Episode 416

Multifamily Real Estate Investing with Kenny Wolfe

Kenny Wolfe is an experienced multifamily syndicator, the founder and CEO of Wolfe Investments, and published author of “Investing in the Dream: How to Acquire Multifamily Real Estate and Attain Total Financial Freedom”. He invested in his first multifamily property in 2010 and instantly saw the potential for real estate to transform his life - giving him the opportunity to quit his day job and start a company.

Kenny is passionate about helping others attain financial freedom through real estate investing. He believes in the power of passive income (making money while you sleep) and encourages others to think beyond traditional investments to grow their wealth. Kenny has been involved in over $567-million worth of commercial real estate transactions nationwide and is a principal in 5,575 units (7,397 units all-time).

Connect with Kenny Wolfe: https://wolfe-investments.com/

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"You can invest 10,000 hours and become an expert or learn from those who have already made that investment." - Jack

Transcript
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So, at the ripe age of 23, right out of college, my wife and I bought a tanning salon that's actually not very well known, but we did buy a tanning salon and I call it my wife MBA because it cost us as much as one.

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Welcome to the REI Mastermind network, where host Jack has gathers amazing stories from leaders in real estate investing.

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In each episode, our guests will tell you what they're doing that works what they've tried that failed, and best of all, you'll learn actionable steps to take your real estate investing.

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To the next level now, here's Jack with another value packed episode.

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I have Kenny Wolf with me here today and you can learn more about him and his team at wolf-investments.com.

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I'll make sure to have that link in the show notes, but we're going to be talking about all things multifamily, investing here today, and I appreciate you giving me some time.

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Yeah, absolutely thanks JD.

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I appreciate you having.

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Me on.

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I have to ask, multifamily investing is something that seems to be aspirational, especially when it.

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Comes to first time investors, just like we're playing a big game of Monopoly.

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If you will, we're going to trade up to that one day.

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What was your path to multifamily investing?

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I've actually never owned a single-family rental him.

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Obviously, my own house I lived in so I jumped right into multifamily.

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I went from zero units 76 and really that was because I wanted to scale up quickly. I solve the scalability loans or better, the only kind of hurdle for folks is how much money can you raise or bring to the table so.

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. I've been syndicating since:

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Or think 10 investors on that first deal bought 76 units in Wylie, TX so.

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If you don't mind me asking, then you jumped right into multifamily.

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What was your progress to prepare for it and get all your ducks in a row?

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And how did?

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That process look.

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Sure, so before that I was, I was actually a CFO of an oil and gas company at the age of 28.

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So, I gotta I was quick to move up in the ranks and their own gas business.

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But anyway, so all that was coming to an end and wanted to get out of the on-gas business.

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It's always feast or famine in that industry so.

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I won't spend more, a little less a cyclical.

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Everything has cycles, but nothing like oil and gas and talked to some a trust fund kid.

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She was a family friend, so I want to be like you when I grow up.

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Where do you invest?

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How do you get cash flow when?

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She pointed me.

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To multifamily syndication, she did it passively.

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I wasn't, I didn't have her money behind me just to do it passively to hit my goals and.

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With the syndication route and lead the charge on that so.

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Really, that was what for me, so I jumped into multifamily syndications here in Dallas Fort Worth as a passive and so that's where I learned, because I knew I didn't know what I did.

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No, I didn't know who to have on the team.

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I did know some accounting background so I could read the financials very easily.

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That was a leg up, but I didn't know management companies.

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The insurance, the mortgage brokers, all that those two investments.

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Great would that team be up to be a syndicator?

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My third multifamily and delete on that and then that second went to do as something that a lot of folks or folks don't know or provide any guidance on.

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Is that second deal was a fan e-mail.

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And so, me being a passive in that Fannie Mae load allowed me to get a non-recourse.

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Then you may alone on 1st indication deal.

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OK, and this is really interesting that you jumped.

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First of all, jumped right into multifamily investing like this.

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And then secondly, you jumped right into syndication so quickly.

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Did you go through some sort of mentorship program?

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I know you provide some, you have a summit coming up actually in November and then again in February to provide this type of education.

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But did you go through some sort of mentorship yourself?

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Yeah, I did.

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On that on my alumni from 2 actually so I started with Lifestyles unlimited and then was Brad, some rocks first student before he even had a had a education platform, a mentorship group there and then.

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Then we parted weight bradnock prior part ways about 7-8 years ago. Just went on my own and was able to expand the business a little bit faster by doing that.

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You move from 1 industry to another and that's this is a big change for you.

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What type of a-ha moments if you will?

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Did you experience to make you?

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Get your mind right to.

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Make this kind of bold.

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So, all the numbers guy, right?

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So, I think what really drew me initially to multifamily.

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I've always loved real estate and I had tons of books in the library.

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And finally, my wife gave me a push and said, hey, you got to go do something and stop buying more books.

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But so anyway, which is good, and we all need that some thoughts, but really, it was like what spoke to me about multifamily over single family.

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Was that a couple things but one is like.

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Like it's all net operating income base right?

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So, net income, it's all a numbers game, revenue minus expenses and being an accounting background that really was way easier for me to figure out than say single family where it's all comp based, right?

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But that was a big draw, it was it's scalable. So, I you can go. And especially with non-recourse lending you can be on $250 million.

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Of loans and still get well, it doesn't count against your.

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Balance sheet and then.

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So, by buying bigger properties you can afford to have really great on-site staff, professional property management and all those things.

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anybody, but we've done over:

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And you definitely don't want me changing out a toilet, so again, it's a way for me to scale, scale up where I could focus on managing the asset, and keep building our portfolio.

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And that's why I enjoyed and.

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Where I cannot bring a lot of value.

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Could you kind of give us a breakdown?

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What are you investing in now regarding or is it a Class B Class C class?

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And in what part of the country do you invest in?

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Do you stay in your backyard?

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So, we have a very big backyard, so we own we.

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I just said we want to rate:

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So, we have multifamily in Texas, Ohio, Oklahoma and almost losing out in Georgia.

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So, those are the four states we're in right now where we own multifamily, I do after COVID that really pushed me more towards.

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Maybe just a few weeks ago we bought a D class to convert it to an A so there's projects like that and so we're still investing in Texas and Ohio a lot.

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We're trying to grow some more in Georgia as well, so we buy existing multifamily.

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We also started to do developing multifamily assets about five years ago.

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Both ground up, multifamily, and then we're we have 9.

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Office downtown office towers we've bought and we're converting to multifamily as well.

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Are you trying to keep them a mixed-use in that situation, or is it strictly converting them to?

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Yeah, I don't be like:

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We've got a few right now that we're getting some commercial, pretty big commercial names.

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Interested being in this bottom floor, and it's almost always restaurant retail.

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But mostly it's going to be a:

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Is it resi and then the bottom four will be retail restaurant?

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You picked those five locations.

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Is there a reason you selected those or is there a certain part of your underwriting that helps you picked in?

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It territory.

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Yeah, so we like those states were in multifamily.

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You have to forget you don't have to.

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I guess people don't do it, but I always thought that you wanted to be in a in a landlord friendly state.

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So, if they don't pay, you have to be able to evict 'cause I still pay my mortgage and we've stayed away from non-landlord friendly states.

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So, we just set to those five.

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There's a whole bunch more outside than today.

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You can only do so much, and those are pretty big states.

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There were multiple markets in each of those states as well in Texas and Ohio, so we've got a pretty broad.

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Range, is there a certain size property that you're shooting for?

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Or is there what?

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How big of a deal have are you typically gunning for?

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So, the minimum we'll do is about 100 units. We now that's.

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That rules meant to be broken. We just picked up to 58-unit properties, but they're right next door to another 120-unit property we already own so that those were pretty easy pickups, but we're buying.

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Biggest property bought today. It was 430 units in one location. I don't know if I'd go above that.

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It's to move the needle on occupancy, especially if it's a big rehab deal. You gotta be with 10%.

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That's 43 units, so there's somewhere in between is where we're looking to buy. Definitely over 100 is the preference.

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Is there anything that surprised you moving from realistic to real estate?

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Investing from your previous.

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Oh, I'm being in the oil and gas business on the accounting side and doing business in Texas and Louisiana.

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We kind of prep me to do business anywhere.

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If you can do business in Louisiana.

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It's just a different world out there.

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Not really in this business.

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It's a very especially multifamily specific.

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It's just specifically, its very small world, so you see, everybody knows everybody or someone who knows.

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You're about two people away, one person away from knowing everybody in the business, it seems so.

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It's a very tight knit community, and so there really wasn't much difference than oil and gas.

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Typically, a handshakes handshake deal and you know most of the time here in the multi family.

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In the multifamily world, which is.

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Most multifamily investors that I run to seem to have different strategies on whether they're adding value or just looking for stabilized properties.

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What are you doing in this scenario?

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Are you trying to find value adds or are you just simply trying to find those stable properties to add to your portal?

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We're almost always looking for value at where that's a big kind of a driver to our businesses and consistently providing value to our investors.

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And it's really based around, just to know why you got to keep driving up that no, and it can be a unit interior program and or our management play.

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You could just have really bad or they're not capturing on.

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Enough parking income or there's things like that and you can play around with, but it's always somehow trying to add value.

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Today, especially with interest rates that they crept up and then cap rates really haven't moved all that much yet.

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It's tough to buy those yield place and might we actually do.

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We also buy triple net properties as well, so we buy those for cash flow if you want monthly stable cash flows or great multi families could on cash flow.

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But it's operations, so it's going to be.

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It's going to fluctuate.

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But so, to buy one just for a cash flow.

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For multifamily, is that typically our bag?

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Now, our rules were meant to be broken, but for the most part we're always focused on adding value to our residents and the property.

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So, what are some of the value-add strategies that you're implementing to make?

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Use of that.

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Sure, yeah, obviously the interiors those are the big wow factor.

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You want to have that everybody HDTV got so popular because you have that big wow factor, but so really, it's focusing on when our potential residents walk through that door.

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What's going to really set us apart and and what's going to make them want to live there?

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And it's really everybody wants a place.

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They can call home.

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That they're proud of, and so.

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It's really going that extra mile and figuring out how can we fit a class amenities into a, B or C.

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Plus, now we can't.

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We're probably not going to have granted in a C Class.

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That's just not going to make sense, but can you add something that looks and feels?

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Maybe like grant. You know some kind of extra value that maybe our competitors aren't doing that class style back slash. I love that stuff 'cause most of the time when you walk.

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In that front door, usually the kitchen is one of the first things, so you have that glass tile backsplash.

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Just giving that wow factor.

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Obviously, the bathrooms are a big deal too much really those.

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All things that you can do to accept yourself on there and you also have to be cognizant of not over improving the unit as well.

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Just like I said on a C Class, I've seen people try to put granite and they lost money on that deal.

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They weren't making enough rent premium by adding that in there, so you have to.

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Be careful of that.

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Is there any of those amenities that you're talking about those strategies that?

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Was the biggest surprise for you.

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That was the least costly, but provided the biggest return.

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Oh, reserved parking hands down that is amazing.

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We were.

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We've been using it down here in Texas and we bought some our first acquisitions in Ohio were in Columbus, OH.

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They weren't really doing reserved parking, it was just wasn't a thing and so really it was a way to introduce that.

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Had a hard moment there about a year and owning that thing we were.

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I walked in visiting the property.

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Talked to the man.

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Ginger and she said yeah.

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Last week we had two residents fighting over one of the handicap spots that they both thought it was there's I'm like well.

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served, so we're making extra:

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Where we weren't capitalizing and all that are all socially or and especially from the seller.

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So, that's an extra boost.

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The income and residents like it.

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It's there's they can make sure that they can quickly get from their car into their unit with groceries and all that.

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So, that's why it's one of the cool thing.

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Just a reminder everybody we're talking to Kenny Wolf, and you can learn more about him and his team at wolf-investments.com.

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So, that's really interesting.

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I guess that's something that's not in my market.

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Actually, this concept of reserved parking.

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How are you finding these properties?

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Are they coming to you directly from the mills and Realtors, or are you finding them from mom and pop?

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Your sourcing sure, yeah, so in 12 years of investing in multifamily, I've had one where I actually got directly from a seller, but other than that they must always.

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Go through brokers.

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I get folks.

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That like hand write letters to me to buy my properties and they just go directly in the trash.

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It's just if you.

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Yeah, when you're playing in this space minimum, you have to.

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Eventually you gotta bring it.

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bucks to buy it:

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So, there's an extra little hoop you have to jump through to actually divide these multifamily assets, and they have to be.

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You got to have a qualified buyer.

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So, really, it's really through brokers for the most part, some of them have been off market through brokers, so in the past I've got a few properties where I actually talked to a few of the brokers in the markets that we were in or wanted to be in said Hey, you go find me some deals and it's truly off market.

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I'll pay you a point of the purchase price and then go get as much as you can.

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From them to sell it, so I've actually picked up some.

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Properties that way and that was a great tool.

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Not every broker will do that, but when you can't find that, it's a pretty powerful tool because you don't have time.

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To sit there.

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And and, uh, call or cold call.

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Or you shouldn't have that image amount of time to cold call these owners.

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And then if you do, it's mostly you're going to be click and hanging up.

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But if a broker calls, hey, I've got a buyer that.

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Interested, except you instantly, it raises your credibility.

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Could you talk about one of your current projects right now?

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What are you working on or what was your latest acquisition?

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Sure, our latest acquisition is we actually bought a senior living facility here in Dallas Fort Worth, right on the highway.

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We're converting it from senior living to conventional multifamily, so that's going to be a really cool project lined up with about 190 units.

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In that location, with potentially to build the second tower on top of the group parking garage.

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So, we're looking at that right now.

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That was a new acquisition we did on their existing multifamily. We bought some everything. Like I said, this year we bought up UA's and even a D in the portfolio. And it's really kind of figuring out how to add value to those as well. Mostly in Texas and Ohio this year.

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So, D class properties.

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What makes it a D class property in this situation is that the current condition, the location.

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Well, definitely not the location.

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So, if you're going to for us anyways, if we're going to buy a D class, I want it to be in a B or an 8 class location.

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I want it to be the worst property on the block.

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There's some really good money in those kinds of properties, but eyes wide open.

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You tell our investors on those.

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This is not a cash flow play for day one, and maybe it will probably do a cash out refi and get.

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Back maybe:

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And then over cash flow.

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But this is a big appreciation play.

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It's really for those we're looking for.

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D class in B or A and a better-defined D flash, right?

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So, D classes at tell folks like its properties where you and I probably don't feel comfortable during the daylight hours.

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It's that bad, so that defines the D, But if it's a D class and ADI location, we wouldn't invest in that.

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Tell us a little bit about more about that D class.

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What are your plans in that particular?

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ure, so that one was built in:

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You've got on a restaurant retail right across the street from an elementary school as well, but so it's an older property and what we're doing is basically taking it down to the studs.

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Right now, it's all window units in those, and some of them.

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It's just a window unit in the bedroom, not in the kitchen, so it's not great right now, so we're actually going to take you down to studs.

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putting it. We bought it for:

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About 45 Adora of Rehab, so it's going to be a big, heavy lift. It's our heaviest lift per door on an existing multifamily property to date, but really, that's it is bringing that unit interiors up. We'll do so.

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look like it wasn't built in:

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Added is really its location is great, just this support later on asset.

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Do you displace or you try?

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Was it completely vacant?

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Do you try to?

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You don't renew the contracts.

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No, it's very bold.

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How do you deal with the current residents while you're trying to do?

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Sure, yeah, I know it was very full.

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I actually got yelled at the first week we bought it.

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I was outside walking the property and we got yelled at.

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But anyways, we actually on that one because of this heavy lift.

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That one we actually vacated half the building.

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So, on renewals, we just weren't renewing folks and all that, so we have half the property bakator.

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Right now, the cruise in there.

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It's a lot faster for us to do work like that.

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It's all vacated and obviously we're upfront with their investors. You have a 50% occupied building or property. You're not going to cash flow, but the guys are in there. They will go a lot faster on building out those units when you do it.

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That way.

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OK, that's interesting.

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So, let's talk a little bit about your syndications and how that works.

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What type of investor do you is ideal for you?

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Or what type of questions should they be asking themselves to make sure it's a good fit?

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Sure, we've got a wide range of investors and everything from teachers to engineers and some family offices now as well.

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So, wide range, so really, it's our minimums are 50K across the board on all of our investments. Their specific offerings.

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So, if you come into a multi-family or a development project with us, you know exactly which building your.

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It's not in a fund where it's a lot like a wine fund, but it's their specific offerings on there, so it's really, really that's it.

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If they come in or we got to set up a conversation with them, or you do 506 B's but phone calls or meetings here in our Plano office and the Child investor list, and you're on the portal, you'll start getting deal flow from US offerings and then.

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Join us if, if and when you're ready.

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OK, so you is essentially work with accredited investors.

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Accredited we also do sophisticated as well. I was actually just on a phone call with again my day 21 years old.

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Her parents have been saving some money from us as well.

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Our rush from my.

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Side saving money.

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From her, and so she they're going to actually fund.

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Part of what?

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She should be able to fund and investment.

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And so, we were.

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I was talking to her, making sure she is sophisticated, does she?

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Understand the she doesn't either.

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Understand that fold like how to evict anybody.

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But she does need to know there's risk out there.

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We buy this just like any investment, there's risks.

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Where we may not hit our projections, we may be rare through like the cash flow we may project 8.

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We may hit six the first year or those kinds of things and make sure she understood that, but so we do.

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We do take sophisticated not just a crowd.

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We take our credit as well.

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Most of our investors are, but there are few sophisticated.

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So, what's the outlook there?

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Does that person have a?

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Commitment to that specific property for X number of years or what's the exit strategy?

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Sure, it's all.

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Specifically, one she's coming into is a B class multifamily property that one is going to be held probably 5 to 7 year whole and then and then we'll do a cash out refi around year two or three.

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We try to our aims to get about 50% or more of their investment back to investors through the reef. I this one I think we're actually gonna hit about 80%. It's a.

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Decent value ideal, so I'll socially get pretty good money back there and then we're talking to her actually about how to snowball your holdings through that re Fi.

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If you reinvest that, you'll still have ownership in the first investment.

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Then you reinvest into another property, and you have two properties, so it's a great way to snowball your passive income.

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So, we walk in through that, but that's what they typically look like.

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We've sold properties within.

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We're selling one now.

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Well, double the investors' money in months they don't all do that, but we got a crazy offer shows to close.

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Here in the next month.

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But usually, we'll hold them five to seven years.

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What are your plans then?

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For Wolf Investments you what's your short-term plan and then let's go into your long-term plan.

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As it seems like you're obviously growing at a pretty steady pace here.

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Yeah, we so back in a great book for any business owner is called traction.

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But does the OS model and all that.

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So, I sat down in:

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But you can figure out what the stands for, but the big hairy goal, but anyway, so that was when I sat down.

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In:

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We do a quarterly meeting up here and then we're on track with all of our development projects and acquisitions.

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If I break the billion dollars in the next 12 to 18 months.

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So, we're way ahead of schedule.

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So, I had to reset the goal, but I think a great way to measure your business because we absolutely buy a property will continue to add value to it as well, so that is the kind of accurate for our existing properties.

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We want to keep always improving and adding value.

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Yeah, that's one of the biggest tips.

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I can't.

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I can't stress enough is 1 one that you just provided there.

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Kenny is the fact that you sat down.

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And created that.

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Wrote that goal down actually envisioned it.

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Don't you find that once you do that, or go through that exercise, it does become achievable.

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And in your case, you're.

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Yeah, I mean this is great.

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You have to start with the tenant so that book has you sit down inside the 10-year goal and then OK, so that if that's the goal then you kind of work backwards and jumps.

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It makes it more digestible.

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It's a big goal.

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It's a big, scary goal, right?

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That's what you're trying to do.

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Trying to push yourself, let it breaks it down to OK by year five or where do I need to be by to get there?

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OK, where's?

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You're 3, you're 1.

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And breaks it down all the way down to the quarter.

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Quarterly improvements you're trying to see.

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But yeah, if you don't have a goal, or if you don't set a goal, you'll never reach it.

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Obviously, and it's just easier to grow its color knowledge, but I don't think a lot of folks like used it, but you'll probably miss the next quarter or two, but in the long run, the year 3, you'll do more than what?

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You thought you could do.

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So, just snowballs, let's and hate to.

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Linger on this too long, but that can lesson.

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There is a lot of people will read that book or listen to that book on.

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Portable, but not actually implemented as if this is all going to happen through some sort of osmosis that we're just going to absorb this, and it's just going to happen.

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Sat down and implemented and did the strategies outlined in the book.

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That's a big difference.

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Yeah, that and then like in in real.

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Estate it's always networking.

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It's you've got a network, and this is a everybody who says it but and it's overused, but it really is a team sport.

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We're not lying at all.

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Everybody that says that you've got a network if you're just.

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Singing oh, watching YouTube or reading real estate books.

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You'll never.

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You'll probably never get a real estate deal about or an investment for that matter.

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Like we mentioned earlier, you have a summit coming up here very soon.

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What do you typically cover in that?

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Its great people make that investment time and maybe a financial investment.

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I guess we didn't talk about if there's a cost.

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Associated with it.

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But if there is.

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Says that more times than not, what would you say? 90% of those people that go actually don't implement what you teach a big. There's a big difference between the people that attend these.

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Type of things.

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Absolutely, ours is a little bit or I should say a lot different, so we don't sell anything at the end.

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There's no, we call it the anti-Guru event, not like we're anti guru.

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So, me of those guys were our friends but we there's no 19.

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1999-dollar thing to buy at the Saturday night this is Jeff Education in network and so we fly in speakers for Saturday morning through about noon and then and then Saturday afternoon.

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So, we'll just breakout sessions and it's just the one day of that Friday night.

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There's a VIP network and get better.

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And it's like I said, it's just networking.

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You meet everybody from seasoned syndicators all the way down to newbies.

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We had some 15 year olds that showed up at the one in Seattle we did in July.

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It was great.

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They were taking notes.

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It was awesome to see young people like starting to get into this stop.

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I get pumped about that.

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I've got a 13-year-old daughter who has already started really investing real estate at the edge, its head and so when they can start that.

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Yeah, I've heard that.

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Yeah man, I wish I started a patent, but it's great.

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It's exciting to see just a wide range of people that come to that of that, and you meet other investors.

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You meet passives.

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You meet like I.

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Said syndicators as well. Kenny, this was a great conversation again. I'm just going to remind everybody Wolf that's with any wolf-investments.com and I'll make sure to have that link in the show notes.

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But Kenny, I do have some rapid-fire questions as we wrap this up here today.

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Yeah, let's go.

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Here's your chance to bust a real estate investing myth.

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We've seen these late-night programs promising the world.

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What do you want to bust here today?

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Oh man, the one I love the bus is the ones where they these again I'm picking on the gurus, and they are some of them are my friends.

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But they tell you, oh, you can retire by two or three apartment building.

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But there are more hands on than that.

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It's not just there, there's passives and their active investors.

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And if you want to be a passive and truly retire, you don't need to go buy your own apartment.

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Because they are more hands on than what is promoted out there.

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I love the job.

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I love being an active investor, so that's where I need to be, and we have got.

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We've got:

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But yeah, the whole retire and buy two or three buildings and you want to work again.

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The ship might eyes on the beach is a little bit of a misnomer.

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Come on, Kenny, it's all mailbox money, it just shows what book would you recommend or what are you reading right?

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Exactly, yeah.

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Now, I won't recommend my own book that's on Amazon, but investing in the dream.

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But what I'm reading right now I just got done reading the I love biographies business bag.

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Here is my daughter rolls her eyes.

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I mean she likes all that she likes fiction.

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I love nonfiction.

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I love reading about business folks and how they grew their business.

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That's really my focus.

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The one I just finished was the one on John D.

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Rockefeller was just amazed at how he did it, stuck to it, and how big of a business he did as well.

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So, that's great, I guess 700 pages. I don't know something crazy. It took me a little bit.

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But it's a that's a great read, not really real estate related, but I took a lot of points from that business, and you can apply it to your own or your own investment criteria.

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Yeah, it doesn't have to be real estate in related.

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It's amazing what lessons you can learn from any some.

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There's been some amazing people that have graced.

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Our world and its.

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There's always a lesson somewhere.

::

What is the biggest business mistake you've made and what did you learn from it?

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So, at the ripe age of 23, right out of college and my wife and I bought a tanning salon that's actually not very well known, but we did buy a tanning salon and I call it my wife MBA because it cost us as much as one.

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But I already had my so anyway, so we bought one of those thinking we could.

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It was a small moment pop.

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The numbers look great.

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We found out that they fed the little bit or a lot on that.

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So, really the big business lesson we learned was.

::

If you're gonna go.

::

Big or go home?

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We wanted something where you know our goal with that was always to grow it enough to where she didn't have to work in the business, and we just couldn't get there.

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It was just too small of a business, and you couldn't do it.

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So, we ended up just closing the doors and wrapping that one up, taking the loss.

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But big lesson is, if you're going to do something, make sure it's scalable and again just go big or.

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Go home, well, here's a time for a little.

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Fun. What is your favorite?

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Error movie oh man, I love fifth element.

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Uh, yeah, that that is one of my favorite.

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Hey awesome.

::

I'll watch it at least once a year.

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That's why it's so it's a good one.

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Yeah, that's.

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Good one if you could go back in time and give your younger self one piece of advice, what would?

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That be.

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Get started earlier I was at 16.

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I was trading stops and that was back in the late 90s, so I thought I was a genius.

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When I grew it and when I doubled it and then it went back down to its value and the crash.

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But I wish I would have started buying real estate earlier. I started at 28. I know that's young for a lot of folks, but again, we're seeing these 21 year olds. This 50 year olds. These 10 year olds doing real estate deals and.

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I just kudos to them.

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I wish I would.

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Have started earlier.

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Thank you.

::

Kenny is there a question or concept you wish we would have touched on here today?

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I think diversifying in real estate is great. I personally have 95.

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Percent of my net worth in real estate, but it's spread over cash, levy properties, cash, land growth and then our development deals, which were all on appreciation and you can be too diversified.

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I think so.

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We stick to four things we do up here at Wolf Investments, but I mean we'll go beyond those four, but it's really being diversified because you'll have a property that does.

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Better than you think, and one that takes an extra year or two then what you thought and so if you can get multiple those properties going, obviously they average each other out.

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But also, you'll have different capital events as well, so if one of them is faster, we get to retire or sell faster.

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You can redeploy that money.

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Or this one still cooking and making more value for you.

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I think diversifying is key and a lot of folks out there in the real estate world.

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Just think that's a bad word.

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The D word, but I think I actually think it's very important to be diversified in the investment world.

::

That's great advice, Kenny.

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I really appreciate your time.

::

One last time, Wolf Dash investments.

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Com check out the show notes, I'll make sure it's a clickable link there and if you found some value in today's show, would you take a moment and share it with a friend?

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There's a lot of value Kenny brought to the episode, and I really value it.

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So, appreciate it again.

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Kenny, and you're welcome back anytime.

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I hope you'll take me up on that invite.

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Absolutely, JD I appreciate.

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Thanks for having me on.

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Thank you.

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Have you learned at least one actionable step to incorporate into your real estate investing?

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If so, please consider returning some of that value by leaving a positive review, subscribing to our YouTube channel, or joining our growing network on Facebook and Twitter.

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You can find links to all of our social media accounts.

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In the show notes. See you next time.