Secrets On How To Be A Successful Real Estate Investor
Nitzan Mosery is an expert in multifamily real estate. He’s been involved in real estate for the past 20 years and owned properties nationally and worldwide. He went many years to college but never graduated because he didn’t know what he wanted to do back then. His father used to tell him, the two types of people in this world, those that pay rent and those that collect. And that’s how he started on real estate because he always wanted to collect.
He is now focused on creating a passive income stream and multifamily investing.
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Brett:
Our next guest is out of the great state of Florida. He’s been involved in real estate for the past 20 years. And he’s owned properties nationally and worldwide. And he has a focus right now for mostly multifamily. And he’s a licensed real estate professional and mostly focused on the South Florida market. Please welcome to the show with me Nitzan Mosery. So how are you, Sir?
Nitzan:
I’m doing well. Thank you. How are you, Brett?
Brett:
Hey, better than I deserve. Glad to meet you here. And for our listeners, so good to know you for the first time, would you give us a little bit more about your story and your current focus?
Nitzan:
Sure. So I’m originally from New York City, I was born and raised into an immigrant family that spoke two languages at home English and bad English. I grew up and traveled the world for about seven years, then settled back down as you stated in the great state of Florida, and gotten into multifamily real estate about 11 years ago. I’ve been involved in real estate pretty much all my life. Thanks to my father. I remember when I was a little kid growing up used to tell myself, there are two types of people in this world, those that pay rent and those that collect, and son you always want to collect. So that kind of stuck in my head. And, I’ve always gone out and wanted to create a passive income stream for myself and my family, because I’m one of those lazy kinds of people. I don’t like to work too much. And I’d rather work 80 hours and 40 hours to generate that income stream.
Brett:
Beautiful very well said. And that is certainly what we’re about here, you know, creating passive income streams and multiple income streams so that we can spend more time doing the things that we enjoy doing, and or give the causes we believe in most. So that being said, though, I want to take a moment to step back in time, and I want to go back maybe to the earlier childhood days, you know, I believe we’ve all been given certain gifts in this life and these gifts that are given to us to be a blessing for others. Some people will call them strengths, some people call them superpowers. But I’m wondering, what are those one or two gifts that you believe you were given? And how do those help how you help people today?
Nitzan:
I was given the gift where my parents, they told me, they said, you know, it doesn’t matter what you do, always be the best. You know my father told me, he goes, you can be garbage, you know, you can pick up garbage on the streets, this would be est. And that, you know, put that into my head that, you know, I need to be proud of the outcomes and of the things that I do. And I pass that on to my children as well. You know, I always ask them, is this something that you could be proud of? Is this what you did? Are you proud of that, because that’s what’s important? And I would say the other superpower gift that I was given was the fact that there is this possibility of creating an income stream, a passive income stream, to go out and generate that so that I can live life on my terms and not have it dictated to me by somebody else. You know, my parents always believe that. You know, my parents, they came from Eastern Europe, and the Middle East and Israel, and so forth. And they didn’t have higher education. But they believe that if you’re building something for yourself, and you’re open, you’re honest, you’re trustworthy, you’re transparent. These are the qualities that will help you advance in life and this is what I strive for today. And I truly believe that we all can go out and live life on our terms, as long as we’re able to create that passive income stream.
Brett:
Beautiful, absolutely love that. So be the best. Whatever you’re doing, given your full effort, you’re gonna be doing you might as well lead the pack there and then believe in building something that is passive and that is can give you some freedom there, along with integrity, honesty, and transparency. Is that a fair summary?
Nitzan:
Yes, absolutely.
Brett:
That’s awesome. Love it. So now let’s dive right into our topic for today. And by the way, you can learn more about Nitzan Mosery at investwithcip.com. And we’re talking about becoming a successful multifamily investor. So Nitzan, what’s the number one secret that you found in today’s market to be a successful multifamily investor?
Nitzan:
It’s a great question. So what I found is that in multifamily, there are a lot of moving parts, there are a lot of different aspects that you have to understand. And, you know, I have to say that I never graduated college, I went many years to college and whatnot, but I just never graduated. I didn’t know what I wanted to do back then. And, and it wasn’t, you know, I didn’t have the behind to sit into study and whatnot, I’m more of a doer. But one of the things that I’ve learned, not being the sharpest tool in the toolbox, is that I have to surround myself with people who are smarter than me, people who know the industry, and what I want to do better than myself. I’ve learned the art of delegation. So to become a very successful multifamily syndicator investor, I’ve surrounded myself with people who are a lot smarter than me in analyzing properties, doing due diligence, and finances, and Excel spreadsheets, and all that and I’ve surrounded myself with people of that nature. And thanks to them, as a team, we’ve been able to move forward and move forward quite well of my business partner has a great saying she says this business is like running 12 marathons at the same time. And you have to cross the finish line with all 12 marathons at the same time to be successful. So you know, it’s hard enough to run one marathon, let alone 12. So building a team of people that can help you raise capital, analyze, manage, and, you know, do your books and Investor Relations really helps you and moves you along that much faster.
Brett:
Beautiful, so surround yourself with people who are smarter than you. The art of delegation building team staying in your lane sending your shrinks and running 12 marathons at the same time. But hopefully, you’re not running all 12 by yourself, right? You’re running one of them. And you got the 11 others running there. Is that a fair summary?
Nitzan:
Absolutely.
Brett:
So let’s talk about maintenance. Right? Because I’ve heard recently, and this is I think it’s harder and harder to find, you know, quality maintenance professionals, construction, plumbers, electricians, it’s such a highly sought out thing. So it’s no longer so much can you manage the properties? Can you find the maintenance professionals or have a team of maintenance professionals to be able to service your deals, what is your thought on maintenance versus management?
Nitzan:
Maintenance is huge, you know, as you mentioned, now, maintenance people to find, to take care of your properties to maintain your books. These are, you know, extremely important aspects of the business. Let’s take it to the property level when you’re looking for maintenance people, you know, your property manager that you have on-site before you’re hiring a property manager to manage them, you need to interview them and make sure they have a huge Rolodex of people that they’ve worked within the past that is credible, that is trustworthy, that can do the job. So you want to make sure that you have that so that you can maintain your asset, right, the one of the problems that I’ve seen a lot is that people will buy a property, they’ll put in a property manager, but they won’t maintain the asset. And what happens is, it’s a lot cheaper to maintain the asset on a day-to-day basis on a month-to-month basis than to let it get run down and then inject a lot of money to put it back and to bring it back to life. So it’s a lot easier to maintain that asset. And today maintenance people are, as you mentioned, are very hard to come by because they’re in such high demand. So you want to have again, it’s part of your team, you want to make sure that you have a good team of people that can a find you a good maintenance person. Have a good maintenance person on your team. That’s extremely crucial for your success. And then you have to be able to manage these people. Right. It’s all about management. It’s managing your money, managing the property, managing your residents, managing your service calls, all you know managing your investors. as well so that they’ll be repeat customers. So it’s kind of, you know, twofold, right? It goes hand in hand.
Brett:
Excellent. Very well said, What’s the biggest obstacle or challenge currently facing you, your team, or your clients as it pertains to being a multifamily investor?
Nitzan:
I would say right now, there is a lot of demand for multifamily. And we’re in a seller’s market and a lot of the cities and states that we’re buying. So there’s a huge demand. And a lot of people are spending money and they’re just buying assets. So for us, for my team and myself, we go out and we look for, you know, the diamond in the rough. And it’s getting more and more difficult to find these diamonds in the rough. And to acquire them because there’s so much competition out there, multifamily is an incredible asset to buy. If you’re buying it correctly, you can withstand any downturn, right, if you’re buying it very conservatively, and you’re not projecting, you know, distributions or returns to investors that are way too aggressive. You can outrun any downturn, so it’s a great asset class. And I always say it doesn’t matter in a good market or a bad market. People will always need a place to live. And if you know how to buy, you’re buying right and you’re managing the asset correctly, and you’re maintaining it correctly. You can outlast anyone. So, but it’s becoming more and more difficult to find those good quality products.
Brett:
Yeah, 100% couldn’t agree more. It’s like all-time highs, interest rates are so low, inventory so low, and it’s all chasing seems to be, you know, value add multifamily properties. Good luck to define that. It’s tough right now, that being said of all. I’ve often said that we and I say we as an IO multifamily properties with partners and also do multifamily brokerage and help people who are selling these things. I often say we’re not in the business of selling or even really buying those assets. We’re in the business of solving people’s problems, right? So the problem for the seller, what’s the number one problem facing a lot of these multifamily sellers?
Nitzan:
Well, now after we’ve come out of this pandemic, are still in the pandemic, right? A lot of the issues are one of the main issues is that a lot of us had to go into forbearance right, we’ve asked for forbearance on our mortgage and whatnot. So what we’re seeing and what we might see coming into the market shortly, is a lot of sellers now suddenly, or a lot of owners suddenly their mortgage payments are increasing, right because you’ve got your regular mortgage payment. And now you’ve got your three months, six months of forbearance mortgage payments that now are being tacked on to your monthly payment, which is increasing your mortgage payment, but the eviction moratoriums are continuing to expand into the move. So the income isn’t increasing, right? A lot of people are slowly getting back to work. However, your rental income is not increasing exponentially as suddenly your mortgage payment is. So we’re probably going to see a lot of these properties coming on the market where people have to sell, you know, finding good people to help you manage the property finding good quality maintenance people, you know, there’s, you know, we’re finding that a lot of people would rather stay home and get their stimulus check and get their unemployment check, which they’re making more money doing that than they would probably be getting paid to work. So this is causing a lot of issues in the marketplace right now. So you have to find someone who wants to work who’s willing to work and who’s doing a good job at it.
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