BiggerPockets Real Estate Podcast

BiggerPockets Podcast 248: From Shop Teacher to Multifamily Syndicator with Todd Dexheimer

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Looking to scale up your real estate investing business? If so, don’t miss this incredibly powerful episode of The BiggerPockets Podcast. On today’s show, you’ll meet Todd Dexheimer, who started investing in real estate while working a full-time job as a shop teacher at a Minnesota High School. Todd walks us through his journey of quitting his job and scaling his business to hundreds of flips and rental properties in just a few short years. You’ll hear how Todd analyzes markets before deals, how he puts together the financing on large multifamily purchases, and how he builds a solid team—no matter how far he’s located from the property.

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In This Episode We Cover:

  • How Todd got started in real estate
  • How he found and financed his first deal
  • What exactly a 203k loan is
  • How he bought a rental and a flip
  • How to three projects at the same time while working a full-time job
  • What his investing life looks like today
  • How he scaled his investing to hundreds of purchases
  • How he was able to gradually quit his job
  • Tips for digging deeper with midsize multifamily properties
  • What he looks for in a property
  • Advice for getting the overall picture of the market (a unique way to study markets)
  • How Todd manages to invest out-of-state
  • How to get the right people on your team
  • Why he chose Cincinnati
  • The story behind his 84-unit contract
  • How he manages his projects
  • His ski resort story
  • Todd’s vision of owning $200 million in real estate
  • And SO much more!

Links from the Show

Books Mentioned in this Show

Fire Round Questions

Tweetable Topics

  • “It’s not just about good cash flow; it’s about your ability to get out of that investment in the future.” (Tweet This!)
  • “It’s all a referral business. People talk about people they like and trust.” (Tweet This!)
  • “If you’re going to try to raise money, you’ve got to have people who know what you do.” (Tweet This!)
  • “Getting good tenants is the best strategy.” (Tweet This!)

Connect with Todd

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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    Adam
    Replied over 2 years ago
    Wow. This podcast looks like a clear violation of SEC rules regarding selling securities. If he accepts money from anyone where he did not have a preexisting substantive relationship then that deal is tainted. Yes I am an attorney. Yes I will submit this to the SEC’s complaint website.
    Todd Dexheimer Rental Property Investor from St. Paul, MN
    Replied over 2 years ago
    Adam, thanks for your concern. Having a pre-existing relationship is definitely something that you should have if you are offering a security, unless it is a 506c or other form of public offering . On this podcast I never ask for any money, nor did I mention that people should reach out to me in order to invest. This podcast in no way advertises a securities, but simply talks about the challenges and strategies of raising money.
    Adam
    Replied over 2 years ago
    Wrong. The criteria is not if you asked for money, or if you simply say something does not advertise a security. The SEC standard is if the advertisement “arouses the public interest”. Bottom line is you can’t publicly talk about securities where you are currently raising money. Learn how to operate within the law. See question 256.24 https://www.sec.gov/divisions/corpfin/guidance/securitiesactrules-interps.htm
    Todd Dexheimer Rental Property Investor from St. Paul, MN
    Replied over 2 years ago
    Adam, I didnt mention any deal specific numbers or anything other than what phase we are in. We don’t accept money from people that we do not know very well, nor would I even consider that. I only allow investors in to my deals that I trust. I am confident that the SEC would be able to see that all my investors in all deals I have ever done and the 2 coming up will have investors that I have known very well for years – most over 10 years. I do appreciate your concern and in hindsite I should have talked more about the fact that investors do need to be pre-existing relationships.
    Gwyeth Smith Rental Property Investor from Huntington, NY
    Replied over 2 years ago
    This is why lawyers get a bad reputation. I’ve listened to many BP podcasts and this one is in the top tier of those I’ve heard. I have no clue if anything said was outside the boundaries of the law. I can confidently say that I never felt I was being “sold to” or propositioned for anything. I fear that other potential guests on the podcasts will second guess participating because of responses like these, and that is very disappointing to me. Great job Todd Dexheimer. I wish you continued success.
    Ryan Pollock
    Replied over 2 years ago
    Great show. I also agree that this is why lawyers get a bad rap and there are too many in society. Over regulation and frivolous law suits are too abundant in today and we need less of both. Hopefully this will not lead to less Podcasts, but as a suggestion maybe after the taping run the podcast by a legal consultant for review? Too bad all this does is just put more money in the lawyers pockets. This is one area I can’ wait for automation to take over. Actually just thought of an idea….what about a pooled lawyer account where members can join and when/if you need a real estate attorney you have one available and paid for? Happy investing everyone! Ryan
    Don Spafford Investor from Idaho Falls, ID
    Replied over 2 years ago
    Very smart using the top down approach rather than bottom up. Securities investing can use the same strategy as well to find the next big thing. Hadn’t thought about that for real estate but makes perfect sense. Very cool podcast.
    Terry N. Investor from Brooklyn, NY
    Replied over 2 years ago
    Thank you so much for another great podcast with excellent information. Hits home for us because we are moving to Cincy in November. Taking a job with University of Cincinnati. Been living in NYC for 5 years but looking to grow a real estate business in Midwest. This is where its going to happen. Been listening in and learning from BP for last several years. Have a properties in MI and NC that I’m going to leverage order to begin anew in the place that I live. Will actively seek mentors that can help me get going with approx. $150K. Looking for two 4-plexes to start with.
    Todd Dexheimer Rental Property Investor from St. Paul, MN
    Replied over 2 years ago
    Terry, glad you enjoyed the show. With $150k to work with you are in a good place. You may want to look for 5+ unit properties as well. You can find 10-15 unit deals in Cincinnati for under $500k, especially if you are willing to take on a rehab.
    Dillon Leider from minneapolis, MN
    Replied over 2 years ago
    Great podcast, Todd. Great to hear from somebody in my area. You basically confirmed everything I suspected about the twin cities REI market. One piece of insight that I needed to hear was that when looking to invest in a particular city, you not only need to look at whether it can cashflow, but also look at whether you can GET OUT if need be. It’s easy to calculate 15-20% CoC returns for a multifamily in the middle of central WI, but what is the purpose of having 100k in equity in a building if you can never sell it?! Lots of great nuggets, but that one brought me back to reality a bit.
    Alex M. Investor from Glendale, California
    Replied over 2 years ago
    HI Todd. Your website has a 555-555XXX phone number 🙂 How does one get a hold of you bud? If you don’t want to leave it in the public post please reply to this email [email protected]
    Austin Hendrickson Accountant from Minneapolis, MN
    Replied over 2 years ago
    Awesome show! Truly shows that hard work does pay off. The ski resort deal in southern MN sounded like a unique crazy good deal. I will check out your new podcast.
    Nancy Huffaker from Bokeelia, California
    Replied over 2 years ago
    Thanks much for this podcast. As another teacher who, like Adam, does not have or know anyone “in the money” and who has been living overseas for 15 years, I am currently looking for a market to enter when I return to the US next summer. The information here really supports ideas I’ve been exploring and cogitating on for a while now. Good info – both new and confirming.
    Todd Dexheimer Rental Property Investor from St. Paul, MN
    Replied over 2 years ago
    Nancy, you’d be surprised how easy it is to find the money. Finding the deal is the harder part. When I first started I didn’t think I knew anyone with money and in reality, I didn’t have many money connections. Network as much as you can to find those connections, telling everyone with confidence that you are a real estate investor.
    Douglas Vogel Rental Property Investor from Washington
    Replied over 2 years ago
    Todd, I have heard that finding the deal is the harder part and then finding money. I agree but don’t you run the risk of “committing” to the deal at least in the realtors/sellers mind before you can then go find the money otherwise no one will take you seriously? If I found a deal on or off market and reached out to anyone who understands real estate investing and was looking for a partner / private money and said “hey I have found a great deal where the numbers make sense, are you interested?” the first thing they will ask is: what are the numbers and how long do I have to decide and do you have the deal secured? If the answer is no I discredited myself, if I have already done that and don’t find a partner / money I just burnt my relationships with realtors, appraisers, sellers etc as not being able to close on the deal. I know its the age old question chicken or the egg come first but this is something I have struggled with throughout my investing career.
    Todd Dexheimer Rental Property Investor from St. Paul, MN
    Replied over 2 years ago
    Doug, I feel like you should at least understand what type of money you can raise. Use previous deals as examples to potential investors and they will respect that. I don’t think you should have the investor commit, but get an idea of the dollar amount they may invest if the deal is right. If you are offering on a deal that needs $1mm and feel you can raise $1.5, then you should be in the clear, but if you think you can only raise that $1mm then you are reaching.
    Nathan G. Real Estate Broker from Cody, WY
    Replied over 2 years ago
    Another really good podcast. It’s great to see someone start off small and just explode in growth. I’m trying to learn more about raising capital and investing in other markets.
    Todd Dexheimer Rental Property Investor from St. Paul, MN
    Replied over 2 years ago
    Thank you Nathan!
    Anudeep Yapala Rental Property Investor from Chandler, AZ
    Replied over 2 years ago
    Great Podcast, thanks BP and Todd. I just started in REI, long way to go and BP and the investors in BP are very helpful and very informative. I have a question to ask regarding the deal and contract. If i found a deal and got it under the contract, but could not syndicate to collect funds? what are my options? Thanks in advance.
    Todd Dexheimer Rental Property Investor from St. Paul, MN
    Replied over 2 years ago
    Anudeep. That is a tough question to answer without any further background. Can you give a lot more details? Maybe post it in the forums and tag me into it. Thank you
    Andrew Syrios Residential Real Estate Investor from Kansas City, MO
    Replied over 2 years ago
    Very interesting! Great podcast Todd!
    Todd Dexheimer Rental Property Investor from St. Paul, MN
    Replied over 2 years ago
    Thank you Andrew!
    Jennifer Joseph Rental Property Investor from Akron, OH
    Replied over 2 years ago
    Great podcast. Very helpful information. Thank you!