22 minutes | Dec 30, 2019

How to Invest In (and Flip) Multi-Family Apartment Buildings ft. Kevin Easterly

The beauty of multifamily investment lies in the opportunity to increase a property’s value in a short amount of time. While single family homes are appraised on the condition of the property itself, multifamily real estate is assessed based on rent rolls. Find a value-add opportunity, and you can force appreciation by rehabbing the units, increasing occupancy and raising rents. And the best part is, you don’t have to use a penny of your own money to get started! You can take your real estate business 10X as a multifamily syndicator.

Today, Oliver is joined by Kevin Easterly of Easterly Investing. Kevin got his start in real estate with single family fix and flips before purchasing several fourplexes in Las Vegas. Inspired by Grant Cordone, Kevin started taking his real estate business 10X, adding 42- and 57-unit properties to his portfolio. Now he is up to 140 units, building his team as well as his brand.

On this episode of In the Know, Kevin walks us through the advantages of multifamily as a real estate investment. He explains how to scale your business 10X by building a reliable team and employing the ‘plug and play’ method for each new property. Kevin discusses what he is looking for in a multifamily deal, how to leverage relationships to find off-market deals, and how to structure a value-add deal. Listen in for Kevin’s insight on partnering with high net worth individuals, using your knowledge and their money to invest in multifamily real estate!

Key Takeaways

[0:54] The advantages of multifamily

  • Everyone needs place to live
  • Spread out risk
  • Force appreciation
  • Opportunity to refinance

[5:35] How Kevin got into multifamily

  • Fourplexes in Vegas
  • Inspired by Grant Cardone
  • Up to 140 units today

[7:26] How to scale your real estate business

  • Same processes as fourplex
  • ‘Team sport’
  • Plug and play

[9:14] Kevin’s progress since 2009

  • Laid off from job on video project
  • Start production company with $2,500
  • Fix and flips, then fourplexes

[10:25] What Kevin looks for in a deal

  • C building in B area (value-add opportunity)
  • Upgrade units and raise rents

[11:40] Kevin’s advice around finding deals

  • Relationship with broker (off-market)
  • Respond even if don’t like deal
  • Talk to vendors, contractors
  • Don’t burn bridges

[14:28] How Kevin structures a deal

  • Value-add, turnkey or full rehab
  • 30% down + rehab budget

[16:30] The value of securing multiple itemized bids

  • Keeps contractors honest
  • Option to use more than one contractor

[18:00] The concept of syndication

  • Partner with high net worth individuals
  • Use your knowledge + their money

[20:47] What Kevin wishes he’d known from the start

  • Go bigger, faster
Connect with Kevin

Kevin on LinkedIn

Kevin on Connected Investors

Connect with Oliver

Big Block Realty

Oliver on Facebook

Oliver on LinkedIn

Resources

Grant Cardone

Cardone Zone Podcast

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