The Three Biggest Investing Mistakes We Made | Real Estate Investing 101 Lessons For Investors

Jake & Gino: Real Estate Investing & Multifamily

Jake & Gino

Commercialrealestateinvesting, Realestateinvesting, Cashflow, Smartinvesting, Apartmentinvesting, Investingsmart, Management, Buyingrealestate, Entrepreneurship, Business, Realestateinvestment, Multifamilyrealestateinvesting, Makingmoney, Buyingapartmentbuildings, Jakeandgino, Investing

4.9 • 842 Ratings

🗓️ 17 October 2022

⏱️ 9 minutes

🔗️ Recording | iTunes | RSS

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Summary

In this video, we'll be discussing the three biggest investing mistakes we made when we first started out in multifamily real estate. We hope that by sharing our experiences, we can help other investors avoid making the same mistakes. So if you're new to investing or even if you're a seasoned pro, be sure to watch this video! If you are ready for a breakthrough in your life ⚡ MULTIFAMILY MASTERY 5 is for you! Attend Jake & Gino's flagship annual conference with 1,000+ like-minded individuals, entrepreneurs and investors! 💪 Learn more: https://jakeandgino.com/mm5 📌 Use our free Calculators to figure out key metrics such as IRR on an investment deal; Mortgage finance; ROI; Refinance numbers; and much more 💰 https://jakeandgino.com/realestatecalculators/ About Jake & Gino Jake & Gino are multifamily investors, operators, and mentors who have created a vertically integrated real estate company. They control over $250M in assets under management. They have created the Jake & Gino Premier Multifamily Community to teach others a simple three-step framework for investing in multifamily real estate. Subscribe to this channel: https://ytube.io/3McA Sign up for free training: https://jakeandgino.mykajabi.com/freetraining The resources you need to succeed at every level of apartment investing: https://jakeandgino.com/resources/ Apply for Mentorship: https://jakeandgino.com/apply/ #realestate #multifamilyrealestate #multifamilyinvesting #investing #apartmentinvesting Jake & Gino Facebook: https://www.facebook.com/jakeandgino/ Jake & Gino Twitter: https://twitter.com/JakeandGino Jake & Gino Linkedin: https://www.linkedin.com/company/jake-and-gino-llc/ Jake & Gino Instagram: https://www.instagram.com/jakeandgino/ More ways to engage with the Jake & Gino Investor Community: MM5: https://jakeandgino.com/mm5/ Rand Cares: https://jakeandgino.com/randcares/ The 100 Year Real Estate Investor: https://www.dualassetstrategy.com

Transcript

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0:00.0	And I'm not saying you need to be prepared fully, but the first thing you need to do when you start investing in multifamily, startiggino here.
0:30.5	And today we are discussing the biggest mistakes when we purchased our first multifamily property.
0:36.9	Gang, many things change, but many things also stay the same.
0:40.7	When we started back in 2011, the country was pulling out of the Great Recession.
0:44.8	Investors were not looking at the southeast the same way they are today.
0:49.2	Banks were stingy.
0:51.5	They were stingy and rents were low, comparatively speaking. The fundamentals,
0:57.5	though, buy right, manage right, finance right are still there. They're still the same and it's
1:02.3	still what we focus on today, especially the buy right when we're vetting the quality of
1:07.8	construction and the vintage of these multifamily properties that we're looking at.
1:12.4	So, G, Daddy, let's talk about those early days.
1:15.9	Let's dive in to what went wrong on that first deal so folks can avoid the same mistakes that we did.
1:24.7	And hopefully we can shorten that learning curve.
1:28.5	When we started out, the biggest mistake that Jake and Gino committed was we fell in love
1:36.7	with the property. Oh, I love the property. The romance phase. This is going to be great.
1:42.4	I mean, look at this. This is a picture. I mean, I look at the property. I said, but the problem is I don't look at the numbers. You fall in love with the numbers. Make sure the numbers make sense. Make sure the property makes a profit. You don't want an alligator, which means a property that's negatively cash flowing. Our property was doing okay, but we didn't understand income and expenses as well as we should
2:04.8	have.
2:05.1	We didn't know really what a cap rate was.
2:08.1	We just got lucky that we bought a property and we were able to what we call now value
2:12.3	at.
2:12.8	But that first learning lesson is fall in love with the numbers.
2:17.0	If the numbers make sense in the property
	...

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