Mike Olson is a third-generation Realtor and investor with over 20 years of experience in the Charleston, SC market. He began as a home inspector in 2004, completing 1,800+ inspections before shifting to residential sales, earning Rookie of the Year and multiple Realtor of Distinction awards. In 2023, he joined Rod’s Warrior Group, which led to his involvement in 342 multifamily units across Charleston and Columbia. Mike blends innovative marketing with a client-first mindset, working in both luxury real estate and with first-time buyers. He lives on Johns Island with his wife, Kristen, and their son, Davis.
Here’s some of the topics we covered:
- The Real Estate Commission Shake-Up No One’s Talking About
- How Social Media Became a Secret Weapon for Raising Millions
- Next-Level Networking Hacks That Open Big Doors
- Why Passion Isn’t Optional
- The Networking Window You Can’t Afford to Miss
- Inside Mike’s First Deal With The Warrior Group
- Raising $2.75M For The First Warrior Deal
- The HOA Headaches That Can Derail a Deal
- The Killer Value Add Process of Mike’s First Deal
- Why Senior Housing Is the Multifamily Niche You Shouldn’t Ignore
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 – 00:00:49:09
Rod
Welcome back to multifamily Rock. So as you guys know, these are the episodes where we dive deep into our guests deals and give you some practical and actionable items for getting started in the business, even if you’re brand new, even to just to do your first deal and and today we’ve got some interesting, an interesting topic to go over with you with our guest today.
00:00:49:15 – 00:00:52:12
Rod
And I’ve got my co-host, Mark Nagy, with me here, as usual.
00:00:52:14 – 00:01:01:03
Mark
Yeah. What’s going on right now? I was going to say there’s a couple things, I think reading through his bio that, I don’t know if we’ve ever talked about before that, should be interesting. Interesting to get into.
00:01:01:05 – 00:01:25:24
Rod
Awesome. Well, we’ve got Mike Olson. Mike Olsen’s a realtor. Actually, has done. And real estate home inspector, and, has got rookie of the year and real estate sales and, joined, our warrior program back in 2023. And, now is, involved in 342 units, in Charleston and Columbia. Welcome to the show, brother.
00:01:26:01 – 00:01:34:06
Mike
Hey. Thank you. Rod, first of all, I just want to say thank you both very much for having me. And also to you to Mark.
00:01:34:08 – 00:01:35:19
Mark
Yeah. It’s awesome again.
00:01:35:21 – 00:01:44:07
Rod
Awesome, awesome. Well, why don’t you give us some background on you, buddy? Give us, give us, give us a little of your story.
00:01:44:09 – 00:02:25:00
Mike
Yeah. I, have been in residential real estate for a little over 20 years. Started out as a licensed home inspector, did about 1800 inspections before I decided that crawling around in, the crawl spaces with all of the snakes, rats and, spider webs and mold wasn’t for me anymore. So I, pivoted in two full time sales, and I’ve been doing that for about 18 years and about about a year and a half ago is when I decided to kind of pivot a little bit because I knew that the commission changes were coming in residential real estate.
00:02:25:02 – 00:02:43:13
Mike
And, you know, I’ve been doing it for, you know, 20 years. And I love, you know, making dreams happen and selling people homes. But I just really wanted to get into something new, a little bit more challenging. So I dove into, your program back in 2023. Yeah.
00:02:43:15 – 00:02:53:11
Rod
So just as an aside, talk about briefly what happened with the real estate commissions because there was a big lawsuit with Nar. Correct. And can you just speak to that for a moment?
00:02:53:13 – 00:03:10:10
Mike
Yeah. And actually, we have an excellent broker that is kind of ahead of the times. And he basis is everything. California. Because anything that kind of happens in California starts moving our way to the West Coast over here.
00:03:10:14 – 00:03:13:23
Rod
And let’s hope they keep those rent controls. But other than that, yes, but.
00:03:14:02 – 00:03:34:09
Mike
Yeah, but what I mean, as far as, California removed, those, you know, buyer side commissions, quite a while ago. So, you know, now the sellers have the option to actually pay or not pay. Not that they didn’t have that, but, you know, it’s not it’s not pressed on them as much as it used to be.
00:03:34:11 – 00:03:55:12
Mike
So with that being said, you know, if you have a buyer, that, responsibility would be passed on to the buyer. And as you know, it’s very difficult to, you know, raise enough money or, you know, save enough money to buy a house, but then have to pay, you know, 2 or 3% to a realtor after that?
00:03:55:14 – 00:04:01:24
Mike
It’s just not feasible, you know? So, yeah. So that’s kind of where I’m at. Let’s.
00:04:02:01 – 00:04:06:03
Rod
Thank you. Thank you. Government. They should just stay the hell out of all of that.
00:04:06:08 – 00:04:21:01
Mark
So. Yeah. So I’m sure we have, Mike, I’m sure we have a lot of real estate agents listening. How did you then take that job? Right. And then roll that into a skill set or a super power to get started into multifamily? And. And what was that?
00:04:21:03 – 00:04:48:12
Mike
Great question mark. What I did is, you know, I’ve been building a real estate sphere for so many years, for almost 20 years. And so I use that to my advantage. You know, I’ve dealt with a lot of, investors and high end buyers, you know, that need places to put their money. And that’s really how I did it is just staying in touch, you know, with my sphere that I’m doing anyway with real estate and just, you know, asking them, hey, are you interested in it?
00:04:48:14 – 00:05:07:10
Mike
You know, and doing it is telling every single person that I meet that I can, you know, that I’m in multifamily, and that just really seems help to, even if they don’t want to hear it. I enjoy telling it anyway because I just love talking about it. And then, of course, social media, you know, that it’s, helped me quite a bit as well.
00:05:07:12 – 00:05:08:05
Mike
So talk about.
00:05:08:05 – 00:05:11:11
Rod
What you talk about, what you’ve done in social media. Mike.
00:05:11:13 – 00:05:35:22
Mike
You know, I’m no pro, I just, you know, post, helpful hints and things like that. You know, the biggest thing with social media, I think, is just staying consistent. You know, for me, just all of a sudden start posting about send, you know, sending me money for multifamily, you know, you got to educate your investors and you got to educate the people out there because they don’t know what you’re talking about.
00:05:35:24 – 00:05:59:23
Mike
As you know, there’s only a select few out there that actually understand what multifamily investing is, you know, or investing in these other spaces. You know, people drive by an apartment complex and they just assume some big, huge corporation owns it. And that could be further from the truth. You know, regular guys like, you know, me and my partners, you know, they get together these things together.
00:06:00:00 – 00:06:03:05
Mike
Right? Right. It’s really amazing.
00:06:03:07 – 00:06:21:23
Rod
You know, it’s it blows people away when they realize it’s just a bunch of people getting together and making it happen. And, you know, we teach. We teach you know, how do you become the operator in the in the general partner in these things? And, and then you raise money for them. And, you know, my warriors, by the way, Mark, I just check the count.
00:06:21:23 – 00:06:46:11
Rod
We’re at 260,000 units now. We just got that. Yeah, yeah, it’s all you know, I knew it was over 250, but we’re 260, so. And we’re still gathering, so it’s kind of crazy. I just literally found out this morning it blew me away. But, so, so, you know, we have a lot of listeners that haven’t done anything yet, you know, what’s an action item that you could maybe talk about dive deeper into a little bit?
00:06:46:13 – 00:06:48:06
Rod
Just that they could start doing immediately.
00:06:48:10 – 00:07:08:20
Mike
First and foremost is just to, you know, get off your butt and take action. You preach that more than anybody in the world. I don’t think that I’ve ever seen anybody say that more than you. You know, you can join this program and you can put your money in and, you can study and read your books and watch every video in the world.
00:07:08:20 – 00:07:21:20
Mike
But until you actually, you know, step off that ledge, take action. You’re never going to do anything. So that’s my biggest take on it is, you know, just, taking that leap, diving right in.
00:07:21:22 – 00:07:41:22
Mark
Now, I want to I want to give the, the listeners here some, some golden nuggets on, you know, taking action. And I know you mentioned capital raising, which probably the most common thing question concern that we get is how do we raise capital. So I’d love to get into some specifics on that because I know you said it’s it takes a little bit of education because people don’t know what’s going on.
00:07:41:22 – 00:08:00:18
Mark
So, as you’re raising capital, walk what the listeners through, what does that process look like? Do you need to typically educate your network? Are they are they already familiar with multifamily. Like what does that process look like from reaching out of like, hey, are you interested in a deal to them putting in X amount of dollars into the deal.
00:08:00:20 – 00:08:02:01
Rod
Soup to nuts?
00:08:02:03 – 00:08:21:15
Mike
Yeah. Well, I can just say the start is, you know, when I talk about it, the excitement that comes out of me is amazing. You know, and, and a lot of these people that I’ve been dealing with that I’ve already sold homes to and keeping in touch with and sending birthday cards or birthday messages and things like that.
00:08:21:15 – 00:08:29:17
Mike
You know, they already trust me. You know, in a sense, so, you know, that’s just been a real positive, thing for me.
00:08:29:22 – 00:08:56:03
Rod
Let me interject two things. Some interject two things. One, you thing you just said they see your passion. And so guys listening if, if, if you think you could love this business then then that’s what will come out of it. Because when you love what you do, work is play. You never work another day in your life and you are passionate about it and that and people, they they gravitate, gravitate towards people that are passionate, that love what they do.
00:08:56:03 – 00:09:13:17
Rod
It’s just an energy. And so that’s a really important point. And the second piece is that you had this list of people you sold houses to, you worked with, and everybody’s got a Rolodex like color Rolodex that day to me, but everybody’s got a list of people, you know, that they know. And the key that you said there is, you stayed in touch with them.
00:09:13:20 – 00:09:31:14
Rod
And so, guys, when you’re in this raising capital environment, you know, you’re going to create a list. And my warriors have this incredible CRM that just came out right now to keep track of everybody. But but you’re going to create a list and you’re going to ping them occasionally. You’re going to add value to them occasionally you you said birthdays okay.
00:09:31:14 – 00:09:50:04
Rod
That’s a no brainer. But you know, sending them articles about why this business is fantastic, sending them articles about whatever geographic area you’re focused on things of that nature and, and you’re educating them and, and building that trust and respect. So anyway, I just wanted to hammer home the two things you just said. Please continue with with your thoughts.
00:09:50:06 – 00:10:16:11
Mike
Yeah. I mean, like I said, I just think it’s it’s mostly just, you know, educating them, you know, I started to get a little bit frustrated with the social media, you know, just because there was really no response at first. And then, right now, you know, we’ve been transferring over a lot of IRAs, you know, transfer them over into, self-directed, so they can invest with us.
00:10:16:11 – 00:10:28:19
Mike
And, you know, people don’t have any idea that you can actually do that. So it’s just educating them and showing them, hey, you know, especially with the stock market just getting a little bit, you know, squirrely on us, you know, we’re a.
00:10:28:19 – 00:10:47:23
Rod
Little bit, a little bit at one point and 1.75 trillion loss in like a day or a couple of days. But anyway, I’m sorry. Yeah. No, no, you just said something else, too. And I’m sorry to keep interrupting, but I want to kind of hammer home. Some hammer home. Some of the stuff you said now, when you started, you didn’t have a lot of people paying attention.
00:10:48:00 – 00:10:49:07
Rod
Has that changed?
00:10:49:09 – 00:11:01:08
Mike
Yes, it actually has. You know, it’s been more than satisfying to open up your, you know, your Facebook or your right Instagram, you know, messenger and say, hey, I want to learn more about this. You know, well.
00:11:01:08 – 00:11:21:10
Rod
That that’s the thing. That’s the thing I want people to realize is, you know, when I started my podcast, yeah, I got 20 downloads, you know, and, and then maybe 100 downloads, but but it takes time. Or even our Facebook groups got like 55,000 people in it now. But it started with five. Okay. And it takes time. But don’t get frustrated.
00:11:21:13 – 00:11:46:06
Rod
The key to social media and I and the Warriors have access to my course on this called Crushing it and Social media. But the key to social media is being consistent in adding value. And you do those two things. Success is inevitable. You will. And you don’t have to have tens of thousands of people like I do. You get a couple hundred that that respect you and trust you, and you’re adding value to them when it’s time to raise money, it’s much, much easier than people think.
00:11:46:08 – 00:11:48:22
Rod
But, yeah. So anyway, yeah.
00:11:48:24 – 00:12:10:05
Mike
Schedule and dinners, lunches, you know, zooms, calendars, all that kind of stuff, you know, my son plays travel sports, and that’s been a really good avenue for me as well. You know, you’re standing around with these parents nonstop. I was just chatting with a guy yesterday. You know, we’re waiting on the game to start. I was like, hey, sir, you know, Seth, I.
00:12:10:05 – 00:12:29:05
Mike
You know, I don’t even know if you’ve fully understand what I do, but this is what I do. And he actually has a second home that they’re not using now, and they’re trying to figure out what to do with it. And I was I just said to him, listen. So listen, do you want to worry about renters or aces or fixing toilets and chasing tenants and doing all that?
00:12:29:05 – 00:12:35:05
Mike
No. You know, sell it. Let us take the money and hopefully double or triple it for you.
00:12:35:07 – 00:12:52:02
Rod
Yeah. Listen, I want to add something because you keep you. You keep touching on things, and I want to I want to elaborate on them a little bit, like you’re at the freaking soccer game and you want to ask the question, so what do you do? Why? Because you don’t really. I mean, that’s not the important thing you want.
00:12:52:05 – 00:13:05:14
Rod
You want them to ask you what you do. Okay. And then and then and then, of course, you could do what you did is just say, I don’t think you know what I you know, what I did is that I do you could go right there, but that’s, that’s, that’s a little stronger than just waiting for them to ask you, you know.
00:13:05:14 – 00:13:06:05
Rod
Yeah.
00:13:06:07 – 00:13:12:15
Mike
And sometimes, you know, just depending on the deal, I want to get him in there quick. I don’t have the, you know, the time to kind of,
00:13:12:17 – 00:13:19:09
Rod
All right, all right, fair enough, fair enough. You know, I tell my warriors, if they hold still long enough, they better know what the hell you do. End of.
00:13:19:10 – 00:13:19:24
Mike
Story.
00:13:20:01 – 00:13:35:04
Rod
You know, and and so so that’s that’s awesome. And, you know, you want to have kind of an elevator pitch put together, okay? And, you know, and, you know, an elevator pitch is what you can say in the time it takes to ride an elevator or something like, yeah, you know, we’re buying multifamily assets. There’s a big kind of a meltdown right now.
00:13:35:04 – 00:13:48:13
Rod
A lot of operators got this adjustable rate debt. There’s incredible deals coming. And I’m always looking for partners. By the way. So if you know anybody you know I’d love to chat with them. And that’s it. That’s an elevator. There’s an example of an elevator pitch is really is that simple? Yeah.
00:13:48:15 – 00:14:08:14
Mike
One of my partners actually just said this the other day, and I love that he said rather than asking them if they’re interested in the deal, is to walk up and ask them if they know anybody that’s interested in the deal, because that does two things. One sparks their interest and they might have a chuckle, you know? So there you go.
00:14:08:16 – 00:14:26:23
Mike
I love it, you know, and I actually used that yesterday when I did that. But I do have if I can just real quick one other success story. They’re our favorite restaurant in Charleston is right around the corner from our house. And we were up there and, you know, we know people coming in and out there all the time.
00:14:27:00 – 00:14:48:22
Mike
And, some of our friends came in and sat down at the bar next to us, and they were kind of chatting and, I was standing up kind of, stretching a little bit. And there was a gentleman kind of standing close to me behind me, and I turned around and recognized him. And he is our local Charleston Geico agent that is on TV, you know, multiple times a day.
00:14:48:24 – 00:15:10:18
Mike
And I said, hey, you’re Tony from Geico. And he said, yes, I am. But, anyway, we started chatting and started talking about flood insurance. You know, because he’s an insurance and it just, you know, it’s an opportune time for me to mention that. And I said, I’m actually multifamily, too. And his eyes lit up as big as you can imagine.
00:15:10:20 – 00:15:28:06
Mike
And he said, you do that? And I said, yeah, I do that. And he goes, oh, I never met anybody in Charleston that does that. And I said, yeah, yeah, yeah. And he said, Mike, I got to tell you something. He said, I make more money in my multifamily investments than I do in, in the insurance game.
00:15:28:08 – 00:15:32:15
Mike
And I actually, just got him on, one of our deals.
00:15:32:19 – 00:15:41:16
Rod
So dirty tastic. Fantastic. Just stand standing at the bar. Yeah, I love it so. Well, well, let’s let’s drill into it. Oh, sorry, Mark, I stole your thunder.
00:15:41:16 – 00:15:52:01
Mark
No, that’s what I was going to ask the dots for us into your first deal. Now, how how did this deal come? Was it from other warriors? What? Why did they bring you in to bring us into that now? Yeah.
00:15:52:01 – 00:16:15:07
Mike
Well, just being from Charleston, South Carolina, we have, plenty of other warriors here. How I got into it, is, you know, I decided to pivot. And so I was just doing, self-education on my own, you know, watching podcasts. Yours and reading books and just, you know, really diving into it to figure out if it was something that I wanted to do.
00:16:15:09 – 00:16:32:07
Mike
And one of your other warriors, started posting about it on Facebook that I’ve known for, you know, 20 years. So I reached out to him and, we went out to lunch, and he brings me in a deal and puts it in front of me, wanted me invest. And I said, no, no, no, man, this is awesome and I’m happy for you.
00:16:32:07 – 00:16:48:21
Mike
But really, what I want to do is start putting these things together, and I want to be a part of this, you know? So he said, yeah. And he said, you know, what you really need is a coach. And so he started telling me about how he joined your program. And I said, well, you know, I’m sitting at a home watching Rod’s podcasts already.
00:16:48:21 – 00:16:51:07
Mike
So I want to know more about.
00:16:51:09 – 00:16:52:23
Rod
That’s hilarious.
00:16:53:00 – 00:17:14:05
Mike
We actually, chatted about it and, I, I talked to another warrior, Derek here, locally. And, we ended up going out to dinner and, you know, I had interviewed with Mark and he told me, you know, everything was good to go, sent me the paperwork. And, you know, we were at dinner just kind of chatting about it.
00:17:14:07 – 00:17:37:09
Mike
And I was like, oh, you know, it’s kind of expensive. I don’t know if I want to do it. And the two of them looked at each other and just laughing, and I was like, what are you laughing about? And, they said, Mike, don’t even worry about the expense because it means nothing. Because as long as you take action and jump into it, you’re never even going to think about that expense ever again.
00:17:37:13 – 00:17:48:24
Mike
So that’s awesome. And and so we actually, I got on there and, we got on to, your warrior page, and I signed the documents right there on your Facebook.
00:17:49:02 – 00:18:10:05
Rod
Oh, no kidding. That’s all yours. So that’s hilarious. Derek? Derek. Derek is a great guy, so he and I. So. So let me let me, This is an opportune time for me to say. If you are interested in our warrior program, text the word crush to 72345. Again. Text crush to 72345. You know, to see, you know, if it’s a fit for you.
00:18:10:05 – 00:18:18:00
Rod
And. And that’s how you apply. But, no, that’s that’s that’s really cool. I didn’t know that’s how you, you know, Derek didn’t tell me that, but that’s awesome. You know.
00:18:18:02 – 00:18:20:12
Mike
It was great. But anyway, so.
00:18:20:12 – 00:18:21:16
Rod
Let’s talk about the deal.
00:18:21:18 – 00:18:44:23
Mike
Yeah, that’s. I was just going to lead back into that story. Thanks, Rob. Yeah. We, So Derek and I have now, you know, gotten to know each other really well, and he was nice enough to ask me if I wanted to race. One of his deals. And, you know, I just, of course, jumped the opportunity, and, he kind of nicknamed me, the Silent sniper.
00:18:44:24 – 00:18:49:07
Mike
Because of my first deal, I brought in 2.75 right off the rip.
00:18:49:09 – 00:19:13:06
Rod
Holy cow. Buddy, congratulations. That’s fantastic. Now, let me let me interject something that I always do just as a cautionary thing. You cannot just raise equity for deals, guys. You have to be involved, which I’m sure you are. You know, you have to be involved in things like the due diligence, the asset management on those calls. And, you know, certainly, with that high of a raise, you want to be very involved.
00:19:13:06 – 00:19:30:19
Rod
And so, but you can’t be, quote unquote, just a money raiser. You have to be active in the deal. I just want to throw that in as a caution. But, but that is fantastic. 2.7 on the brother. That is freaking awesome. And Derek. Derek, such a wonderful guy. I almost did a deal with him and then kicking myself for not doing it, actually.
00:19:30:24 – 00:19:45:03
Rod
So we got talked out of it by my team and, and then they killed it on that particular one. But anyway, so, the what is it? How many doors? Yeah, he’s a wonderful, wonderful guy. And so how many doors where where is it, where is it and all that?
00:19:45:05 – 00:20:06:13
Mike
It’s, 66 deals and, I’m sorry, 66 doors in, Columbia, South Carolina. Oh, nice. An hour and a half away from us. So, you know, like to keep it close so we can just jump in the car and run out there if we need to. You know, we’re in and out, you know, checking on things and making sure everything’s on the up and up.
00:20:06:15 – 00:20:11:09
Mark
Sure. This is fractured condos, which I know. Rod. Awesome. Well, that’s the best.
00:20:11:10 – 00:20:24:09
Rod
That’s the deal. That’s the deal that Derek wanted me in on another one that was fractured condos. And I said no because it was fractured condos. And I’m still kicking myself with my right foot as I walk down the street because it was such a screaming deal.
00:20:24:11 – 00:20:27:00
Mike
But anyway, that was, by.
00:20:27:00 – 00:20:33:21
Mark
The way, for people that don’t know. And that’s obviously it’s a it’s like an apartment building, but you’re buying specific units so they’re friends. So they’re all over the place and I.
00:20:33:21 – 00:20:35:20
Rod
Know let me elaborate, let me elaborate.
00:20:35:20 – 00:20:39:09
Mark
Roll the HOA, which is why you. Yes please allow yes.
00:20:39:11 – 00:20:57:12
Rod
Yeah. Let me elaborate. So so back in the day, a lot of people took these apartment complexes and they converted them to condominiums so they can sell them off one at a time. And it was a great model until the crash, and that it wasn’t a great model. And so a lot of these things, failed. Yeah. But they had sold some of the condos already.
00:20:57:17 – 00:21:19:20
Rod
So you’ve got you’ve got this complex that’s condos now, but, some of them are, but they’re all owned by different people. And, and some of them have just some of them owned and the rest are owned by, you know, a larger group. And so it can be kind of complicated and, and, if you don’t control the HOA, you know, they control what you pay for an HOA fee.
00:21:20:01 – 00:21:38:01
Rod
And so, you know, there’s some there’s some nuances with that. And, that can make it more challenging. The financing is more challenging. And so, you know, and there’s pitfalls, you know, because because you just you don’t have complete control in some cases. And, and certainly these people that own their own units can do pretty much whatever they want to.
00:21:38:01 – 00:21:41:08
Rod
So I, I think I explained it there, but do.
00:21:41:08 – 00:21:44:00
Mark
You have control, Mike, in this deal?
00:21:44:02 – 00:22:01:04
Mike
As of right now we have 51% of the units. So there’s going to be a third meeting coming up in. We’re going to take care of that right now. The 40 I think. Perfect. Yeah. It needs that HOA needs a little bit of help. And thankfully we’ve got some great warriors on that with me.
00:22:01:04 – 00:22:26:01
Rod
So yeah. Well I’ll tell you, you know what’s interesting? With an HOA, of course, you’ve got to take care of things like the insurance, common area maintenance, things of that nature. And you put your pool for all that and charge each each condo for that. And there’s a real, kind of a shit storm happening right now in Miami, because that condo that that fell down and and they’ve greatly enhanced the inspection requirements.
00:22:26:01 – 00:22:36:20
Rod
And there’s huge assessments happening right now for condos, some of the condos in Miami. So this is one of the another another pitfall that you can have in that sort of a situation. But yeah.
00:22:36:21 – 00:22:51:04
Mike
Actually that just happened here in Charleston, some waterfront condos, downtown, they just kicked every single one of the homeowners out. And now they’ve got some of the biggest attorneys in town trying to sue them, just for the with handled it, you know?
00:22:51:08 – 00:22:54:19
Rod
Wow, wow. That was one of the things, man.
00:22:54:21 – 00:22:57:06
Mike
Yeah. There get you.
00:22:57:08 – 00:23:04:00
Rod
That’s so, so so what we’re talking about. Sorry, Mark. To talk about the rents. Talk about the rents. Why why you love the deal.
00:23:04:02 – 00:23:30:07
Mike
We love the deal. Because, you know, we’ve got some problem tenants in there that we are quickly handling that situation as well. You know, we need to get them out so we can do, you know, some value add to these. But the rents were, 900, and we’re actually on track, to getting very close to our exit, rents, in our first year already.
00:23:30:09 – 00:23:32:04
Mike
So we’re extremely excited about that.
00:23:32:05 – 00:23:34:16
Rod
And what are those? What are those? Exit rents?
00:23:34:18 – 00:23:54:12
Mike
We’re we’re hoping for 13, 1300 to 1350. They’re really, actually, they’re really large. Two bedroom units are about 1300 square feet with really big, bedrooms. So, you know, you can have two parents and two, two kids, in those. So a family of four could easily stay there.
00:23:54:14 – 00:24:21:06
Rod
Let me just let me just elaborate on what that means, guys. Okay. So you’ve got basically $400 rent bumps, likely. Okay. Times 66 units times 12. You annualize that increase in, net operating income. Okay. So let’s assume that’s accurate. $316,800 is what that is annually. Let’s say you’re going to buy that thing at, I say what, a 7 or 8 cap?
00:24:21:09 – 00:24:36:17
Rod
Okay. Well, let’s say that’s what it’s valued at 7 or 8 cap. So let’s say seven, be a little divided by .07. That is a $4.5 million increase in value from those rents.
00:24:36:19 – 00:24:37:11
Mike
So boom.
00:24:37:11 – 00:24:47:12
Rod
Baby, on a on a on a 66 freaking unit. That’s an asset. Like an tastic, Love that one, man. That’s a happy dance.
00:24:47:14 – 00:24:56:07
Mike
And it’s really. Man, I’m just excited for us, you know, as I am for our investors is really. What I want to do is just make them happy, you know?
00:24:56:09 – 00:25:10:19
Mark
So the the fractured condos is kind of the one unique thing that, that, that we were going to talk about. The second thing is this next deal that you’re working on, tax abatement deal, which I’m not sure if we’ve talked to anybody that’s on this sort of deal before. So what will give us a story? What is this?
00:25:10:19 – 00:25:15:20
Mark
What is tax abatement? Why is this a deal? Give us give us a background on this and why you’re doing this deal.
00:25:15:22 – 00:25:40:17
Mike
Yeah. This one is, with some of the best warriors that I know. And they’re the ones that put this one together. And normally, you know, we go for these value add and, units because, you know, that’s where a lot of the value is, to go in there and fix them up, and do that, but with, this, play, it’s actually the tax abatement.
00:25:40:19 – 00:26:09:01
Mike
And the current, owners are paying the full 100%, of the taxes every single year. So what we’re doing is actually putting people in affordable housing, just like the government wants us to do. So we’re actually really not even moving the rents on this. We’re just going to go from the 400%, taxes to this tax abatement, which is going to lower taxes down to about 10% per year.
00:26:09:03 – 00:26:30:04
Mike
So, right there, the value of this riding is incredible. And, you know, we’re doing some a few little things with the washer and dryers. The current owners are charging, for those. So this one is 168 units. So you multiply all, those units, so rent for washers and dryers and there’s some more value right there.
00:26:30:04 – 00:26:34:10
Mike
So we’re doing some really exciting things just to kind of, you know, add more value.
00:26:34:13 – 00:26:41:02
Rod
Do you know the dollar amount of of the, savings in that tax abatement, piece?
00:26:41:04 – 00:26:42:14
Mike
You know, I don’t have.
00:26:42:14 – 00:26:45:19
Rod
The I was just going to do the math on it if you did. No big deal.
00:26:45:19 – 00:26:54:01
Mike
But in cash, I feel really silly if it wasn’t right. But I want to say it’s around 500 and something thousand that much.
00:26:54:01 – 00:26:55:19
Rod
How big is how big is the asset?
00:26:55:21 – 00:26:57:07
Mike
168.
00:26:57:09 – 00:27:01:22
Rod
Okay. Wow, half a million. Wow.
00:27:01:24 – 00:27:03:01
Mike
That’s that’s awesome.
00:27:03:03 – 00:27:12:24
Mark
Well same thing. The math on that can take half a million divided by 7.07. That’s $7.1 million in value add. And you don’t even have to do anything to the property.
00:27:13:05 – 00:27:27:15
Rod
Yeah. And even if it’s less than that, even if it’s less than that, it’s still better than a sharp stick in the eye. Right. So that’s that’s fantastic. Now I know, I know you’re also getting involved in senior housing like I am. Is that. Yeah.
00:27:27:17 – 00:27:50:13
Mike
Yeah. That, is something I’m super excited about. I’m not involved with it fully right now. But, I know that you just had on your podcast a couple days ago. Him and I, are on another deal, and, we’ve been chatting a little bit, had some, just about it, when he told me about the returns that he was getting with these senior living deals, I was plowed.
00:27:50:13 – 00:27:54:18
Mike
I was like, is this legal? Like, how are you guys doing? It’s amazing.
00:27:54:18 – 00:27:56:21
Rod
Yeah. They’re incredible.
00:27:56:23 – 00:28:13:20
Mike
Yeah. When you really put two and two together and, you know, if you’re getting 6000 a month for a room, you know, versus 2000, you can see where that value is. But of course, you know, you’ve got to pay a whole entire staff. And, things are a lot different there, but the returns are just great. Oh, yeah.
00:28:13:23 – 00:28:33:24
Rod
No, it’s definitely the key with senior housing. And we’ve talked about it now a couple of times on the show because I’m, I’m going to be raising money for a deal here very shortly. And I mean, there’s 80 million baby boomers getting old and and I’m, I’m the I’m the start of that because, I’m 65 and there’s 10,000 people a day turning 65 in this country.
00:28:33:24 – 00:28:54:16
Rod
So this thing’s got a long runway. Okay. And, and so it’s very, very exciting. It’s something I’m very excited about and, getting into. And I was going to get into a year, a decade ago, and I got my administrator’s license here for assisted living in Florida. I did the three day course and I shifted gears, but, I didn’t end up ultimately doing it.
00:28:54:18 – 00:29:08:00
Rod
But but, you know, a lot of, a lot of facilities went bankrupt in Covid. And so there’s opportunity there to pick up some of these assets, which is you know, what Robert and, Roberta and I talked about as well, but,
00:29:08:02 – 00:29:28:05
Mike
Yeah, yeah, just it’s a little personal for me as well. My grandfather, I’m sorry. My grandmother had a stroke and ended up in a home because my grandfather had passed away. And, she was super lucky because my aunt actually, ended up getting a job, right in the facility at the little cafe so you can see her and spend time with her.
00:29:28:07 – 00:29:39:13
Mike
But it’s just, you know, it’s a personal thing, you know, just the thought of them sitting up there and alone, and you know, if you’ve got people come to you, it’s a great thing, you know, but, I just like to help people if I can.
00:29:39:15 – 00:29:56:04
Rod
Well, I don’t think you can get into the business if you shouldn’t get into the business. Unless you love the elderly, which I do, you know, just like children. And and so I think that is a critical piece because and in, in that business, the most important piece is the operator. And I would not want to operate one.
00:29:56:04 – 00:30:04:15
Rod
I’d want to, you know, we’re aligning with very, very good operators because, you know, you want to make you want to make sure they’re well taken care of. So yeah.
00:30:04:17 – 00:30:07:07
Mike
I would say that’s probably the biggest thing. When we.
00:30:07:07 – 00:30:10:03
Rod
Say it is. No, it is absolutely the biggest, absolutely the biggest thing.
00:30:10:05 – 00:30:29:07
Mike
Yeah. When I was chatting with him about it, that was my very first question was, you know, how are your operators? And, you know, do they have the capacity to take, you know, more units and, you know, like, how well do you know these people, you know, and they have a lot of confidence in them? So that’s great, you know?
00:30:29:09 – 00:30:48:07
Rod
Yeah. Well, I’ll tell you, the biggest piece is, is the staff and and that it’s not a high paid staff. So the operator needs to be good with creating a culture, you know, identifying people that care about elderly. You know, and, and validating them and praising them, these employees and keeping them engaged and motivated and all that.
00:30:48:07 – 00:30:54:09
Rod
So it’s a whole lot more than just a paycheck, which is why, you know, you really want somebody that knows how to do all that.
00:30:54:11 – 00:31:19:14
Mike
Yeah. And even with the tax abatement deal, you know, helping out people with affordable housing, you know, translating this area, I mean, to try to live in the Charleston area is just absolutely insane. You know, you can’t find anything. You know, reasonable. I’m looking at these complete dumps online and they’re, you know, $2,000 a month, and I wouldn’t even want to step foot in these places.
00:31:19:14 – 00:31:28:09
Mike
You know, and the same thing with our deal in Columbia, you know, we’re helping out some vets, you know? So it really does make me feel good, you know? Yeah. Doing good.
00:31:28:11 – 00:31:53:01
Mark
By the way, just one thing. I’ve taken away from all the things that you’re saying is that, like getting creative, right. You’ve mentioned fractured condos, tax abatement, potentially senior living. If you would just focus on traditional multifamily and just value add renovating units, you might have missed out on all these opportunities. And so just a gold nugget for people listening is actually learning all the different ways that you can do deals is such a big opportunity.
00:31:53:01 – 00:32:08:11
Mark
And I’d love for you to just check that out a little bit more for the people listening of. If you continue at this current pace, you know, to your quote unquote financial freedom, how long do you think it’ll take you to get there? What do you think that that kind of looks like over the next few years or whatever it is?
00:32:08:13 – 00:32:08:24
Mark
Yeah.
00:32:08:24 – 00:32:31:06
Mike
I, just to say something, you know, about that, you know, I’ve only been focusing on more on multifamily and really marketing myself as that. So it’s really going to throw all my followers and people through a curveball, you know, when and if I do end up in a senior living deal, you know, just having to start to reeducate and doing all that.
00:32:31:08 – 00:32:55:02
Mike
But, you know, I mentioned Rob before, 20, 24 was a bit of a rough year for me. I had to have, three, invasive spinal surgeries. So, with that, it kind of laid me up, for 20, 24. So, you know, I’m rolling and ready to go now. Feeling great? I can’t wait to come down to the meet up.
00:32:55:04 – 00:33:22:23
Mike
The warrior meet up and the end of May, but, you know, I’m knocking on the door and doing pretty well. And I feel like if I can hit, you know, write, run 2000 units somewhere around there, I can start to back off a little bit and just kind of, you know, reinvest and just really work that positive cash flow that I’m preaching to everybody else, you know, you got to put your money where your mouth is, you know, you’re going to preach these deals and try to get money and people to, you know, give you their hard earned money.
00:33:22:23 – 00:33:30:04
Mike
You better be putting your money into it, too. And having faith in these deals is the way I look at it.
00:33:30:06 – 00:33:38:22
Rod
Yeah. Love it, love it. And we’ve got a warrior only event coming up with hundreds of warriors. May 31st and June 1st here in Sarasota. Those are a lot of fun.
00:33:38:24 – 00:33:59:23
Mark
And by the way, just as a side note, for people that are not paying attention, and you tell me if you agree with this, Mike, the last 2024 and 2023, ride, you probably will agree. Probably the hardest two years in real estate in since 2008, 2026 and beyond. It’s only going to get easier. There’s going to be less inventory, rents are going to start going up.
00:33:59:23 – 00:34:13:03
Mark
And so, you know, when you say you’re projecting out a few years, you’re probably not even thinking about that. But I don’t know about you, but it has been the hardest time. I feel like, to make money in this industry just across the board, single, multi everything. Which would you agree with that.
00:34:13:05 – 00:34:33:21
Mike
Yeah, I definitely would. I definitely would, yeah. It’s so actually with these you know everything going on, you know people I keep getting these excuses, you know I just want to hold my money, you know, I don’t want to do anything with it because I’m paranoid, you know? And they think that by giving me money that the money just disappears.
00:34:33:21 – 00:34:47:19
Mike
And I’m like, if you actually give me the money, wait till you see what we do with it, you know, don’t be scared. You know, I just like to say, you know, don’t be afraid of something that you don’t understand. And you know, are you are.
00:34:47:19 – 00:34:50:06
Rod
You okay with listeners reaching out to you, buddy?
00:34:50:08 – 00:34:51:16
Mike
Yes, sir.
00:34:51:18 – 00:34:53:21
Rod
Where, where and how can they do that?
00:34:53:23 – 00:35:19:20
Mike
Yeah. You can reach out to me or my email. I it’s Mike at Mike Olson that’s also on r e dot com. Mike olson.com. And I’m always open to anybody that is, interested in talking about your program because, for me, it absolutely 100%, was the best decision that I’ve ever made in my life.
00:35:19:20 – 00:35:21:09
Mike
And I’m not just saying that.
00:35:21:11 – 00:35:24:24
Rod
Oh, that’s kind of you to say that, brother. Yeah, it’s very kind of you for.
00:35:24:24 – 00:35:32:17
Mike
Me that, I never thought would be there. You know, and I just couldn’t be happier about it, so I appreciate.
00:35:32:17 – 00:35:50:13
Rod
I appreciate that, I appreciate that, but. Yeah. Text crush to seven, two, three, 4 or 5 if you’re interested in applying. Well, listen, Mike, I appreciate you coming on. This has been a lot of fun. You’ve added tremendous value. We’ve talked about topics that we really haven’t talked about before. So, really has been informative. Thanks, buddy. And we’ll see it.
00:35:50:13 – 00:35:51:19
Rod
We’ll see you the end of May.
00:35:51:21 – 00:35:53:13
Mike
Yes, sir. I look forward to it.
00:35:53:13 – 00:35:55:11
Mark
Thanks for watching, guys.
00:35:55:13 – 00:35:58:15
Rod
Take care.
00:35:58:17 – 00:36:01:02
Rod
Thank you for watching. Multifamily rock stars.
