not that different that one which I was already doing with single families, is just scale and probably easier because you have a manager doing doesn’t, you just give them orders and stuff like that. You don’t have to do it yourself so that that got me over the hump. And as well the fear of saying, okay, I’m doing million dollar deals, right?
00:07:25:06 – 00:07:32:16
Juan
when you see it on paper, you’re like, well, this is a $5 million deal. How are we going to do this? But, it’s just numbers.
00:07:32:19 – 00:07:50:21
Mark
Now, how did you go about making these connections? You mentioned, you know, you’re in the tech industry. Your your skill set might have been numbers underwriting analytical. So how did you go about even building these connections to get into these first couple of deals and gain that confidence? What are some of that? Because I get that question all the time, right?
00:07:50:22 – 00:07:55:18
Mark
I say I’m in it. I’m an engineer, I’m introverted. How do I be successful in this business?
00:07:55:18 – 00:08:17:16
Juan
In the warrior group, it’s kind of easy to make those connections because we have a Facebook group. So it’s you’re behind the screen, you can post something and people are going to reply to you and contact you. And then the conversation starts and it develops easier. so that’s how that’s how I did a lot of connections. Or did you go to the, bootcamps?
00:08:17:18 – 00:08:41:22
Juan
once you’re white, you can go to a bootcamp and go face to face with people. the people are over there. Everybody’s in the same mindset. So that helps a lot to start conversations and from there, it just it’s it’s easy. Once once I get into meeting people, the, the shyness goes away and I get more, relaxed, around people.
00:08:42:00 – 00:08:44:10
Juan
So that’s it. It’s easier that way.
00:08:44:13 – 00:08:59:15
Rod
So one, I think you were talking about the warrior only events, which we do just for our warriors, where we get several hundred of our warriors together. and we’ve actually got, you know, network like crazy. That’s the biggest part of that, of that event. And then we do deep dives on underwriting and stuff like that as well.
00:08:59:15 – 00:09:19:11
Rod
But the next one’s coming up in September. But you brought up the boot camp, and this will be the first time I’ve announced it. We’ve got a live three day boot camp coming up, actually, in Orlando, November 8th, ninth and 10th. Okay. And, you know, it’ll be three days of training. probably well over a thousand people will be there if you want to check it out.
00:09:19:11 – 00:09:39:15
Rod
It’s Rod in orlando.com. It’s super early bird pricing. So Rod in orlando.com. So all right so you did that first deal as an LP. That was a 24 unit for 5.1 million in Miami. And again I know the people you did. Why don’t you talk about that deal a little bit. Do you have the numbers? Do you know, you mentioned.
00:09:39:17 – 00:10:13:18
Juan
Yeah, it was a 5.1 million deal with 24 units. it was, seller finance. That’s what made the whole suite. So we got, I think it was close to 6% interest only rate for five years. And, yeah, that’s what made the deal work. Basically, we’re going through, the restructuring of the, apartment units because the previous owner had all the units listed listed as one and one, but half of them were, two ones.
00:10:13:20 – 00:10:36:22
Juan
So. And most of the units are section eight, which is, housing assistance from the government. Right. So once we acquired the property, we just went back to, the section eight office and told me these units are two one, so you should be paying more rent for them. So they jacked up the prices and made it so they infusion at least they’re trying to hit close to market rents with section eight.
00:10:36:24 – 00:10:50:14
Juan
So we didn’t even have to fix all the units. we were getting above our, projected rates. We, so far we had only updated two units, so. Well, the deal is working really good.
00:10:50:16 – 00:11:00:15
Rod
Oh. That’s exciting. and I see it looks like you think you’ve actually will have created over $3 million in additional value just by these rent increases. Is that accurate?
00:11:00:17 – 00:11:03:12
Juan
that’s on the Savannah deal.
00:11:03:14 – 00:11:08:22
Rod
Oh, that’s Savannah I was looking through, oh, 1.8 million. 1.8 million. Okay, okay.
00:11:08:24 – 00:11:09:05
Juan
Yeah.
00:11:09:06 – 00:11:25:11
Rod
It’s not better than a sharp stick in the eye, you know, that’s, that’s almost a 20% increase in value if you paid 5 million. So that’s freaking awesome. All right, let’s talk about the next one that you’re a general partner in. you know, soup to nuts. How did you find the. How did you get involved in this Savannah deal?
00:11:25:11 – 00:11:28:24
Rod
Tell us about it, what you paid for it, your involvement, all of it.
00:11:29:05 – 00:11:46:12
Juan
Okay, so I’ve been underwriting a lot of deals, and. Right, a lot of warriors and other people come to me with deals that they don’t want to underwrite, or they’re a little bit complicated to underwrite. They give it to me or, someone that they’re trying to get into a deal, and they want to make sure we run the numbers.
00:11:46:12 – 00:12:04:20
Juan
So that’s how this deal came to me. one of my worker friends brought it to me and said, hey, we’re getting invited to work on this deal. can you just do your underwriting and see how you land? And I landed really close to the numbers that, the the lead sponsors, did. So we were like, okay, we can work with them.
00:12:04:20 – 00:12:33:10
Juan
We can do some, due diligence with them and have helped raise capital and go and walk the, the apartments on the property. So that’s what we did. So, we, I contacted all my friends and family, never raised a dime. And, we started doing some presentations with the people that was, interested. some of the worry on new buyers were also coming to see, the, the presentations that we did.
00:12:33:10 – 00:12:51:02
Juan
And that’s how we ended up raising enough capital that we, we and plus the, all the due diligence that we did, we the properties and all that, we were able to make it to the Jeep, side of the deal. And I also invested. It’s it’s a good deal. I also invested my own capital on it.
00:12:51:02 – 00:13:15:22
Juan
So I’m I’m on both sides helping. This was 176 d, unit in Savannah. I love Savannah, so, that I also invested there because I used to drive from Florida to North Carolina. I always stopped in Savannah, and, Yeah, I loved it. So we went when I had. It’s a 1984 build. we’re, we’re assume to the, the depth.
00:13:15:22 – 00:13:20:24
Juan
So it’s a 4.6%, interest only until 2032.
00:13:21:01 – 00:13:33:07
Rod
So fantastic debt, fantastic debt, fantastic vintage. 84 vintage is fine. You’re not going to have many problems with that. I guess the price was 27.5 million. Is that correct?
00:13:33:12 – 00:13:33:19
Juan
Yeah.
00:13:33:19 – 00:13:36:12
Rod
Yeah, I went into a.
00:13:36:12 – 00:13:55:20
Mark
Couple of things real quick before we moved on. You mentioned assumed loan and you mentioned owner finance on your previous deal. Right? I would say those are two very, very common ways that people are making deals work right now with high interest rates. Obviously, the third way, in my opinion, that’s popular, is just buying a deal that makes sense at today’s interest rates.
00:13:56:00 – 00:14:13:08
Mark
But I’m curious, because you mentioned these deals were both off market, how did you get that sort of creative financing? Was it pitched to you from the owner that, hey, I’d like to sell or finance, I’d like to assign the loan? Or was that something you guys got creative with to make the deal work? How did that process work?
00:14:13:12 – 00:14:36:18
Juan
Yeah, the deal was the loan assumption was, brought up by the seller and the broker that was trying to broker inches the deal because it’s that’s that was the selling point for these property with such a good depth, when the interest rates are way higher. So that that would provide them, you put it into the, your underwriting and then you do the, the projections and all that.
00:14:36:18 – 00:14:59:11
Juan
And you would work also the rents were below market. So we were going to do that and the, the apartments were in a different state of, updates. So we were able to manage the budgets. of the apartments are just going to need about five K or less in to update it, and some others are more.
00:14:59:13 – 00:15:14:01
Juan
But all that once, if you’re able to put all those numbers and go on writing, they ended up working. Yeah. basically, the lead sponsor had a really good relationship with the broker. So they, they were able to get those off market deals. Yeah.
00:15:14:03 – 00:15:19:10
Mark
Now how about the owner finance. Was that also pitch does it that way. Or did you guys suggest that to.
00:15:19:11 – 00:15:24:13
Rod
Yeah he was he was an LP. He was an LP in that. So he was an LP in that one. So you might.
00:15:24:15 – 00:15:29:22
Juan
Have a little bit of insight on that. On that one. They, they pitched it to the owner and
00:15:29:24 – 00:15:31:22
Rod
Directly, directly to the owner.
00:15:31:24 – 00:15:32:21
Juan
Yeah, yeah.
00:15:32:23 – 00:15:37:17
Rod
Oh that’s fantastic. I will tell you. Do you know if the owner was a retiree?
00:15:37:19 – 00:15:42:03
Juan
I don’t know if there was a retiree, but they they owned the property for like 20 years.
00:15:42:05 – 00:16:04:03
Rod
Oh, they definitely a retiree. And and that’s, that’s one of the things I teach in my bootcamps is, you know, if you deal with somebody that’s owned 20 years, they’re, they’re, they’re older, they’re retiree. All their all of their tax benefits are gone. They’re fully appreciate it. So they have no write offs anymore. And so when you when you encounter somebody like that candidly you’re doing them a disservice if you don’t have a conversation about seller financing.
00:16:04:05 – 00:16:26:10
Rod
So let me tell you what that let me describe what that conversation should look like. It’s like, oh, Mr.. Mrs. Smith, you know, we’re buying your property for, you know, $1 million. And because of Uncle Sam, you’re only going to end up with, what, 650, 700,000, after you pay taxes. now, you know, and you’re going to put that money in the bank because most retirees are not going to put their money into another high risk investment.
00:16:26:10 – 00:16:39:05
Rod
They want to put it in the bank and just have a return in the bank. It, you know, whatever it is now, three and a half, 4% interest, your payment will be this. Once you put that 650, 700,000 in the bank, here’s what your payment will be. And you want to work it out for him. That’s super important.
00:16:39:07 – 00:16:56:22
Rod
But then you say, listen, if you work with me, you know, I’ll give you enough of a down payment. So you know I’m serious and I’ll pay you, you know, whatever it is and whatever numbers work, I’ll pay you six, seven, eight, nine, 10% interest. Who cares if the numbers work? And you’re only going to pay taxes on the amount that you receive from me every year.
00:16:57:00 – 00:17:14:15
Rod
So your payment for me is at least double what you’re going to get from the bank. And it usually is double or triple, frankly. And to give you some perspective on interest rates, you know, when I started this business rates were 18%. And I remember getting thrilled when they hit seven and 8%. Okay. So just to give you some contractions, some perspective, it’s all about the numbers.
00:17:14:15 – 00:17:32:16
Rod
If the numbers can make sense, I bought properties at 18%. That made sense because we were renting them for 2% of what we paid for them. So you know, keep in mind it’s all perspective. and but seller financing is a fantastic way to do a deal. and again, we go into that in a lot more detail at the bootcamps, but,
00:17:32:18 – 00:17:51:15
Mark
I want to have a quick tip on that real quick, because you mentioned the high interest. I know other warriors and some other people that have closed deals at very low interest rates and sometimes 0% interest rates. for seller financing. And the way that you pitch it is if you’re going to refinance out on the deal and let’s say 2 or 3 years, why don’t you reposition and rehab it?
00:17:51:15 – 00:18:12:19
Mark
Whatever you say. Hey, I can give you a higher price if we go at a lower interest rate because I’m going to refinance you out in 2 or 3 years anyways. Would you rather get a higher price and get refinance out and not collect the interest? Or I could give you a high interest and a lower price, but I’m going to refinance you out in three years anyways, and you’re not going to collect that interest regardless.
00:18:12:24 – 00:18:26:03
Mark
And most sellers think about that big oh they’re right. They’re going to refinance me out. So why does it matter if I have a high interest rate and I know other warriors that have gotten 0% interest from seller financing by using that direct strategy?
00:18:26:05 – 00:18:45:24
Rod
me as well. And that is a fantastic strategy. And thank you, thank you, thank you for bringing that up, Marcus. I neglected to mention that. And that’s a fantastic negotiation strategy. That’s, awesome. Thank you for bringing that up. So, what suggestions would you have for someone starting out in this business? You know, maybe they bought a house.
00:18:45:24 – 00:19:02:06
Rod
They know they want to do multifamily. You know, maybe they’re like you, you know, analytical. Could it be, you know, caught up in some analysis paralysis, and I love you. If that’s you, don’t be offended. Yeah. Some of the I mean, you can tell some of our, some of our best warriors, some of my best students are analytical.
00:19:02:08 – 00:19:10:15
Rod
But what what would you say to them? that, you know, they know they need to do something. give some, give some, give some advice.
00:19:10:17 – 00:19:34:20
Juan
I would say, get mentorship for me. the analysis paralysis, it’s big. yeah. And it’s easier when you see somebody else do it. Or they can give you a little bit of hand-holding, or you go and you see other people and you’re in the environment, in the crowd of other people that are doing it, and you get excited.
00:19:34:22 – 00:19:59:01
Juan
So, that’s that’s how I did it. I started first going to, different, meetups for real estate, multifamily. Then there were bootcamps or whatever it was, and I joined the work program, and it kind of you start building momentum. yeah. The knowledge is there. You’re going to start absorbing the knowledge. If you’re analytical, you’re going to go into it anyway, maybe sometimes too much.
00:19:59:01 – 00:20:02:10
Juan
That’s what I mean. Yeah. I just going to too much and then that.
00:20:02:11 – 00:20:09:13
Rod
So as long as, as long as you don’t stop, as long as you keep going and ultimately take action. You know, I tell my truth.
00:20:09:14 – 00:20:22:19
Juan
I say when you’re around other people that are not as analytical, they will. They will help you, give you that past the you. You can jump in the water. Yeah, yeah. It was just me. I was still, analyzing, this.
00:20:22:21 – 00:20:37:04
Rod
Still be buried in a spreadsheet. You’d still be buried in a spreadsheet, right? Yeah. You know, and and and and I tell you, if you’re analytical and you’re listening, let me give you an analogy. And that is, you can drive all the way across the United States at night with your headlights only seeing 50ft in front of you.
00:20:37:10 – 00:20:52:20
Rod
And you know, you’ll make it across, you’ll make it from Boston to LA. But, you know, you may have some obstacles, but you’ll make it because other people have made it before you. It’s the same way with this business. So you just got to take that first step and keep moving. That’s the key to this now. And and I love it.
00:20:52:20 – 00:21:10:16
Rod
Start start with your local meetup groups. If you haven’t done that already, meet meet people that are doing this and you know and then you know, take a look at our warrior program if you like. And if you’re interested in checking that out, text the word crush to 72345. And has it. Has the warrior program been a homerun for you?
00:21:10:16 – 00:21:37:12
Juan
You think? Yeah, yeah, a lot, a lot. that’s where most, since I joined the warrior program. Everything I’ve done is with warriors. before that, I was meeting people here and there. But sometimes it’s hard to trust the word program. Once you meet someone in the warrior program, I trust them more. and, I would say also the the analysis paralysis for me, at least it at least it hasn’t gone away is just.
00:21:37:13 – 00:22:00:10
Juan
And I’m, I’m analyzing something bigger. Now before I was analyzing. Should I do it now I’m analyzing. Should I put on over these 246 units? Should I invest or should I, you know, so the analysis paralysis might not. We never go away. But you’re analyzing bigger things and you’re moving to bigger things and and you’re reaching goals. And now your goals are bigger.
00:22:00:12 – 00:22:19:18
Rod
Yeah, I love it I love it. So I know that, we had asked you to answer a question before we started doing this, and that was, you know, at your current pace, what would it take? How many years would it take for you to reach financial freedom? And your definition of that was 150,000 a year, which is like a, you know, takes out a salary or whatever.
00:22:19:20 – 00:22:28:20
Rod
Talk about how you came up with what you came up with investing as an LP and or a GP. Can I know you did a spreadsheet on this. Can you speak to it?
00:22:28:22 – 00:22:51:10
Juan
Yeah. So I wanted to know how long would it take me if I didn’t have enough time or whatever, if I can just do it like so, I did, I got a bunch of different deals that I have seen, real deals, and I saw the numbers. I put them in a spreadsheet, and it turned out about in about five years, I would be able to replace 150 K income.
00:22:51:12 – 00:22:53:10
Rod
and and investing. Investing.
00:22:53:10 – 00:23:15:00
Juan
How much investing after so 50 K it my my the idea was a third. We’re going to go into taxes if you have a W-2. if you can avoid paying taxes even better. then 50 K are going to go into my living expenses and 50 K are going to go into, investments, right. And I did 150 K because my goal is to retire my wife.
00:23:15:03 – 00:23:34:18
Juan
That’s what I want to do. so that’s 150 K, and then in five years I was, I was I’m going to be able to do it. But now I if I want to do it faster I want to do GP’s because then at some point, once the GP distributions to start hitting, then my income is going to go up and I will going to be able to invest more.
00:23:34:18 – 00:23:37:01
Juan
So it’s going to accelerate the process.
00:23:37:03 – 00:23:59:09
Rod
Yeah. And and you’re able to get parts of acquisition fees which are not insignificant. You know, we charge 3 to 5% typically is an acquisition fee to give you an idea and 5% on a $3 million deal. Do the math. 150 grand. It’s it’s, you know, a $3 million deal is a very small deal. So, you know, I know that doesn’t sound small to you listening, but trust me, in our space, it is so.
00:23:59:13 – 00:24:00:10
Rod
Yeah. Yeah.
00:24:00:12 – 00:24:12:07
Juan
And I’m trying to get into my, it’s points, my own deals and into the asset management part of things. So I can also be involved in the asset management fee and yeah, I actually enjoy doing that as well.
00:24:12:09 – 00:24:21:10
Rod
Oh that’s good, that’s good. Yeah. You charge an asset management fee to manage the property management companies guys. And and it can be 2 to 3% of the gross income on the property. It’s not insignificant either.
00:24:21:12 – 00:24:32:05
Juan
Yeah. I’ve been thinking because I’ve been I’ve been approached to do like the financial analysis of the asset management side of things. So I think I can I can get myself into, into those teams.
00:24:32:07 – 00:24:55:14
Mark
So let’s talk about the future of multifamily here for a quick second. I know, right. I hear this on your socials all the time. You know, shit’s about to hit the fan, etc. and one, I know you talked about this briefly as well the the quote unquote looming crash where everybody’s been waiting for. Right. Which in reality, over the past two years, multifamily already has come down anywhere from 2025, sometimes 30%, depending on whatever market you’re in.
00:24:55:16 – 00:25:06:15
Mark
What are you noticing in terms of changes that that’s been happening over the past six, 12 months and moving forward? In terms of broker sellers, what are the trends that you’ve been seeing in multifamily in general?
00:25:06:17 – 00:25:32:08
Juan
Yeah, I’ll say a year ago I was under underwrite deals and my offer price was like below 30% of, price guidance. We’re asking prices, right? Right now I’m getting way closer. sellers are realizing if they want to sell, they’re going to have to lower their expectations. Same brokers, they’re realizing they’re not selling the properties because they’re trying to get too much for it.
00:25:32:10 – 00:25:52:18
Juan
I mean, interest rates will drive the prices, basically, if you if you’re not, you’re not making money, you won’t buy a property. so that’s been I’ve been waiting and I see it getting closer and closer and closer where I’ve seen deals that they used to trade for 100 K and now they’re asking is 60 K per door.
00:25:52:20 – 00:26:03:09
Rod
So we just closed on a deal. Yeah, we just closed on a deal at a 40% discount. Literally. in San Antonio. Yeah, yeah. And you’re underwriting what? I’m sorry I interrupted you. Please continue.
00:26:03:09 – 00:26:15:16
Juan
That. But, in Texas, I’ve seen a lot of Texas deals going down in prices. And, yeah, they’re asking 60 keep or two years ago they were trading for 100 K.
00:26:15:18 – 00:26:20:02
Rod
Yeah. Is that was that the is that the Houston deal they got came across my desk.
00:26:20:04 – 00:26:21:06
Juan
my my b.
00:26:21:08 – 00:26:29:21
Rod
And my B haha haha yeah I bet it is. That means yes, that means yes. we’ll probably be competing against each other on. I don’t know if I’m going to be interested in that one. We’ll see.
00:26:29:23 – 00:26:47:13
Mark
Funny stories on that. over the, over the past month or so, I don’t know, what have you been noticing this. I’ve been seeing other warriors post this every time I filled out. Now a, a confidentiality agreement on, you know, the broker’s website to get, the financials and everything. I’m now getting phone calls and voice mail.
00:26:47:14 – 00:27:05:12
Mark
Yeah, every single time. And I spoke to one broker recently, and, man, they’re getting beat down. I’ve had a few brokers tell me they’re only willing to take on deals that are seller financed or assumed debt. At this point, they’re not even willing to take on other deals. And I had a conversation last week with a broker and he just seemed really beat down.
00:27:05:12 – 00:27:12:06
Mark
He picked up the phone and, hey, how’s it going? You know, it just seems like they’re not getting much business right now.
00:27:12:08 – 00:27:29:08
Rod
Sales are down, sales are down, sales are down 90%. Right now. Sales are down 90%. So they don’t make money if something’s nothing’s selling okay. And they’re on a total commission basis. So unless they stockpiled some cash you’re going to see less and less brokers too. And this is this is what happens when there’s a market correction like this.
00:27:29:10 – 00:27:31:09
Rod
so let me let me go ahead.
00:27:31:11 – 00:27:50:14
Juan
And do it. I was going to tell you, a year ago, two years ago, I wouldn’t get a phone call back. It was so hard to get a broker on the phone to to to answer questions about a property you used to tell me was the price guidance, and they weren’t replied. Those same brokers, are calling me late, leaving voicemails later.
00:27:50:15 – 00:27:53:06
Juan
They’re hunting me now. So yeah, I’ll.
00:27:53:06 – 00:28:14:24
Rod
Let that come in here. And your aim and your email is slammed where you’d get, you know, a handful of I get, you know, dozens now a week, deals coming across. yeah. We just put an offer in on a deal. It looks fantastic in Texas, too. You know, if you’re if you’re accredited. text the word partner to seven, two, three, 4 or 5 or go to Creek capital.com.
00:28:15:01 – 00:28:32:11
Rod
check out the deal. There’s still some slots left in that deal. We just closed on Screamin Deal. 40% discount. I’m not quite 40%, but damn close. but yeah, we’re starting to see some deals now, so now listen, one, are you okay with listeners reaching out to you if they’ve got questions?
00:28:32:13 – 00:28:35:16
Juan
Okay. I always want to hear from people. okay.
00:28:35:22 – 00:28:39:18
Rod
So what’s your what’s your what’s blue path holdings.com.
00:28:39:20 – 00:28:46:08
Juan
Yeah. Blue path holdings is that com. That’s our website I have a blog. I put something out there every Friday and
00:28:46:13 – 00:28:47:01
Rod
Oh nice.
00:28:47:04 – 00:28:58:03
Juan
Daniels is Blue park Holdings. Instagram is blue Group Holdings. And, just my name in in in in Facebook one one David Cruz. Yeah, you’ll find me there. Okay.
00:28:58:05 – 00:29:06:04
Rod
All right. Awesome, awesome. Well, thanks for coming on the show, brothers. Good to see you. And I’m sure we’ll see you in September and then probably again in November. Yeah.
00:29:06:06 – 00:29:11:10
Juan
I love going to the boot camps, even if they’re not only warriors. Because I know. Right? Yeah, yeah.
00:29:11:11 – 00:29:18:02
Rod
Yeah for sure. All right, buddy, thank you. It’s good to see you, my friend. Thanks, Mark. I’ll see you later. Thanks, guys. All right. Awesome.
