David is a distinguished US Air Force Officer with over 21 years of service. He has led high-performing military teams and managed billions in military contracts. With a background in Computer Engineering and an MBA, he has underwritten over $2B in multifamily assets and achieved stellar returns for investors. Alongside his wife Tasha, they run a top-ranking multi-state real estate company, facilitating over $52M in annual transactions. Their focus is on education and wealth building through real estate, with a portfolio exceeding $1.1B and 8100 doors. Their passion lies in creating legacies and empowering others through real estate investing
Here’s some of the topics we covered:
- The 2020 Warrior Event and How Covid Affected It
- David’s First Multifamily Bootcamp
- Multifamily’s Opportunity For Generational Wealth
- Getting Over The Fear of Asking Questions
- Networking With Experienced Operators Is The Key To Success
- What People Do When They’re Truly Successful
- Strategies To Find Deals Moving Forward
To Apply for The Warrior Program: Text CRUSH to 72345 and we’ll help you crush it in this business.
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Full Transcript Below
Intro
Hi, my name is Rod Khleif, and I’m the host of “The Lifetime Cashflow Through Real Estate Investing” podcast. And every week, I interview Multifamily Rock Stars and we talk about how they build incredible wealth for themselves and their families through multifamily properties. So hit the “Like” and “Subscribe” buttons to get notified every Monday when a new episode comes out. Let’s get to it.
Rod
Welcome back to Multifamily Rock Stars. So as you guys know, this is where we interview people that are just crushing it in this business. And we show you the inside scoop on how multifamily investors are creating massive success in their businesses and also in their lives. And as always, I’ve got my co-host, who’s the director of our Massive Action Team for our Warrior group, Mark Nagy.
Mark
Hey, Rod. Glad to be here for another one. I think we’re getting pretty close to 100 of these episodes now, which is exciting.
Rod
No kidding, 100 of just the Rock Stars, which is all just Warriors, which is just our students. I mean, we’ve got a long list of people lined up for this thing, and it’s because the program has been so incredibly successful. Well, today I’ve got a great guest for you guys. His name is David Gwilt, and he and his wife, Tasha– well, first of all, he spent 21 years in the military, so thank you for that, brother.
David
Thanks, Rod.
Rod
But he’s in over 8,000 doors both as a General Partner and an active partner, over 1,000 doors as a General Partner, and, you know, involved in basically over a billion dollars in assets. So, I will just leave it at that and let him tell you his story. Welcome to the show, brother.
David
Thanks, Rod. Appreciate you having me on and really appreciate everything you do for this community, you know, helping us Warriors get together and partner up on deals and just putting all this together so that we can change lives.
Rod
No, thank you. So I know you joined back in October of 2020, which was a crazy time because we were supposed to have 800 Warriors in Orlando for a boot camp in 2020, and I was freaking out. I’m like, what are we going to do? So, you know, we had to pivot and innovate and went virtual. And I built this studio here at my compound, my home in Florida. And, you know, now we’ve had thousands of people attend virtually. But it was a little crazy time. And I will tell you, in this time right now, there are other people that have to think about innovating and pivoting with what’s happening economically in this country. So, you know, that’s certainly a dynamic that exists. But anyway, why don’t you take a minute and give us a little more background on who you are, where you came from, and why real estate, and then maybe ultimately, why multifamily?
David
So I’m a military guy, career, right, as you touched on, 21 years at this point, I’ll be 22 years by the time I retire out next year. So still on active duty, finishing out my career. And then lived in a bunch of different locations across the US, right? I’ve done the whole renting as an apartment renter as well as ownership and obviously saw the wealth creation that ownership could create on a small scale in single-family homes. You know, my wife and I wanted to get into real estate and we did that not necessarily following your stage one advice, if you will, in your backyard, right? Because we’re out in California at the time and prices are just really tough out there. But we did follow the next step advice, which was, you know, buy in a place that you could possibly see yourself retiring, some place that you want to visit a lot, that type of thing, right? And so we did the whole small multifamily thing. And that was working fairly well for us. We’re running into unique challenges. And I actually went to a meetup of one of your coaching students and now coaches locally in Manhattan Beach. And he prompted me to come out to your boot camp. So three weeks out from when your boot camp was going to happen, he’d let me know, hey, there’s this thing going on. There are apartments. There’s this thing called syndications. Had never heard of it back in 2018, even though we were in real estate. It’s just not talked about a lot. So again, thank you for, you know, bringing the awareness community. Came out to the boot camp, it was your Atlanta boot camp.
Rod
Wow.
David
And just got [inaudible] a lot of the Warriors. Right? Got to be in person, got to network, talk to several different people. And then from there, I actually invested, I think, with two of the people that I met at that boot camp. I started working with one of them, doing cold calling and, you know, deal sourcing and underwriting. That then got leveraged into working with, you know, another set within the industry, helping them acquire properties. And then now I’ve moved on to a different group as well. So it really all started with the boot camp that I went to of yours. And that led to now four plus years of working in various roles in the industry. So my background is an engineer, I love numbers, I love real estate, I love wealth building, right, teaching people how to do that. And I just think when you look at the numbers and I can dive you know, deeper into it. But when you look at the numbers, doing small multi is a great way to get your feet wet. You know, two to four units where you can get a residential loan if that’s all you can afford and you’re doing it on your own. But apartments definitely give you that greater scale. Right? And really what we were looking for as we started looking at everything for us, for our family, for the legacy that we wanted to create was creating that greater scale and not buying into another job, which I think when you amass a large portfolio of either single-family or small multi, you’re really buying yourself into another job. Right? It’s either managing the properties or managing all the property managers. And that the economies of scale just weren’t there. So again, appreciate all the education that you provide and that helped us pivot.
Rod
Well, it’s my understanding, I think you told me before we started recording that you actually attended like four or five of my boot camps before you became a Warrior?
David
Yeah, I did.
Rod
Why the delay, I guess I would ask. And then what prompted you to actually join?
David
I think the delay was part of the unknown. Right?
Rod
Okay.
David
So, a couple of items. Number one, when I was going on the boot camp, I’m a huge extrovert. Right? So getting to know everyone, getting to network, that’s a big component for me. And then just the timing of when the sitting down with the coaches was to clear that opportunity, right, tended to fall somewhere around lunch and that type of thing. And for me, as an extrovert on a network, my priority was getting out to know other folks. Right? So there was that conflict there, and I had to choose between. I think I also just didn’t know what I didn’t know. Right? So pricing-wise, what the opportunity was, I thought it was going to be this huge, massive amount, which obviously it is an investment. Right? But it was a different number than I thought. It was structured differently than I thought. The ability to stay on after your initial coaching, I didn’t realize that that was there. Right? That makes it more palatable, long-term once you gain that knowledge, right, and you’re just looking to stay in the community. And so once I saw all those things and we chatted about that, to me, it was a no-brainer just to be in that community and to be on network with those folks on a regular basis.
Rod
Yeah. Well, that’s very unusual. Let me just say that. I think that’s the first time I’ve ever heard that. Eric Upchurch, who’s been on the show a couple of times. Good guy, another military guy, I know you know. He went to one and then he kicked himself and waited till the second one to join. But damn, five, holy cow. That’s a whole another story. I’m glad you’re here, brother. I’m glad you’re here.
David
Yeah.
Mark
So I want to start from the beginning here because I know you’ve mentioned you’ve had leadership skills in the military. You’ve mentioned you like numbers. You’ve now mentioned you’re an extrovert. You’ve played various roles in different deals. For the people that are just getting started and just now learning the business, what do you think are maybe one or even two skills that every investor should kind of learn or an area to start when they’re just getting started?
David
Sure. I mean, I think the biggest thing to start off with, hands down, get outside your comfort zone. Right? I mean, that’s where we grow. So even though I’m an extrovert, there are still limits for everyone. Right? But when I went to Rod’s boot camps, my goal was I was one of the first people that showed up before the doors opened. I was talking to everyone in the hallways there. I was one of the last people to finish at night. And it wasn’t–
Rod
Hold on, let me interrupt for a second. You know, it’s really funny, is I was just looking at some pictures and there was a picture– were you at the Denver event where my mom was there?
David
Yeah.
Rod
I saw a picture and you’re in the first or second row behind my mom. And I was just thinking about that when you said that. Sorry, please continue.
David
Absolutely. So it’s really just capitalizing on all that, right? I wanted to be near the front for the proximity to be able to see Rod closer, obviously, see all the people coming up. Also for selfish reasons, right? I wanted to be able to take better pictures for social media and everything else to be able to talk about what we’re doing and help, you know, impact other people’s lives, right? And those photos are obviously better the closer you are. And so I wanted to do that. And then Rod, of course, a couple of times had social media challenges and I won one of those, right? So I want to go–
Rod
Oh, that’s right. That’s right. I forgot about that. Well, you got like an iPad or something, right?
David
You gave us actually, it was tickets to Tony Robbins event, and then VIP returned to–
Rod
Oh, that’s right. Because I had somebody from Tony at the event that said, hey, I’ll throw some tickets in. Wow, that was a hell of a gift. Awesome.
David
That was really good. Yeah. Much better than– you know, iPads are great, but, you know, knowledge stays forever, right? The tech sort of fades away.
Rod
Nice.
David
So that was you know, the initial thing. Get outside your comfort zone. Networking, obviously, is super important. The key in my mind, regardless of what aspect of this industry you’re going to pursue, is I think you need to at least have a fundamental understanding about underwriting. Right? So at Rod’s boot camp, he goes over that, right? We go over finances, we go over the way that you’re going to underwrite, normalize expenses, all those types of things. I think that’s important even if you’re not in the underwriter role because you want to know where you’re placing your money, whether or not they actually underwrote conservatively or not based upon you know, your gut feel because you are putting a lot of money into deals. And it is sort of like a marriage. Right? These are non-liquid assets. And so you’re in the deal anywhere from two years to seven years, maybe more, you know until it’s refinance sold, et cetera. So it’s really important to know what you’re getting into, feel comfortable with that, and feel comfortable with where you’re placing your money.
Rod
Yeah. And guys, if I didn’t mention it in the intro here, I only do one Live Event a year now because they just freaking kill me. When you started with me, David, I was doing like two or three a year. I just can’t do it anymore. So my next one is in September, September 15th through the 17th in Orlando. And if you can make it, there’ll be 1,000 people there. And you can see just how impactful it was with Dave. But anyway, so let me ask you this. You’ve got a pretty long journey in this business. Talk about any epiphanies or aha moments that you had where you’re like, holy cow, now I get it. Does anything like that come to mind when I ask that question? I know I didn’t prepare you for that, but–
David
Yeah, it was at the very beginning. You know, after I went to the first boot camp, again, I had already started having issues with the triplex that we bought in Florida. Right? And it was financing issues to try to refinance out based on how it was held. And so that’s what led me to the meet up and then to your boot camp. And when I went to the boot camp and we started running numbers, and I would go back, you know, look over my notes, go back at night, run numbers. When I came home from the boot camp, I created a spreadsheet and I was like, all right, based on these average annual returns, if we can assume that those are, you know, about right, right, there’s high and low. But if I can assume that how does this look if I do the snowball effect? Right? So not the debt pay-down snowball, but the accumulation of, you know, periodic investments into the apartment world. And then for us at the time, we didn’t need the cash flow. Right? We were looking for equity creation and wealth building. And so it was okay, all the cash flow I want to get too, we’re going to invest that back in. How does that look if I model that out? And let’s model that through two or three property turns, right, going full cycle. And what’s that look like for us in our family? Right? And so that aha moment was literally just looking at that and going, okay, this is a path that we can follow, whether it’s on the General Partner side or just the LP side, right, which is totally fine. That we can follow to create a legacy for ourselves to live off of, but then create a legacy for our family. Right? So we don’t have kids, but we have several close nieces and nephews, and then obviously, other family members. And our goal is that we’re creating assets off this. We’re creating a legacy for them to change their lives. You know, Tasha and I, much like you, I mean, you talk about it at each boot camp, right? And it’s important to visualize and talk about where you come from. We also come from no money, right? From both of us. And so the wealth creation and the lifestyle that this allows, both in current, which is important, and also future for us and our families, is huge. And so when I ran those numbers and you start seeing that snowball effect and, you know, you have the option, do I spend the money or do I reinvest it? Right? It’s not something you have to decide upfront. Like some investment vehicles, you might get into you know, an annuity, right, where you only get a fixed amount per month per year.
Rod
Right.
David
This gives you those options so that you can change as life changes on you because we all know that’s going to happen. That was huge for me as I looked to create this legacy and just change our family dynamics and family composition as far as where we’re coming from and make it ideally so that our family members in the future can work doing things they want to do, not what they have to do to pay bills or buy groceries.
Rod
So you’re planning to contribute to these people you mentioned. I was just going to ask you what your why was. So I guess that’s the why. You want to contribute to your nieces and– financially. Is that what you’re saying or–
David
Yeah.
Rod
Okay.
David
Yeah. We’re trying to build a different lifestyle for them. Right? So, I mean, we’ve started a company with these family members in construction, right? So we have that going and he’s taking care of that. Our input and help is doing this side, which is, you know, putting in capital to create future cash flow, both for us to pay all our life expenses, but then there’s something there afterward.
Rod
Okay.
David
And I know if you look at a lot of the dynasties, if you will, that have been created, not saying that we’re a dynasty, obviously, but if you look at those, I mean, they can fall within a generation or two if they’re not set up right. Right? And so the whole goal for us is there’s just a bunch of other tactics, right, using trust and everything else to be able to set this up where you can’t kill– I look at apartments as the golden goose. Right? You can’t kill the golden goose at that point. It’s just going to keep creating for you. You can spend the cash flow to have the lifestyle that you want, but every time those assets turn, the trust manager is going to be forced to go buy similar assets, right? And that now creates something that could, you know, go on for generations with them–
Rod
Yeah, it could go on forever. Yeah, no, that could go on forever. No, that’s awesome. One other thing I want to mention is even if you’re thinking of just investing passively, I highly recommend you come to my boot camp. It’s ridiculously reasonable, number one. Number two is there’ll be a bunch of opportunities, sponsors, Warriors that will be on my panels. There’ll be billions represented by them, you know, on stage answering questions so you could see some people you may want to invest with. But most importantly, why would you give your hard-earned money to someone without having some basic understanding of what the heck it is? And that’s what you would get. And they’re frankly a kick in the ass, too. Would you say they’re a lot of fun, you came five times. You must have gotten something out of them. Yes, David?
David
They’re a blast. So I would say, you know, the first one that I went to, again, learning about syndications and the different types– you know, during your Q&A, which you have a great Q&A session that I love with the boot camps, obviously, you’re always bringing up different operators. And I raised my hand. I was called on and I was like, all right, so at that point, we’re not accredited investors. Right? We are now. And I was like, I’m unaccredited. How do I find 506(b)s? And you’re like, just wait till you sit down, buddy. You’re going to have plenty of people coming up. Most of the stuff is 506(b). And literally, I had a bunch of operators coming up talking to me, exchanging their business cards. So those opportunities opened up just by being there and asking that question.
Rod
Yeah.
Mark
Now, Rod, on that topic, you mentioned something passive versus active. David, you’ve obviously done both. I know a question I get very often is, hey, what is this door counts? What does all this mean? How does this impact you? If you could get into a little bit more specifics, David, just for the listeners, I know, again, you have done both. What have been kind of the benefits of LP versus GP? And what do you plan on moving forward? Doing only GPs, only LPs, mix of both? You know, what’s the differences there for you?
David
Sure. Yeah, so, I mean, I think a lot of it spans down to control and time, right, when you’re trying to decide the differences between the two. The returns obviously can be different too because the GPs tend to get paid after the LPS if there’s a prep on the deal. I’m sorry, preferred return. You know, we plan on continuing to go forward doing both because we do have the capital to invest. And again, that snowball effect that we looked at at the beginning, I’m not willing to pivot and change course off that because I know what that opportunity is, even though we have the GP opportunities. But for those that don’t have a ton of time, maybe you have limited capital, but you’ve got enough to get into a deal. LP side does allow you to get into the deal. You’re going to want to walk through it. I would recommend vetting the operator, then vet probably the location, then the deal itself. Right? I mean, a great operator can turn an okay deal into a great deal. A horrible operator, as we’ve seen, unfortunately within the industry, can turn even an okay deal into a horrible deal that goes back to the bank. Right? And that is a risk that you have to understand walking in like any investment, there’s always risk. So, you know, vetting the deal, vetting the location. But then the beautiful thing that I do like on the LP side, which is different from the GP side is once you make that investment, right, it’s mailbox money. So yes, you don’t have control over it. Right? You have zero control over your investment, just like a stock at that point. Right? But you’re also not having to do any work. Right? The GPs are doing all the work. The asset manager is doing the work, the property manager is doing the work, right, your maintenance guy. So you’re doing no work and you’re getting a portion of that cash flow that comes back to you when the deal is cash flowing in either monthly, quarterly, or annual returns. Right? Depending upon how much you can invest over time, again, looking at that snowball, that alone, if you can invest the right amount of money, can create, from a cash flow perspective, financial freedom for you and your family. Right?
Rod
Right.
David
So that way you can back away from active work, W-2 work, that type of stuff. Spend your time, which is the only resource we can’t create more of. Right? So spend your time in a way that you want to in your life instead of just constantly chasing a dollar actively to provide for your family. On the GP side, there are phenomenal opportunities, obviously. The advantage that I see on the GP side is it’s the exact opposite. There are huge potential upsides, but it is still a huge trade of time for a potential return. Right? It’s all sweat equity, typically on the GP side.
Rod
Right. You know, from an income standpoint, as a GP, you know you can get an acquisition fee, which, you know, we charge 3%, which on a, you know, multimillion-dollar deal is not insignificant. We’ve had them as high as a million dollars on the acquisition fee side. But yes, if you’re paying a preferred return, you really don’t see cash flow until you’ve given their investors all or most of their money back. And so I think you have the same mindset that I do. And that is, you know, it’s about cash flow. And if you can do a refinance, for example, in three to five years, give their investors their money back, and then the cash flow is there. And then obviously, if you have a liquidation event like a sale, then it’s significant because you know you’ve increased the value significantly and you’re able to pull that cash out. So are there particular markets that you’re buying in geographically that you like? Or let me ask you this, what are your favorite markets? I’ll tell people what mine are as well.
David
Sure. So we’re in some Midwest markets, I think, right now just due to tax and insurance reasons. Right?
Rod
Right.
David
So we’ve continued to invest in some of those as an LP. We’re actively looking for stuff still in Florida, despite all the insurance challenges and the constant tax challenges. Right? That’s been known in Florida and Texas and some other areas to begin with. But insurance is definitely killing deals right now. Right? But we’re still looking there. I mean, the net migrations of Florida every single year is so astronomical that I think it’s tough to ignore that market. Right?
Rod
Agreed.
David
Texas is much the same. You know, so a lot of Texas markets are the same way. Again, you’ve got tax and insurance issues there as well that you have to be able to overcome. And that’s where, again, it goes back to that underwriting side, knowing even as an LP, what to look for. Are they budgeting the right amount? Are they bumping expenses enough in the out years? What’s their reversion cap rate look like for when they sell the deal? You know, all the fundamentals because, again, a tweak on any of those, you can make a horrible deal look great and then it may underperform. Yeah. So it’s important to know that stuff walking in as an LP. I would say, again, back to the LP, GP conversation, all the work on the LP in my mind is done up front and there should be a significant amount of work, right, before you send your 50, 100K whatever over to someone.
Rod
Agreed. Get your butt to my freaking boot camp. I’ll give you another resource as well, though, if you absolutely can’t make it. Text the word “GP Questions” to “72345”. And it’s just a list of questions you should ask a General Partner before you invest in their deal. I don’t think it’s enough, but it’s definitely hugely more than most people do before they invest in a syndication. Again, that’s “GP Questions” to “72345”, and that’s a list of questions so you can really dig in on, you know, the operator and their experience and so on and so forth.
Mark
And David, the trust that you’ve had with your operators that you’ve been as an LP and you’ve done other deals, are these with other Warriors, some of the deals, all the deals? What does that look like for your teams?
David
Sure. Yeah. So some are current Warriors, some are past Warriors, some are Warrior coaches, and some were never. Right? So it’s sort of a blend. For me, a lot of it too, like, you know, use the resources you have. Right? So, once I got to know different people you know, within Rod’s ecosystem, right, again, I’ve been in the boot camp five times. So you start seeing a lot of the same people that are, you know, some of the bigger operators in there, especially the people that Rod has up on stage to talk about you know, war stories and some of the other stuff that’s important to know within the industry. But you start building trust with them and a relationship with them, right? And then I would leverage that as we’re making investments, I would ask, you know, and pick their brain for either an investment recommendation of stuff that they’ve seen. Maybe I haven’t seen it yet. Or when I’ve got an investment that I’m looking at, you know, bounce that off them and go, okay, what do you think about this operator? What do you think about this investment? Have you seen the underwriting? You know, what are your thoughts on it? Because you’re someone I trust. Maybe this is a new operator that I’m looking at. What are your thoughts? Right?
Rod
That’s one of the biggest advantages of being in a group like ours. I don’t care if it’s ours or not, but being in a group of like-minded, equally, you know, educated and experienced people that have done this business so you can do just what you just described. I mean, that just gives you so much comfort. Wouldn’t you agree, David?
David
Yeah, it’s huge. I mean, again, on a typical deal, you’re throwing 50 to 100K across the line. Right? And so for a lot of people, that’s a year, two, maybe three years of savings. Right? I would definitely say that you should spend more than five minutes figuring out if that’s the right person to send that money.
Rod
Thank you. Thank you. Thank you. Yeah. By the way, guys, you know, you hear us talking about the Warrior program a lot and got an exemplary example from the program here today. If you are interested in applying to our program, text the word “crush” to “72345”, and we can help you crush it in this business. I know it’s a little cheesy, but that’s where we came up with that. So, again, we look you over, you look us over. We absolutely don’t take everybody, but, you know, if I get a hint of ego, it’s not happening because actually part of my job at this point is to protect the program as much as it is to build it. But if you want to apply, text the word “crush” to “72345”, and we’d love to chat with you about it. So let me ask you this, David, this is a question I’ve never asked before, but, you know, if heaven exists, what would you like to hear God say when you arrive at the pearly gates?
David
For me, you know, it’s biblical, but well done, my good and faithful servant. Right? Life throws a ton of challenges to us. And obviously, I’d like them to open the gate when I get there.
Rod
Right.
David
That’s all he says. You know, and I would like to be there and be able to look down on family and know that they’re taken care of. I think that’s incredibly important. So regardless of your faith disposition.
Rod
No, I agree. And honestly, it doesn’t matter. You live the right way. You take care of people. You know, I tell the story about– and we’re doing it again at this Orlando event where we recognized some of our exemplary Warriors at the Denver event. I don’t know if it’s the one you were at or not, but the last one, I think. And there were ten Warriors there. And we put up a slide for each one of them. And every single one of them does something to make the world a better place. You know, human trafficking, veterans’ suicide, veterans’ homelessness, all things I’m very passionate about as well. Building schools in India, on and on and on. And it was just like, holy crap, look at that. Every single one of them does something outside of themselves. It’s not just about themselves. So, guys, that is what we call a freaking clue. Okay?
David
Yeah. Absolutely. And if I can, Rod, because I know that you’re not going to do it and self-promote on this piece. But, you know, those people already had that in them, right?
Rod
Yeah.
David
But what you’ve created in this ecosystem with everybody being able to connect, leverage off each other, build more, succeed at a higher level unlocks additional levels for them to be able to contribute back in a society that they might not have been able to. Right? So I’ll take my buddy Eric. Right? He gets a group, a lot of them come from the Warrior group, and they’re doing the RIM challenge, and they’re doing all that stuff. Right? Walking to end veteran homelessness which is very near and dear to my heart as well as a vet.
Rod
Of course.
David
And, you know, he’s got several projects that he’s involved with for that. And I know they also do give back to that. Right?
Rod
Right.
David
Another investor that I’m invested with that’s been on your stage numerous times, they also have a charitable aspect, as does the company that I’m working with right now. Right? So a lot of these companies and people that have made it big by either going through your ecosystem or being involved with it are now giving back to the world in ways that you as a single human probably can’t do alone with your limitation, again, on time. Right?
Rod
Yeah.
David
They’re able to because you’ve now duplicated that out.
Rod
I appreciate that shout-out, you know. I just try to alert people to that dynamic, you know, based on my experience where I was totally focused on me for decades and having an epiphany and feeding some families and just how life-changing it was. In fact, we just scheduled our basket brigade. You know, we’ve done tens of thousands of backpacks filled with– not basket, I’m sorry, backpack. Backpack Brigade. We’ve done tens of thousands of backpacks with school supplies, and we’re doing 1,500 this August 4th. We just scheduled it here in Sarasota. But I appreciate that, brother.
David
Absolutely.
Mark
So I want to end with one thing here you know, in terms of just getting out there and doing deals. I know you’re talking about insurance killing deals, taxes, obviously, interest rates killing a lot of deals right now. I think that’s the obvious one. What do you think is going to be the best way, if you were to just pick one or two, to find deals moving forward in this market?
David
Yeah. I mean, I think right now it’s still a lot of broker relations. Right? I know we also teach in the boot camp talks about off-market deals. I’ve got experience in the past of doing cold calling off-market, trying to get to apartment owners, and getting hung up on by a lot of gatekeepers, right? I mean, that happens along the way. And a few of those deals started going somewhere, but none of them made it across the finish line. All the deals that I’ve been involved with so far have had a broker involved at one point in time or another throughout the deal. I think it’s critically important right now to have that broker involved because that’s the person that the seller is trusting. And the numbers aren’t what they were a year ago. Right? And so that’s where we’re seeing a lot of issues with lack of transaction count is sellers still have you know, their mind fixed on last year or the year before numbers. They’re not seeing them. And so they’re either not wanting to trade or they’re just rejecting all offers. And it takes that broker to sort of be, you know, the transactional party to go back to the owner and go, look, I get what you wanted. Here’s why you wanted to sell, though. Right? Tied back into that emotion, here’s what the market is telling you that it’s worth. Your options are moving forward with one of these, or we’re probably waiting two or three years till the market settles down and then you can start getting back some of those valuations.
Rod
It’s all about expectations right now, and the seller expectations are still high. That said, there’s a lot of pain coming in our environment. I mean, we won’t even talk about office, but there’s half a trillion in multifamily debt coming due by the end of next year. 1.6 trillion total in commercial real estate debt. And I was shocked to hear that a third of all commercial real estate debt is adjustable rate. And, you know, there’s going to be some pain there. There are going to be some distressed assets. And we’re excited. I really believe there’s going to be an opportunity. And I think, you know, the challenge moving forward isn’t going to be finding the deals. It’s going to be finding the money for the deals, including debt, debt, and equity. So I think that’s going to be more of a challenge. Well, listen, brother, I appreciate you coming on, David. You added tremendous value. I’m really impressed with your answers. And I’m sure I’ll see you in Orlando just because that’s what you do. But anyway, say hi to the boss for me and–
David
Well, give her a hug.
Rod
Give her a hug from Tiffany and I. And I appreciate you coming on, my friend.
David
Appreciate you and see you soon, Rod.
Outro
So one other quick thing. We encounter so many people that are frankly frustrated. They’re looking in the mirror and they’re frustrated that they haven’t been able to escape the rat race. They haven’t been able to build cash flow to the point where they’re able to have financial and time freedom with their families. And maybe they see other people buying real estate and creating incredible cash flow and they think well, it’s just scary. You know, buying apartments is intimidating. And I get it. See, that’s why we created our Warrior Mentorship Program. They’re our coaching students and they’ve had extraordinary results. My students, I’ve been teaching about five years and they own upwards of 140,000 units now that we know of, right? And we feel like it’s just getting going. Now, we’re looking to grow this group and really take it to the next level and honestly believe that the greatest transfer of wealth could be upon us right now with this current economic environment. Everything’s going on sale. So we’re looking for people who want to follow a proven framework, really like a blueprint or a map, literally, step by step. And then they’re able to leverage our systems and our incredible network to raise money and equity, to find deals and close those deals and build partnerships, really nationwide. So if you’re interested in finding out more about how you can become more in our incredible network and take advantage of the unbelievable opportunities that are upon us, you can apply to my Warrior Mentorship Program by texting the word “CRUSH” to “72345”, or you can go to “MentorWithRod.com”, and what we’ll do is we’ll set up a call so you can check us out and we can check you out and see if it’s a fit. Now, again, you can go to “MentorWithRod.com” or text the word “CRUSH” to “72345” to apply and we will speak soon.
