All Forum Posts by: Jorge Abreu

Hi @David Torres, 

In commercial real estate, it's common to work with brokers, not agents. 

Brokers can be found on Loopnet and they can help you with your search for commercial real estate. 

Agents will USUALLY be focused on residential real estate. 

Let me know if you have any questions!

@Deen Chirug,
2 - 4 units is still considered residential real estate. Your best approach will most likely be contacting several active real estate agents in your area for listings.

Have you ever thought about doing direct mail marketing?

Hi @Lee Yoder,
I think there are pros and cons to each scenario but ultimately it will depend on your goals.

I have personally been in this situation several times throughout my career.

Nothing wrong with holding the asset longer and collecting cash flow. Is the amount of cash flow this asset producing worth it to you (instead of moving to your next project)? Is this asset slightly older vintage and could possibly have some costly repairs coming up? 

On the flip side, if we go back to the time value of money concept, a dollar today is worth more than a dollar in the future. Like you mentioned, you could easily move your equity into another project (potentially better) and continue to scale your business. 

At the end of the day, there is never anything wrong with taking a profit!

Make sure to check out the webinar replay: https://l.facebook.com/l.php?u...

Make sure to check it out. Free Registration here: https://www.eventbrite.com/e/e...

Domain at Morgan’s Landing is the newest multifamily asset in one of Houston’s rare barriers-to-entry suburbs. Only nine conventional multifamily properties have been built in the submarket since 2000 due to strict zoning restrictions. As an institutional quality property built to best-in-class standards, Domain at Morgan’s Landing quickly stabilized in the underserved market. The low-density, garden-style community is available at an attractive basis to replacement cost, offering investors a highly differentiated asset with no true competitors and no new supply in a job-rich environment.

Investment Highlights Best-in-Class Product: Domain at Morgan’s Landing reset the standards in its submarket, offering amenities and a quality of interior finishes previously unavailable in the market

Rapid Lease-Up: Averaged 27 new leases a month in 2021 and average leased rent increased from $1,315 in January to $1,524 in December

Immediate Income Upside: New ownership can turn the majority of first generation leases in an improved economic environment

Zero New Multifamily Supply: No new construction within an 8-mile radius of Domain at Morgan’s Landing

Strong Multifamily Rent Growth: 9.7% T12 rent growth in submarket and 9.7% rent growth projected for 2022 (Axiometrics)
Limited Single-Family Inventory: Only 3 homes available in adjacent neighborhood and 74 total in city with 31% year-over-year increased pricing

Job-Rich Environment: 35K jobs within 5 miles and 193K jobs within 10 miles, anchored by healthy and high-paying manufacturing, industrial, and petrochemical industries

Bayport Proximity: Substantial job generators nearby including the Bayport Industrial District (15K jobs) and Bayport Terminal of the Port of Houston (225K jobs), both with multi- billion-dollar expansions underway

High Wages: Median household income in the area is $75K, or 77% higher than the City of Houston and 10% higher than the Houston metro

Property Details Domain at Morgan’s Landing is in Laporte TX, which is home to more than 35,000 residents. The location of the community allows residents convenient access to Highway 146 and 225. This newly constructed community is a 3 story garden style property that consists of one, two and three bedroom floorplans totaling 350 units with state of the art amenities. The community is easy to locate and stands out with a large monument sign and beautifully landscaped winding entrance. Domain at Morgan’s Landing sets in a prime location with award winning schools, state of the art library, spacious parkland, and ease of access to Houston Ship Channel, Galveston Bay, downtown Houston, and Kemah Boardwalk. The city of La Porte is home to some of the largest petrochemical industries thanks to the Barbour’s cut Terminal and Bayport Terminal operated by the Port of Houston.

Invest Now

Apartment Features
3-story townhomes with attached garages available
Pool and courtyard views*
Pre-wired for high speed internet
9-foot ceilings
Crown molding
Foyer coat closets
Wood-grain flooring in kitchens and living areas
Two-inch faux wood blinds
Expansive living areas
Ceiling fans in living rooms and bedrooms
Kitchen pantries
Granite countertops
Under cabinet lighting and tiled backsplash
USB ports
Stainless steel appliances
Side-by-side refrigerators w/ in-door water/ice dispensers*
Wine chillers*
Kitchen islands and 42” cabinetry
Single-basin undermount sinks with gooseneck faucets
Brushed nickel hardware and fixtures
Track and pendant lighting
Carpeted bedrooms
Spacious walk-in closets
Spacious, spa-inspired bathrooms with ceramic tile
Framed mirrors
Dual shower heads*
Dual vanities*
Walk-in showers*
Garden-style soaking tubs with curved shower rods
Linen closets
Full-size washers and dryers included
Private balconies and patios
Private yards*

Location Domain at Morgan’s Landing is located in the heart of La Porte, one of the well- known and livable municipalities in Southeast Houston. The community is well-positioned for access to local area employment and lifestyle amenities, as well convenient accessibility to major employers and destinations in Deer Park, Baytown, Pasadena, and Clear Lake.

The Elevate Team is Back! It's Been Over 2 Years Since We Hosted a Multifamily Investing Meetup. We've Got Lots To Share & Can't Wait!

Elevate Commercial Investment Group will be hosting a Networking Meetup at the The Palms Dallas Bar – 2922 N Hall Street, Dallas, TX 75204 on Thursday, August 18, 2022 from 11:30AM – 1:30PM CST.

Click Here to Register

In just under 5 years, Elevate has been able to acquire over 6,000+ units with another 1,200+ units currently under contract. Join us as we answer all of your questions about how Elevate has been able to build a strong team to handle everything that goes into being a multifamily operator. We are holding nothing back!

We look forward to seeing you to network, learn, partner, invest, and create deals!

Click Here to Register

Successful real estate investing relies on several factors, but “location, location, location” is top of the list. But “location” is a broad term, and evaluating the right place to invest your dollars means identifying the right markets both geographically and economically.

Some cities simply provide better opportunities than others based on factors like the relative cost of housing to average incomes, availability of good jobs, and demographic trends. At the local level, factors like the quality of schools, neighborhood safety, access to amenities like parks, shopping and entertainment and a host of other variables come into play.

Here are some guidelines to help you ask the right questions as you determine where to invest.

Start with your Goals

Are you investing for the long term or trying to achieve a shorter-term boost in value? Various markets throughout the country will produce more consistent cash flow per dollar invested, but the properties may not appreciate much. Other regions will exhibit strong trends for appreciation in value, but may not cash flow well due to the high costs of properties relative to rental rates.

This is why it is very important to know your investment goals and understand what it’s going to take to get there.

Investing Locally vs. Remote Markets

Many investors want to be able to see their investments or rely on their own expertise and local network to manage properties. If you live in a high cost city like San Francisco or Washington, DC, the real estate market can produce some positive opportunities, but only if you have significant capital to work with. In many cases, it may be better to evaluate other markets that fit your goals more cleanly.

When looking at a metro region, there are a wealth of statistics available to help you determine the overall viability of that market. Here are several categories of data to look into:

Economic factors

How many people live there?

Is the population expanding or contracting?

Is the economy diverse? A one company or one industry market can take a big hit if that one employer base goes through difficult times. A city with multiple economic drivers will be more stable and more likely to grow.

Are wages rising, falling or stagnant?

What is the unemployment rate?

Real Estate Factors

Once you find a market or couple of markets that look positive at the economic level, it makes sense to start looking at the general housing market in that area. Some of the questions to ask here include:

What is the ratio of owner occupied to rental properties? Areas with a higher percentage of renters will obviously create a bigger pool for you to choose from and more demand for quality rental units.

Rent-to-Value Ratios. A general rule is that monthly rents should be at least 1% of the property value. If you buy a property for $250K and can only rent it for $1,800/month, the likelihood that you will see positive cash flow if slim and you will be banking on appreciation.

Vacancy Rates and Time on Market. A property purchased at a bargain rate does you no good if you cannot find a renter. Evaluating trends in the number of vacant properties and average time to fill a vacant rental can be critical.

Housing Sales Statistics. Even if you are looking at a long term buy and hold, the ability to sell a property and receive a reasonable price is critical to your exit strategy. This can also be a solid indicator of the overall health of the real estate market. Look at trends in month’ supply of inventory, time on market, and asking vs sales prices.

Regulatory Factors

Some markets are friendlier to real estate investors than others. If you take two individual properties with similar dynamics such as cost, condition and rental potential, you can see very different results based on things like taxes and whether landlord/tenancy laws are more or less favorable.

It really pays to understand the following factors:

Property tax rates

Property insurance rates

Municipal landlord taxes (an IRA or 401k may not be exempt from certain local taxes)

Local landlord/tenant laws – how easy is it to evict a tenant, for example.

Local Market Factors

In addition, you will want to look at things like neighborhood safety, quality of schools, access to transportation, proximity to shopping and recreation, and other factors that drive desirability.

Investing in real estate is not really that different than any other type of investment. You want to identify opportunities that present the maximum potential with the least risk possible.

Step 1 Population Growth

Use city-data.com to research the city’s population

Goal: Since the year 2000, has the city’s population gone up at least 20%

(Ex: Phoenix, Orlando, Las Vegas, Columbus Ohio)

Step 2 Income Growth

Use city-data.com or bestplaces.net to research the city’s income growth

Goal: 30% income growth since the year 2000. This implies that the city is keeping up with inflation. If it’s not keeping up with inflation, than you end up with high levels of delinquency especially in Class C properties.

Step 3 Median House Value

Use city-data.com to research the city’s median house or condo value

Goal: 40% increase in median house or condo value since the year 2000.

Step 4: Amount of Crime

Goal: Under 500 crimes in the previous year. You want to see that the number of crimes has come down over time.

If you apply these four principals, you will stay away from cities that will not flourish during an economic down turn. Next, you want to look into the neighborhood within that city.

Step 5: Neighborhood Household Income

Goal: Income needs to be between $40K-$70K

This is ideal in order to generate the cap rate necessary for a successful syndication and stay above the increase in delinquency marker. Under $40K household income is tied to increase in delinquency. Above $70K, the neighborhood demands a lower cap rate, therefore best for a REIT acquisition vs. a syndication.

Step 6: Neighborhood Poverty Level

Goal: Poverty Level below 20%

Never invest in a neighborhood where the poverty level is above 20%. Above the 20% mark, your unit churn expense will kill any and all profit.

Step 6: Neighborhood Unemployment Rate

Google unemployment rate for the city

Goal: Make sure that the neighborhood unemployment rate is not more than 2% higher than the city’s unemployment rate. If it is higher, than the moment a recession hits, the unemployment for that neighborhood is going to skyrocket.

Step 7: Neighborhood Demographic Diversity

Goal: You want there to be at least two demographic races of people that make up the neighborhood.

Note: You don’t buy for good times, you buy for bad times and always stress test every deal!

Capital raising is one of the most important skills for all multifamily syndicators. Some enjoy this task, while others despise asking people for money. I look at capital raising as my obligation to share the opportunity with as many people as I possibly can. If I believe with my whole heart that what I am offering can benefit everyone, then why would I not want to share it?

I have learned the art of persuasion and selling from numerous sources over the years, however, the best persuasion techniques that I have learned came from one of my favorite mentors, Brendan Burchard. I am an avid student of his. What I am about to share with you, I learned from Brendan’s Persuasion Masterclass.

If you don’t know what to say to get others to buy into the opportunity that you are offering to them then this is your ticket to capital raising bliss. Persuasion is the science and the art of influencing someone to do what you hope they will do. I don’t particularly like the word persuasion, because it could be perceived as manipulation if not done correctly...I prefer to call it influence. You are not manipulating them when you have the right intention to help the person that you are influencing to take action and invest with your team. You are simply encouraging them to help themself.

The more thoughtful and strategic you are in your presentation with potential investors, the more often you will win! Brendan teaches a three part persuasion conversation that will help you to move through your approach with a potential investor more strategically. He calls the three steps Pre-suasion, Conversation, and Post-suasion.

The goal of the Pre-suasion stage is to internally strategize what you want the clear outcome to be. What do you want the other person to know, think, feel and do? Why should they do all those things? It is important to think in advance with more diligence, greater discipline and more consistency. This will greatly help with your confidence when sitting in front of a potential investor. You should know exactly what you are offering to them, what they will get in return, why they want what you are offering and why they should invest with you and your team.

One of the best persuasion techniques is the objection killer metaphor. If you use visualization, metaphors or similes to explain what you are offering, you are way more likely to get their attention. Ask yourself what triggers investors to do what they do. As an investor, what do they need and what drives them to invest. The most important step in the pre-suasion process is to understand what these triggers are and use them throughout the entire conversation process. Brendan teaches the following 8 triggers.

👉Novelty. People like new, bright, shiny objects so your job is to share with them the new experience they will have if they chose to invest with you. This will assist you in fully captivating your potential investor. Prior to your conversation with an investor you need to ask yourself what’s new? What is cutting edge or thought provoking? What is here today that was not available years ago? What about your offer can bring newness into their life?

👉Utility. People buy things because they are useful. It is your job to sell the features of the project/investment you are offering and why those unique features are useful to them and the investment as a whole. This could be the financing terms, amenities of the complex, the business plan, the sponsor team experience, etc. Don’t leave anything out!

👉Pride. We all have ego. We all want to believe that what we have done up to this point is important. For them to buy into what you are offering them, they are going to have to relinquish an old belief. For example, if the investor that you are sharing this opportunity with has never heard of multifamily syndication, they’re going to question “Why have I not heard about this?” You may need to stroke their ego a bit by letting them know that not very many people that you talk to actually know that you can invest only $50K into a $20M apartment complex and receive higher than average returns and tremendous tax advantages for doing it. You will lose them if they feel stupid for not understanding what you are offering. You don’t want a wounded ego.

👉Popularity. People will buy, believe and act because they think it is the popular thing to do. Make sure that you share with them who else is investing in multifamily syndication deals. Let them know why it is fashionable to invest in large apartment complexes and be sure to trigger their fear of missing out on the opportunity. We want to help them join the club!

👉Aspirational Connection. If you can create an aspirational connection with an influencer that others aspire to be, that can be very helpful in your persuasion efforts. Talk about others that they may know that are investing in multifamily syndication and experiencing the benefits of such investments.

👉Benefit Extension. Brendan uses this phrase to refer to the benefits beyond the person to the community and the world at large. Share with your investor the impact their investment will have on the residence and the community as a whole.

👉Scarcity. When things are hard to find, only available for a limited time or less available, people understand that they must act now or chance missing out on an incredible opportunity. FOMO or Fear of missing out is a very real phenomenon.

👉Fulfillment. How is your offer going to make your investor feel great? How will they be personally satisfied or get more power so they will be more fulfilled as a human being as a result of investing with you in this deal.

The second stage of the Persuasion Process is the Conversation. You want to make sure that you are opening up the gate to the conversation with your investor slowly. You want to first make an observation that you think they will agree with you on. For example you might say “Have you seen…”, “Have you ever heard….”, What do you think about…” You will want to ask observation questions until you get a positive response. This will help them to make the case you are presenting to them for you and since people support what they create in their mind, they will be more than halfway to a yes.

Now that you have them on your side, if possible, you want to share a personal experience related to that positive response they shared. You then want to authentically acknowledge them by letting them know how smart they are and how much they already know about the opportunity that you are sharing with them. Finally, you want to make the suggestion that they consider looking at the opportunity since they clearly need the benefit that you are offering.

The hard work is now done. It’s time to close the deal. Once they verify that they agree that it’s a good idea and/or would be beneficial to them, then you can ask, “So would you like to try….?” At this time you want to get the commitment from them. You will need to repeat this process until you get a yes.

The final stage in the Persuasion Process is Post-suasion. This is where you must follow-up with your investor and see the deal to the finish line. If you want something and truly believe that what you are offering the investor is beneficial, do not quit! Remember that most people will not say yes the first time you ask. You will more than likely need to answer questions and give them time to process what you are offering them. Brendan suggests that you write them a 4 sentence email making the case for why they should invest even if they already said they would. Include a deadline that you must have the signature docs back. If possible, add a bonus or surprise that they didn’t know was included. You also want to reveal the opportunity cost associated with not following through. If they don’t return the docs and wire the funds by X, the team will have to accept someone else in their place. Let them know that you are looking forward to working with them and that they are not going to regret it.

💥Most Importantly, remember to think in advance and prepare thoroughly for the persuasion conversations you have. Once you get a commitment you want to follow up immediately! Should you not get the commitment that you were after, keep adding value to that investor until they are confident in what you are offering. Remember, people invest in people more than things. Be authentically yourself and don’t give up!

For years I have been obsessed with the idea of being uber productive. There are articles and books everywhere on this exact topic. These articles and books describe things that you should and shouldn’t do, how to work and when to work, etc. The question is how do they all fit together and work alongside one another? How do you actually implement this advice? How do we turn these routines from a concept we read about to an actual part of our day?

Well, I’d be lying if I told you that I have any of this at all figured out, however, I can share with you some strategies that I have found to be very effective and extremely important if you plan to up your productivity game.

Deloading

The term deloading comes from The 4-Hour Workweek by Tim Ferriss. He describes it as strategically taking your foot off the gas and unplugging for extended periods of time. This gives you time to think and come up with new and better ideas. To do this, you alternate intense periods of batching similar tasks (recording podcasts, clearing the inbox, writing blog posts, handling accounting, etc.) with extended periods of unplugging.

“It’s the silence between the notes that makes the music.” -Tim Ferriss

I find that it’s important to do this for a small chunk of time every morning and then pick at least one afternoon a week (1-3 hours) to deload. The best time I have found to do this is right after completing my morning routine prior to starting my first work time block and every Wednesday afternoon from 1:00-4:00.

I don’t know about you, but I come up with the best ideas and think the clearest in the middle of the night, during meditation time and while getting a massage or pedicure! Giving yourself time first thing in the morning to clear your head and get your ideas on paper is extremely helpful!

This time can be spent doing whatever you want to do. Work or play, doesn’t matter. It’s important to put your oxygen mask on first, remember! Don’t forget to block your calendar off during this time so that you have zero distractions.

Deep Work

Deep Work by Cal Newport describes the idea that we need to spend more time on focused, high-energy work. This is becoming increasingly important in this highly distracted day and age

High-Quality Work Produced = (Time Spent) x (Intensity of Focus)

Cal tells us that to do better work, we need to spend more time in an intense, focused state.

This works for the following reasons:

1. When you block out time for yourself, similar to how you would with a meeting or phone call, you’re making a promise to yourself that you’re going to do something. This helps to hold you accountable.
2. It also helps you to stick to a time-budget and not spend too long on tasks.
3. It’s also conducive to a deep work state as you know that during this time, you should be 100% focussed on that block of time and not on Facebook or pursuing other activities.

Schedule this “deep work” during the time of the day that you are the most productive. For me, this is the morning hours. I tend to leave the afternoon hours for tasks that take less focus and energy.

6-Week Cycles

Another productivity hack I learned from the guys at BaseCamp is to work in 6-week cycles. For each 6-week cycle you choose 1 – 2 “big batch” tasks to focus on. This is generally a bigger project that needs a significant amount of time and focus to complete. You can also work on 4 – 8 “small batch” tasks during this time period. These are quicker, mini-projects that take a few days or a week to complete.

During this time, you should focus on nothing else. All other ideas have to wait until the cycle ends, at which time you decide what you want to work on next. This helps to give you or your team more focus and purpose during each cycle. Asana KanBan boards are a really good tool to help you with scheduling the time for each 6-Week Cycle. *More on this in a future post.

5-Hour Rule

I’m not sure where I read this idea but I live by it! The idea is that you pick a minimum of 5-hours per week to dedicate to personal development and/or learning of some sort.

To implement this, I’ve scheduled a minimum of an hour each day for “learning”. It’s different to deloading which is free time to do whatever you want. “Learning” is the time when you should be either reading a book, listening to a podcast, journaling or networking with people who are smarter than you. I get extra time in while getting dressed, going for a walk and driving. I might be a podcast junkie!

CEO Mode

During our most recent Mastermind Meeting, we spent a significant amount of time discussing the idea that you must find time to work on your business. CEO Mode is the mode you go into when you work “on” your business instead of “in” your business. It’s the time you take to step back, plan and strategize where you want your business to go and how you plan to get there.

Even if you don’t work for yourself or run your own business, it’s important to take time to step back and plan your long-term career goals or work on any strategic aspects of your work.

To help get into CEO mode more often, I’ve scheduled a weekly recurring block of time on my calendar for each Friday afternoon right before my weekly review. It’s nice to close out the week by working “on” the business and thinking about long-term goals so that I can strategically plan my upcoming week.

I hope these productivity hacks will help you to make the most of your work week!