In this episode of the Millionaire Mindcast, our guests Jake Stenziano and Gino Barbaro talk about their entrepreneurial story. They share some tips on how to start with multifamily investing, why you need to be careful with your assumptions, how to accelerate your entrepreneurial journey, what is an ideal culture and community, what are some ways to create credibility, what’s the best investment vehicle, the importance of broker in multifamily investment, how to effectively raise capital, and how to avoid losing some deals!

Jake Stenziano is an Amazon #1 Best-Selling Author of Wheelbarrow Profits, currently controls + 1,500 multifamily units, Founder of Rand Property Management, co-founder of Rand Partners, and co-founder of Rand Capitals. Gino Barbaro is a certified professional coach, currently invested in over + 1,500 multifamily units.

Jake and Gino are both experts in multifamily real estate investing, educators, investors, syndicators, business coaches, and currently have $100,000,000 in assets under management. They co-founded Jake and Gino, an education platform that helps people achieve their goal of financial freedom. Their mission is to improve the lives of others by creating communities that allow people to become the best version of themselves.

Jake and Gino gave up their W-2 jobs and decided to get into the real estate investment business. They’ve started with 25 units of property. At first, they didn’t know how to man it as well as to build credibility with brokers. But they’ve focused on what they want and their whys, and learned the space. It took 18 months until they’ve found their first deal, 3 months on the second and so on until they’ve learned to play with it and closed more deals. How did they do it?

In this case, they leverage knowledge and information to accelerate their journeys. According to them, you need to select the market when you start out. Find the money you needed before the deal. How? Pitch what you do, build credibility, create connections, meet people and brokers, reach out and talk to potential investors and know what their goals are. Be flexible. Align yourself with the right folks and with the right community because it’s a team sport. It’s the communities that are so strong that it can make the world different. The community will give you resources and support, and feedback on what not to do to avoid mistakes.

Likewise, it’s important that the team members are on the same page. Get really good people in the team, be systematized with values and works, make sure you have a great culture, align and relate with core values of the company and it’s going to work out well.

Now, Jake and Gino are financially free and enjoying more time with their loved ones. They are always looking for the path to progress while pursuing their passion to help people achieve their dream of financial freedom.

Some Questions I Ask:

• How did you get into being a multifamily real estate syndicators, investors, and educators? (00:23)
• What do you see as multifamily real estate such as a safe and great investment vehicle for people to look at and pay attention to grow their wealth and their passive income? (05:01)
• What does participation look like for people that are looking at this vehicle as an investment? (10:54)
• What does syndication look like? (13:34)
• What are the good rules of thumb in participating in Limited Partnership and the red flags that people should be paying attention to? (15:08)
• What are some of the best lead generation efforts & ways you’re seeing your students and you guys having a great track record to have come across and found deals in the past and in today’s current inclement? (18:10)
• How lean can you run a multifamily and build the right team for being successful in this space?  (24:58)
• How do you recommend somebody go about raising capital and funds for their deal? (30:24)
• What do you think makes you guys in your community different at all? (35:06)
• What are some of the emerging markets that you guys might be paying attention to? (40:07)
• The final piece of advice that you guys have for anybody that wants to take that next step in multifamily investing and get started with their first opportunity whether it’s operating indoor or LP. (42:33)

In This Episode, You Will Learn:

• When is the right time to get into something. (02:36)
• The pros of multifamily real estate investment. (03:48)
• Why are people renting houses rather than buying their own. (05:57)
• 2 Parts of Syndication: Limited partner versus General partner. (13:45)
• The importance of building relationships with brokers in multifamily. (18:36)
• Credibility book – what is it & how important it is. (19:40)
• A great way to create credibility and network. (22:26)
• Reasons why some are losing deals. (28:11)
• The 3 pillars of real estate investing. (28:55)
• Matty’s best hacks of tapping or getting into opportunities. (34:32)

Quotes:

• “It’s never the right time to get into it, the only time to get into it is when you’re ready to get into it.”
• “Think big, start small.”
• “You’re earning while you’re learning.”
• “Brokers are the gateway in multifamily.”
• “It’s a team sport; you’ve got to have those great broker relations.”
• “If you don’t cash flow let the grass grow.”
• “We just leverage knowledge and information to accelerate our journeys.”
• “It’s the community that is so strong that it can make the world different.”
• “I don’t want to scale just to scale, I don’t want to grow just to grow, revenue is vanity, profit margin is sanity, and cash is king.”
• “Education times Action will equal your Results.

Resources Mentioned:

Big Shifts Ahead book by John Burns and Chris Porter

Mastering The Rockefeller Pillar Habits book by Verne Harnish

Scaling Up book by Verne Harnish