The Diversify Show with Eric Lindsey
Looking for inspiration to elevate your business journey and personal development? Join us on the Diversify Show, where we spotlight high achievers who have successfully built businesses, investment portfolios, real estate businesses, and achieved massive success within various industries ranging from sports to academia. We place a strong concentration on the "how-to" side of things and personal development so that we can share in their success within our own lives as well. Tune in for expert interviews, practical tips, and the motivation you need to thrive as a high achiever.
The Diversify Show with Eric Lindsey
Buying Real Estate in California and How to Work with the Ultra-Wealthy to Syndicate Real Estate
At just 20 years old, Zihao Wang has made significant strides in real estate. 🌟 With degrees in computer science and finance from MIT and experience at Morgan Stanley, he now manages half a billion dollars in assets. His family transitioned into property investing after the 2008 crisis, and by 2016, Zihao was already managing their properties and learning about acquisitions and capital markets. 🎯
Balancing College and Real Estate
Zihao successfully balanced full-time responsibilities while building his real estate portfolio. 🏦 He credits a strong team of 10 for managing day-to-day operations, which allows him to focus on high-level tasks like acquisitions and investor relationships. His approach demonstrates how teamwork can facilitate real estate investments alongside a full-time career. 📊
Recent Acquisition: Downey, California 🌴🏘️
Zihao discusses a recent $20 million acquisition of a 90-unit property in Downey, California:
- Finding the Deal: The property had below-market rents, presenting a value-add opportunity. 🏡
- Underwriting and Financing: Zihao raised $7 million in equity and secured 65% of the deal through debt, adopting a conservative financing approach. 💰
- Value-Add Strategy: Plans include renovations to increase rents and reduce operational costs. 🛠️
- Exit Strategy: Aiming for a 3-5 year hold to boost net operating income (NOI) before selling or refinancing. 📈
Navigating Tenant Laws in California
Zihao highlights two key strategies for increasing rents in California's tenant-friendly environment:
- Rent Control: Targeting properties with low rents allows for gradual increases post-renovation. 🏘️
- Tenant Screening: Rigorous checks ensure reliable tenants, reducing payment and eviction issues. 📝
Key Insights for Investors
- Build a Strong Team: Delegation enables focus on growth. 🛠️
- Leverage Partnerships: Collaborating with fund managers can accelerate business scaling. 🤝
- Understand Your Market: Knowledge of local laws and conditions is crucial for success. 📊
Moonlight Coaching Round: Zihao’s Tips 🌙💡
- Know Your Deals: Understanding underwriting is essential. 📊
- Time Management: Adopt a "work hard, play hard" mentality. 💼⏰
- Start Small: Learn from professionals and build a knowledge base. 🛤️
- Invest Passively: Real estate provides inflation protection and strong returns. 💰🏢
Recommended Reading 📚
Zihao recommends Rich Dad, Poor Dad by Robert Kiyosaki for valuable insights on building wealth. 📖
Connect with Zihao Wang
Zihao is active on LinkedIn and invites connections from fellow investors. Learn more about his work at Motiva Holdings. 🌐🤝
Thanks for Listening!
If you enjoyed this episode, please leave a ⭐⭐⭐⭐⭐ review, subscribe, and share it with anyone balancing a career and real estate. Let’s achieve financial freedom together! 💪
Click On This Link For Our Free E-Book "An Introduction Into Apartment Syndication: https://moonlightcre.com/ebook_download/
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