Here’s Why Multifamily Investing Can Suck

We love investing of all kinds; single-family, multifamily, apartments, and commercial buildings. But, every one of these assets comes with different challenges.

Today, I have my Chief Marketing Officer, Danielle Hollembaek, talking about her experience partnering in and managing a multifamily/mixed-use apartment building.

She will go into the reasons you want to properly vet your multifamily deals, why the bigger cashflow potential isn’t always worth it, and her experience with smaller multifamily versus an apartment building.

Listen now!

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TRANSCRIPTS:

Speaker 1 (00:00):

Hello, my fellow Ripples. This is Chris Miles, your cashflow expert and anti financianal advisor.

Speaker 2 (00:07):

Chris Miles was able to retire twice by the time he was 39 years old, but he’s not content to just enjoy his own financial freedom and peace of mind. Chris wants you to have your own ripple effect so you can live free today. He’s not the financial advisor you expected. He’s the non-financial advisor you deserve. He’s jumping behind the mic right now, ready to make waves. Here’s Chris Miles

Speaker 1 (00:38):

One our show. It’s for you. Those that work so fricking hard for your money and you’re now ready for your money, start working harder for you today. You want that freedom of cashflow now, not 30 or 40 years from now, but you want it right now so you can live that life that you love with those you love. But guys, we know it’s not just about getting rich because it’s about living a rich life. As you are blessed financially, the greater you prosper, the greater you can bless the lives of those around you. And that is why you want to be rich. Not because you just want to be comfort, which is nice, be comfortable, but you really want more out of life. So thank you for tuning in and thank you for allowing me to create a ripple effect through you. As you guys tune in, you’ve been bing and sharing this with others so that we can bless more lives as well.

(01:16)
Thank you so much for doing so. As a reminder, if you haven’t done so already, I know a lot of you have been asking about infinite banking, you want to know more about that, go to our website, money ripples.com. There’s a section all about it so you can learn how you can get your investment money to pay you twice. Check that out now. Hey guys. So as you can see here, I’ve got a special guest, right? It’s pretty rare that I have anybody in the studio with me because I’m kind of a loner apparently. So I’m obviously not with myself or I am with myself. That sounded weird. I just like to be by myself. So anyways, so I’m here in the studio today with Danielle Hollenback. Now, if you saw the episode, it’s probably, boy, it’s been almost two years.

Speaker 3 (01:55):

It’s been two years.

Speaker 1 (01:56):

So if you watch about 200 episodes ago, you might’ve seen Danielle, but Danielle is really my number two in my company here in Money Ripples, right? She’s our chief marketing officer. She’s somebody that really is helping to create this. I mean, this is all because of Danielle when I hired you. Now it’s going on almost three years now, isn’t it? Yeah,

Speaker 3 (02:15):

Three years of summer.

Speaker 1 (02:16):

That’s right. Yeah. So anyways, excited to have her today because we don’t want to just talk about Money Ripples and the mission, which is always fun of course, but really want to talk about real estate investing and especially why would multifamily real estate investing, which I know many people will say on different podcasts, that multifamily investing is the way to go. You ever buy a single family home? We’re going to have a conversation today about why that might suck and why you maybe want to question what they’re telling you here. So, hey Danielle, welcome back.

Speaker 3 (02:45):

Hello. I’m glad to be back. That was a good intro because I’m finding out myself right now just how much it really does suck and it’s great. I mean, it’s exciting to go into a big building. I’m dealing with a partnership right now where it’s a building that’s 20 units mixed use. There’s two commercial spaces and 18 residential that sounds so great on paper, and you’re like, that must really cashflow. That must just be awesome. Not as much when you actually get into the weeds of it. I’m here to tell you it’s not always the best. There’s other routes for investing. Commercial and mixed use buildings are not always your best option.

Speaker 1 (03:18):

So before we even jump into that, tell us a little bit more about you, how we even got connected that origin story and even why you were looking at real estate investing too.

Speaker 3 (03:27):

Yeah, so like Chris said, I’ve been working for him for almost three years, and it was kind of like luck. I don’t know. God brought us together where I had just had my second son. I was looking for a career transition, literally applied for one job and it was this job. Got an email to do an interview, went through a couple interviews and ended up here. And it was really a match made in heaven. Throughout the interview process, I knew this is where I need to be. It just Chris and I meshed so well. The core values of Money Ripples really resonated with me, and it gave me a purpose with my job that I had not felt with other jobs before where we actually do have a mission to help people beyond just making money. We’re helping them live better lives and bless the lives of others who you get that prosperity when you work with us. Just nice to be together that way. But the other thing that drew me to this job was real estate. My husband was a property manager for a couple years before that. He listened to all the podcasts. In fact, knew Chris’s podcast because he was very much into real estate investing.

Speaker 1 (04:27):

That didn’t hurt your chances either was like, oh, my husband loves your podcasts. Oh really?

Speaker 3 (04:30):

Yeah, exactly, exactly. So yeah, that’s kind of how we got brought together is I had a love of real estate investing. We hadn’t actually invested yet, but what I’m going to talk about today with my partner, we had started kind of on this journey of finding commercial building at that point, and that’s kind of route I thought I was going to go in, have went into other real estate now, smaller multifamily duplexes, triplexes, fourplexes. That’s what I actually think that I want to do. But yeah, real estate’s always been a passion of mine. I always thought this is the way that I want to go and not just passive real estate. I actually like doing some of the hands-on fixing, flipping. Don’t think I want to do it forever. But we have done that now, my husband and I since our last interview, we actually have done that with properties.

Speaker 1 (05:17):

It is fascinating. If you guys don’t know Danielle, obviously you could probably tell she’s a pretty awesome person. That’s why we love having her here. Well,

Speaker 3 (05:23):

Thank you.

Speaker 1 (05:25):

And it’s funny, when she talks about the interview, she’s like, it was a match made in heaven. It really was. I remember at the first interview I said, I know I’ll want to hire, and the hiring service said, yeah, but you can’t do that. You got to do at least three more interviews and you got to narrow it down. And so I did that whole process, but I was like, I already know who it is and never regretted it ever since. But yeah, it was kind of cool that you were also wanting to do real estate investing and more on the active side. So we more focus on the passive side with our consulting clients and whatnot, but we never really discourage people from doing the active. But we will be honest and say active is what it sounds like. It’s very active. You’ve got to be hands-on.

(06:00)
It’s going to require time, energy, some money as well. You can make higher returns, but at the same time it doesn’t work. And so let’s kind of get right in because I know there’s been a lot of people, especially those in the multifamily space, those, and I noticed there’re usually syndicators guys that are trying to raise capital to get you to invest passively into their multi-family deals. They’re usually trying to raise money for their apartment buildings or self storage, whatever it might be. And they’ll tell you, buying a single family home, buying duplexes, maybe fourplex or okay, but buying duplexes or single family homes, waste of time, waste of effort, you should just go big or go home, right? Yeah. So you’ve kind of done that, like you said, you had a 20 unit building, 18 residential to commercial, right? Yeah, that sounds awesome. And by the way, what’s the total rent collection? Gross rents.

Speaker 3 (06:47):

So gross rents is almost 19,000 when it’s all the way rented out.

Speaker 1 (06:51):

19,000 a month. A month, right? That’s a month. That’s over 200 grand a year, guys. So that sounds like the dream. You could just have this one building and you’d be set for life for many of you, many of you would say I’m done. Right. And is that kind of what you were thinking too, going

Speaker 3 (07:04):

In? Oh, a hundred percent. Now we did go in on this with a partner, actually my mentor in real estate. But I talked about an interview and the long play here was after five, six years we’d be buying it off of him and then it’d be great we could go and have this building that we don’t have to have any other real estate. It’d be awesome. But we soon found out that is not really the play. And it basically comes down to, so that cash flow sounds awesome, almost $20,000 a month. We probably, if we raised a few rents could get there. But if you think about all the expenses, your mortgage, all the unexpected costs that you have to make sure that you store money away for, and this building is not new. It’s not a new development where everything is updated and we’re not going to have to go totally renovate apartments.

(07:46)
There’s nine apartments in this building that need total flips. They haven’t been renovated since the nineties. That alone starting doing calculations about $20,000 in an apartment if we really want to make it up out of pocket, right? A hundred percent more out of pocket. So that’s one year of all your cashflow right there going into renovations and the fact that it’s a old, old 18 hundreds building in the Midwest. There’s furnaces, there’s acs that do not work properly. Those are expenses coming up right on the line. And do we have the money built up for that right now? No, we don’t. So that’s very nervous. Makes me nervous and makes me a little anxious about what else could go wrong. Is there plumbing problems in this building? There’s probably cast iron plumbing somewhere left in the lines there. And you can do inspections. And this actually was bought off of someone who was a trusted commercial guy in the area.

(08:37)
I do that in quotation marks and actually friends with my partner and he said, this is a great buy. This is going to be awesome for you. A cashflow is awesome. The commercial tenants, they always pay on time, they’ll cover your mortgage and that’s true when they pay on time. What about the one month that they don’t or that two or three that they get behind because they have things come up? Well, unknown is that if you have a duplex or a triplex, typically if you had a triplex, if two units are rented out, you can have one not rented out and you’re probably going to be okay. You’re not going to cashflow, but at least your mortgage will be covered. And we’re finding that out even as now we go into that space more than commercial is it’s a lot easier to manage those smaller units because there’s a lot less expenses.

(09:18)
People tend to be a little more loyal. One thing with the commercial, my husband does the property management for it, their turnaround is crazy. I mean usually it’s a one year lease. People get out. There’s a few people who have been lingering who now don’t pay market rent because they’ve been there for 10 years. And also those are going to be completely have to be renovated and redone when they move out. So we kind of don’t want to kick them out for that reason because at least they’re paying rent. There are so many more factors that go into just, Hey, go find a tenant, make sure they pay on time. They have good credit, they have a steady job. Great. You can do that with a duplex, duplicate the process again and again and again. Once you get it down, it’s going to be pretty darn easy.

(09:54)
Now is volume and numbers involved there? You have to have enough houses to make it make sense to reach passive income, which is what our ultimate goal is here. But with commercial on the surface, you think 20 units great, that’s you’re going to be passively not having to work in the next year or two, right? No, it doesn’t happen just because of all those other elements involved. It’s hard. It’s hard because there’s a lot more stress involved with having the 18 people that you have to make sure they all pay rent. And then you have that commercial space that you’re so dependent on.

Speaker 1 (10:25):

Now we could make the argument of course, better play a counterpoint. You could say, yeah, but you’ve got those 18 or 20 tenants. Well that’s the same as getting 10 duplexes. Isn’t that more of a hassle? Now you’ve got different properties in different areas potentially, you’ve still got renters that could not pay rent. And you mentioned that of course, that even if there’s one gone, you might still be able to cover your mortgage ideally, right? So what would you say to that, to someone saying that, well, it’s just one building, one place, one location that’s easier.

Speaker 3 (10:54):

I would say it depends on where you’re investing. So I think one area we went wrong with this commercial building is we had promises made to us by the previous owners that the current tenants were a little higher tenants than they were more like B plus as opposed to B minus. And the property is in an area that should be B to an A property, but this property has just been neglected for so many years. So that’s where you run into those issues and it runs into the due diligence element, which I know we teach our clients all the time. We should done more due diligence on this property. I did a lot of trust in my mentor because he knew the guy and I trusted that, okay, this is going to be good. We have all these elements involved. I guess that just shows even when you have that trust, there can be issues that come up.

(11:37)
But if you do that with a duplex as opposed to a commercial unit, someone you trust, you buy it off of. If it’s a total flop, it’s not as much risk. I mean, your mortgage isn’t going to be nearly as much as what a $2 million apartment building is. Your ability to fix it is going to be a lot better. It might be 20,000, 30,000 you have to put into it instead of 300,000, which is what you’re going to do at a huge 20 unit like that. And one thing I find with the duplexes that we’ve been looking at, it’s a lot easier to find them in neighborhoods that I know I trust. I know that we can get nurses to rent them out. We have a lot of hospitals in our area or even student housing that’s really big in our area. We have a lot of colleges.

(12:14)
I kind of know those zones. So I know, okay, if I buy this average, I can get this rent. Okay, maybe I’m cash flowing, 300 to $500 a month on it. Had to put a little of a work upfront. But there’s twofold, this equation, so you get that cash flow when you’re done. But in the fix and flip processes that we’ve been doing, you also make money on the equity that you build up in the property. So we’ve been doing lines of credit, buying low, getting lines of credit to fix it up, pay back the line of credit with the refinance, and then usually make about 10, 20,000 in profit. I’m in an area where houses don’t cost so much. I mean I’m in Iowa, in Illinois, right on the border. It’s a good area to buy if you’re willing to deal with a little bit more headaches with tenants because I would say most properties are B that I can buy at least at my price range. So there can be some headaches as far as just getting rent, but it helps that my husband already kind of knows how to navigate that area. It’s not passive though. It’s a hundred percent active and if you aren’t willing to go into the active route, don’t do it because it takes a lot of time and effort on his end to have to make sure rent’s paid on all

Speaker 1 (13:14):

These. Yeah. Is that least a part-time business? If not,

Speaker 3 (13:17):

Oh yeah. For him, luckily he’s made it. We have some tools in place that make it a little bit easier. People can pay online, doesn’t have to work for checks in the mail, and we have tenants that are vetted. We are very lucky, very fortunate that we have friends in the area who are nurses and things where if there’s a new nurse right out of college, it can be like, oh, go to this property and we kind of know our avatar, which is very important if you’re going to be running actively, if that’s going to be your business, know who you want to run to because if you don’t, you’re going to have a terrible time.

Speaker 1 (13:50):

Let’s talk about some of the complexity that’s also dealing with this too. So you’re talking about buying out the partner, that has always been the plan, and so you’ve been looking at various strategies. So we’ve heard strategies like there’s sub two, which if you’ve never heard of sub two, sub two just means that you’re taking over their mortgage because right now with interest rates being higher, it’s much better number wise to say, well, could I just take over their mortgage that’s at a 4% rate versus paying eight or 9%? And there’s a lot of different strategies that were private money you can take to be able to buy out partners, you can try to get bank money, but what have you learned in that process? The whole financing process.

Speaker 3 (14:25):

So we actually offered to this month to buy out link flat out. My mentor is older and he was kind of just not wanting to deal with a lot of the headaches. So we said, okay, if we can somehow get this and make it make cashflow sense, it helps him out and it also makes us make all that cashflow that looks so great on paper. Right. Well, it’s messy. It’s a messy process because our first thought was he’s at a 4% interest rate on his mortgage. He got it back in 2021. It have been a better time to get a mortgage on a mixed unit space. I asked the bank and they said, there’s just no way impossible, you’re going to have to refinance this mortgage and it’s going to be eight to 8.5% that alone. Think about what the tur cash flow, I mean mortgage alone went up about $4,000, maybe even a little more than that. So

Speaker 1 (15:11):

That $19,000, like 4,000 less is coming out even from before.

Speaker 3 (15:14):

Yes, exactly. And then we don’t have the money to buy out the partners. We’re going to have to do a private loan, which is going to be at least 12% minimum 12 to 14 is what we’re be paying back on short term. So I’m going to say three to five years how much cashflow rating up here? That’s about $6,000, $7,000 a month. Are we really making enough off this building just off of those loans coming out? We basically have no cash flow left. So what happens if that furnace breaks this winter? What happens if three air conditioning unit goes out and we have to go replace those? We would be screwed. And that’s where as we dug into the numbers a little bit more, it didn’t make sense for us. Now if you’re a person who has $400,000 sitting around, you could do the down payment, you could pay buy out the partner.

(15:55)
Okay, great. You probably can make this building cash flow really well, but you still have to be dealing with the headaches, the worry that commercial unit won’t be profitable and you won’t have rent paid there. And these renters, like I said, it’s more of a B minus property. Are they going to destroy a room? Are we going to have an issue where they don’t pay rent because they lost a job? They aren’t someone who has a bunch of savings for their rent. So there’s little as what ifs that if you aren’t cash flowing at least five, $6,000 a month on that building, you really can’t do it. So that’s where we went into asking could we sub two this property? And this is the discussions I’m having right now. Sub two is acquiring that mortgage, which we wanted to do through the bank, kind of do that process so there was no liability on our partner there, and it’s a really good option if he will agree to do that.

(16:43)
But even at that point, are we making enough cashflow to make it make sense after the private money that we’ve been looking into? And I have to say I’ve done a lot of work on this in the last two weeks, just going through this process, asking for money in this space. I have a lot of connections to people who could do private funding for me, but is it worth it? Probably not for this building, but it’s made me realize why can’t I do this on my duplexes, my triplexes, my fourplexes, and that’s a lot easier not only for me because I like managing those better and having those a part of our portfolio, but it’s also easier for them because they’re going to get their money back a lot quicker instead of having that three years that they have to wait for me to pay back that buyout. They’re going to have 120 days and then we can refinance the house, pay back, and hopefully keep making those little profits to buy more and build. The ultimate goal is I want to have enough cash flows so that my mortgage is covered, not where I live now. I want to live in California, so that’s going to be a lot of cash that I has to make to have my mortgage covered, but that is the ultimate goal is I want my mortgage covered with all of the real estate that we have. That’s awesome.

Speaker 1 (17:48):

I don’t want you to think that we hate multifamily investing at all. It’s not that, but there are so many people online right now trying to tell you that multifamily is the way to go. You need to be buying apartments, you need to buy self storage, and they are good options. However, the thing is they give you the nice brochure. It’s pretty, it looks awesome and the numbers look great, but I wanted you to hear firsthand experience from somebody who’s doing this first deal or been in this first deal for a few years and really experiencing that because it’s different when you’re there. It’s different when you’re doing it, what you’re not hearing. A lot of these guys saying now, right? Some will. Some will because I’ve been on those shows, but some will say, or if they’re even being honest that right now they’re trying to nich their property and they can’t because all the prices have been skyrocketed so much, especially in 20 21, 20 22 now in 2023, in 2024.

(18:40)
Now if you’re trying to niche these properties, you’re not going to get what you paid for. So if they’ve got a mortgage on it, and especially if they had a variable rate loan or a short-term mortgage that now they have to refinance at a higher rate, they’re not cash flowing and if they’re trying to niche it, no one wants to buy it until they go broke. So until they lose the property or at the point they’re so desperate, they’ll pay money for you to buy it from them. That’s what they won’t tell you where if you have say a duplex or a triplex or even SQL Family homes, you’re not going to be in the same position because you can sell those things off much easier. Think of even a duplex, and we were talking about this on the ride up now, even with the duplex, you could always rent one unit out and live in the other unit and there’s people that would buy it just to do that.

(19:24)
They could be investors, but they might just be buying it for their own home, but they want a little extra income stream to help pay for their property and not mentioned single family homes. I sold off some single family homes in Alabama. I was able to do it because I didn’t sell it to an investor. I sold it to retail buyers, people that wanted a home to live in and sold to them at our asking price. I think that’s a key difference. You don’t have that kind of flexibility. How many people can actually qualify to buy, even if it’s a $2 million type of a real estate property?

Speaker 3 (19:52):

Not that many. I mean that’s even was our worry. And they said, you can qualify if you can put the down payment down. Exactly. And it’s like, okay, well yeah, but that’s a lot of money you have to ask for.

Speaker 1 (20:00):

Put it down like 400,000 or half million. Well,

Speaker 3 (20:03):

Exactly. And for someone who’s just normal people, me and my husband, we don’t have a half million dollars just sitting in the bank to go put down and would I want to do it anyway? Probably not.

Speaker 1 (20:12):

You need more cash for the repairs and other things that you need to do. Right, exactly.

Speaker 3 (20:15):

So that’s where it’s such a niche market and really I would say this is multiunit or for anything that’s a commercial building, I’d say anything fourplex plus kind of has to be your business. If you’re not just focused on that, I don’t think it’s worth it. Now, like Chris said at the beginning of this, if you’re going to have that be your one building and that’s all you’re going to do, okay, great. If it’s a good building a buy, it might make sense for you, but I think if you’re really just going for cashflow play, especially if you’re on the active end, you’re going to get a lot further with the duplexes, triplexes, fourplexes, even single family if you’re just going to fix and flip and sell. But yeah, commercial is its own beast and if you aren’t in it actively, if you’re not in it, don’t do it. But I still think things like syndications are great when you can just put your money into it and you actively don’t have to touch it. I would love to do that, that if you’re going with trusted people who know how to do commercial buildings, that’s great. Awesome. But doing it myself again, I don’t think I would do it.

Speaker 1 (21:14):

Yeah, and tell us more about that. Like you said, you have cash, you can be put into this one building or you can use this cash to buy other properties. Why does that feel better to you?

Speaker 3 (21:23):

I like the flexibility and kind of the less risk involved, where if I have 10 duplexes that are going to cashflow around the same amount of one building, if one’s terrible, no one’s rented out, maybe it’s been six months, it’s not doing anything. I can have enough money coming in from these other buildings to at least cover the mortgage there and if I want to sell it, I can sell it. Like you said, it’s a lot easier to sell off a house even if it is a duplex, than to have to sell off a huge apartment

Speaker 1 (21:50):

Building. You can’t take a 20 unit thing, say, I’m going to take two pieces out and just niche it off to somebody. Right, exactly. This is not a timeshare.

Speaker 3 (21:56):

And we talk about risk tolerance all the time with clients, and my risk tolerance is not to the level of this building, and that’s where there’s just too many what ifs. I need to have something where it’s a single family or a single family home, even if it is split up in a duplexes, triplexes where I myself had to fix that stuff in my house. If I really had to go in and I couldn’t find someone to fix something, I probably could go fix a sink or a toilet for someone, or I could have my husband go and do that for someone. I don’t know how to fix a commercial air conditioning unit. That’s a whole other world. I don’t even know how quotes work for that. Luckily my husband’s gotten into that world now and he kind of knows. But yeah, it is crazy. It is just crazy to me to see how different it is. It is such a different type of investing.

Speaker 1 (22:40):

I totally agree. I think that’s what you just said is key, right? Is that it’s really about risk tolerance and really about what you want your life to be like. How do you want to design that life? Do you want that side hustle? If you do, like you said, this multifamily could be perfect for you and it is a great thing that of course your husband’s been a property manager, he knows how to fix stuff. He’s way more handy than I am. I’ve got a nail of something. I don’t know where it goes to, but I got a nail. But that’s the thing. I’m not good at that kind of stuff and therefore I become a more of a passive investor. Plus I feel mentally full just by having money ripples and a million kids running around. It’s like its own little village. I got all that stuff going on my life.

(23:21)
I just don’t want to have more. Even if I could do it, I know I have the ability to do those things, but do I want to, and that’s why I go more the PAC around and even like you said, syndication where investors are pulling their money together with other investors to then let somebody else do all the headache, be the one that’s reaching out to all the, whether they’re the property manager or not, dealing with the property management issues, trying to screen and filter tenants, trying to figure out how to even get things repaired. That’s the kind of stuff that I know when I’m in a syndication like that, I don’t have to worry about it. I know what’s going on in the vaccines, but it’s not like they have to call me up with every little issue that’s going on. They just do it. And then I’m the one that’s able to collect rent, I’ll collect the profits, it’ll be less than what they might make, but still what’s for me, that price of sanity. Yeah,

Speaker 3 (24:08):

I totally agree with that. Sanity is huge. That’s number one on there. And it does come down to, you’re right, I have the ability if I wanted to put a lot of time into that commercial building to make it work, and obviously we’re in on it, so we’re going to keep it as long as we have to be in on it, but it’s not something that I see myself holding for my entire life. It definitely will be something we niche off and then move on to the next thing, which will be probably more three triplexes, fourplexes, things

Speaker 1 (24:31):

Like that. Exactly. So you’re still doing active type stuff, you’ll still manage it yourself versus doing a turnkey property, but you actually now control the terms. You can control how much you want to have in there versus just saying, oh, I want to have a hundred units, like we talked about with pace, like what’s all with this a hundred unit thing, a thousand units, nobody cares. Heck, I’ll take 10 good ones.

Speaker 3 (24:54):

Yeah, exactly. No, I totally agree with that. And it’s where your passions lie. I personally like fixing up houses. I personally like taking the terrible homes in my community. We invest where I grew up. There are a lot of homes that should be better than they are, and I love improving the community and making them nice. And that’s a passion of mine. And as we’re very passion, purpose, vision or driven in this company, and as I do it more, I’m like, maybe this is a purpose of mine is to help this community that I grew up in that should be better than it is and help maybe through giving good homes that should be better, that slumlords have owned for years and making them better. So yeah, that’s another little key element on there where I can’t really do that with commercial as much because it’s a lot less accessible and it’s not really going towards that goal of improving a whole community. Yeah.

Speaker 1 (25:44):

Yeah. I love that. Again, it’s not just about the money, it’s about the passion. It’s about really the vision of trying to make things better, which we talk about stewardship. It’s always trying to make it better, trying to improve upon things, beautify things, really just make it better, multiply it

Speaker 3 (25:57):

A hundred percent.

Speaker 1 (25:59):

Well, Danielle, I appreciate you being here. Literally being here. I

Speaker 3 (26:02):

Know it’s so weird.

Speaker 1 (26:04):

I know it is. She’s seen in the background. I’m actually been fiddling with this stupid nail the whole time. Now you know what really happens beyond the scenes of the podcast, Chris is flipping around little nails and stuff that he doesn’t even know what it does. So anyways, guys, I appreciate you joining us today. I hope this is valuable. I probably wouldn’t dare let them talk to you or ask you questions. I don’t, once you’ve bombarded with emails about your view. But again, Danielle having you here, it’s been a pleasure. Yes,

Speaker 3 (26:28):

Thank you.

Speaker 1 (26:29):

All right, well everybody else, that’s the thing. You get to design your own life. You get to make your choice of how you want your life to be. You could have a multifamily property, you could have that kind of stuff going on. You could also do it differently. You don’t have to follow what all the gurus tell you to do usually because they’re trying to niche you some bill of goods. The truth is with our perspective is you do what fits you and your life and how you want it to be. Do you want it more passive? Do you want it more active? You get to choose and just choose the best way it works for you, not just for the money, but also for your lifestyle, for your family, and ultimately for the kind of legacy that you want to create in the world. Guys, make it a wonderful and prosperous week so you can have a wonderful and prosperous life. We’ll see you later.

Speaker 3 (27:09):

But if you think about all the expenses and this building is not new. It’s not a new development where everything is updated and we’re not going to have to go totally renovate apartments. There’s nine apartments in this building that need total flips. They haven’t been renovated since the nineties. That alone starting doing calculations, about $20,000 in an apartment if we really want to make it up out of pocket, right? A hundred percent more out of pocket. So that’s one year of all your cashflow right there going into renovations and the fact that it’s a old, old 18 hundreds building in the Midwest.


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