Episode #55: Using Data to Become an Elite Investor with Neal Bawa

Neal Bawa is the CEO and Founder of Grocapitus and MultifamilyU, Neal leads the company and is driving the syndication and acquisition of multifamily properties.

• Owns and manages a real estate single family and multifamily portfolio in 8 US States
• Speaks at Multifamily events, IRA events & meetups across the country
• Over 3,000 students attend his multifamily seminar series each year
• Hundreds attend his Multifamily boot camps annually
• Co-founder of the largest Multifamily Meetup in the U.S. (BAMF), with 4000+ members

His past experience includes 17 years of revenue (P&L) experience as the senior-most executive in a California education company with over 350 employees and $40MM in revenue.  Neal is a backyard tomato farmer and a protein diet health nut. He believes in positivity and Karma, is passionate about cricket and about the enormous potential of self-driving electric vehicles to solve the global climate crisis.

Connect with Neal
www.multifamilyu.com
Facebook – Neal Bawa
Tool Kit – Text RETOOLKIT to 44222 or www.multifamilyu.com/retoolkit

Resources mentioned in this episode
www.city-data.com
www.deptofnumbers.com/employment/metros
www.housingalerts.com
www.localmarketmonitor.com
www.neighborhoodscout.com

For today’s show notes, including audio and links to all the resources mentioned, visit www.aptcapitalgroup.com/podcasts.

To get access to our free Passive Investors Guide and monthly newsletters sign up at www.aptcapitalgroup.com.

To find out more about partnering or investing in a multifamily deal email info@aptcapitalgroup.com.

Local to Southern California? Attend our monthly meetup focused on Multifamily Apartment investing. View our schedule at www.aptcapitalgroup.com/events.

Join our Facebook Group - Passive Income through Multifamily Real Estate

Have a question you would like answered on the show? Email us at info@aptcapitalgroup.com.

Today's Show Sponsor
Bullpen

Transcript

spk_0:   0:03
welcome to the passive income through multi family real estate podcast brought to you by limitless estates where Kyle and Lolita talk to top experts and seasoned passive investors in the business tell provide clarity and key insights to keep you safe on your journey to financial freedom. Our goal is to help you get educated on how to create passive income for you and your family by using real estate as your vehicle. Now, here are your hosts Kyle and Lolita.

spk_1:   0:39
Hi, everyone. Thanks for tuning into another episode of the passive income through Multi family real estate podcast. I'm Recovers, Lolita, also joined by Kyle. Today's interview will be great as we have special guests. Neil Bawa here with us today. Neil, thanks so much for being on our show. How are you?

spk_2:   0:56
Fantastic. Thanks for having me on the show, guys. I'm very excited to be here.

spk_1:   0:59
Happy to have you all right. Well, before we get into the interview, here's a little bit about Neil. Neil is the CEO and founder of grow capitalists and multi family you. He leads the company, and that is the driving the syndication and acquisition of multi family properties. Neil is an expert at what he does and speaks at numerous events across the country. Over 3000 students attend his multi family seminar, Siri's each year, and he is also the co founder of the largest multi family investment meet up in the U. S. B A. M f. Over with over 4000 members, we have had the amazing privilege to have him speak at our multi family masters Long Beach meet up twice this year already. Soto, have you come on our show on our show today? Neil is a privilege. So let's go ahead and get started. Neil, could you please tell the listeners a little bit more about yourself and what you currently D'oh,

spk_2:   1:49
Sure. Um, for those of you that don't know me, I am a geek. I am a nerd technologist. That sort of fell into real estate through my day job. My day job required me to build campuses. So in 2003 with my CEOs guidance and help, I built a 27,000 square foot campus pretty much on schedule Scratch. That was one of those schools soup in arts projects. And then two years later, our business was growing, so had a chance to build a 2nd 1 And those two projects which were so jumbo in size being my first projects, really grounded me in real estate and and help me understand the different facets of real estate. So one could easily say that I started in real estate in reverse, right? So I actually went to single family homes after my 1st $10 million in realistic Perfect. So today we're gonna talk about a whole new way to evaluate a real estate opportunity, which is by using data. And that's how you invest so from a high level. How are you using data to make better decisions on your L State investments? Well, to me, um, data is everything. One of the things that I like to tell people and maybe you want to write this down is that data is the oil of the 21st century. Right? So if you lived in 50 years ago in Texas, you couldn't almost couldn't help but be rich because it was oil everywhere, right? And then you basically went out and bought a boat large piece of land. Sooner or later, you were hit oil. You know, hit oil and be very rich. The same thing. The exact same thing happens with the use of data and analytics and everybody. Everybody that I talk to says I'm data driven, right? And people are like, Yeah, you know, I I love your data, you know, processes. I love what you're talking about. That's exactly how I'm set up. And I'd like to challenge that because I think that we are all surfaced level data driven, right? We're all people that like to say that we're data driven, but we're really not as data driven as we should be. And I think success is just one step above where most people are in terms of being data driven. And that's that's what I'm gonna tell you about today. I'm gonna challenge you a little bit to go up that one or two extra steps so you can truly be data driven. And when you're truly they're driven, you have to make some immense sacrifices. For example, if I've been seeing really, really great things about a metro and the data doesn't support it, it now becomes part of my job to stop saying that or to say things like, Well, Columbus is actually now slowing down. It's been a great metro for the last three or four years, and so I'm not looking there anymore. I'm gonna go to some other place. And it takes a lot off courage to say that because you probably built a lot of relationships in Columbus by this at this time. And to walk away from that requires a lot of courage. So data is not just about application of numbers. Data is about living by what those numbers say and being courageous enough to walk away from perfect legal deals. When the data says that they're okay and not great or they're good and not great and you're looking for a great deal. So when I'm looking at data for real estate, I have a set of metrics and I'm gonna give you those sets of metrics today and you can basically learn how you know how I apply these metrics. And then I also look at overall health of Metro. So I gather information, for example, my favorite city in the U. S. To invest in depending upon which day of the week it is is either ST George, Utah or Provo, Utah. Right. So those are those the two that I love the most. And Provo just won. The, uh this is this is in 2019 2018 award for best performing city in the United States. So best coming cities. I look at that sort of data. It's subjective data that that feeds back into my objective data. But the objective data that I look at is really five different metrics at a city level and then five metrics. Our neighborhood level today will have a chance to talk about the city level. So the number of match one metric that matters is population growth. Right? When you go into places that are losing population like Detroit, what you're doing is you're sitting in an airplane that has headwinds, right? So if you're sitting in a plane and it's going 550 miles an hour and you have 200 miles of headwind, guess what? Your plane is actually only going at 3 50 not 5 50 right? And if that if that if you turn that plane around, you turn around 100 80 degrees and went the other direction. Now you have a 200 mile tailwind. So now you're playing is not playing at 5 50 It's lying at 7 50 all of a sudden, even though it's all flying at the exact same speed. When I say speed, try to correlate that toe the same price homes, the same cannon based the same, You know, same. Everything else but your demographic data is pushing you faster or slower, depending upon where you're buying. And the first piece of those demographics is population, and the rule that I like to apply for population is that there's a website called City Dash data dot com Now, actually, before I go to see that dash data, we'll just talk about Google to pull population data for any city in the U. S. All you have to do is type in population space. You know, Columbus, Ohio, or whatever the city is and hit. Enter and Google will give you a very nice colored graphic, right, So it'll have a line that's going up or going down, hopefully, lines going up because that shows the population is increasing and what you want to do. If you want to take a look at the latest number, which Google shows right there on the page and then you want a mouse back a little bit so that even get to the 2000 number. So those two numbers take those numbers and figure out the difference between them. You want the the difference between 2000 and the current year to be about 20%. It's a good rule of thumb. And if you're going into cities that are above that 20% you're likely to do really, really well because the population growth is driving up a demand for jobs, demand for for homes and also incomes. You're gonna do really, really well on all of those metrics of the population growth is there? So some of the cities that have been growing very fast our Phoenix or Orlando, um, cities like ST George, the Provo. These are cities that have extremely fast growth, and then

spk_1:   7:50
you

spk_2:   7:51
have cities that are doing okay. They're not doing poorly, but they're not growing. Cincinnati is a city that comes to mind. So it's Pittsburgh. These are cities that have lost population, but they've lost very little populations. They're doing okay and then their cities that have had very massive losses in population Detroit, Dayton, Ohio Are cities that come to mind? Are are places that there's been a massive amount of population loss. And I can tell you that in my mind the population loss in Detroit is more than a 200 mile headway. In my mind, that plane may not be going forward at all because it's going at 500 miles an hour with a 500 mile an hour headwind. It's a really, really difficult to make money there. People are making money. They're I'm not saying that, people. Nobody makes money in Detroit, but the percentage of people losing money is much higher than the percentage of people making money. So you have to be careful in those sorts of places. So population growth is really Kyle. My first metric when it comes to, you know, looking at the numbers. OK, perfect. Well, I love this episode because you're just going to go through all your focus is, and I'm gonna have to talk less, so that's awesome. So can we go through your other four city Real focus is certainly so. The second real focus is simply, um, the the income growth right So you're looking for there to be a certain amount of income growth in any particular city and getting that information it's really easy. You go to City Dash later dot com and you plug in the name of the city. So could be Phoenix. You know Arizona. And then you scroll down maybe about six inches or so, and you will come across median household income. You're looking at median household income and what you and once again, you'll see two numbers. You're gonna see a number now it's It's a few years older, but it doesn't matter. Just pick up that number, and then next to it, you'll see a number of where that no income level was in the year 2000. The difference between those two numbers and, you know, a little bit of Excel work needed here should be about 30%. So population growth 20% and now you're looking for income. You know, that should be about 30%. And why, in 30% because of population growth is driving up the incomes beyond inflation. Every city, even the ones losing population, will typically see an increase in income. There's gonna be some because of, you know, because of inflation, right? But you're now going faster than inflation because that population is pushing up your income levels. So 30% is that second number that you should be looking at. And then the third number that you should be looking at is tied to that, and that is home price growth. So on the same city data page, roughly an inch below where it says median household income, you actually have median Hauser condo value. Take a look at that. Once again, you'll see two numbers. You'll see the 2000 number you'll see the most recent number basically figure out the difference between them now. This time it's not 20%. It's not 30%. It's 40%. You want to basically hit an area that has a 40% growth in its home or con values. In that same time frame, right, 20 leads to 30 30 leads to 40. So, you know, getting what is known as the all ships rising effect. This is one of the most powerful things in real estate. I tell people it's like cheating, right people like What do you mean? It's like cheating basically What I tell them is if I was investing in Shreveport, Louisiana, right. This is one of the worst markets in the country. In my in my book. Obviously, I'm no expert, but in my mind I do the math. Shreveport, Louisiana. Looks really bad. And then I compare that to something like seeing George and the numbers for saying George might be five or 10 times higher. All of these numbers that I just mentioned to me that's almost like cheating. And it only took me like, an hour or two hours to figure out that ST George has one of the highest population brought in job growth and income growth in the United States. It wasn't very difficult to figure those things out. And then look att, Louisiana So, given that it only took me an hour to become this instant expert at real estate, it's always like cheating, cause you're gonna end up making many times more money in Provo, Utah, our Saint George, Utah, or some of the cities in Florida that are doing really well beginning to get a little bubbly now, by the way, um and and that's why I think in a nard sort of way. It is like cheating, but you're not doing anything wrong. You're using numbers you're using that, you know, data that's acceptable to anybody else. And essentially, you can look like a rock star even though you really not. You're just somebody that has bean patient enough to to use numbers and to really accept what they say and walk away from opportunities when they don't match what these numbers are saying. So that's That's my number three metric, right? So, ah, home price growth 40% or greater. And a lot of the cities that I just mentioned would crush these numbers. So Orlando Phoenix, you know ST George Dalton, Georgia. Not Dalton, Ohio. Dalton. Georgia would crush these numbers. So what? Atlanta So would Jacksonville, our Tucson. These are cities that would really easily beat these numbers. Some cities are crazy. Orlando and Phoenix have had over 100% growth in home prices, not 40 but over 100%. Right? So some of the study cities are way past this number. Beyond that, the number four the fourth number that we look for is still on that city data page. But now you gotta scroll down a little bit. You got a swirl down several feet before you hit this blue table, and that blue table says crime rates right? And it's a massive table and it's got, you know, lines for Nick rapes and robberies and burglaries and all those sorts of things. You have to ignore all of those and go to the last line in the last line to there. You're looking at the left, most number and the right most number, as you can imagine, the right most is the current year or the new stu here, and the left most number is about 15 16 years ago. So you're comparing those two numbers, but you're making sure that the right most number, the most most current member is at least 500 orb below. You want to be below 500 crime, you might say. What does that mean? Uh, Neil, does that mean there's 500 murders in that city in a year? And the answer is no. This is an aggregate number. It's It's almost like a metric that they've created by looking at all the different crime and aggregating and coming up with some sort of formula. It's called the city Data Index. So it's an index, and you want to the city that you're investing in to be below 500. But there's something else that you want. You want the number on the left to be a lot higher than the number on the right because what that shows his crime was higher before and has been declining over time. And because crime has been declining over the last 15 years, there's a good chance that will keep declining. And the more the decline in crime, the lower the cap rates, which means the higher the price is whether it's single family or multi family. So you you'll get this again, this all ships rising effect if you're in a city where crime is steadily declining and has been for a least a decade off, hopefully for even longer than that. And so look for 500 below, and then also look for there to be a decline. So Orlando, one of my favorite cities to invest, is not quite at 500 it said about 5 50 But what I like is that it was at 8 50 not, you know, in 2002 in 2003. So it's really come a very, very long way and has a very consistent track record of decline. Columbus, Ohio. Used to be at about 750 now it's set at 414. So it's clock cross that 500 level, even though it's a Rust Belt city and used to be a high crime city. Um, Boise, Idaho, is the best in the US at 2 14 those air amazing numbers. Um, Phoenix is somewhere in the middle, right around 500 but it certainly has dropped a great deal in crime over the last 15 years. You're looking for those sorts of cities, and and once again, what you're trying to do is to game the system so that when you leave five or 10 years later, crime will be a lot lower, and you're going to get compensated from that by the biter. When people are like, well, prices can't go any lower in Phoenix or or Orlando, really, why can't they only lower? The San Francisco Bay area has prices that are three times higher, not 30% higher. Three ex higher right Why would you? Is there something magical about the San Francisco Bay area that prices know anywhere else? Can't really match us. That's that's never gonna happen, right? You look at Austin. It's been on that technology journey for the last 10 or 15 years, and its prices don't re even resemble the rest of Texas. But cities change, and it takes a long time for them to change 10 years or 15 years. The the benchmarks of pricing just simply changes you. Look at Salt Lake City. It's already 4.5 cap market, right, whereas Provo might be more like 5.5 cap, seeing George might be more than more like 6.5 gaps. Cities have changed over time, said Saints. You know Salt Lake City didn't look like this in terms of Capri, it's five or 10 years ago, but But as institutional money flooded into the market, the market changes. They changed, and so you can game the system if you know which way the city is going. The last metric that I love to talk about Kyle and this is to me really. One of the most important metrics is his job jobs. Unfortunately, you cannot get job data from City dashed in Iraq. Climate least not accurate data Job has actually provided very current in the current in the in the U. S. Because of Social Security tracks having to be card each month. You can really get job later for two months ago, and the girl is a little bit complicated. So maybe you guys can type that into the chart here. For the people that are listening, it's department of numbers dot com. That's the e p t of numbers dot com slash employment slash metro's. So what you're trying to do is that you are trying to go to this. You basically go to this page slash employment slash metro isn't going to see a list of every metro in the US all of them hundreds and hundreds and hundreds of them. And the last column to the right shows you basically the unemployment rate, right? And you click that great. I'm sorry. The job growth rates are not the unemployment rate, the job growth rate growth over the last 12 months, and you gonna sort that and then you're gonna start seeing some amazing cities at the top of this list. Obviously, the bottom of this list is horrible. Those are cities that even today with, you know, eight or nine years of continuous growth. We've created 20 million jobs in this country, these places still losing population, you know, with practically perfect unemployment rates or employment rates. Well, I know what's gonna happen to these places. As soon as we get into a recession, they're going to turn into disaster zones, so stay very, very far away from anything in the bottom 25% of this list. The top 25% of list is very challenging also, and that's because a lot of these air low cap places, but a lot of these are places you've never heard off. So at the top of the list right now, it's slightly over 5% year over your job growth is Reno, Nevada, Most of those air industrial jobs because it's an industrial center. Tesla's there, but But there's a lot of opportunity there, so I don't particularly like Reno as much, even though it stays at the top of the list because it's so focused on industrial, which I feel is a very fickle market can turn on a dime. ST. George is that right next to ah to Ah, Reno. And it's at 4.87 and what I like is ST George has basically two or three main legs. There's education, there's health care. And there's tourism. Right's economy is not dependent on one of these three. It's dependent on three of them. It also happens to be part of a state that's doing really well. There's also a city from New Jersey that shows up there, but as a state, New Jersey is doing really poorly. So I like the fact that you know ST George in a state that also is ranked very highly top three in the U. S. So when you're looking at these cities, the last thing that you should be doing guys is look at this list ones because every once in a while, some some major manufacturer is going to go open a location one of these cities and all of a sudden there's 500 brand new jobs that come in right, And so the city sort of spikes, you know, for a month or two months or three months, and then basically goes down to, you know, being sleepy town. And so what you want to do is you actually want to look at that page, and I usually have my staff copy it into Excel and put it into an Excel tab. We look at it every month, then we want to look at it every three months. And usually I just look at the top, like 20 or 30 cities, because that's what my focus is. I want to invest in the places that have the fastest job growth in the U. S. So I look at them every single month and I'm like, Okay, what's the pattern here? Right, So I see Provo Lycee saying, George, I see Atlanta, Phoenix, Orlando are very consistent in that top list and then their cities that just go sort of up and down and you'll see them. Kennewick Washington comes in often. Dalton, Georgia comes in often. Those are other places that are interesting. Jackson will often shows up, but it's not very consistent, right? So I'm looking for a lot of consistency in that job growth list, and there's nothing that you're going to find that tells you more about where America is headed than this page. Such a simple Paige. It's just a list, but the amount of money that you're going to create for your investors by just bookmarking this and going to it every single month. Just put it a reminder on your calendar. You've gone from being just a regular Joe investor to being an elite investor. That's I mean, that's how much of a difference all the stock mix right. I pay for expensive tools like Neighborhood Scout and housing alerts and local market monitor and co star, but I still find this one list to be the easiest to give me a sense of what's happening in the U. S. It's especially important right now because I have to tell you this after six or seven years of just everything goes up. That's not the case anymore. The single family market is stuttering. We're starting to see no growth in home prices nationwide or maybe like just very anemic growth. There's markets where home prices air, reducing the San Francisco Bay Area be one of them. Los Angeles is flat. Could could also see a reduction. So there's a lot of market Miami in my mind. It is a is a very dangerous market because of the massive number off unprejudiced condos that are available for sale there. Five years of car, no inventory available for sale. So there's gonna be all kinds of bad things that will happen over the next year, as if if we had some kind of economic roadblock or or slower growth. So it's very important today to be careful. I find that the sometimes people say in a multi family is in a bubble, and I say That's just total nonsense. There's no evidence of that. Here's evidence of something else that's in a bubble. Multi family syndication, right? A lot of syndicators basically getting together and trying to sell properties in places that are just horrible, Right? I know you guys were looking in Phoenix. Obviously, that's one of the better markets out there, all not just for the five year, but also for the 15 year. But I see people out there looking at really, really terrible markets, and the fallout is going to affect all of us. Today is really a time to be careful and a time to basically say Look at every deal five times before you say yes. You know, in our case, we're saying No. I mean, we recently said no to a dealer in Phoenix simply because it was it wasn't strong enough way. Feel like we want to have a lot of room to screw up a lot of room to make mistakes, right? So those things happen, right? So it's a part cast, so I can say, and you know, these these old document moments when they happen, right? If you have, you know, enough of a room, you'll still make your investors what's supposed to have to, um, you know what you're supposed to give him. So we're looking for that kind of room today because the market is sort of priced to perfection. We're all underwriting, assuming a whole bunch of glowing things, assuming that a lot of good things were going to happen. So it's really time to be, you know, careful about the marketplace. That's that's what I feel today in my God. Yeah, awesome for that. Thank you for all that detail. Now, going back to the department numbers page, there are a couple of cities that show up at the top of that list that you probably should stay away from his. Well, can you talk a little bit about those? Yeah, So, basically, in Texas, there are cities like Odessa, Texas, and there's another one can't remember what, but that one is. But there's these two cities that either art at the very top of this list or the very bottom. They're at the very top of the list when the price of oil is about above 65 or $70 a barrel. Because these cities almost 100% of their employment the other one's middle and middle in or DESA almost 100% unemployment are drillers, right? And they're related to to shale oil. And so what I tell people is the most dangerous places in America to invest for real estate are not. Places like Detroit were parts of Detroit. It's actually Midland, Texas, and Odessa taxes. If you don't understand oil, if you really don't get oil, those of the worst places to invest okay and then going back to crime on the city data table, I just want to make sure anyone that's gonna utilize this, you can see a drop off in crime in that city data, and it could actually be a little bit of a false ah indicator. Can you talk about that As far as the two ways that this city can basically reduce their crime, right? So they call it the Chicago Method and the Columbus method so cities can effectively over, let's say, a short term or long term. They can try to reduce crime in two different ways. The better. Mathur takes about 15 years, 15 or 20 years, and that is that the city starts to make a major investment, ah, into its universities and into its healthcare systems. So what they do is they start attracting health care and education jobs, and those jobs tend to be the most stable. They don't have pensions connected to them that tend to have you no job security. And so cities weren't those kind of jobs. So Columbus, for example, spend a lot of time investing into Ohio State. They spend a lot of time investing into its healthcare systems in the nineties, and they really didn't see a result back then. So the politicians that made that investment back then we're all visionaries because they didn't get the benefit while they were in office, but they knew it was the right thing to do for their city. And so they made that investment instead of doing something very flashy, then their cities that have taken the approach of being very politically connected to, um to crime. So why, you know, Chicago has been one of those cities where every time there's all this hoo ha in the newspapers about there being too much crime in in Chicago, we we on an ongoing basis, we will start seeing ah, crime dry where basically their goal is to lock up. You know, 5000 people from this outside? Yeah, and and and some of those air fairly petty crimes. But because these people have, you know, being in jail before now, they're terms air longer. So now you basically have somebody that did a minor theft and you stuck him in jail for three or four years and turned them into a hardened criminal. Now, when you do that, obviously you stuck 5000 people in jail. Well, you're gonna see a decline in crime, So the next year you're going to see a big drop in the city date of numbers and you go, Well, this is This is nice in Chicago is moving the right direction. Well, none. No such thing is really happening right, because what's happening is two or three years later, the election is over. Whoever was elected as mayor because he locked up a bunch of people one. And now those people are coming back out. And when they're coming back out as hardened criminals, they're not doing petty crime. They might be getting involved in some very, very serious crime, which obviously counts more on the council's a higher number on the index. Now all of a sudden you see the spike backwards. So now you see this zigzag, the sort of thing up and down, up and down. What that means is the city is trying to reduce crime through enforcement, and there's actually no historical evidence that you can reduce crime in the long run through enforcement. The only way the room would reduce crime is jobs right? The enemy and employment and education. Cities that are very high levels of education also tend to have very low levels of crime. Provo is a perfect example of a city you ve you and BYU, both of which are in Provo, have extremely high quality of graduates. And so the city's unemployment rate is at 2%. There, for his crime is almost zero. Right. So you look at the crime for the city. You go do these people leave their doors open because it probably cord right. And it's it's okay to that when you live in a place like that. So I'm on the other hand, you look at South Chicago or you look at, you know, parts of Oakland or parts of Memphis and those air extraordinarily dangerous places. And that's what this study of numbers is showing you. Why is it that you're getting such a great deal in Memphis? Why is it that you're getting such a great deal in South Chicago? My advice to you is that you should walk away from those deals. There are no great deals today, And if one appears great, it's because you haven't figured out what's wrong with it. Yep, Great advice. Okay, so you've already given three different websites are free tools that people can use city data department numbers, Google? Are there any other free tools out there that people should use as faras Dad is concerned, Um, not free, but sort of free. So I'm gonna give you some ideas, right? So one of my favorite tools is, um, is housing a large dot com, and it's about it's about $1000 a year, and it's run by Ken Wade, um, a Stanford grad. Very, very smart guy. What these guys do is they to promote what they're doing. Every once in a while, they record a video snippet of their analytic tool, and they stick it on YouTube. So I want you to go to YouTube and find housing alerts and subscribe to their channel. One of the things that happens is when you walk through those videos, they do things like worst cities in America to invest in. There's a two minute or three minute video, right, and whenever you're watching the video, watch it on a monitor that has a very high resolution, right? And so, as they're going through the video, at some point, they'll show you a screen chart off your off. The of their software will, in pause the video click pause and then take a full screen chart left right off what they're showing you because on the screen right now or the worst ranked in the best rank cities in the U. S. In the US And not only can you see them, you can actually see why they're ranked best. Because there's columns and those columns are showing things like jobs and population growth and income crowed. Right. So the metrics and they usually do a ranking a 1 to 100 right? So, like Provo might be ranked in the high nineties. And, you know, Chicago, I think, has a very low rack ranking right now. So So what you're basically doing is, without actually subscribing, you're getting access to some of their data. Obviously, the right thing to do, in my mind, is to subscribe to their data, right? A lot of people say, Oh, but it's 1000 bucks, and I say something like this. Are you looking to invest $100 in real estate? If that's the case, then $1000 is a lot. If you're looking to invest at least $10,000 in real estate, most people are right. Then 1000 olders is very little because I'm talking about potentially you swinging your profit by two ex or three X right and $1000 is 10% of 10,000. If you're investing 100 grand that it's 1%. And if you're investing your investors money, then it is your duty to be looking at this. It's your job, your duty to look at these paid tools. And who knows you might be able to build on back to your investors in some projects, especially if you're doing ah, market study or something like that. So it's a super important to look at those kinds of tools, so housing alerts their videos are on YouTube are definitely a good place to look at. And then on my website multi family you dot com, there are there. You search for single Windsor I N g o. Just a short for the word I NGO, and you'll see that single Windsor, who is the CEO of local market monitor dot com, comes in every three or four months and does a webinar. This guy sort of gives away his data in that webinar. I'm usually stunned. It's like, you know, by the end of the Lebanon, I'm kind of scratching my head going. So why do I want to really buy your product? And the answer is, Well, you know, because you want to have the deep dive access into a particular zip code, a particular neighborhood but a city level. The information that he gives away is quite stunning on his products only is also about 1000 bucks in my mind is better than housing alerts. And, um, what's nice is that he gives us a massive discount. So if you you know that the code that our people use is called, um, it's called multi family you. So just you know, you can approach them and say, Hey, I'm a multi family you student and they'll give you a massive discount. Um, so that so that one might be a good one to try, but again, there's a cost associated with it. So now I'm going from, you know, free to almost three. But my message is clearly this you you really should be paying for data because if you don't pay for data, you're going to pay for not paying for Tate. I hope you understand what that means. Yep. Absolutely great. Louis is gonna take us into our Final Four questions. Are you ready?

spk_1:   33:05
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spk_2:   33:57
Neighborhood Scout? So we pulled about 300 reports in the last year. It is a paid tool, but it's extremely inexpensive. Um, we used the last page of the Neighborhood Scout report extensively, the blue chip versus the appreciation, and we look for places that are three slash three on those two levels or higher. So Provo, for example, is four on the future appreciation out of five and five, which is the highest score on the blue chip size side. So you basically can get any better than that. I've never seen a five slash five, but that particular page is potentially the most powerful page of analytics in the business.

spk_1:   34:37
Perfect. Thanks, but what can you tell us? A story about your biggest mistake in real estate investing so far. And what's the main takeaway for listeners?

spk_2:   34:45
I bought a 237 unit in South Chicago, and everything that I've told you came out of the incredible pain that I have gone through. My partner has gone through. My investors have gone through the property is now up for sale. Investors will recover their money. But we didn't give him a dollar in cash flow over almost four years. E. I mean, you cannot imagine Lolita the number off sleepless nights I've had where I've just stared at the ceiling for days or weeks, you know, just not being able to get to sleep because I was afraid that I was going to lose investor money and the good things that came out of it. Two things, number one, everything that I just told you came out of it because I research and I said, I am not going to make this mistake again. And so my my whole system, what came out off trying to understand what I did wrong in South Chicago. The second piece of what I came out of it is I realized that I needed to generate an extraordinarily large number of tenant leads because attendant quality there was so awful that basically out of 100 people that were interested, we could only get two or three of them into our apartment complex. Otherwise we would have this and never ending cycle of delinquency. And so I created a massive team in the Philippines. It's up to about 16 people now, and that keep generates about 30 40,000 leads for our properties, which were absolutely delighted to have, because it's so much easier to lease up those properties with the team. So I took what was a four year torture process in Chicago and turning into basically the two biggest advantages of my company. The data analytics and the army in the Philippines that optimizes our properties.

spk_1:   36:25
Well, that's great. You live and you learn, What is it that you need to do now to grow your life to the next level?

spk_2:   36:31
Um, honestly, from a business perspective, I have everything that I want. I The question I'm asking myself every day is how do I make my life better? And a lot of those things have nothing to do with money. You know, my wife and I drive luxury cars, but they're not the most expensive luxury cars. They're, you know, they're regular vehicles that most people drive. I live in a beautiful home. You're actually sitting my, uh, you know, that look in my loft. And, um so to me, it's really about what more can I do? Right, So a lot of it is related to charity. A lot of it is really to giving giving back. Ah, but a lot of it is also related to how do I enrich my life? Right? So I told people that, um the sort of things that I'm looking to do now with my life is figure out what truly enriches my life. For example, I'm I'm you know, starting this year, I'm gonna have a massage therapist every weekend so I can relax. And also, as I get older and 47 I can He can work through all of the issues that my body is beginning to develop because I directed back in the twenties with motorcycle accidents. So goes things to me are 100 times more powerful than you know. All these vision board things that you see. The jet, the boat, the island. I really have no interest in any of those. I'm looking to figure out how to optimize my life. And I'm then looking to see how can I do it the same for my team members. What can I do to make their life better?

spk_1:   37:59
Absolutely. Love that answer. Finally, meal. Where can people find out more about you?

spk_2:   38:05
Um, the best way to contact me. And I'm very visible to people you can reach out to me on fists on Facebook. I'm the only Neil bow and e a l bow on the internet. Um, and also feel free to reach out to me on multi family you dot com. Um, another place. All of my research. What I gave you is roughly 1/4 percent off my research. The rest of my research is in my multi family you tool kit in the tool kit is available for free. Anyone can have access to it, so two ways to get access to it. One is go to dub Dub Dub Dark Multi family you dot com slash toolkit or send a text message. The word R E tool kit. No spaces are a tool kit to 44222 Either way, that will give you access to the, um, to the tool kit. I updated every quarter, and then we send an email to you every quarter saying, Okay, here's all the latest stuff that we've added like the Millikan Report that just came out ranking, you know, 100 cities in the U. S. Is the next thing that we're going to add to the tool kit because the report just give up.

spk_1:   39:07
Fantastic. Neil, you are amazing, and you make it seem like investing. It's obvious and easier than it really is. I actually enjoy listening to you speak so, listeners, I highly encourage you attend an event that Neil is speaking at or to participate in his multi family seminars and boot camps. You'll be absolutely stunned on the content. He goes over. So Neil, as always, so great to see you and thanks so much for being on our show.

spk_2:   39:32
Thanks, Kyle. Thanks, Lily. Death. Thanks for having me on.

spk_0:   39:36
Thanks for listening. To learn more about the passive income through multi family real estate podcast and to get access to today's show notes and the previous shows visit Limitless Dash estates dot com. If you enjoyed the show, please subscribe to the podcast. Thanks again for joining us. Be sure to tune in again next week for another episode.