Probably time I offer some insight here...
Quick background... From Cleveland OH, lived in NYC & Charleston SC. Worked in real estate from 2005-2008, and started investing in 2009. I've done everything in residential real estate (wholesale, rehab, normal rentals, short-term vacation rentals, turnkey, property management, private lending). I bought my first apartment building in 2012, and built a portfolio of approx 150 units over the next 3 years with a partner. That partnership dissolved & we liquidated all properties in 2015/2016, and I started rebuilding my current portfolio in August 2015. I focus almost exclusively on apartment buildings (95% of my portfolio). I currently own 3,207 units, across about 40 buildings, in 6 states. My portfolio is valued just over $250M, and I owe ~$120M of debt & ~$30M of investor equity on the portfolio.
A lot of claims being made here. Some accurate, some extremely inaccurate. Here are some thoughts...
@Nathan Gesner I am an active real estate investor. I built up a big management operation, didn't like the overhead & babysitting of adult employees, so I asked myself "How can I continue to build a big business without taking on more staff?" I came to the realization that joint venture partnerships are an awesome strategy. I have the balance sheet to acquire financing, and I have access to a lot of capital.. so I partner with great operators on the residential side, where they bring the deal, handle project management, & act as boots-on-the-ground, while I bring the money & can offer mentorship/guidance. They get into deals that they couldn't have gotten into previously (without using their own money or their own credit), and I get into deals that I wouldn't have gotten into previously either. Everyone wins. That's what prompted me to put an education platform together. I can teach people how to safely & intelligently invest in apartment buildings, and if there is room for us to do deals together, awesome. If not, they now have the process maps, checklists, & tools to do deals on their own. I've only been in the space for 17 months, held 7 events, and people who have come to my events have picked up thousands of units on their own (Kelly Stumphauzer 160+ units, Dan Mitchen 100+ units, David Marsh 400+ units, Randy Lawrence 300+ units, Jack Petrick 500+ units, Phil Klima 100+ units, Steve Morris 300+ units, Jorge Abreu 250+ units, and on & on). I understand there are naysayers out there who make preconceived notions based on limited information, but I also know that I'm doing a lot more good & making a massive positive impact than those naysayers could ever know. I do agree that the sales copy that my partners on the education side put together seems like the typical push/promotion, which doesn't resonate very well with me.. I'll have a conversation with them to take a more authentic angle, which is what I'm all about: https://www.youtube.com/watch?v=-YBpIIgEIQw&t=1s
@JudeCiccolella I don't know who you are, but you seem really angry. You call me vindictive & litigious.. I've only ever sued one person & their broker (for intentionally & maliciously defrauding me & my investors during a transaction that took place in 2018). And yes, I will pursue damages to the fullest extent of the law. Because of how upset you are, I assume you have some sort of relation to them. I'm extremely active in Cleveland OH real estate groups, with a very clean reputation (ha, I don't even know how I'd build a bad reputation.. I don't broker or work with other people much, I just buy my own stuff & provide free investing insight on social media..??). Check out some of the Cleveland FB groups, LI groups, local REIAs, etc, and speak to people who actually know me.
@JamesWise I only recall one encounter with you, about 5 years ago, when you made a cash offer on a building I was selling then came back with financing terms. You probably have your side of the story, and what really happened is probably a blend of how we both saw it. Either way, the deal fell apart, we were both younger, and both said some things. I haven't thought about it since. Happy to hop on a call to hash things out, if you'd like.
@DanHeimer I don't show that you've ever attended one of my events, but happy to address your claims. I've had about 1,000 people out to my events in the past 18 months, this is the first negative review I've heard. 99.9% of all reviews have been extremely positive. If you were actually at my event, you'd know that 1) I buy at wholesale prices, 2) I buy for cash flow, not for speculative appreciation, 3) we 'create' appreciation by making value-add improvements to properties, and never speculate, 4) I stabilize properties & refi out my investors in 12-18 months, allowing more predictability in interest rates & loan terms than speculating 5-7 years out like most syndicators do, 5) if the market shifts, I'm at a low enough cost basis that I have many options on what to do with the property (hold, refi, sell, etc), 6) once investors are cashed out in 12-18 months, I'm the only one with ongoing responsibility & liability (even though it's a non-recourse loan there is still some liability I take on), 7) I project for increased interest rates (which actually just dropped .25% last week, btw), lower LTVs, and lower valuations than what the market is showing right now, keeping us at very safe levels, and 8) I only buy workforce A & B class apartments (not luxury, not C/D class) which is the most insulated asset class in real estate.
I have NEVER publicly pitched a deal, or even pitched a deal in my events. That is an outright false allegation. I have gone over case studies of past closed deals to educate attendees on what a deal looks like, how deals are structured, and provide a big picture.. but I have never ever publicly pitched a deal. And you discredit yourself by saying I raise with a 506B yet I push investors to say they're accredited -- that doesn't make sense, you don't have to be accredited to invest in a 506B. I'm familiar with the SEC rules & regulations, and have multiple attorneys review everything I say & do, to keep things very black & white on how we discuss fundraising. We also record all events, as proof that we don't venture into any gray area.
@KimLisaTaylor -- I am asked to attend REMentor's sponsorship event every year as a sponsor for their students' deals. Jeannie can attest to my character. Rod Khleif is good friend of mine, and I'm an active member of his Multi-Family Boardroom mastermind. Ask him about me. I know Jake & Gino decently well, too. Been on their podcast & met up with Gino when I vacationed in St Augustine last year. All solid organizations. I don't know anything about Vinney Chopra.
@EricChase & @MarkoZlatic & @MatthewRhead -- I appreciate the kind words & support.
Come out to my event or don't come out to my event, it doesn't affect me. 90% of my income comes from doing deals. I do ask that you actually get to know me before passing judgment. Check out any of the value I provide on FB, LI, IG, my own podcast LegacyWealthShow.com, or any of the podcasts I've been on. You'll see I'm all about paying it forward, being transparent & authentic, and inspiring others to create real wealth through holding rental real estate.
