Episode 168 of the Diary of an Apartment Investor Podcast with Nathan Justus and Kayla Wilmot. Transcript by Otter.ai – please forgive any errors.
Brian Briscoe 0:00
This is Brian Briscoe, hosts the diary apartment investor, podcast and partner at four oaks capital. So we have something that we've been working on for a really long time we are building and we'll continue to build an educational community that we're calling the tribe of Titans. And it's going to be a community of multifamily investors based around education and his house on the mighty networks. What you're gonna find in there is a lot of events that are exclusive to the tribe of Titans members a tonne of educational content, and you're gonna find great people. So if you're listening to this podcast, because you're looking for community or you're looking for education, go no further the tribe of Titans is something you need to look into for the price of about $1 a day, you're going to be able to have access to everything that we have an elder content that we continue to produce for years to come. And just so there's no pressure and there's no obligation, the first month is free. So sign up first month free, and give it a test drive if you'd like to keep hanging out and you'll continue to have access to Well, me and my partners are four oaks capital in a lot of other experience and aspiring investors. And where can you find it? The tribe of Titans dot info. There's a link to that at the bottom of the show notes of every single episode right now. So if you're interested, type in www dot the tribe of Titans dot info or go down to this bottom of the show notes and just tap the link KAyla we've got Nathan on the line. What do you want to ask Nathan,
Kayla Wilmont 1:23
I would love to hear more about your thoughts in regards to someone coming into multifamily investing without that previous real estate and scary experience. What advice might you have to someone who doesn't have that background?
Nathan Justus 1:36
I think a lot of times, you know, people get distracted right? There's a shiny thing here and a shiny thing here. Honestly, I mean, you said you joined a mentor, mentor team, that's probably the most critical thing that I would I would say is you know, I would recommend I did I did it myself. I didn't mention that beginning but you don't you don't jump into dealing with 25 $50 million properties. We have all this money on the line without without doing that. And that's a lot of where your resources come from. And you know that and that's why you join the mentor programmes.
Brian Briscoe 2:13
Welcome to the diary of an apartment investor podcast with your host Brian Briscoe. In this podcast, we bring some of the top professionals in the apartment investment field to discuss various aspects of the apartment investing journey with the sole purpose of educating listeners to make wise investment decisions. The Diary of an apartment investor podcast is sponsored by four oaks capital bringing you high yield returns through apartment complex investing.
Nathan Justus 2:36
Welcome to the diamond apartment investor podcast. I'm your host Brian brisco with porlex capital. I'm very excited for today's show, we've got another one of our as the expert episodes, with two amazing people on the line. We've got an experienced investor Nathan justice and a very motivated aspiring investor, Kayla Wilmot. So I'm going to put biographies for both these individuals in the show notes. So if anybody wants to learn more about them, check out the show notes. But that said, you know, Nathan, you're up first. Welcome to the show. Thanks for having me. Yeah, appreciate it. So let's do this. Let's talk a little bit about your background and in your history and kind of lead us up into what got you into apartment investing. Yeah, so Yeah, actually, actually born in Virginia. And raised overseas, my dad was actually active duty Navy retired and as missionary over there, it's a completely different upbringing in the States when I was 19, joined the Marine Corps. Great four years. And then after that, I didn't really know what I was gonna do. And so I got into residential real estate, which was, which was going great for first couple years, and then the market tanked. And all of my progress at that point was was basically wiped out and I had to start over. So that's when I clawed my way into corporate America. Unfortunately, unfortunately, fortunately, I do have a, I am employed. But unfortunately, I'm still in corporate America. For now, we're going to we're going to fix that here soon. But I think probably four years ago, I started to get the itch again, that corporate America was not for me, I didn't really want to climb the ladder, I started to go down that process, but doors get getting slammed in my face. And so I decided that that wasn't for me. And I was going to go back to full time real estate. So you know, at that stage, it's like, Okay, I need to, you know, I need to brush up again, right? And figure out where I want to go. There's so many different avenues now, right? Self Storage, single family, etc, right? Anything you want to know so. So I started educating myself like everyone else, and actually end up going to a conference about syndications which really broadened, you know, what I knew was out there, right? And it changed my mindset because I started going down the path of you know, maybe I'll acquire five single families a year on my own, but then realise, you know, I could use other people's money to accelerate that my progress in acquisitions and to get to this full time and that was an eye opener and I decided to go that direction. Like so I start Yeah, so I started getting you know, Single families, and then immediately halted. Once I went to this conference, I made a decision to go 100% into multifamily via syndication. So that's, that's, that's me up to now. Nice, nice. So, you know a lot of commonalities there. I mean, we briefly discussed before we started recording that we were actually a boot camp that mcrd san diego at the same time, just I think you had me edged out by by a couple of weeks, but, and
Brian Briscoe 5:26
we started the multifamily journey about the same time and I'm just exiting, you know, after 20 years, the Marine Corps and you're you're looking to exit your your corporate path. So it's a lot of similarities there. So So from here, why don't you talk to talk about a couple of projects, you guys have done the multifamily projects, syndications that you guys have been able to do?
Nathan Justus 5:47
Yeah, actually, so I got started, let's see officially started multifamily 2019. When was it September, October. And it was, you know, you're in that, Okay, I need to build, you know, relationships with brokers, I need to get out, there's a whole lot that you need to take, right? That you need to get in line. And so started underwriting properties. And, you know, submitting, submitting ello eyes is it was a challenge. But actually, in 2020, I was able to get a property. under contract, it was 146 units, portfolio, actually in Arkansas. So. So that was that was great, fast forward. And there was another deal that we put an offer in that, that we didn't we didn't get, and it ended up coming back on the market, the buyers failed. And so ended up getting a second portfolio under contract before the first one at even close to at two simultaneous two simultaneous deals. And those, those were my first two deals. So you're in that you're learning a lot and trying not to screw up, you're using your resources, right. And then in doing that second one, so fast forward, you know, we close both of those in 2020. So we had COVID. On top of that. So raising capital was a little bit more challenging and getting people off the fence. Fast forward. Now all this year, we've been making LSI after LSI submission. However, I think there was a lot of funds that that need to be deployed this year, because everyone was on the sidelines last year. And so it's been very challenging, but we did actually get under contract, just under 300 units complex in Oklahoma. And we are set to close in September on that one. So all that to say within, you know, a year, we'll have you know, I'll have three properties, fingers crossed on this one we're in now and nothing goes wrong. But what three properties close, it will be about 700 doors. So very, very exciting. I do want to caveat that I do have two gentlemen that I work with, that I partner with exclusively, which really makes it work because all three of us are still full time w two corporate people, and I don't know what I would do without them. There's so many balls in the air, especially when you have one deal. And then a second deal pop up. Right. So that was a lot. And it was fantastic to have those. Those guys having my back. Yeah, we've had more than one deal under contract a couple of times that there was one time where we put two offers out in the same week. And we're like, there's no way we're going to get both and boom, we got both, you know, and it's just like, you know, thank goodness for really good partners. You know, at the time, there were four of us on the team, we've we've since expanded slightly. But partnership brow, I can't overstate how important that is. Incidentally, we are closing on an apartment today, you know, and Brad, you're doing a podcast, because you know, my partner who is the acquisitions guy is taking care of everything. So it does, it does definitely, you know, magnify what you're able to do. And you know, we all started full time as well. So most of us are, I think I'm the last one coming off of a full time job into this into this business, but great progress there. Now you tackle some big projects up front. Should your first one was 145 doors, I get that right. Curtain 40 140 there was ended up being units that we couldn't use. And so I think at the end, it was 145 146 stores on that on that first project in Oklahoma and Oklahoma sorry, Arkansas, and second project was 267 doors, and then this third one is 288. So I think after you do your first deal, and then second, right immediately, right after you realise, you know, the work is the same, it's just a numbers game. And so, you know, I would argue, you know, I would rather go bigger because it scales faster. But I think the challenge there is that you're probably competing with more individuals, when you get into that north of you know, I would say north of anywhere from 160 to 100. Once you start going out there you're competing more and then if they have institutional money then they're gonna outbid you. Every time. Yeah, competition gets tight, you know, and we get up there, and it's much more sophisticated people on that space, you know, so we're, we're, we're in the same thing. I mean, our largest properties 167 the one we're closing on today's 144. And, you know, jumping into that 200 plus units space, you know, it's, it's just you have a more sophisticated group of people who are you're competing with. So you've got to dot your I's, cross your T's and sharpen your pencil and make sure that you can make the most competitive offer possible. So yeah, that said, you know, sounds like you guys have done a great job so far, you know, 700 units and three transactions were at 700 units in nine transactions. Personally, I'd rather do it have done it in three, but
you know, just just the amount of work, it's it's a lot of work when you're dealing with multiple properties. But yeah, it's just the same amount of work, but it is larger capital requirements, right? So you need to have a network of individuals that you can, you can rely on to help guide an example, this one we're just doing, right, we needed to do 200k and earnest money. And I'm not liquid enough right now to cover that. So we needed to bring in right and and an additional partner to cover that. So, yeah, yeah, and that's something that absolutely scales with the size of the property's earnest money deposit, you know, it's still gonna be roughly 1% of money, the the work doesn't scale, necessarily, you get 10 times as many units, the work doesn't scale 10 times that earnest money does, and, you know, we're getting about a quarter million dollars back from, you know, earnest money that we have out on this property, and it's, it's gonna be nice to have it back in the accounts. So liquidity is nice. Yeah, very nice. Very nice. And then one thing we've done is we've, you know, like I said, it's our ninth property, we've not taken distributions. So all the money that we've earned so far, is sitting in our corporate account, you know, putting that money forward. But the nice thing is, we're not coming out of our back pockets now. But for the first several deals, it was, alright, who's coughing up guys who's got money, you know, we got to hit 120,000, who's got it, that's how it was for ours. And even when you're doing your, you know, upfront, so we'll do early access agreement when possible, because we don't want in our earnest money to most of its has to go hard, not gonna get it all. And so at that early access agreement, we're still ended these properties, you know, multiple, you know, 10s, of 1000s of dollars, 20. In this case, we're north of 30,000, right, we've been with even before earnest money. So, you know, it takes a little bit, you know, you got to pay to play, if you will, right, so, and then speaking of distributions, we actually just had our, our first distribution for that first property. So we we promised in the ppm, 12 months, and we were able to do the first distribution at one nine, and we would have, we would have exceeded our one year performance, but we decided to fold a little bit back and be cautious. But we'll still exceed in our next distribution, what the year one performer was. So we're pretty excited. It's a great place to be, you know, making making that first distribution was probably one of the most exciting things I've done, you know, it's just like you're ready, hit the button, you get get everything set up all the the acth transfers all set up and ready, hit the button, you're like, this is fun, guys, who that? Yeah, that's it, I'll pull the covers back a little bit on that one. Man, when you're doing this first distribution, so we haven't hired a asset manager, the three of us asset manage, so it was, it was I actually I call my wife, my executive assistant, because she, she assisted in doing the data entry component of getting all those accounts in there. And then it was, you know, quadruple checking, reaching out to individuals, making sure they're, you know, data so up to date, you know, hey, we're a CH we're not wire, you know, all those little details. And I think on our first one, it was about 40 investors. So try not to get accounts wrong on 40 investors, because you don't want to lose their distribution. So it's, it's not all, it's not all about the acquisition, I think it's not talked about enough, the asset management backend side, it does get tedious. It really does. You know, and it's you got to make sure the routing numbers are correct, you got to make sure the account numbers are correct. And everything's in put properly. And, I mean, once you transfer a distribution, and if you send it the wrong account, you know, it's it's not coming back. Yeah, exactly. So, I mean, you can probably get it back, but it's going to take months. But yeah, that's something that's not talked about a lot. It's just that that fact of, you know, probably take several hours to load every single, you know, members, account information in there to get those transfers set up and everything else but have a good banker, that's probably the best thing to do. I know we spend a lot of time on the phone with the, you know, Business Banking, banking section of Chase Bank, and they're, they're walking us through everything at each point. It's like, okay, hey, we need to transfer money to 40 people, ADP, we've got about 120 investors right now. So fortunately, it's not all the same time but you got money coming from one account for this property to that group and other accounts. Now. property to that group. And it's, yeah, it's tedious. So that's great. I wouldn't I would say, yeah, any advice to anyone is, is get a really defined a god strong relationship with the business banker before you're at a position where you know you're submitting. And if you're submitting an LLC, I would have already had that setup if you if you can, if not, then get on it now, because it all happens quick that Li gets accepted. And you've got to the balls rolling, you got 60 days or less. Rounds down range. As you know, Marines are apt to say that rounds downrange already no pulling it back. But shifting gears a little one question I like to ask everybody, what is your big burning? Why?
What's your motivation for all this? Well, I like a challenge. I get bored easy. When I once I achieve something, I need something bigger to achieve. But the cliche answer is, you know, financial independence, I'm definitely on the there's the whole fire movement, right, you know, retire early on initiative. I'm on the fat fire side where I don't want to have to downsize my quality of life and lifestyle. And, yeah, so I mean, really, it's, it's, my extended family is a big part of it. So my dad was a missionary for 30 to 33 years, after doing a full 20 years in the Navy. You know, I have a pretty large extensive family with through adoptions, and I just, I really get gratification out of being able to support my family and anyone that's that's in need. And having your your financial house in order makes it a lot easier. And especially I think, because I you know, essentially lost everything back in 2008 2009, I have a real appreciation for right that that struggle, and I just don't want money to ever be a reason why family can't get together or someone can't make this event or something like that. So that's that's a factor. Obviously, I would like to not be in WTO and completely control my own time, all of those answers that everybody has, but i think that's that's the why I do like Maui, I would love to get a condo there someday. But, but that's not the ultimate why that's just a part. Yeah. You know, we spent last week in southern Utah doing a lot of four wheeling ATV, and it's the same thing. It's like, yeah, we would love to be able to just have a big cabin, get everybody together at the same time, and cousins and brothers and sisters and everybody else. It's definitely a perk, but something that I really like. And this is, you know, from a 90s movie Forrest Gump, you know, when he's talking on the park bench, he's just like, it's just one less thing. You know, having money just means there's one less thing to worry about. But anyway, I like that. But so Nathan, next question for you. What's next? Well, I think I mean, I maybe was alluding to it through the stories of the, you know, the sizes of the opportunities. So, we're absolutely my partners and I are looking for, you know, we're not turning our noses up at, you know, we're just looking at a deal right now as several 4656 units, but their portfolios, right, you know, essentially, we're looking to get into these larger portfolios. And so we really want to be a, you know, a place that, you know, anyone who, brokers private equity, right, or has connections with family offices, or has a fund or manage the fund, we, we really want to be a place that those those individuals come to for deals and opportunities, and that could be C class value add, if you're, they're not looking to place their, their money in that vintage, then we are looking at B's and even some some potential A's, and some very hot market. So you know, we'll leave contact info at the end, but, but that we kind of want to be the, you know, a one stop shop for those individuals that want quality deals. And, you know, we should we share underwriting or thought process, everybody says are conservative, but, you know, there's, there's ways to check that there's ways to check that, you know, so really, that's, that's, it's, it's going larger, we'd like to do, at least at a minimum three of these, you know, 300 universe deals in a given 12 month period, if not more. So I think especially once we're 100% full time, then then that'll be, you know, dramatically more than that likely. So, you know, that's kind of the goal. Now we've considered we've considered starting our own fund, it may be a little too soon for that, you know, but we want to we know, there's a lot of capital out there that needs to be placed. And we just want to get our names out there that we are a strong team that has done well through COVID exceeding our projections by more than 25%. So far, you know, it's about buying right. And, and then operating, which is a big p piece that is not talked about a lot is the back end operations, your property management company, and how tight you are on running that ship and that the original business plan. Oh, yeah, well, yeah. Now now one, one thing my partner used to always say probably still will press but you know, if you bought something in 2016, it was akin to being on top of a rocket ship. You know, it doesn't matter what you do with operations, you're gonna make a killing because you know, cap rates went from, like eight on average to you know, in a lot of places for is now so Just that cap rate compression has doubled the value of property. So I don't think we're gonna see that. I mean with with a and b class cap rates, I've been in the fours right now I don't think there's a lot of room for those to go back down. So operations is going to be where, where the money's made here in the future. Yeah, we're always looking for those comfortable mom and pop, you know, they were managed, or you know, they've had the property for 10 1520 years. And they don't need to push the property right. Or they just don't have the capital to improve it to take to that next step. Right. That's, that's some we're always looking for.
Yeah, that's, that's something that a lot of people are looking for. It's like the ideal right there. The mom and pop property that's been known for 10 or 15 years. But man, I mean, when you find one, let me know. But yeah, anyway, I'm we're reviewing right now. Nice. Nice. Nice. All right. Well, that said, let's shift gears one more time and bring kale on the show. So Kayla, welcome to the show today. Thank you. Yeah. So pleasure having you on the show. It's been great. You know, we've had a conversation before great getting to know you. And I appreciate your time today. Thank you. I'm excited to be here. Yeah. So tell us a little bit about yourself. You know, you're a little bit about your background and what's gotten you into multifamily.
Kayla Wilmont 21:18
Yeah, I'm actually a physician assistant, a PA by day I recently graduated PA school and I work part time in the medical field. My I'm also a newlywed, my husband and I essentially wanted to create the future that we want for ourselves and for our families. And we found that real estate was the best, or one of the best, if not the best avenue to get there. So we ended up investing in a mentorship programme, and we're just educating and excited to continue the multifamily journey.
Nathan Justus 21:51
Yeah, awesome. Awesome. So newly graduated newly married no preparations on both. That's, that's exciting times itself. So physician's assistant to my daughter, the podcast editor, you know, wants to eventually be a physician's assistant. So she's probably gonna, you know, have a lot of fun with this one, but how to reach out? I'd love to hear it. All right, she definitely will. So anyway, that said, What's your focus right now on what I found? What are you guys looking for?
Kayla Wilmont 22:23
Yeah, so we are looking in the Sunbelt region for value add deals, see properties, and it could be area with, you know, similar to, like Nathan said, you know, the rents are below market. And maybe it's because the owner previous has had it for 1015 years, and they just haven't, you know, raised those brands, etc. But also, we want to look at areas where maybe there's a path of progress coming in, in near future 50 plus units, and just where we can also make an impact on the residents lives.
Nathan Justus 22:55
Yeah, yeah, I think that's, that's a lot of key aspects right there key attributes, places where you can add some value, you can make things better. And that's kind of the name of the game. So question that I ask everybody and you're gonna get the same question. What's your big burning?
Kayla Wilmont 23:10
Why? For me, it's it's family and for, for us, my husband, I partner together. And it's more so about buying time. If we can work now and put in the overtime now to develop passive income that we want. It's going to buy time for us for our children to travel and do more things we love sooner rather than later. Yeah,
Brian Briscoe 23:33
I love it. I love it. Get your own time back. Well, Kayla, we've got Nathan on the line. What do you want to ask him?
Kayla Wilmont 23:41
Yeah. So Nathan, I would love to hear more about your thoughts in regards to someone coming into multifamily investing. Without that previous real estate experience experience. I know that you mentioned that you did a lot of single family preview prior to and then you went into the corporate world. But what advice might you have to someone who doesn't have that background?
Nathan Justus 24:05
Keep doing what you're doing. Don't try to Don't try to go this direction. Or I think I think a lot of times, you know, people get distracted right? There's a shiny thing here and a shiny thing here, you're on the right track with multifamily for all the right reasons and all the reasons that most people probably listening to this this podcast, honestly, I mean, you said you joined a mentor, mentor team, that's probably the most critical thing that I would, I would say is, you know, I would recommend I did I did it myself. I didn't mention that beginning but you don't you don't jump into dealing with right 4 million 10,000,030 you know, these 25 $50 million properties. We have all this money on the line without without doing that. And that's a lot of where your resources come from. And you know that and that's why you joined the mentor programme. So, yeah, no, you're on the right track. Stay there. Don't get this don't don't don't get discouraged. Thank you, Stanley. I didn't mentorship too and I say the same thing. You know, it was I wouldn't be where I was Ryan right now without the mentorship. So I agree, keep going.
Kayla Wilmont 25:07
So I, specifically with the mentorship, it's an educational programme. So you learn a lot in those, however, there's no way they can teach you everything. So as to people or Nathan, as someone who has gone through something similar, and then you've already tackled quite a few deals, what's something that you learned after the fact, or even more recently that, you know, the the educational programme or mentorship just didn't quite get get into you.
Nathan Justus 25:35
So a few things, right? The backend side, I think the educational groups are really good at the upfront acquisition piece, but there's really not training anything to really prepare you for the asset management side. And I don't know if, if you plan to asset management, I think a lot do at least in the beginning. Because it's, it's it's additional income. And so long as you have the time and and somewhat of it and accounting ish, you know, or project management exposure, then then then it'll work out for you. So, so that's one part is, is and you don't really know what you don't know, right until you do it. So having systems in place for the backend business plan is something that I would say you don't learn from the teaching, you know, mentorship programmes. The other thing is, is really how to choose your partners, I learned very quickly. And our first deal that people will will say one thing and behave a certain way. But then once the stress is turned up, you might be surprised what happens to your so called partner. So not thankfully, not my direct partners, but the people you choose to partner with is very, very critical. And they do they do talk about that in mentorship programmes. But there's no real, there's no real guidance. And that's something you have to figure out on your own, you know, beyond you and your husband, and who additionally going to partner with on these deals moving forward with you. And then really focusing on exit cap. So there a lot of times when you're underwriting a deal, I'm not sure if you exclusively are doing the underwriting. Yep. But the exit cap, honestly, I think some people think say, Hey, what's the cap rate right now, which no one really knows these, you know, they talked about it and deals will sell at a certain, you know, dollar per dollar. And so you can extrapolate what the cap rate is for a given market. But what's the what's more important, that is the exit cap. And a lot of times I see deals coming through and I really want to be a fly on the wall. And they're underwriting these deals and say, you know, how are you achieving these returns? With what with what I know of this property after underwriting it myself, you know, maybe maybe I'm not a great underwriter, maybe I'm too conservative, but exit cap rate is what you know, is when you're going to sell, and that's what lenders want to see is hey, you know, what's your exit cap? That's great. Do you think the market set up, you know, 4.85, that that's, I mean, we joke about like, oh, the deals not working, just just drop the cap rate. Now, it's a great deal, right. But the exit cap is, is something that's critical that don't i don't hear talked about a lot. And it's just something to pay attention to in your under underwriting. So an example and if you want to be safe, right, you'll do an escalator, you know, one point escalator, you know, per per year, and that's an that's still, you know, slightly aggressive. But that way, you're not, you're not buying at a, you know, five and a half and then assuming you're gonna sell it a five or four and a half, right? Yeah, you know, it's more conservative to your investors. If the deal works, then right with that escalator, then it's probably going to be an even better deal when you do exit the deal, if that's part of your business plan. Yeah. I'll say the one thing that I learned just adding to that was no part talking about partners, you know, property managers are absolutely key. And I think, I think the educational programmes tell you that the property managers, the most important person, but actually figuring out you know, finding a property manager that works well and works well with you, has been a challenge that we have. And, you know, we've cycled through a couple different property managers, you know, they look good up front, they have a really nice, glossy, you know, brochures, they hand you when you first talk to them and everything else. And, you know, end of the day, you know, we've had some significant problems with with a couple of them. But that's, that's been kind of the biggest learning point for us was, you know, we need property managers who have been, you know, do exactly what they say they're going to do. So, if I, if I went back, I talked to a lot of the other property owners from that property manager before going forward.
Yeah, that's I would, I would add to that, honestly, we we were so interesting story on our first deal. We were two weeks out from closing and our property manager backed out and said, he said he couldn't take our deal on because he had baits without saying it. He said there was another client that had that was worth more to him to take their deals on the NUS. Meanwhile, he lost out on 412 units. Just that year on, you know, and then moving forward this this 300 reason, the same broken matter. So so we had to find last minute, another property manager we interviewed like four. And we ended up getting one that had 20 years experience 14 years in that market, and had just branched off from that company to be a partner in another in another company. And she was going to lead the multifamily sector. And so we suddenly came to her. And so she was, you know, 100% engaged, so she could be successful in her own business in that year one to her partners, and though and sheep's cheese made us very successful.
Kayla Wilmont 30:41
So let me ask you this. I know you guys both touched on partnerships. And us being in meeting with my husband, we are eventually planning on forming some type of partnership. In regards to our base investment company. What kind of things do you look for? Or do you have your partner's each have specific jobs? Or do you all kind of divide and conquer?
Nathan Justus 31:07
that's a that's a great question. We, you know, we consider that so we kind of organically came together, the three of us were looking in the same markets, and we decided not to compete instead join forces. So but you know, in that in the process of going through the deals, you figure out what your strengths are. So if you can figure out that, you know, before, you know, I call it, you know, having a kid together, which is what we you know, you buy properties together, and you're you're committed for six or seven years, or however long you're busy. So I guess understanding the skill sets up front would be helpful in our case, yes, we do have roles that each of us kind of focuses on. But that's kind of organically happened over time. Right. So I mean, for now, all three of us are in acquisitions. For sure, some of us have more strengths, you know, when it comes to you know, reaching out to brokers or, you know, doing doing meetups, you know, or that, you know, that kind of thing. But, you know, ultimately, you know, you all have your own relationship. So, you know, I want to be to be transparent, you know, we're figuring that out, because it's been not quite two years yet and we've been in deals just when you're in deals, it's it's really hard to balance doing the deal and growing the business at the same time, at least on your first deal. And I would argue your second deal I'm you're still learning processes to become more efficient. On this deal that we're doing now. I'd say we're, we're, we're tuned pretty good to where, you know, we can do hit the critical dates and still do the growing the business side, at the same time, right, things like this podcasts are doing doing meetups or starting a YouTube channel to grow to grow following or making those relationships with PE groups. Right. Those are things that are important. So yeah, I mean, I think I think you understand this, but you know, if you can build a team that you can work together and understand each other's strengths, you know, maybe someone's a better underwriter, like one of my partners. I'll underwrite something, and I'm like, hey, this, this passes the sniff test. I've gotten a budget from our pm the insurance is good, you know, it, we've we've crossed the T's and.as many as I can you take a look at it, and I call them the deal killer. I'm like, Hey, you, you try to kill this deal for me. Right, or he'll go more in depth on the local market, you know, what is the path of progress? I think you mentioned that earlier. Right. So, path of progress, you know, very, very, you know, closer coms, you know, brokers tend to use comps from a pretty broad area. Right? So, so he'll do that. So yeah, it's Everyone has their strengths. We're still figuring it out. You know, we haven't officially, you know, titled, you know, Chief, whatever. But, but yes, it's, it's if you can do it up front, they'll be great. Awesome.
Brian Briscoe 34:01
We went through a warming up period. I mean, I met Eric, surely first, he was first, first of the four folks that I met. And it was the same thing that Nathan said, we realised that we were competing, realise we're talking to the same brokers. And for us, it was it was literally collaborating on this much, you know, and you know, a little bit at a time. And when we realised we were competing, we started talking about, okay, which broker are you talking with? And at first, we agreed to collaborate on everything from two brokers, because those are the two brokers that we were both talking to. And eventually, we expanded our collaboration to the point to where we both trusted each other enough to basically go together, you know, as far as business goes, so, I would say it's just like getting married, you date a lot of people first. All right, and then you start signalling off, you find somebody you like a little more than everybody else, and you test run so end of the day, I think that's best way to put it is it's, it's just like getting married, you know your date first find somebody you like. And your tied the knot
Kayla Wilmont 35:10
really like that analogy actually, because that's kind of where we're we're looking at what we're looking at doing to we feel like with our first deal are a second deal, we might work with a few people, but we're not officially partners for forever with those people. It's more of a test drive so or is dating as you call it? Um, I have one more question. So my husband and I are looking at submitting our first LSI next week, there's a call to offers for Dell nearby. What advice do you have for or more, so what things are we maybe not considering? Or might be missing? Before we take this pretty decent step in acquiring our first property?
Nathan Justus 35:53
Um, so I wouldn't I would, I would ask, Do you have an early access clause in there to be able to, you know, do some due diligence before, before you put any money down on his money?
Kayla Wilmont 36:06
We do not. So I will be I'm writing these things down as
Nathan Justus 36:12
it's a way, it's a way to save yourself, because to be competitive, it's almost impossible to not put earnest money hard day one. And that's day one as of fully executing the PSA. Whereas if you can get them to agree to a week, 10 days, 14 days of an early access, typically you have to pay for that early access. So this is what we just did we paid them we literally just wired $10,000 into the seller's account that that not escrow, just for the right to go on to the property and do due diligence beforehand. And that helps us save, you know, in our case, $200,000, potentially, of earnest money. So early access is important. I'm sure you've gotten a budget if you can get a second budget. Great. And also, I would honestly, I would call the broker and talk to them and say, you know, here's where we're coming in. Right? Do you have any guidance that would make us a better offer, a lot of people are hesitant to use that app on their phone, that's called phone, right? They just want to text and email. And it makes a big difference if you pick up the phone and talk to him, because there's a lot of nuances you get over the phone versus calling. So I'm sure your offer is great. I would I would I would ask for an early access agreement. That way, you're not risking as much capital. And then and then you know, build that relationship by calling them and getting guidance and getting guidance. Because you don't want to, you know, you don't want to you know, we'll call and say hey, here's kind of where we're at. Is it worth us is for us to submit an lol why are we going to or are we just gonna offend offend the seller? Right? Usually they'll say no, you know, you're like, oh, you're way off, don't even bother. Or they'll say No, you won't offend the seller, you know, bring us your offer, you know, and I definitely don't want to stop you from submitting. And otherwise, it's just I do see a lot of ello eyes that seemed like they've just kind of been shot down and out. And they're just like, Hey, you know, if we get this, we'll figure it out. Right. And we've we've actually had a few deals come back on the market, including this one. So this would be our second deal, our third deal. But our second deal, it's come back on the market where we were second in line and they chose us, right and then now we have a bit of a tracker to say, Hey, we were going to close because of this upfront work and due diligence that we do, there's no retraining, right, you want to want to make the seller comfortable that you're going to close, and that you're not going to retrain on this property. Yeah, I'll take that last statement a little further, you know, there, there's two parts to the offer. There's the number on the paper. But there's also your ability to close. And that's what you want to that's where the conversation with the broker really helps out is when that broker turns around and presents your offer to the owner, you want that broker to say, I think this group is really, you know, going to close, I think they have a great chance of closing. And because they're there, there's two parts to it, and the broker is going to talk to the owner. And he's going to give his honest opinion of each group. So you want to make sure that the the what's on paper looks good. But you also want to make sure that you're presenting yourself and your team as a group that's able to close on the property you got your money offer. And
Kayla Wilmont 39:19
definitely I appreciate that. The Early Access is something that we'll definitely need to look into and possibly incorporate there because it just to make sense. It's for both parties, because they don't want to go through 3060 days and then find out closings not happening that
Nathan Justus 39:38
a seller as seller should appreciate it honestly, because it's it will it will save them time as well in the long term instead of getting tied up with you like you just said for a much longer, longer period when you haven't done your due diligence and you could end up walking away, right. All right, we're about out of time here. So I've got one question for each of you, Nathan, you get to go first. how can listeners learn more about you? Well, like I said, my partners and I are, you know, recently officially came together. I know we're not on our own individual umbrellas anymore. So we don't have a fancy website for anyone yet. But so for now, just be email, honestly. And that would be Nathan at invest with AMG comm invest with a mg. It's Atlas multifamily group. So that's the best way to get a hold of me. All right, we're gonna have that in the show notes. If you're looking to get a hold of Nathan for any reason, you know, swipe, tap, swipe, and you'll be able to email him. All right, Jayla, same question for you. how can listeners learn more about you?
Kayla Wilmont 40:41
Yes, I the best way to get in contact with me is LinkedIn. Kayla wellmont, my first and last name on LinkedIn. I can also be reached at our through our website Marlin dynamic investments.com.
Nathan Justus 40:54
All right, awesome. We have a link to her social media profile and website in the show notes as well. So thanks again to both you for coming on the show. It's a great conversation we had and I enjoyed my time Hope you guys did too. Yes. Thanks for putting this on. Brian. Appreciate it. Good to meet you. Kayla, thank you for your for your benefit business assistant during this time. toughest job in the world right now.
Brian Briscoe 41:25
Thank you for listening to the tiger one apartment investor podcast today brought to you by four oaks capital. If you'd like to know more about how to invest in apartment buildings or want to be a guest on our show, visit our website at four oaks capital comm slash podcasts or email us directly. If you're still listening, you obviously like the show. So pull out your phone, app, subscribe, and leave us a five star rating on your favourite podcast app. And we'll see you again next week.
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