BiggerPockets Real Estate Podcast

BiggerPockets Podcast 227: From Single Family Houses to $130,000,000 in Multifamily with Joe Fairless

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Scaling: It’s a term often tossed around in business and real estate, but what does it actually look like? Today on the BiggerPockets Podcast, you’ll see firsthand how one investor went from a small handful of single family houses to purchasing over $130,000,000 worth of apartment communities in just the past few years. Our guest, Joe Fairless, has a great story that will show you how you can get started with larger multifamily properties, including several ways to find and finance those big deals. Whether you are looking for your first deal or a 250 unit apartment community, this is one show you can’t afford to miss!

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This Show Sponsored By

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FreshBooks customers spend less time on paperwork, freeing up 2 days per month to focus on the work they love. What would you do with that extra time?

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Fire Round Sponsor

patchoflandWe just wanted to give a shout out to our podcast sponsor on today’s show: Patch of Land. Patch of Land is a Peer-to-Real-Estate (“P2RE”) lending marketplace that matches accredited and institutional investors seeking high-yield, short-term, asset-collateralized investments to borrowers seeking more timely and consistent sources of funding for rehabbing properties across America.

Learn more by visiting Patch of Land!

In This Episode We Cover:

  • Joe’s background
  • His first property in Texas
  • Tips for those investing out-of-state
  • The benefits and dangers of buying properties virtually
  • Why he no longer does single family properties
  • How to qualify a market
  • Markets that Joe thinks work
  • Tips on finding partners and funding deals
  • What exactly a master lease is
  • How to network and get people in a deal with you
  • How much money he puts in each deal
  • How they find their apartment deals
  • What a stabilized property is
  • And SO much more!

Links from the Show

Books Mentioned in this Show

Tweetable Topics:

  • “I’ve never visited the house before I’ve bought it.” (Tweet This!)
  • “The bigger dollars are in the value-add opportunities.” (Tweet This!)
  • “You want to have customers before you have a product.” (Tweet This!)

Connect with Joe

Show Preview

Real strategies that work for real people seeking to build wealth through real estate investments. Co-hosted by Brandon Turner and David Greene, this podcast provides actionable advice from investo...
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    Andrew Syrios Residential Real Estate Investor from Kansas City, MO
    Replied almost 3 years ago
    Wow! Great job Joe!
    Clint Okayama Investor from Astoria, NY
    Replied almost 3 years ago
    How to graduate from 1-4 unit properties to truly massive multifamily deals, covering small details and overarching strategy. All in real, down-to-earth terms. Incredibly helpful. Hundreds of books (and site pages) describe how to invest by collecting smaller properties, but this episode describes how to go beyond that. For the first time in my education, I feel like I can realistically glimpse how to get from where I am now to crafting 150+ unit deals. It made me realize that it’s not as far away as I thought, actually. Thanks Joe! I’m going to start listening to your podcast as religiously as I follow BP’s.
    Don Spafford Investor from Idaho Falls, ID
    Replied almost 3 years ago
    Very cool!
    Gabe Sanders
    Replied almost 3 years ago
    You give some great advice in this podcast. Hopefully, your listeners will take your advice.
    Jayson Knuts Investor from Bloomington, MN
    Replied almost 3 years ago
    These podcasts have featured a lot of very knowledgeable and successful investors with a wealth of information to share. The problem is they are so far out of my league that the information is more interesting than helpful. Consider finding guests who are highly motivated and well on their way, but still striving to pull together smaller deals. I would find more value in investors who are building towards thousands of dollars in income or double digit property ownership.
    Brian Wagers Rental Property Investor from Northwest Arkansas
    Replied almost 3 years ago
    Hey Jason, Try some of the earlier podcasts. Quite a few about up and coming investors. (episode 197 is a a great one on snowballing!) Also in this episode specifically I got lost in some of the concepts of borrowing others money/getting investment groups in the first go around listening. What I did take away was getting specific about my goals. There is always some give and take from each episode.
    Jayson Knuts Investor from Bloomington, MN
    Replied almost 3 years ago
    Thank You Brian, Your right, I do learn something from each episode. To date I have been securing my own down payment capital through controlling my personal finances. I will listen to some earlier podcasts for some more inspiration. BP has helped me though. I am in the process of purchasing two 4 flexes, using some creative financing.
    Kim Stofan Realtor from Sacramento, CA
    Replied almost 3 years ago
    Hey Jayson Knuts! It may be true that a lot of these podcasts are featuring investors who are playing at a much higher level, but I truly believe that there is something in every podcast that you can take and apply to your investing. This podcast has a great segment that described how Joe identifies markets that would be promising to invest in. Everyone can use this information no matter what stage they are in in their investing. There some good podcasts featuring newer investors. #187 with Dana Bull, and #183 with Sarah Pritchett are great ones. There are also several newbie podcasts.
    Jayson Knuts Investor from Bloomington, MN
    Replied almost 3 years ago
    Kim, I agree there is something to from learn each podcast. Thanks for the recommendation on the earlier podcasts. I just started listening in 2017 and I have been trying to catch up on earlier podcasts.
    Meghan McCallum Specialist from CHICAGO
    Replied almost 3 years ago
    https://www.biggerpockets.com/forums/25/topics/448162-biggerpockets-podcast-228—meghan-mccallum?page=1#p2785786 Jayson, I really am appreciative that they mix up the styles and experience levels of investors. I remember a year and a half ago I felt like some of the latest guests were SO far beyond my achievable results. Take a listen to my podcast that just went live. I was much like you a year and a half ago. Now, these high level guests are what I aim to achieve in 3-5 years. I remember listening to podcasts when I first started listening and I remember being so blown away what some had achieved. Now, I wonder how far I can truly take my new career. BP is an absolute gift for everyone who takes the time to educate themselves, take action, fail and rise strongly.
    Jayson Knuts Investor from Bloomington, MN
    Replied almost 3 years ago
    Meghan, thank you for the response. I am a firefighter and my goal has been to keep working and use rental income to help support my family. You had great advice to offer on #228. I especially enjoyed your advice about establishing boundaries quickly with tenants and your fearless drive. BP has given me lots of advice and inspiration. I am excited to hear how successful you will be in 3-5yrs.
    Michael Rogers Certified Public Accountant from Chattanooga, Tennessee
    Replied almost 3 years ago
    Great show!! @Brandon Turner – I’ve got to ask since I hear you guys talking about it all the time on the Podcast. How short is Joshua Dorkin?
    Matt N. Investor from Washington, District of Columbia
    Replied over 1 year ago
    AWESOME podcast. Shouldn’t expect the guests to guide you to the every detail but to show you the path. That’s an eye-opener and tells you where to go and who’s service you should seek.
    John Blackrock from Dallas, TX
    Replied 10 months ago
    In the podcast Joe Fairless mentions 18% return for his investors. Is that annually or when they sell it after 5 years?