Zig When Everyone Zags

Apartment Syndicator · Charleston, SC · Member since 2016 · 973 posts · 728 votes

I have been thinking about this statement daily for many months now. I'm constantly thinking about ways to be different or learning new skills or finding new deals or doing podcast interviews. I think you get the point that its an evolving process we (multifamily investors) all go through. What are you doing today to be different?

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Mike Dymski

Investor · Greenville, SC · Member since 2016 · 5k+ posts · 13k+ votes

The contrarian strategy, as it's typically executed, is extremely unprofitable most of the time. We have been answering posts for five years on the pending recession while other investors have made millions.

It's more important to pivot, grow, and be excellent than contrarian...which is consistent with the wording of your post.

I am investing more in cash flow plays than opportunistic plays right now (and always adding value). I am also investing more with others right now...those who have full time staff dedicated to deal flow. In this market, we need hundreds of opportunities flowing through the deal funnel to close on only a few.

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Greg Dickerson
Developer · Charlottesville, VA · Member since 2018 · 4k+ posts · 4k+ votes
6y
@Danny Randazzo Building ground up and heavy lift very challenging repositions. The more challenging the better.
4 Reply
Taylor L.
Rental Property Investor · RVA · Member since 2016 · 5k+ posts · 4k+ votes
6y
We're going to be ramping up content production from the meetup I started. I have 500 members at this point and get 35-50 attendees, and we have a lot of great content from presenters. We're working on a way to turn that into webinar-style content for attendees. Just a way to create additional value for the speakers and the group.
3 Reply
Anthoney Hanks
Real Estate Broker · Forney, TX · Member since 2019 · 1k+ posts · 399 votes
6y
@Danny Randazzo Follow your gut. Do what is best for you!
1 Reply
Account Closed
Rental Property Investor · Canton, OH · Member since 2017 · 1k+ posts · 1k+ votes
6y
@Danny Randazzo
I know this is under the apartment forum section, but I thought I'd add my take as a single family investor. I think a lot of people try and re-invent the wheel when there's really no need. Stick with the systems that people have already proven to be successful. When you stray from that formula, that is when you get into trouble. Real estate investing is not a complex business, in fact it's quite simple.
That said, one thing I feel some people have that others may not, is work ethic and drive. In my opinion, in any business that's what separates successful people from mediocre people. As the Rock says, "be hungry, be humble, and always be the hardest working person in the room." Again, just my opinion. Best of luck!
6 Reply
Danny RandazzoPro Member
OP
Apartment Syndicator · Charleston, SC · Member since 2016 · 973 posts · 728 votes
6y
@CJ M. Good insight and thank you to @Greg Dickerson and @Taylor L. For sharing what they are focused on, it’s awesome.
0 Reply
Taylor L.
Rental Property Investor · RVA · Member since 2016 · 5k+ posts · 4k+ votes
6y
Originally posted by @Account Closed:
@Danny Randazzo
I know this is under the apartment forum section, but I thought I'd add my take as a single family investor. I think a lot of people try and re-invent the wheel when there's really no need. Stick with the systems that people have already proven to be successful. When you stray from that formula, that is when you get into trouble. Real estate investing is not a complex business, in fact it's quite simple.
That said, one thing I feel some people have that others may not, is work ethic and drive. In my opinion, in any business that's what separates successful people from mediocre people. As the Rock says, "be hungry, be humble, and always be the hardest working person in the room." Again, just my opinion. Best of luck!

Totally agreed about the hard work aspect. There is no magic bullet other than putting in the hours and making it happen!
0 Reply
Tj Hines
Specialist · Tampa, FL · Member since 2012 · 933 posts · 492 votes
6y
@Danny Randazzo, that's definitely one thing all entrepreneurs have in common---- We're always thinking of ways to expand our reach, brand and most importantly how can we add value.
For me lately, I've been working on expanding our reach and brand on LinkedIn. Incorporating a ton of raw footage (impromptu videos) that give immediate value to people in our industry. Probably the best professional networking platform. It's literally a 24/7 networking party
2 Reply
Danny RandazzoPro Member
OP
Apartment Syndicator · Charleston, SC · Member since 2016 · 973 posts · 728 votes
6y
@Tj Hines I agree with you on the need to network!
0 Reply
Mike Dymski
Investor · Greenville, SC · Member since 2016 · 5k+ posts · 13k+ votes
6y
The contrarian strategy, as it's typically executed, is extremely unprofitable most of the time. We have been answering posts for five years on the pending recession while other investors have made millions.

It's more important to pivot, grow, and be excellent than contrarian...which is consistent with the wording of your post.

I am investing more in cash flow plays than opportunistic plays right now (and always adding value). I am also investing more with others right now...those who have full time staff dedicated to deal flow. In this market, we need hundreds of opportunities flowing through the deal funnel to close on only a few.
8 Reply
Scott Morongell
Investor · Charlotte, NC · Member since 2017 · 791 posts · 479 votes
6y
@Danny Randazzo name of the game is cost of capital. If you continue to fish out of the same pond you will continue to catch the same fish. Getting on podcats, going to events, etc are all great but 99% of the passive investors there are conditioned for the same high returns when the market really doesn't support that today (unless you plan for the stars to align on your deal). That being said, there are many investors out there who merely want to match what the stock market is offering them. Find the pond that is loaded with those investors and you will be very happy.
0 Reply
Mike Dymski
Investor · Greenville, SC · Member since 2016 · 5k+ posts · 13k+ votes
6y
Originally posted by @Scott Morongell:
@Danny Randazzo name of the game is cost of capital. If you continue to fish out of the same pond you will continue to catch the same fish. Getting on podcats, going to events, etc are all great but 99% of the passive investors there are conditioned for the same high returns when the market really doesn't support that today (unless you plan for the stars to align on your deal). That being said, there are many investors out there who merely want to match what the stock market is offering them. Find the pond that is loaded with those investors and you will be very happy.

Maybe happy for the short-term with cheep capital during benign economic conditions, but those types of investors' rear end cheeks pucker up during economic downturns and they run for the hills while smart capital remains active.

2 Reply
Ben Leybovich
Rental Property Investor · Phoenix/Lima, Arizona/OH · Member since 2012 · 4k+ posts · 4k+ votes
6y
Talent hits a target no one else can hit; Genius hits a target no one else can see.

- Arthur Schopenhauer

It's not a matter of zagging to be different. It's a matter of finding the angles that others can't see.
1 Reply
Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
6y
Originally posted by @Mike Dymski:
The contrarian strategy, as it's typically executed, is extremely unprofitable most of the time. We have been answering posts for five years on the pending recession while other investors have made millions.

It's more important to pivot, grow, and be excellent than contrarian...which is consistent with the wording of your post.

I am investing more in cash flow plays than opportunistic plays right now (and always adding value). I am also investing more with others right now...those who have full time staff dedicated to deal flow. In this market, we need hundreds of opportunities flowing through the deal funnel to close on only a few.

Mike the presentations I have been making the last year at REIA events or J martins events is titled: THE PIVOT

in my world that means more cash or all cash purchases limit debt this way if we do have a dramatic slow down we can easily ride through.. we give up some leverage return of course but we are still making very nice profits with max safety.. instead of a few years ago when I would do max debt and SUPER high % returns.. And of course its market specific and asset class specific.
In addition like you said we just did not stop we actually bought our biggest project to date a 90 home ground up development.. still a 50 million dollar deal end of the day.. but if we have to hold we have no debt.. so at least for ground up i find that a very prudent place to be ..

Podcast Guest on Show #222
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5 Reply
Brent Paul
Rental Property Investor · Shakopee, MN · Member since 2015 · 985 posts · 374 votes
6y
I think it boils down to you need to do what works for you. Some find their niche and what works for them right away while others struggle for years to make sense of it.
At any rate I think opening your mind up to new ideas and trying new things can go a long ways. For the longest time I thought local real estate meetups were a waste of time. I finally decided to go and met some great people. A few wholesalers that sent deals my way as well as investors that have sent prospective tenants my way.
Branching out into other areas was a tough one for me. But it made more sense with one investor owning 90% of the market in my target city. Other areas close by got similar rent and purchase prices.
I also learned that for me personally I need to get a minimum of 250 per month cash flow to be comfortable with the purchase.
Don't be afraid to let neighbors and friends in your community know you are a real estate investor. I found out my girlfriends landlord has 3 properties he will be selling in next 4 months and she gets first dibs on it. They are in a great area and undervalued, but just need some updating. They have owned the properties over 30 years. Being in their 80s now they don't want to deal with rental properties anymore and are open to seller financing with some money down. Through taking with him he sent another person our way that has a good chunk of land with a house on it. The family is currently cleaning up the property and we will be buying that as well.
2 Reply
Danny RandazzoPro Member
OP
Apartment Syndicator · Charleston, SC · Member since 2016 · 973 posts · 728 votes
6y
@Ben Leybovich so true!
0 Reply
Dennis M.
Rental Property Investor · Erie, PA · Member since 2018 · 6k+ posts · 9k+ votes
6y
@CJ M.
I like that and whole heartedly agree . Had I not did what was inconvenient and difficult I would not be where I am today . Not that I’m a huge success story but my net worth is double what it was a year ago because the action I took !
Everyone wishes and hopes things will get better . Poor people hope . That ought to tell you something . It means The future does not get better by hope , it gets better by plan !
- Jim Rohn
2 Reply
Account Closed
Rental Property Investor · Canton, OH · Member since 2017 · 1k+ posts · 1k+ votes
6y
@Dennis M.
Thanks Dennis. I've trained hundreds of people over the years and the thing I've learned is you can't train motivation, drive, and work ethic. That comes from within. Those who excel and take action (like yourself), don't don't sit around and day dream about things they "think" they will eventually do. The people who make a difference say "screw the status quo, I'm going to take a chance"...and they do it!
A lot of folks see successful people and don't always understand the struggles that real estate investors/entrepreneurs face:
- 80 hour work weeks
- Sleepless nights
- Strain on the family
- Ridicule
- Events missed
- Late nights changing door locks, picking up condoms, patching holes in walls, picking up old rotting food from the floor...
- Health issues
- Financial issues
- Loss of friends
- I can go on and on...
To those looking for the "magic bullet," here it is,...work harder than everyone else. Even if they are smarter, you will eventually surpass them because of your determination.
4 Reply
Arlan Potter
Investor/Accountant/Builder · Meno, OK · Member since 2014 · 1k+ posts · 918 votes
6y
I am selling properties.
0 Reply
Ola Dantis
Multifamily Syndicator · Houston, TX · Member since 2016 · 1k+ posts · 2k+ votes
6y
@Danny Randazzo
Giving away free content by doing a FREE LIVE experience (not a MeetUp and definitely no selling).
A lot of investors are starving for knowledge when it comes to multifamily investments.
4 Reply
Sam B.
Member since 2019 · 106 posts · 32 votes
6y
@Danny Randazzo. Looking at other assets other than MF
1 Reply
Kevin Drewett
Member since 2019 · 2 posts · 0 votes
6y
@Taylor L. Where is this meet up?
0 Reply
Richard P
Developer · North America · Member since 2012 · 6 posts · 1 vote
6y
“If people aren’t calling you crazy, you aren’t thinking big enough”
1 Reply
Dennis M.
Rental Property Investor · Erie, PA · Member since 2018 · 6k+ posts · 9k+ votes
6y
Originally posted by @Account Closed:
@Dennis M.
Thanks Dennis. I've trained hundreds of people over the years and the thing I've learned is you can't train motivation, drive, and work ethic. That comes from within. Those who excel and take action (like yourself), don't don't sit around and day dream about things they "think" they will eventually do. The people who make a difference say "screw the status quo, I'm going to take a chance"...and they do it!
A lot of folks see successful people and don't always understand the struggles that real estate investors/entrepreneurs face:
- 80 hour work weeks
- Sleepless nights
- Strain on the family
- Ridicule
- Events missed
- Late nights changing door locks, picking up condoms, patching holes in walls, picking up old rotting food from the floor...
- Health issues
- Financial issues
- Loss of friends
- I can go on and on...
To those looking for the "magic bullet," here it is,...work harder than everyone else. Even if they are smarter, you will eventually surpass them because of your determination.

yeah man that’s really good stuff I’m screen shoting your post so I can meditate on that thought .when I got into this crazy business I was completely unaware of all the psychological stuff and shear day to day difficulty that lay ahead for me ..but it’s actually working out and every day it gets better .
1 Reply
Scott Morongell
Investor · Charlotte, NC · Member since 2017 · 791 posts · 479 votes
6y
Originally posted by @Mike Dymski:
Originally posted by @Scott Morongell:
@Danny Randazzo name of the game is cost of capital. If you continue to fish out of the same pond you will continue to catch the same fish. Getting on podcats, going to events, etc are all great but 99% of the passive investors there are conditioned for the same high returns when the market really doesn't support that today (unless you plan for the stars to align on your deal). That being said, there are many investors out there who merely want to match what the stock market is offering them. Find the pond that is loaded with those investors and you will be very happy.

Maybe happy for the short-term with cheep capital during benign economic conditions, but those types of investors' rear end cheeks pucker up during economic downturns and they run for the hills while smart capital remains active.

Smart capital is often cheaper in current market cycles because they understand what a true risk-adjusted return looks like.

0 Reply
Danny RandazzoPro Member
OP
Apartment Syndicator · Charleston, SC · Member since 2016 · 973 posts · 728 votes
6y
@Scott Morongell all good points. What are you doing to be different with your capital (I.e. finishing from different ponds)?
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