Gaining Freedom Through Multifamily Investing with Joe Fairless
“I wholeheartedly believe that everyone is here for a reason. That's my belief. And everyone has special talents. So when someone's not working out in that specific role, it's just that it's not right for them. So I have no problem with a quick hook. So you know, for people who don't have that skill set, naturally? Well, I mean, the same thing for people who don't have other skill sets, you find people on your team who do, I'm a believer in doubling down on your strengths, and finding team members who can compliment you in areas where you're weak."
Joe Fairless has a passion for multifamily investing. He has over about 1.1 billion properties under management now collectively with his company, Ashcroft Capital, as well. This is partners and investors. And he's the host of the longest-running daily real estate investing podcast, the Best Ever Real Estate Podcast, also best-selling author, and just as tons of value for people looking to invest in real estate, and especially multifamily.
Click on the video below:
Brett:
I am excited about our next guest. He's out of the great state of Ohio, and he has a passion for multifamily investing. He has over about 1.1 billion properties under management now collectively with his company, Ashcroft Capital, as well. This is partners and investors. And he's the host of the longest-running daily real estate investing podcast, the Best Ever Real Estate Podcast, also best-selling author, and just as tons of value for people looking to invest in real estate, and especially multifamily. And so please welcome the show with me, Joe Fairless. Hey, Joe, how are you doing?
Joe:
I'm doing well. Looking forward to our conversation, Brett. Thanks for having me.
Brett:
Absolutely. Thanks for being here. And for listeners to get to know you for the first time. Would you give a little bit about your background and your current focus?
Joe:
Sure. So the current focus is as you mentioned, I'm a value add multifamily investor, co-founder of a company that does that Ashcroft capital. And a little bit of background. I'm from Texas originally grew up in Fort Worth, I moved from Texas to New York City after I graduated, graduated college, and worked in the advertising industry. Actually, I was a junior project manager on Madison Avenue right out of school. And I was making $30,000 a year in New York City that doesn't go very far. I was renting an apartment in East Flatbush, Brooklyn for about 750 or 775 a month. And that was my paycheck also every two weeks, so wasn't a whole lot to save. In fact, there wasn't anything to save. I had about $18,000 worth of student loans as well coming out of Texas Tech is where I went to school. So I climbed the corporate ladder, and relatively quickly, because I needed to, and because I enjoyed what I was doing. And I was also doing jobs on the side. I worked at a daycare in college. And after I graduated college, I was a managing male nanny on the side. And I would do that on the weekends, I would also have my full-time job. So I was pretty busy making extra money. I would also keep my living expenses really low, especially or relative to New York City standards. I didn't pay any more than like $1200 at most. During the 10 years that I lived in New York City and rent. I had a roommate the entire time. My friends made fun of me. They said I was living like a college kid, which I was. But I was also saving like an adult. I was living like a college kid I was saving like an adult and the natural progression in New York City is you have roommates then you have a studio apartment, then you have a one-bedroom apartment. You're a big kid. Well, I just stayed with a roommate the entire time as they were rotating in and out. And I was saving my money and I eventually saved up enough to buy my first single-family house and Duncanville Texas for $76,000. I save $20,000 in order to make that happen. And I bought that one and then a year or two later, I bought another and then another and another having four single-family homes. But what I realized is that you make 250 I was making 250 bucks a month from each of the homes but then someone would move out and that would be $5,000 for getting it to be moving ready again and then that wipes away all the profits of 250 bucks a month for that entire year and then some so I knew there had to be a better way. I looked at and studied multifamily investing. And then I ended up acquiring a large apartment community 168 unit apartment community from my four single-family homes to 168 units that flopped and did not do well. It lost money. I paid back my investors Plus a 14% annualized return out of my own pocket, which was a challenging experience personally, but something that I'm very proud of. And, you know, something that also with those investors who were in that deal, I mean, they're investors for life. And it was interesting. Someone asked me, Oh, you were thinking really about the long game of how, how that can be beneficial for the business when you pay them back or not. I was thinking about what I was just wanting to be. I wanted to be proud of who I am. Matthew McConaughey has a commencement address. Have you seen that one for universities, the University of Texas, does that make sense?
Brett:
It's been phenomenal. Keep going.
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