

      <h2 id="chapter_32936659">Investing in Multifamily Real Estate</h2>


        <cite>Ed Mathews</cite>
      <time>0:00</time>
      <p>
          Greetings   and   salutations .   Real   Estate   Undergrounders .   It   is   Ed   Matthews   with   the   Real   Estate   Underground .   Thank   you   so   much   for   joining   us   today .   Today   is   a   very   special   episode .   Somebody   that   I   have   admired   from   afar   for   a   long   time   and   Andrew   Reichert   with   Birgo   Capital ,   Welcome   to   the   show .   Thank   you   so   much   for   joining   us   and   I&#39;m   really   excited   to   have   this   conversation   today .   

      </p>

        <cite>Andrew Reichert</cite>
      <time>0:22</time>
      <p>
          Ed ,   thank   you   so   much   for   having   me   on .   I&#39;m   really   looking   forward   to   having   the   conversation   as   well .   

      </p>

        <cite>Ed Mathews</cite>
      <time>0:26</time>
      <p>
          Yeah .   So   for   those   folks   that   aren&#39;t   necessarily   aware   of   you ,   why   don&#39;t   you   tell   us   a   little   bit   about   yourself   and   who   you   are   and   what   you   do   for   a   living ?   

      </p>

        <cite>Andrew Reichert</cite>
      <time>0:35</time>
      <p>
          Absolutely .   If   you   don&#39;t   mind ,   I&#39;ll   just   unpack   a   little   bit   of   my   story ,   please   do .   I   grew   up   as   a   bit   of   a   rebellious   child ,   ultimately   ended   up   getting   expelled   from   high   school   due   to   some   bad   decisions   I   was   making   along   the   way .   I   tell   folks   I   got   my   starts   in   entrepreneurship ,   unfortunately   selling   and   doing   things   that   were   not   legal .   Everybody   else   was   mowing   grass .   In   high   school ,   I   was   selling   grass .   

      </p>

        <cite>Andrew Reichert</cite>
      <time>1:00</time>
      <p>
          Lo   and   behold ,   I   ended   up   getting   accepted   into   a   great   college   in   Pittsburgh   and   that   was   really   where   I   started   to   read   books   about   mindset   and   about   real   estate .   And   so   I   read   this   book   called   Rich   Dad ,   poor   Dad ,   and   I   was   like ,   wow ,   he   talks   about   buying   real   estate   in   there   and   being   an   entrepreneur .   And   I   was   like ,   oh ,   these   are   the   kinds   of   things   that   I   really   want   to   do .   And   so   I   started   really   applying   myself   to   school   and   I   bought   my   first   duplex   the   year   I   graduated   from   college   and   I   bought   it   with   no   cash ,   no   experience ,   no   credit ,   and   I   actually   walked   away   from   closing   with   a   check   for   20   grand .   So   that&#39;s   how   I   got   started   in   real   estate .   

      </p>

        <cite>Andrew Reichert</cite>
      <time>1:42</time>
      <p>
          I   bought   this   duplex   and   I   had   a   great   job   for   five   years   right   out   of   college ,   but   it   always   really   felt   like   I   was   called   to   real   estate ,   and   so   I   resigned   from   that   job   in   2012   to   start   what   is   now   called   Birgo .   As   you   mentioned ,   Birgo   Capital   is   our   business   and   we&#39;ve   raised   over   $100   million   from   investors .   We   purchased   over   $300   million   of   real   estate .   We   primarily   own   and   operate   multifamily   real   estate .   We&#39;ve   got   over   100   employees   and   we   focus   on   multifamily   workforce   housing   in   the   heartland   of   America ,   so   that&#39;s   really   our   business   today .   

      </p>

        <cite>Ed Mathews</cite>
      <time>2:22</time>
      <p>
          Excellent ,   so   you   had   mentioned   that   you   were   drawn   to   real   estate   and   obviously   Rich   Dad ,   poor   Dad ,   the   Purple   Bible   is   something   that   somebody   handed .   So   that&#39;s   really   our   business   today .   Excellent ,   so   you   had   mentioned   that   you   were   drawn   to   real   estate   and   obviously   Rich   Dad ,   poor   Dad ,   the   Purple   Bible   is   something   that   somebody   handed   me   in   2000 ,   I   want   to   say   2008 .   And   same   thing .   You   and   I   have   been   on   a   similar   trajectory .   I   started   in   2011   and   recognized   that   real   estate   was   the   vehicle   for   me   for   a   lot   of   reasons ,   but   I&#39;m   curious   what   specifically   drew   you   to   real   estate ?   I   mean ,   you   went   to   a   good   school .   You&#39;re   obviously   very   intelligent ,   you&#39;re   a   leader   of   people .   Having   grown   a   business   to   over   100   employees ,   you   could   probably   do   anything   right .   You   could   have   started   a   software   company .   So   why   real   estate   specifically ?   

      </p>

        <cite>Andrew Reichert</cite>
      <time>3:00</time>
      <p>
          Oh ,   ed ,   that   is   such   a   great   question ,   and   I   think   my   answer   may   be   a   bit   atypical   for   most   real   estate   operators .   The   thing   that   actually   drew   me   to   real   estate   was   not   the   real   estate   itself .   I   actually   tell   people   that ,   and   I   tell   my   employees   this   too .   Real   estate ,   for   me ,   is   just   a   means   to   an   end .   It&#39;s   not   an   end   in   and   of   itself ,   and   for   me ,   the   end   is   actually   people ,   and   so   our   mission   as   a   company   is   improving   lives   through   real   estate ,   and   so   it&#39;s   through   real   estate   that   we   do   the   improving   lives ,   but   it&#39;s   really   about   improving   lives ,   and   so ,   for   me ,   real   estate   is   just   the   widget   that   I   fell   in   love   with ,   because   it&#39;s   the   roof   over   people&#39;s   heads   when   they   go   to   sleep   at   night ,   and   it&#39;s   the   buildings   where   people   go   to   work   every   day ,   and   so   real   estate   is   this   fabric   where   you   get   been   impacting   people&#39;s   lives .   That&#39;s   what   I   wake   up   every   single   morning   excited   about ,   and   real   estate   is   just   the   widget   that   I&#39;m   using   and   leveraging   to   get   there .   

      </p>

        <cite>Ed Mathews</cite>
      <time>4:10</time>
      <p>
          It&#39;s   amazing   how   much   where   someone   lives   and   the   fact   that   they   can   feel   they   live   in   a   clean   and   safe   environment   that&#39;s   well   cared   for ,   that   they&#39;re   well   served .   It&#39;s   amazing   what   that&#39;ll   do   for   a   person   in   a   family   in   terms   of   they&#39;re   thinking   around   the   rest   of   their   life   right   If   where   they   live   isn&#39;t   a   stressor ,   and   it&#39;s   admirable   that   you&#39;re   so   focused   on   taking   good   care   of   the   folks   that   live   in   your   buildings .   I&#39;m   curious   about   your   process   when   you   go   to   acquire   a   property .   Can   you   walk   me   through   what   your   box   looks   like   and   how   you   approach   a   property ?   Can   you   walk   me   through   what   your   buy   box   looks   like   and   how   you   approach   a   new   property   that   you&#39;re   onboarding ?   

      </p>

        <cite>Andrew Reichert</cite>
      <time>4:50</time>
      <p>
          Yeah ,   absolutely ,   and   it   ties   directly   to   our   mission .   So   first   of   all ,   our   buy   box   is   we   love   to   buy   stuff   that&#39;s   a   little   bit   big   for   a   typical   mom   and   pop   investor   but   a   little   bit   small   or   institutional   that&#39;s   really   like   our   sweet   spot .   And   similarly   we   love   class   B   housing   because   there&#39;s   a   lot   of   attention   in   class   A ,   a   lot   of   capital   in   class   A .   There&#39;s   also   a   lot   of   attention   in   affordable   housing   and   class   C   stuff .   But   what   we   love   doing   is   focusing   on   the   often   overlooked .   So   both   properties   and   people ,   particularly   here   in   the   heartland   of   America ,   we   find   are   getting   often   overlooked .   They&#39;re   getting   overlooked   by   the   large   capital   and   we   actually   believe   it   is   an   incredible   opportunity   for   generating   a   return   on   investment .   And   so   we   are   focused   on   the   often   overlooked   assets   and   people   here   in   the   heartland   of   America .   And   part   of   why   that   ties   to   our   mission   is   because   we   love   to   buy   from   particularly   generational   owners   who   just   haven&#39;t   kept   up   with   the   asset .   

      </p>

        <cite>Andrew Reichert</cite>
      <time>6:06</time>
      <p>
          And   when   we   come   in   we   provide   professional   property   management   24-7   at   maintenance   hotline   24-7 .   They   can   submit   a   work   order   on   their   online   portal .   We   answer   the   phone   and   our   residents   just   cannot   believe   it ,   like   when   we   buy   the   asset .   And   I   don&#39;t   mean   to   discredit   the   other   owners   I&#39;m   not   calling   them   slumlords   by   any   means   but   just   when   we   buy   the   asset   and   we   do   what   I   think   is   just   basic   property   management ,   most   of   our   residents   just   cannot   believe   it .   So   that&#39;s   really   what   gets   me   excited   and   that&#39;s   where   my   heart   is ,   for   that&#39;s   why   that&#39;s   our   buy   box ,   and   that&#39;s   also   where   my   heart   is   for   the   work   that   we   do   yeah ,   and   it&#39;s   interesting   when   we   so   we   have   traditionally   focused   on   here   at   Clark   Street ,   we   focused   on   c-class   buildings ,   but   the   same   thing ,   right ?   

      </p>

        <cite>Ed Mathews</cite>
      <time>6:54</time>
      <p>
          I   met   with   Gino   Barbaro   the   gentleman   Jake   and   Gino   and   he   had   talked   about   his   partner   Jake   had   talked   about   on   on   a   YouTube   video   that   I   saw   before   I   interviewed   Gino   that   they   wanted   to   be   the   Chick-fil-A   of   multifamily ,   and   what   that   meant   was   obviously   bringing   a   professionalism   to   their   property   management .   That   is   lacking ,   frankly ,   and   it&#39;s   not   that ,   like   you   said ,   it&#39;s   not   that   these   folks   are   slumlords ,   they&#39;re   just   they&#39;re   overwhelmed ,   right .   And   so   in   a   lot   of   cases ,   these   folks   have   generational   asset   holders ,   have   inherited   the   property ,   they   don&#39;t   know   what   dad   knew ,   and   so   they   find   themselves   in   over   their   head   fairly   quickly ,   and   if   they&#39;re   not   well   capitalized ,   they   fall   behind   very   quickly   as   well ,   and   so   it&#39;s   a   natural ,   normal   thing   to   happen   with   these   types   of   assets .   But   to   have   somebody   come   in   and   repair   the   relationship   with   the   residents   is   resident   retention ,   at   least   the   ones   that   want   to   stay ,   and   you   want   them   to   stay   is   a   huge   win   for   the   families   that   live   there   as   well   as   your   investors ,   right ?   Because   turnover   is   one   of   our   most   expensive   costs ,   right ?   

      </p>

        <cite>Andrew Reichert</cite>
      <time>8:13</time>
      <p>
          Yeah ,   you   got   it ,   and   that&#39;s   why   we   talk   a   lot   about   the   double   bottom   line   or   the   triple   bottom   line .   But   the   reality   is   we   totally   believe   that   by   being   good   landlords   and   good   stewards   of   the   buildings   and   the   people   that   we   manage ,   that   we   are   actually   generating   a   disproportionate   return   to   our   investors   because   turnover   is   lower ,   they&#39;re   taking   better   care   of   their   properties ,   less   cost   of   maintenance   and   renovating   the   units .   

      </p>

        <cite>Ed Mathews</cite>
      <time>8:48</time>
      <p>
          And   we&#39;ve   just   seen   that   financially   in   the   performance   of   our   assets .   Couldn&#39;t   agree   more .   Yeah ,   when   somebody&#39;s   proud   of   where   they   live ,   they   take   better   care   of   it .   When   you   serve   them ,   when   you   actually   pick   up   the   phone   when   they   call   and   ask   for   help ,   they   tend   to   stay   longer ,   and   that&#39;s   one   of   the   key   metrics   we   manage   by .   

      </p>

        <cite>Ed Mathews</cite>
      <time>8:58</time>
      <p>
          As   well   is   retention   right   here   in   Connecticut   last   I   looked   it&#39;s   been   a   while ,   but   it   was   somewhere   around   18   or   19   months   was   the   average   tenancy   of   the   state   of   Connecticut .   Our   tenancy   is   four   years   plus ,   and   that&#39;s   two   and   a   half   three   years   of   not   having   to   turn   it   over   and   not   having   to   do   a   lot   of   the   things   that   remarket   it   do   a   lot   of   things   that   cost   a   lot   of   money   to   be   able   to   keep   a   property   operating   well ,   things   that   cost   a   lot   of   money   to   be   able   to   keep   a   property   operating   well .   And   when   you   don&#39;t   have   to   spend   that   money ,   it   goes   right   to   the   bottom   line .   You   can   either   reinvest   it   into   the   property ,   which   we   do   sometimes ,   or   return   it   to   investors ,   which   we   do   sometimes   as   well ,   and   in   both   cases   that&#39;s   a   win .   

      </p>

        <cite>Andrew Reichert</cite>
      <time>9:36</time>
      <p>
          It&#39;s   a   win ,   exactly .   

      </p>

        <cite>Ed Mathews</cite>
      <time>9:39</time>
      <p>
          Yeah .   

      </p>

        <cite>Andrew Reichert</cite>
      <time>9:39</time>
      <p>
          Yeah ,   it&#39;s   a   great   perspective .   

      </p>

        <cite>Ed Mathews</cite>
      <time>9:41</time>
      <p>
          So   one   of   the   things   that   I&#39;m   always   interested   in   we   talked   about   this   offline   perspective .   So   one   of   the   things   that   I&#39;m   always   interested   in   we   talked   about   this   offline   is   how   leaders ,   business   leaders   take   care   of   themselves .   And   I   think   I   told   you   the   story   right   before   we   hit   record   about   one   of   my   mentors   when   I   left   corporate   America   said   take   some   time   off ,   man ,   just   take   a   break .   I&#39;m   unplugged .   And   one   of   the   things   that   I   noticed   when   I   was   getting   ready   for   our   interview   today   is   you   took   a   sabbatical ,   which   is   rather   rare ,   especially   in   the   real   estate   world ,   and   so   I   was   wondering   if   you   could   tell   me   a   little   bit   about   if   I&#39;m   not   being   too   intrusive   you   could   tell   me   a   little   bit   about   your   thinking   around   that   sabbatical   and   the   value   that   it   brought   to   both   you   personally   and   to   your   business .   

      </p>

        <cite>Andrew Reichert</cite>
      <time>10:21</time>
      <p>
          Yeah ,   absolutely   Happy   to   share ,   First   of   all ,   the   why   behind   the   sabbatical ,   and   I   want   to   go   back   to   actually   my   story   and   unpack   a   couple   other   details
      </p>

      <h2 id="chapter_32936660">Prioritizing Self-Care for Business Success</h2>


        <cite>Andrew Reichert</cite>
      <time>10:33</time>
      <p>
          .   I   was   actually   a   year   into   my   marriage ,   so   I   had   just   gotten   married   to   actually   a   lady   her   name&#39;s   Shannon ,   who   knew   me   from   high   school .   So   somehow   she   knew   that   rebellious   Andrew   and   still   decided   she   wanted   to   get   married   to   me .   We&#39;re   within   one   year   of   our   marriage   and   I   get   diagnosed   with   cancer ,   and   so   we&#39;re   there   in   the   hospital   room   and   they   say ,   hey ,   you   guys   might   not   be   able   to   have   kids .   Andrew&#39;s   chances   of   survival   are   good .   People   do   die   from   cancer .   And   so   here&#39;s   the   reality .   And   boy   was   that   an   awakening   for   us .   That   put   me   on   a   path   of   wanting   to   both   discover   my   purpose   and   live   into   my   purpose ,   but   also   to   make   sure   that   I&#39;m   taking   care   of   myself   physically ,   mentally ,   emotionally ,   spiritually ,   like   all   the   things .   And   I   just   realized   that   there   is   so   much   that   you   can   do   to   take   care   of   yourself .   So   back   to   your   question .   You   like   to   ask   leaders   what   they   do   to   take   care   of   themselves .   

      </p>

        <cite>Andrew Reichert</cite>
      <time>11:38</time>
      <p>
          It   was   the   year   after   getting   diagnosed   with   cancer   that   my   wife   actually   came   on   board   to   work   with   me ,   and   she&#39;s   our   first   employee ,   and   so   we   had   just   been   running   at   a   really   fast   pace   for   a   really   long   time .   So   we   get   all   the   way   to   2022   and   it&#39;s   the   10   year   anniversary   since   I   started   this   company   and   I   am   just   burned   out .   So   I   had   already   been   doing   a   lot   to   focus   on   myself   physically ,   mentally ,   emotionally ,   spiritually   but   I   just   felt   like   something   was   still   missing ,   and   so   I   started   to   have   these   physical   manifestations   of   stress   and   panic ,   like   my   shoulders   were   tense   and   my   eye   was   twitching   and   my   hands   were   sweaty ,   and   I&#39;m   like   this   is   not   normal .   Hands   were   sweaty   and   I&#39;m   like   this   is   not   normal ,   and   so   I   just   knew   something   had   to   give   or   else   I   was   going   to   give ,   and   so   I   made   the   decision   right   then   to   take   one   month   off   work ,   and   at   the   time   I   felt   like ,   wow ,   this   is   an   impossible   thing .   How   in   the   heck   can   I   take   a   month   off   work ?   

      </p>

        <cite>Andrew Reichert</cite>
      <time>12:40</time>
      <p>
          But   then   I   started   asking   myself   the   question   what   would   have   to   be   true   for   me   to   take   a   month   off   work ?   And   that   took   my   limiting   belief   and   transformed   it   into   a   liberating   truth .   It&#39;s   oh ,   I   can   take   a   month   off   work ,   and   here&#39;s   how   I   can   do   it .   And   so   that   was   really   the   beginning   of   the   process .   I   took   a   month   off   that   August   and   I&#39;ve   actually   made   a   habit   of   doing   that   every   year .   Now   I   actually   take   a   little   bit   of   a   mini   sabbatical ,   but   I   a   habit   of   doing   that   every   year .   Now   I   actually   take   a   little   bit   of   a   mini   sabbatical ,   but   I   take   a   sabbatical   every   year .   

      </p>

        <cite>Ed Mathews</cite>
      <time>13:09</time>
      <p>
          Good   for   you .   Yeah ,   it&#39;s   amazing   what   you   can   accomplish   when   you&#39;re   clear   headed ,   and ,   being   somebody   that   is   prone   to   stress   and   anxiety   myself ,   being   able   to   unplug ,   if   only   for   a   few   days ,   but   30   days ,   is   a   dream .   I   would   love   to   do   that .   It&#39;s   a   great   idea .   It&#39;s   interesting .   

      </p>

        <cite>Ed Mathews</cite>
      <time>13:30</time>
      <p>
          So   I   looked   at   that   process   of   taking   time   off   in   a   different   way ,   in   that   about   a   year   and   a   half   ago ,   I   was   diagnosed   with   appendicitis ,   and   boy   I   missed   the   better .   It   was   a   fairly   complex   issue ,   and   I   ended   up   missing   about   10 ,   12   days   of   work ,   and   so   I   didn&#39;t   have   the   luxury   of   being   able   to   have   that   conversation   about   what   needs   to   be   true   in   order   for   this   to   happen .   It   was   just   happening .   There   was   no   negotiation .   There   was   no   negotiation ,   but   one   of   the   things   I   discovered   is   that   the   systems   we   had   put   in   place ,   the   team   that   we   had   built   part   of   what   it   helped   me   do   is   let   go   a   little   bit   and   trust   the   team   that   we   have   in   place ,   which   I   did   At   least   I   thought   I   did   until   I   really   needed   to   and   didn&#39;t   have   a   choice ,   and   I   disappeared   for   the   better   part   of   I   was .   

      </p>

        <cite>Ed Mathews</cite>
      <time>14:26</time>
      <p>
          My   wife ,   took   my   phone   away .   

      </p>

        <cite>Ed Mathews</cite>
      <time>14:28</time>
      <p>
          I   was   literally   on   the   hospital   bed   in   the   emergency   room   texting ,   and   she   and   I   put   it   down   for   a   second   and   she   grabbed   it   and   put   it   away   and   I   didn&#39;t   see   that   phone   for   the   better   part   of   10   days   and   I   fully   expected   man   to   come   back   to   a   pile   of   emails ,   unpaid   bills   and   upset   people   and   what   I   came   back   to   was   a   clean   inbox   All   the   bills   have   been   paid ,   all   the   contractors   have   been   paid ,   projects   were   on   time ,   residents   were   taken   care   of ,   normal   stuff .   Nothing   was   on   fire   and   I   thought ,   okay ,   we   have   a   company ,   this   is   okay   now ,   and   so   it&#39;s .   But   it&#39;s   amazing   what   you   learn   when   you   take   that   beat   and   whether   it&#39;s   planned   or   unplanned   to   be   able   to   make   sure   that   the   systems   you   have   in   place ,   the   people   you   have   in   place ,   allow   you   to   operate   at   your   most   efficient ,   at   your   best ,   you   know ,   in   your   best   headspace ,   and   it&#39;s   pretty   amazing   that   you   were   able   to   do   that ,   the   fact   that   you&#39;re   sitting   here   on   this   interview .   I   hopefully   assume   that   you&#39;ve   beaten   cancer   and   that   you&#39;re   feeling   much   better .   You   look   great .   Congratulations   on   that   as   well .   

      </p>

        <cite>Ed Mathews</cite>
      <time>15:38</time>
      <p>
          Ringing   that   bell .   

      </p>

        <cite>Andrew Reichert</cite>
      <time>15:40</time>
      <p>
          Thank   you   so   much .   I   feel   great .   It   is ,   yeah ,   over   10   years   cancer-free   at   this   point .   Year   11   just   came   around   the   corner   and ,   just   to   go   back   to   something   you   said ,   I   just   want   to   reiterate   and   really   underscore   one   of   your   points ,   which   is   the   sabbatical   is   not   just   good   for   me   as   a   leader ,   it&#39;s   good   for   the   company .   The   company   needs   that   opportunity   to   do   things   without   me   there ,   and   so   I   have   a   blog   article ,   which   I&#39;m   sure   you   saw ,   but   I   talk   about   the   science   and   the   purpose   behind   my   sabbatical ,   and   the   science   just   does   show   that   it&#39;s   not   just   good   for   the   individual ,   it&#39;s   good   for   the   organization   as   well ,   and   that   was   a   realization   that   me   and   the   organization   needed   to   have ,   which   I   think   is   huge   which   I   think   is   huge .   

      </p>

        <cite>Ed Mathews</cite>
      <time>16:27</time>
      <p>
          Yeah ,   when   I   first   started   hiring   people ,   people   would   not   make   decisions   without   checking   with   me   first ,   and   that   wasn&#39;t   their   fault ,   that   was   my   fault ,   and   so   it   was   something   that   I   had   to   learn   how   to   do   and   got   to   a   place   where   we   got   pretty   good   at   it   and   I   was   letting   go   a   little   bit .   But   you   can   let   go   and   still   manage ,   right ?   And   but   until   I   was   forced   to   be   away   from   the   business   for   an   extended   period   of   time ,   I   think ,   frankly ,   the   business   has   thrived   ever   since ,   for   the   exact   reason ,   the   point   you   just   made .   

      </p>

        <cite>Andrew Reichert</cite>
      <time>16:55</time>
      <p>
          Yeah ,   exactly ,   and   I   think   it   strengthens   the   business   and   and   and   empowers   our   people .   That&#39;s   the   key   you   want   to   empower   people   so   that   the   business   isn&#39;t   relying   on   us   Cause .   Hey ,   by   the   way ,   yeah ,   I&#39;m   doing   great   from   a   cancer   perspective ,   but   everybody   talks   about   getting   hit   by   a   bus .   I   don&#39;t   actually   know   if   people   get   hit   by   a   bus   anymore .   

      </p>

        <cite>Ed Mathews</cite>
      <time>17:14</time>
      <p>
          Who   knows ?   Maybe   you   eat   a   bad   taco   or   something   you   just   knock   on   wood ,   right ?   Yeah ,   you   never   know .   

      </p>

        <cite>Andrew Reichert</cite>
      <time>17:20</time>
      <p>
          Life&#39;s   not   guaranteed .   We&#39;re   not   promised   tomorrow .   It&#39;s   good   to   just   have   those   plans   anyway .   

      </p>

        <cite>Ed Mathews</cite>
      <time>17:23</time>
      <p>
          Guaranteed .   We&#39;re   not   promised   tomorrow .   It&#39;s   good   to   just   have   those   plans   anyway ,  
      </p>

      <h2 id="chapter_32936661">Personal Purpose and Business Strategies</h2>


        <cite>Ed Mathews</cite>
      <time>17:33</time>
      <p>
          indeed ,   indeed .   So ,   in   terms   of   your   business   and   how   you   operate ,   I   noted   that   you   have   a   handful   of   funds   that   you   have   created .   Are   you   primarily   investing   out   of   an   equity   fund   or   do   you   also   do   syndications   or   any   other   types   of   ventures ?   

      </p>

        <cite>Andrew Reichert</cite>
      <time>18:05</time>
      <p>
          no-transcript .   We   ended   up   raising   $45 .   And   so   we   started   with   funds .   But   then   last   year   early   last   year   2023 ,   we   decided   to   try   syndications ,   because   there   was   just   some   investors   that   said   hey ,   I&#39;d   love   to   invest   with   you ,   but   I&#39;d   love   to   invest   in   a   particular   deal .   I   like   to   sink   my   teeth   into   the   underwriting   of   a   deal ,   and   so   we&#39;re   like   all   right ,   let&#39;s   try   some   syndications .   So   today   we   do   both ,   but   we   did   it   in   a   little   bit   of   the   opposite   order   of   most   real   estate   investing   operators .   

      </p>

        <cite>Ed Mathews</cite>
      <time>18:37</time>
      <p>
          So   how   do   you   decide   you   come   across   a   property   that   fits   your   buying   criteria ?   How   do   you   decide   this   one&#39;s   a   syndicate   versus   this   one   should   be   funded   by   our   equity   fund .   

      </p>

        <cite>Andrew Reichert</cite>
      <time>18:50</time>
      <p>
          Yeah ,   great   question ,   and   fortunately   we   actually   don&#39;t   have   to   make   that   decision .   So   what   we   do   is   we   always   buy   it   with   our   fund   and   then   we   syndicate   out   of   the   fund ,   so   the   fund   always   retains   some   ownership   and   is   basically   the   general   partner   of   the   syndication ,   and   then   the   syndication   will   also   allow   individual   investors   to   come   into   the   individual   syndication .   So   we&#39;ve   landed   on   a   both   end ,   as   opposed   to   an   either   or .   

      </p>

        <cite>Ed Mathews</cite>
      <time>19:21</time>
      <p>
          Wow ,   that&#39;s   really   clever .   I   had   come   contemplating   that   before .   Usually   with   us ,   we   look   at   it   from   a   deal   size   perspective ,   so   that&#39;s   interesting .   Um ,   we&#39;re   pretty   deep   into   our   30   minutes   here .   I&#39;m   a   little   tight   on   time ,   but   if   you&#39;ll   indulge   me ,   I&#39;d   love   to   buy   you   a   cup   of   coffee   at   some   point .   Pick   your   brain   on   that   anytime ,   head .   All   right ,   cool ,   all   right   with   that .   Let&#39;s   get   into   the   final   five ,   our   lightning   round ,   and   let&#39;s   dig   into   how   your   brain   works   even   further .   So   let&#39;s   talk   about   purpose .   I   want   you   to   finish   the   sentence .   

      </p>

        <cite>Andrew Reichert</cite>
      <time>19:50</time>
      <p>
          My   purpose   is .   I   literally   just   wrote   a   book   on   purpose .   It&#39;s   called   Priorities   on   Purpose   and   I   have   thought   about   purpose   more   and   written   about   purpose   more   than   probably   the   typical   guest ,   and   so   I   have   a   what&#39;s   called   a   life   plan .   That   is ,   pages   and   pages   of   me   talking   about   my   purpose ,   and   I   talk   about   it   in   each   life   priority .   So   what&#39;s   my   purpose   with   my   wife ?   What&#39;s   my   purpose   with   my   wife ?   What&#39;s   my   purpose   with   my   children ?   What&#39;s   my   purpose   with   my   finances ?   So   I&#39;m   going   to   boil   that   down   into   one   sentence ,   which   is   I   see   it   every   morning   in   front   of   my   vanity   I   have   this   kind   of   vision   board   and   it   says   my   purpose   is   to   love ,   to   serve   and   to   give ,   and   that&#39;s   ultimately   my   entire   purpose   boils   down   into   Okay .   

      </p>

        <cite>Ed Mathews</cite>
      <time>21:18</time>
      <p>
          So   when   you   break   down   your   life   plan ,   you   have   actually   gone   through   the   process   of   thinking   about   your ,   how   you   want   to   to   come   to   the   table   as   a   husband ,   as   a   father ,   as   a   business   leader ,   as   a   friend ,   and   so   what   does   that   look   like ?   What&#39;s   that   exercise   look   like ?   Is   that ?   I   would   imagine   it&#39;s   a   pretty   long   process ,   right ?   

      </p>

        <cite>Andrew Reichert</cite>
      <time>21:42</time>
      <p>
          It   is   and   I   talk   about   it   in   my   book   Priorities   on   Purpose ,   and   I   can&#39;t   take   credit   for   that   process .   I   actually   got   the   process   from .   I   was   going   through   some   coaching   with   a   guy   by   the   name   of   Michael   Hyatt   and   he   co-authored   a   book   called   Living   Forward .   Living   Forward   is   the   process   that   I   follow ,   which   is   basically   begin   with   the   end   in   mind ,   so   you   actually   write   your   own   eulogy   how   do   I   want   to   be   remembered   when   I&#39;m   no   longer   here ?   Then   you   develop   your   life   accounts .   So   I   have   10   life   accounts   life   accounts   of   being   like   physical ,   mental ,   emotional ,   spiritual   life   accounts   of   relating ,   like   marital ,   parental ,   social   and   life   accounts   of   doing   like   vocation ,   avocation ,   financial ,   and   in   each   of   those   life   accounts   I   have   a   purpose ,   I   have   an   envisioned   future ,   I   have   my   current   reality ,   I   have   obstacles ,   and   then   I   say   what   am ?   I   have   my   current   reality ,   I   have   obstacles ,   and   then   I   say   what   am   I   actually   going   to   do   this   year ?   What   are   my   commitments   or   my   goals   for   this   year   in   that   life   account ?   

      </p>

        <cite>Ed Mathews</cite>
      <time>22:43</time>
      <p>
          Wow ,   talk   about   living   with   intention .   So   when   does   the   book   come   out ?   I&#39;m   just   curious .   We&#39;re   recording   this   first   week   of   December   in   2024 .   So   when   does   the   book   come   out ?   

      </p>

        <cite>Andrew Reichert</cite>
      <time>22:53</time>
      <p>
          Yeah ,   it   comes   out   on   Tuesday ,   actually   December   10th .   I&#39;ll   be   doing   a   global   live   stream   to   officially   go   through   the   book   launch   and   then   Wednesday ,   the   11th ,   we   have   a   big   party   300   people   are   going   to   be   there .   I&#39;ll   be   doing   some   book   signing   and   really   excited   to   get   the   book   into   people&#39;s   hands .   

      </p>

        <cite>Ed Mathews</cite>
      <time>23:09</time>
      <p>
          Wow .   So   we&#39;re   catching   you   at   the   right   time .   So   congratulations   on   publishing .   It&#39;s   a   heck   of   an   accomplishment .   So   we&#39;re   going   to   talk   about   this   a   little   bit   later ,   but   let&#39;s   get   back   to   the   lightning   round .   So   I&#39;m   always   curious   about   leaders   and   their   mentors   what   is   the   best   advice   you   ever   got   from   somebody   that   was   important   to   you   and   gave   it   to   you ?   

      </p>

        <cite>Andrew Reichert</cite>
      <time>23:29</time>
      <p>
          Yeah ,   Boy ,   I&#39;ll   tell   you   what .   I   have   gotten   so   much   good   advice   from   so   many   mentors   that   it&#39;s   really   hard   to   pick   just   one .   I   think   you   and   I   are   wired   similarly   that   way ,   Edward .   I&#39;ve   just   had   so   many   people   that   have   poured   into   my   life   through   the   years   that   I&#39;m   just   incredibly   grateful   for ,   so   I&#39;ll   just   pick   one .   It&#39;s   specific   to   my   business .   I   could   probably   pick   one   in   every   single   life   account ,   like   who   was   the   best   piece   of   advice   as   a   father   or   as   a   husband ,   but   I&#39;ll   just   pick   one   for   my   business .   

      </p>

        <cite>Andrew Reichert</cite>
      <time>23:58</time>
      <p>
          Which   is   when   I   was   thinking   about   starting   this   business .   I   sat   down ,   I   had   coffee   with   a   mentor   and   he   said   look ,   Andrew ,   you   should   just   do   it ,   because   if   it   doesn&#39;t   work   out ,   you   can   always   go   back   to   your   corporate   job   Maybe   not   the   same   company ,   but   you&#39;ll   be   able   to   get   that   same   job   or   even   a   better   job .   But   you   won&#39;t   always   have   the   opportunity   to   start   a   real   estate   business   that   really   follows   your   purpose   and   follows   your   passions .   And   so   it   was   that   conversation   that   led   me   to   resign   and   really   grateful   for   that   mentor   who   gave   me   that   advice   and   ended   up   leaving   and   never   looked   back .   

      </p>

        <cite>Ed Mathews</cite>
      <time>24:36</time>
      <p>
          And   it&#39;s   worked   out   nicely .   

      </p>

        <cite>Andrew Reichert</cite>
      <time>24:38</time>
      <p>
          It   has   worked   out   nicely .   

      </p>

        <cite>Ed Mathews</cite>
      <time>24:40</time>
      <p>
          So   I   also   am   a   big   believer .   Here   at   Clark   Street ,   we   don&#39;t   believe   in   mistakes   as   a   negative .   The   fact   is ,   I   think   you   learn   more   from   your   mistakes   than   you   do   from   your   success ,   and   so   I&#39;m  
      </p>

      <h2 id="chapter_32936662">Learning From Mistakes and Prioritizing Purpose</h2>


        <cite>Ed Mathews</cite>
      <time>24:50</time>
      <p>
          curious   about ,   from   your   perspective   on   a   business   level ,   what&#39;s   a   mistake   that   you   made   that   you&#39;d   love   to   have   back   and ,   frankly ,   how   did   you   recover   from   it ?   

      </p>

        <cite>Andrew Reichert</cite>
      <time>24:59</time>
      <p>
          Oh ,   that&#39;s   another   one .   I   could   give   you   a   thousand   mistakes   in   the   12   years   that   I&#39;ve   been   running   this   business .   Now   I   make   mistakes   daily ,   like   literally   still   make   mistakes   daily ,   where   I ,   at   the   end   of   the   day ,   I   do   a ,   an   exercise   that&#39;s   called   the   examine ,   where   I   look   back   at   my   day   and   I   say   what   happened   today   and ,   and   I   just   every   day   I&#39;m   like ,   oh ,   I   really   blew   it   there .   I   actually   got   it   right   there .   So   again ,   I   could   go   on   for   hours   and   hours   on   this   particular   topic .   I&#39;ll   just   pick   one   again .   Just   because   this   is   a   real   estate   podcast ,   I&#39;ll   pick   one   that&#39;s   business   related .   

      </p>

        <cite>Andrew Reichert</cite>
      <time>25:35</time>
      <p>
          I   make   mistakes   as   a   father   and   as   a   husband   all   the   time   and   in   fact ,   what   I   found   and   you   didn&#39;t   ask   this   question ,   actually ,   you   did   say   how   do   you   recover ?   What   I   found   is   that   it&#39;s   just   important   to   apologize ,   like   with   my   girls .   I   have   three   daughters .   When   I   blow   it ,   I   just   say ,   hey ,   girls ,   daddy   blew   it ,   I&#39;m   so   sorry   and   they   forgive   me   and   it&#39;s   such   a   beautiful   thing .   So   I&#39;ll   give   you   the ,   I&#39;ll   give   you   the   business   answer   real   quick .   But   it&#39;s   certainly   not .   It&#39;s   not   the   only   mistake   I&#39;ve   made ,   but   and   I   don&#39;t   even   know   that   I   would   call   it   a   mistake   because   I   learned   from   it .   So   to   your   point ,   nelson   Mandela   said   I   never   lose .   I   either   win   or   I   learn .   

      </p>

        <cite>Andrew Reichert</cite>
      <time>26:14</time>
      <p>
          The   biggest   mistake   that   I   would   point   to   is   just   doing   way   too   many   things .   When   I   first   started   this   business ,   so   I   was   doing   ground   up   development   build   a   36   unit   property   right   next   to   our   office .   We   built   three   townhomes ,   we   did   historic   renovations ,   so   total   gut   rehabs .   I&#39;m   flipping   houses ,   I&#39;m   doing   commercial   property   management .   I&#39;m   doing   third   party   property   management   or   buying   multifamily ,   buying   single   family .   We&#39;re   doing   Airbnbs .   I   had   20   Airbnbs   at   one   point ,   just   so   unfocused ,   and   so   that   was ,   I   believe ,   part   of   the   beginning   of   the   end   for   me   in   terms   of   the   burnout .   

      </p>

        <cite>Andrew Reichert</cite>
      <time>27:01</time>
      <p>
          And   that&#39;s   why   I   think   it   was   a   big   mistake .   And   so   how&#39;d   we   recover ?   Really ,   just   saying   hey   look ,   and   I   lost   a   ton   of   money   on   a   bunch   of   those   deals   Cause   I   was   all   over   the   place ,   you   can&#39;t   be   good   at   all   of   that   stuff   is   how   do   we   recover ?   We   just   cut   our   losses   and   focus   on   what   we   can   do   best   Smart .   

      </p>

        <cite>Ed Mathews</cite>
      <time>27:19</time>
      <p>
          And   smart   that   you   recognize   that ,   because   it&#39;s   something   that   I&#39;m   prone   to   as   well .   Entrepreneurial   ADD   is   what   I   refer   to   it   as .   So   leaders   almost   universally   tend   to   be   readers ,   and   so   I&#39;m   curious   about   the   book   virtual   or   otherwise ,   that&#39;s   on   your   nightstand ,   and   who   are   you   paying   attention   to   these   days .   

      </p>

        <cite>Andrew Reichert</cite>
      <time>27:39</time>
      <p>
          Oh   yeah ,   again ,   I   could   talk   for   a   long   time   about   all   of   the   stuff   that   I   read .   I   tend   to   read   in   different   categories .   I   read   a   ton   of   business   books .   I   read   a   ton   of   health   and   fitness   books ,   just   because   of   my   battle   with   cancer   and   my   desire   for   longevity .   I   read   a   lot   of   spiritual   stuff .   I   read   a   lot   of   psychology ,   mental ,   emotional   kind   of   understanding ,   understand .   So   I&#39;ll   just   answer   your   question   and   pick   one   book   this   year .   Probably   the   most   impactful   book   that   I   read   this   year   and   it   is   on   my   nightstand   but   it&#39;s   in   my   Kindle   is   Outlive   by   Peter   Attia .   He   just   really   breaks   down   the   components   to   longevity ,   living   a   long   life ,   and   how   so   much   of   it   is   within   our   grasp   and   we   just   need   to   focus   on   the   right   things .   

      </p>

        <cite>Ed Mathews</cite>
      <time>28:29</time>
      <p>
          Okay ,   all   right ,   we&#39;ll   be   certain   to   list   that   in   the   show   notes .   Last   question   on   the   lightning   round .   So   I   want   you   to   finish   this   sentence .   Success   means .   

      </p>

        <cite>Andrew Reichert</cite>
      <time>28:41</time>
      <p>
          Yeah ,   I&#39;m   going   to   go   with .   Success   means   legacy ,   and   some   people   think   of   legacy   as   financial ,   but   for   me   it&#39;s   just   not .   In   fact ,   from   a   financial   perspective ,   I&#39;m   at   the   place   where   I&#39;m   not   even   thinking   about   that   personally ,   because   I   actually   this   is   a   bit   of   a   contrarian   perspective ,   but   I   found   that   the   data   shows   that&#39;s   maybe   counterproductive   and   for   me   it&#39;s   what   am   I   teaching   them ?   What   are   the   principles   I&#39;m   giving   them ?   And   not   just   my   daughters ,   but   like   the   world .   So   I   think   of   success   as   just   like   leaving   the   world   a   better   place   than   I   found   it ,   and   that&#39;s   really   how   I   think   of   success .   

      </p>

        <cite>Ed Mathews</cite>
      <time>29:44</time>
      <p>
          I   love   that .   Yeah ,   I   think   people   thought   most   people   thought   that   way   we   would   be   living   in   a   very   different   world .   Yeah ,   okay ,   so   when   not   talking   about   real   estate ,   and   although   we   diverge   from   the   real   estate   being   a   little   bit   here ,   but   with   purpose ,   what   else   do   you   like   to   do ?   

      </p>

        <cite>Andrew Reichert</cite>
      <time>30:00</time>
      <p>
          Yeah ,   I   love   to   mention ,   I   read   a   lot .   As   a   result   of   that ,   I   write   a   lot .   I&#39;ve   got   this   book   coming   out   and   honestly ,   I   just   I   love   read   a   lot .   As   a   result   of   that ,   I   write   a   lot .   I&#39;ve   got   this   book   coming   out   and   honestly ,   I   just   I   love   being   a   dad .   I&#39;m   raising   three   girls .   I   take   them   on   a   daddy-daughter   date   once   a   month .   I   get   one-on-one   time   with   them   every   day .   I   love ,   as   you   mentioned ,   we&#39;re   recording   this   in   December .   It&#39;s   the   holiday   time .   Santa&#39;s   coming   pretty   soon .   I   love   just   enjoying   life   and   celebrating ,   celebrating   with   them .   

      </p>

        <cite>Ed Mathews</cite>
      <time>30:29</time>
      <p>
          It&#39;s   yeah ,   it&#39;s   the   best   thing   you&#39;ll   ever   do   is   being   a   dad ,   especially   a   dad   of   girls   who   I   have   to   myself .   They&#39;re   older ,   they&#39;re   22   and   17 .   But   it&#39;s   yeah ,   it&#39;s   the   best   thing   you&#39;ll   ever   do .   So ,   andrew ,   if   people   want   to   get   in   touch   with   you   or   learn   more   about   Virgo   Capital ,   what   is   the   best   way   to   do   that ?   Get   in   touch   with   you   or   learn   more   about ?   

      </p>

        <cite>Andrew Reichert</cite>
      <time>30:46</time>
      <p>
          Virgo   Capital .   What   is   the   best   way   to   do   that ?   Yeah ,   absolutely .   You   can   check   me   out   on   LinkedIn .   I&#39;m   pretty   active   on   LinkedIn ,   andrew   Reichert .   Feel   free   to   follow   me   or   connect .   And   our   website   is   virgocapitalcom .   So   Virgo   with   a   B-B-I-R-G-O   capitalcom .   And   then   I   did   mention   I&#39;ve   got   this   book   coming   out   next   week .   The   book   is   at   rosjourneycom ,   so   that&#39;s   journeycom ,   rosjourneycom .   

      </p>

        <cite>Ed Mathews</cite>
      <time>31:11</time>
      <p>
          All   right ,   andrew   Reichard ,   thank   you   so   much   for   joining   us   today .   It&#39;s   a   pleasure   to   meet   you ,   and   continued   good   fortune .   

      </p>

        <cite>Andrew Reichert</cite>
      <time>31:18</time>
      <p>
          Thank   you   so   much ,   Ed .   Thanks   for   having   me   on   the   show .   

      </p>