All Forum Posts by: Michael Ealy

 You got it the other way around. I raise the capital not them.

I understand you being skeptical but please do your research and know who you are insulting.

The city of Cincinnati has declared December 14, 2018 as "Michaeal Ealy Day" due to my contributions to Cincinnati's economy. In 2013, my company acquired 28% of all apartment buildings for sale in Cincinnati.

Has your city recognized your economic impact as an investor?

 I appreciate the positive energy Anthony. Let's connect via PM.

 Anna,

Decide for yourself what you're comfortable with and add/double it.

For example, let's say you want to start with a duplex.

Instead - push yourself to start with a 4-plex. That's BIG for you.

Focus on 4-plexes that can add value to - increase the rents by improving management and improving the building. Once you improve the building's financial performance, its value increases - in other words, you are forcing its appreciation.

You can then sell (or 1031 so you don't pay taxes) or refinance your cash out, then move that cash to a bigger property - say 20 units.

Then do the same thing with the 20-units and then move on to 100 units.

 Thanks Matt for sharing your perspective. And I agree: partnerships can go south. I went through a partnership that cost me about $100,000 so I know what you mean. 

Having said that, not all partnerships are bad. I believe in leverage - and leverage is not just borrowing 80% from the bank and putting down the rest. Leverage is using other people's resources - time, money, credit, networth, network, knowledge, expertise, experience, credibility, etc - to achieve what you want. But leverage is a 2-way street: for you to leverage on others, they have to leverage on you.

And yes - newbies might have the wrong impression that only big deals are profitable. Of course that's not the case. All I am saying is that people have limited themselves to thinking they have to start one way when there are other ways to start (and can be more profitable with less work).

Also, big deals is relative. A 4-plex can be a big deal for one but small for another and it depends where you're located in the country too ($1M house in California is a small deal but a big one if you're in Ohio). 

After doing small deals and big deals - I am so glad I did big deals even when it felt uncomfortable. I am glad that even though I got burnt in a partnership before, I didn't let that stop me from partnering with the right people. The right partners have literally made me MILLIONS so my -$100K loss with one bad partnership deal - I consider that my tuition fee :)

 Register for it and if the recording goes well...we might be able to send you the recorded video.

However, having said that, I am not a guru so I don't give webinars that often. The recording may not even happen :)

Here's the link to register:

https://nassauinvests.com/hotel-webinar

 There you go - the Universe is telling you something ;)

Hotel cap rates have not decompressed as much as apartments.

So worth looking into. Have you registered?

Hi Scott, did that guy's name rhyme with "bump"?

I started with my existing apartment investors and yes - I had to educate them on hotels.

Eli, thanks - finally some hard questions for me to answer :)

Experienced investors are always looking for 2 things:

1) Funding; and 2) Deals

If a newbie investor will help me do 1 of 2 (or both) things above, I will gladly partner with him/her.

If I am starting over, I would:

1) Learn how to invest with MF (skip the houses) from experienced investors, starting with my market

2) To help with #1, network like crazy - because KNOW-WHO is even more important than KNOW-HOW

 I am just adding perspective to the question being asked. BP has over 1 MILLION members and 99% of them likely don't know me.

I see some newbies who have not done a deal who wants to syndicate an apartment deal and they want to do it by themselves. The answer to a newbie's question like that will be different vs. someone like me who has experience and sharing what I realized.

And sure - you can be happy with SFRs and small multi's. I am just sharing that the work is the same and small deals take up too much valuable time that can be devoted to bigger deals (with bigger profits and ironically LESS work).