MFREE 103 Full Episode with Randy Langenderfer: What’s the Cost of Waiting for the “Perfect” Deal?

In this episode of the Multifamily Real Estate Experiment Podcast, host Shelon Hutchinson, also known as Hutch the Marine Investor, welcomes Randy Langenderfer, founder and president of Invest Ark Property. 

Randy shares his extensive experience in multifamily real estate investing, with over 1200 doors and $350 million in assets under management. 

They discuss Randy's journey from a CPA and Chief Compliance Audit Officer to a successful real estate investor and coach. Key topics include the importance of modeling successful strategies, overcoming analysis paralysis, and the significance of relationship building and asset management in real estate investing. Randy also provides valuable advice for both new and seasoned investors on mitigating risks and achieving long-term financial growth through multifamily investments.

00:00 Introduction and Guest Welcome

02:38 Randy's Background and Journey

04:30 Overcoming Investment Fears

07:06 The Importance of Real Estate in Portfolios

10:33 Evaluating Markets and Sponsors

13:43 Focusing on Fundamentals

17:29 Common Mistakes in Multifamily Investing

18:41 The Importance of Property Management

19:22 Leadership vs. Management in Real Estate

21:52 Coaching Passive Investors

23:37 Building a Long-Term Investment Strategy

25:12 The Military Veterans Blueprint

27:37 Future Strategies for Investor Arc

30:44 The Focus Round: Personal Insights and Tips

34:40 Conclusion and Contact Information

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Thank you to all of our listeners!!! We would love to hear from you!!!

Email me at:
hutch@hsquaredcapital.com

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www.hsquaredcapital.com

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Transcript

0:00

Wah Gwan all you multifamily enthusiast. Welcome to another episode of the Multifamily Real Estate Experiment Podcast. Now, I'm your host, Shalon Hutchinson, and if you connect with me in real estate, you know me as Hutch, the Marine Investor. today we have an important guest. Randy the founder and president of Invest Hark Property. He's a general partner in over 1200 doors and$350 million in asset on the management. He's invested in over 4,000 multifamily units across, Texas, Oklahoma, Arizona, South Carolina, and Louisiana. CPA and a former Chief Compliance Audit Officer, Randy now helps busy professionals build wealth passively and safely, A CPA and a former Chief Compliance and audit officer, Randy now helps professionals to build wealth passively through multifamily real estate investing. He is, is not just doing deals, he's also coaching others and helping them get on the right path to creating good long-term, financial growth. Randy, welcome to the show. Hutch Thanks so much. It's really a pleasure to be on your show this morning. Wish I was with you in Hawaii. it's beautiful weather outside, but the sun ain't coming up yet, It rains about five minutes every day, especially on the Kaneohe Bay side and then the sun peaks back out. So, Randy, before we get into it, do you have a favorite real estate quote or mantra that drives you? Really simple. 90% of all millionaires become so through owning real estate, Andrew, Carnegie, old school guy, Man, somebody once told me, just follow the playbook, Randy. You don't have to be original. Okay. So funny you say that because I did a LinkedIn post recently about, how a lot of us compare our lifestyle to others. And that comparison could be very debilitating. Sometimes when people look at another person's step 98 and comparing that, comparing that with their step two, you know what I mean? That could be very debilitating sometimes. However, to your point, there are a selective few of us, right, who understands that we can mirror what works, right? It's not necessarily plagiarism or copy. We just, we just model not mirror. We model what works, right? It's from, to your point, this, follow the playbook. So I, I was at a conference once and the speaker said. Guys, let me talk to every guy in the audience. I know how you're thinking. you're thinking you can do this better. You can adjust it and tweak it. and he said, just follow the playbook. Yes. So. let's dive into that Randy, can you tell us a little bit about your story that I did not cover in your bio and your main focus right now? Randy Langenderfe I reside in Houston, Texas. about, 12 years ago, I got started on the journey of trying to find another income source. Gotcha. I was working for a private equity firm in the great state of Ohio, I was an executive and had a pretty good number on my back For cost reduction and I thought I was going to, get eliminated, not because of any performance issues, just because cost reductions. And at that time I kind of had a wake up call or the aha moment. Wow, you really need to find something more, to feed your family with. Yeah. So I started looking at a lot of different things. I ended up starting to be a hard money lender in a single family space. Did that with fix and flips for a while. I came to Houston, Texas when I got another job and I started to learn, about multifamily by attending a local real estate conference, I learned that you can buy multimillion dollar assets on non-recourse debt. So I didn't have to sign personally on anything, which was important to me. I didn't wanna sacrifice any of that. I started an intentional course in my own mind to. Exit the corporate world. I wanted to work late into life, and I still do. I did that 10 years ago. And while on a W2 job, I got into several different, LP investments and then GP investments. And as you said, today, I sit here doing this full time as well as coaching syndication and coaching. And, I'm really enjoying life. Yeah, I appreciate that, man. what a journey, with your background as a, chief compliance officer and, an audit officer, at a large academic institution, I. can understand the inspiration to go towards real estate investment because you understand how the numbers work, right? here's one of the things I want to ask you, man. Especially being a coach and your experience, you know, many professionals that really want to invest. But what happened is that. A lot of folks are risk averse, especially in my background, as military folks, they spend 15, 20 years saving a nice nest egg. the military doesn't pay us a lot of money. There's a lot of benefits, but we don't get, we don't get a big paychecks. So to spend, you know, 15, 20 years, you know, save seven, five to$150,000. Right. You know, so when it's time to put that bulk of money into an, into maybe one or a couple investment, it's very challenging for them to to let go. Right. So a lot of them are risk averse and get overwhelmed. Now, what would be your message, to high earning professionals who are stuck on the sidelines? That's a great one, Hutch. you know, I've been there too. education wise, I'm a finance person at heart and so, right. I'm pretty risk adverse myself. Like you said, I had grown where I had to some assets that I didn't wanna lose. That's why I got an Nonrecourse debt, let me summarize by quoting my mentor, Rod Khleif take massive action. So. And I, I start with that saying my own journey was my first LP investment. I remember I did it with a friend'cause I wanted to mitigate risk. we formed a separate LLC to invest in an apartment complex. there are ways to get around it. you can do that, you can do a self-directed IRAs, which is the subject of another whole story. Yeah. and that's the way I started using the self-directed IRA'cause I didn't have spendable cash, Analysis paralysis. my profession, finance accounting, and I talk to a lot of IT professionals, a lot of engineering professionals that are also very analytically minded I think suffer from analysis paralysis. So I don't know if you've ever heard the, old illustration, ready, aim, fire. So I am a ready, aim, aim, aim. And then finally, fire. My marketing friends are fire, aim, and then ready. So, and I remember those that, that mindset drive me crazy. Especially as, as a marine, right? Because, every, marine is a rifle man, right? And that's one of the things we get taught. Good side alignment, side picture. You identify the target right? Sometimes the target's kind of blurry. You put your front side pitcher, and your right side aperture onto that target, and then you fire. So you have good side alignment, side pitcher, and then you fire. So that fire ready, aim concept, right? I understand the thought process of massive action, but trying to compete that into a Marine's head. doesn't jive sometimes. I talk to a lot of high net worth individuals I came from a large academic medical institution that had a 1.5 billion. endowment, and when I left there, they had anywheres from eight to 12% of their portfolio in real estate. Gotcha. It may not have been multifamily, but it was in real estate. I tell people, marine friends To increase your returns overall on your portfolio, you need to have some of that real estate in there. If it's good enough for the big boys, it's good enough for you on an individual basis, and you can get started by doing it with a friend or using an S-D-I-R-A or buying somebody that lets you in for less than the 50 K minimum. Just do it. just do it. you can analyze this until you're blue in the face. That doesn't mean you should take, unlimited risk. Get to know sponsors, people that are doing deals, people that you can know, like, and trust. find somebody, myself, yourself. There are many out there that do what we do. Get to know them and ask them questions. One of the things I really appreciate about this real estate environment is that a lot of folks are like core competitors, Where we're so willing to share information because this is really good information that is that elevates people's life. I think you probably attest to this, right, Randy, especially living in Houston. Houston is a big city and there's a lot of greatness going on in Houston. But also in every city, I have little pockets of, areas that are not doing so well. I was born and raised in Jamaica. Right. And some of the places that I've lived in Jamaican, some of the places that I've traveled inside of the United States, what I've noticed is that, poverty, breeds more crime and a lot of other things that comes with it, right? And the more we can elevate ourself to, you know, changing our relationship with money, understanding how money works, understanding how we can, leverage the experience of others. Right to act, to improve our financial trajectory and the quality of life we provide for our family. Then the more we can maybe not eliminate, but reduce the poverty in our communities. And once we start improving. reducing the poverty level, then we give people good quality of life, right? And I think the country and of a whole becomes better, you know, so I think it's one of the things I really appreciate about it, especially the multifamily space, is that everyone is really willing to share information to help most people who is wanting to get the information and also take action to elevate their life. What do you think about that? Oh man, I couldn't agree with you more. first of all, it's so cool. That you have identified, and there's so many people that start out to get rich quick. It's not a get rich quick, it's a get rich, slow, steady. but you have a higher purpose than just making money. I think those are the most successful I've lost money in the stock market. and other places, You're not batting a thousand all the time in multi-family, but in the game over a long period of time. I share with you, I think a higher purpose. I wanna say I'm a person of faith and one day I hope the majority of my assets get some away to charitable organizations, rather than, you know, squandering them on a yacht or something like that So not squandering them, that's just. Everybody's different. I understand somebody's got a yacht. One of my best friends has a yacht. but anyhow, it's not me. You know, so, you've invested in over 4,000, units, across five states, which, which is amazing. You do that, an active and a passive real estate investor. Right. what is your key to evaluating the market and operator, especially when a deal is not local to you in Houston? You're a savvy investor, Hutch, I get, well, I, I think my advice would be to the person starting out right? Would be first, pick a couple of markets. it's the shiny object syndrome. As a new investor, yes. I get an email that says, oh, 20% IRR in, I dunno, Topeka, Kansas, or a 30% IRR in Toledo, Ohio. I look in the Sunbelt. I prefer Texas, South Carolina, and Arizona. Those are three markets. if somebody sends me something in Topeka or Toledo, thank you very much. Unless I know them really well. The second one is before you even know the market, you really gotta know the individual who's putting the deal together. Hutch, have you ever heard of a sponsor saying, I underwrite deals very aggressively. yeah, I've seen people that underwrite what I would call aggressively, but I've never heard anyone say, everybody says we underwrite very conservative, conservatively. And so my point of it is, is one man's conservative is another man's aggressive. Correct. and part of your education, make sure that as an investor. You really get, first you get to know the sponsorship team. Where are they focused at? What type of units, what geographic locations, what relationships do they have with property management companies, otherwise it's, a universe versus a narrow scope of potential investment opportunities. Gotcha. So, to your point that that can serve a lot of folks focus on conservative, underwriting. Right. But a lot of those, you can make those numbers do whatever you want. And I think to, to your point, identifying somebody who has a track record, that they have demonstrated and they can show you because most things are verifiable, right. Yeah. Most things not, I was just gonna, I was just gonna say verifiable, you know? Yeah. it's a big country, but it's a small space we're in, if somebody asks me to find out about Hutch, I bet I can find out about Hutch's record or his, his morals and his character pretty easy by just pinging five or six people in the industry. And you could probably do the same with me or others. Yes, sir. So you can't hide. That's the point. I think track record is really important, but I also think your investment community out there, when I first started, if somebody had a bad deal, that was an automatic red flag and stopped the conversation, right? Today's world, I'm not so sure. I, I would say it's a yellow flag of caution. to think about and really dig deeper, there are a lot of great operators I know. good operators who regrettably have lost a property in the last 18 months Because of the market conditions. be aware. to your point, it does happen, right? There's so many things that happened in previous years that a lot of folks could not have really predicted, and there's still a bit of uncertainty, In the market, the operators who are investing with good fundamentals and not underwriting aggressively based on some uncontrollable expectations, is important. I appreciate, you covering, the answer that question. Now your strategy emphasizing, you know, safety and time tested approaches and, I wanna talk about this for a little bit, right? In the environments where, you mentioned this earlier. People, are chasing shiny objects, like short term rental or, cryptocurrency. How do you keep investors focused on the fundamentals in your education platform and coaching? Yeah, I think, you're absolutely right because there's so many investment opportunities out there today. People get attracted so many different ways. I would say when I talk to people, I don't have any problems with self storage. mobile home parks, crypto, you name any other asset class. I just don't know anything about'em. So I don't invest in'em, period. And it's not that I have any problems with'em, I've just, I. Wanna become proficient in one asset class. and I don't consider myself proficient yet. So I think getting people focused on the value of real estate, right? very simply, getting your potential investors and, you know, simply one, positive cash flow. Two, favorable tax treatment. Three. Forced appreciation. You know, when I got my head around, we can increase the value of this property by raising the net operating income, either raising rents or decreasing expenses or both. and they're paying down your mortgage And finally, I was talking to a potential investor yesterday. He said, why don't you do hotels? That's another asset class. But I said. Everybody needs someplace to live. They don't always vacation and need a hotel. I consider multifamily more secure than even that. That's not to say you can file it, probably find a good operator out there in hotels, but Right. I just don't know of any. And. Don't spend my time on it. So take away focus on getting really proficient in one asset class first, and, then branching out and getting proficient on finding sponsors that, you know, like, and trust. Right? Yeah. And these sponsors doesn't have to be, I know a lot of folks, especially if they have a nice nest egg, whether it be their today money, money in their checking accounts or their self-directed IRA, they don't need more than two to maybe three to five multi-family operators that you're investing with. And maybe, if they want to diverse after they, they have learned enough about that one, one asset class, then it can go into maybe more of advanced tax strategy and move some capital into oil and gas. And if they find somebody that's a reputable operator, then it can get into a hotel. But to your point, I think it's really important to get specific on. what their immediate, financial goals are, what asset class they can understand. And double down on that before they move on to shiny objects. I don't remember Warren Buffett's, conversation or comment or quote I should say, but said something that, you know. Basically he doubles down on stuff. He learns an industry very well. He does, and puts a big investment and a big investment for you. And I, you know, and basically I, I forget what it was, but something in the quote, diversification is for losers or something like that. it wasn't that strong knowing Warren, but, diversification is for rookies because your financial advisor tells you to put, you know, diversification, stocks, bonds, and everything else, and small cap, high, large cap, blah, blah, blah. So, back to the know one thing Well correct. Know one thing. yeah. in the Marine Corps, we tell the Marines, make your job, your profession. There you go. Yeah. Which is learn learning job. And I think we also have the opportunity to do cross training. However, the focus is learning your military occupational skill first before you start doing, any cross training, learning somebody else's job, So let's talk about some, some mistakes, for in investor, right? So as a coach, especially to passive investors, you care to talk about two to three mistakes that you see professional makes when evaluating multifamily opportunities. There are many individuals We got a timeline. And the short answer I got a course out there for$97. for past seven investors that they can take and answer the stuff. But I think some of the big ones are, not knowing the sponsorship group, not understanding the deal. You don't have to become an expert underwriter, but you should understand some of the assumptions. The sponsorship team is making, what are their income growth numbers? What are their expense growth numbers over the five or seven year hold period? What is the reversion cap rate? You buy it today at a cap rate. What are you expecting to sell that? And as you said, you and I can manipulate a spreadsheet very easily, but is there a rationale behind that reversion cap rate? Correct. And what I really like is. if you're an investor, ask the GP about what their relationship is with the property manager. Say they're gonna buy an asset in Hawaii. Has the group ever worked with the property management group? They're hiring. has the property management group got experience in Hawaii or even, in that class A, B, or C in Hawaii? People finding property managers in I'll pick on Topeka, Kansas. That they've never worked with before. And they are a huge piece of the success of a property. the property management onsite they are the first thing that a potential tenant sees when they walk in. And they're either courteous and kind I always say, You never know a good property manager until you've had a bad one. once you have a bad one, you go, Ugh. Yeah. And is it quite a few bad ones? There are, yeah. To your point, property managers could potentially make and break the deal. However, that operator and the relationship and their ability to, to manage those property manager effectively or maybe to lead. I like to separate leadership from management because, in the military. the difference between leadership and management is that, leaders ensure that we are doing the right things while managers make sure that we are doing things right. property managers, should know the nuance, the state regulation, city regulation, all that good stuff. Landlord, the tenant laws like down to the, to virtual nuance level. Right. However, for the, the general partners, they need to be providing the leadership on monthly, quarterly basis to help the business plan to continue moving forward to ensure they, they can get to their finish line, for their passive investor or to execute a business plan. You know, so property managers, there might be some bad ones, Not a lot of us are great leaders, in executing the business plan. it's not always the property manager. A lot of times it's the leadership the property manager is receiving. What you gotta say about that, the asset management, that's asset man. love your quote about leaders do the right things, managers do things right, I think it's the Stephen Covey illustration that, oh, he is a good leader. Yeah. Yeah. The leader definition of, a group of people with a machete going through a forest and the leader shimmies up the tree and says, we're in the wrong forest. Wrong jungle. The manager is the guy with the machete down the bottom, cutting through the forest and that they're both needed. But to your point, few lead, many can be tacticians, but few lead, right? that is asset management and the property man and the multifamily space. The leadership or the syndication group overseeing the onsite property management, have they given a proper business plan? I'm on several calls every week with our property managers. we talk weekly about, rentals, renewals, maintenance requests, tenant concerns, all kinds of things. it's an agreed upon agenda. We go through every week. And that doesn't guarantee success though. That's not leadership. I think leadership is really, getting out to the site. I'll say I'm in Houston and I got a property in, Phoenix, Arizona. I try to get there semi routinely to look at the site and make sure it's still there. Talk to the property management, Property managers change, along the way. that's a really astute, differentiating factor. Leadership of the property manager. A hundred percent. I gotta add that to my list. So let's talk about the coaching a little bit more, towards passive investor, right? What separates someone who just invest from someone who's focused on building a strong long-term portfolio To build a legacy. how do you coach those people, to tailor those mindset towards those long-term vision. If somebody might just be trying to get their cash flow now and think it's a get rich quick, plan. I coach people that you know,'cause I, I do have talked to a lot of potential students and I say, if you're really interested in just raising cash. To me, the quickest way to raise cash is to flip houses. you know, find a dump fix it up and sell it. Mm-hmm. However, that requires awful lot of work. I started out in that space lending money to those people, and even as a hard money lender it was a lot of analytical work looking at comps and rehab budgets. So if you want cash, that's the fastest way to do it if you're looking for long term or out wealth. Again, I would say take action. Get started. Doesn't mean you have to invest your, your whole portfolio today. But find a sponsorship group and get active. we offer a$97 course just for passive investors. You want to do that and learn more about being a passive investor. once you're like Hutch and Randy, sooner or later you may have looked at this and you said, Hmm, I want to be a. Active investor or a general partner, we offer another whole course on how to do that because you know, that does require more. But simply put, Hutch, you, you invested a tremendous amount of time. I don't know if you went to college or straight to the military, but you invest a lot of your time in education, be it the military or formal in college. Either way, you spent a lot of time getting prepared for what you're doing today. My fear is that there's so many people out there investing that just say, yeah, I want that return, or I want the K one, or I want to get some money I'll throw some money at Hutch, or Randy Well, I don't want that kind of individual. I want them to be educated and to know what the risks are, right? And how to mitigate some of those risks on each property so that there's nothing, there's no sure deals out there. As we know, there's nothing a hundred percent, but the only thing you can do, and that's in my corporate background, was risk mitigation. How do you lower the risk? I will tell people that there can be a substantial long-term return. I have been investing for, 11, 12 years now, Gotcha. Of all my investments on multifamily, I've averaged 125% return. Okay. Not bad. So a 100% means you're doubling your money. So I have more than doubled my money. and the listener would say, oh, but how long were you invested, Randy? Each of them is different, but I would say from the shortest one of 21 months, and the longest one is nine years. So even if I double my money in nine years, I like to double it in 21 months. But, if I can double the money in nine years, that's still not a bad investment. And you're just plowing it back into the next investment then. So you hit it in the head. Think long term, think one deal is not gonna make you rich. One passive investment is not gonna make you rich, it's gonna be a handsome return. But the multiplication factor of one becomes two. Two becomes four, four becomes eight over a long period of time builds wealth no, definitely to your point. I've also put together, what I, what I like to call, the Military Veterans Blueprint to owning More for America, it's a brand that started last year, bought the domain and all the good stuff. So it's a, military veterans, blueprint to owning more for America. And I talk about that exact thing, right? You mentioned earlier, self-directed IRA Marines. for some strange reason, I keep referring to people as Marines, but because you deal with Marines every day, when you're doing this thing for 26 years, it's like second nature, right? one of the things we talk about in that, blueprint is how folks can, transition between jobs, you made a point earlier that you actually invest with your retirement fund into a deal. But a lot of folks don't, know that that's available to them. So what we talk about in the blueprint is how a veteran go from active duty to retirement roll their. Thrift savings plan over into a self-directed IRA at the same time also get a DOD job, post-retirement. So now he has a retirement from the military. a high paying DOD job and his TSP. He uses TSP to invest for a long-term growth in a more predictability for retirement. But he also use a portion of his now a higher income from his DOD employment to also invest into real estate and use a portion of it to supplement his lifestyle to bridge the gap between his retirement pay and his active duty pay. Right. And over time he build that, and to your point, a one investment. So for example, if that dude or a gal rule their fit. they're, a hundred thousand dollars that is saving their TSP to self-directed and invest all that into one multifamily that is not going to make them rich. However, if they're taking$50,000 per year from their DOD income and roll that into A deal for the next five years. Right. Then things get really interested, after year five because the one, the$50,000 now becomes a hundred thousand dollars potentially. And then keep doubling up, you know, five to seven years, which makes life very interesting. So I will definitely drop in the show notes for our listeners to check out. Well, you just gave the blueprint. I did. That's what it's called. You just very eloquently outlined it. I mean, that is the blueprint. Start with one more. Educate yourself. I loved what you just said. especially for the specificity for your military listening audience. Randy, I want to be mindful of your time and before we head into the focus run, I wanna talk about, the, your future strategies, right? with over$350 million on assets on the management, right? What is next for investor arc? You know, are you, are you scaling into fund, you know, vertically integrating or moving into new assets? what's next for you? I tell people I have$350 million of assets under management. That's important and, accurate statement. it's important for your audience to understand. I don't oversee every deal. I'm not day to day on every deal. I have been, in those deals. I mean, it's true. I have$350 million, 1200 doors. I'm, I'm a key principal in some, I'm the lead partner in some, I am a money raiser or capital raiser for others deals because I like them. So again, that's a way of compounding your growth. And doing it a little less day to day 24, I mean, 40 hours a week basis. So I almost, I'm sorry, I forgot your question. What's next? Pretty much what's next for me, Randy, I'm gonna continue to do this as long as I'm healthy. I want to syndicate in deals. specifically what's on my horizon is I have not developed a fund. I still consider doing that, but I haven't done it yet. I continue to look at multifamily assets. My selection criteria has gotten very narrow and tight because, I think we're in that side of the cycle. I don't want to be the guy doing five deals a year. I'm not looking to build a large team behind me. I've done that in the corporate world. I wanna run a small boutique private equity firm finding good deals and, getting involved in those good deals at simultaneously running my coaching, mentoring business. hopefully getting some, momentum behind that. I'm thinking in the near future, I want to take, the concept of going small and build a duplex. Single duplex in Houston and see if I can do that on a proof of concept scale. That's how I start. Next thing you know, you'll be developing a couple of hundred units. Well, that's how you start on anything, right. Is with one. Yep. And life is motion, man. So I don't see us slowing down anytime soon. Right. Yeah. especially what we do, it's super exciting stuff. when you get to. Bring a lot of people along with you and, hear the enthusiasm in their voice and, just listen to their vision for themself and the future they want to create for the family. There, there is something that is humbling and it gives conversation a lot more purpose and what we do a lot more purpose, My business partner, Dr. Jones, said, a life is motion. as long as we're doing things that, that is impacting the community positively and impacting people's life Positively, then we can go on for a very long time. it's momentum and positive energy and, staying. I, I sell, you know, a lot of people, I, I hear exiting the game because the market's tough these days. I say it. Go slow. Go steady. Yep. Persistent. it's, you know, again, you've weathered ups and downs in the stock market and there are ups and downs in the multi-family space, but over the long haul, it's still gonna be very profitable. So persistent. Another one there. Persistent. I call it sticktuitiveness. There you go. Yeah. so I got five question. this is like the fire rounds, right? Okay. I call it the focus round, right? What do you do for fun? What do I do for fun? Well, I'm a father. I'm a a four, I'm a grandfather of five, so I awesome my grandkids around, the country in different parts of the country. I have re-energized in, the game of golf. one you never become proficient in, but I truly enjoy I'm also a high energy person and, so I. Got another little sidebar of being a fractional CFO. So in my spare time I'm chasing grandkids golf and a fractional CFO business, man. Life is motion. what would you say was one opportunity that was truly a game changer for your trajectory? My first GP as a general partner, multifamily. My hand was shaking when I signed on the note, as a GP and got others to come alongside me, Two months into the property, we had a fire and took out 28 of 139 units, had all kinds of management issues. I spent a tremendous amount of time. I got my honorary PhD in asset and property management, huge success. 21 months later, we doubled investors' money and sold the property Fires are usually not a bad thing, right? as long as no one got hurt and you have insurance to cover it, you got several new buildings that can get you to an amazing proof of concept, right? So that, that is true. But I'll tell you, living through that construction process and you don't the cash, I understand it's hell, but, the outcome is beautiful. It's like birth. It is, but the outcome is beautiful. as long as you have, that insurance, which is part of the risk mitigation strategy, So what would you say is the most important communication tip when managing investor's expectation? know your audience. I say, I'm a baby boomer and when I talked to my investors, I asked, I told you there was a fire. most people would've sent out an email. I got on the phone and called my investors to talk to them personally. Because they're baby boomers. Baby boomers, wanna either talk to somebody face to face or zoom versus, an email or a text. I did send out the email afterwards but I called them first. know your audience. if you're a millennial and you're talking to millennials, they're probably fine with a text or an email, right? But I think building that relationship. Is what we try to focus on. And I think you do that, every opportunity I try to get face to face with somebody. So communication, I summarize is a major factor. The art, and I'll call it art of communication, right? Anybody can get on chat GPT and create something that sounds nice, but. Making it yours and living it is different. Yeah, a hundred percent. You know, I'm trying to buy this commercial building, in One of the North Atlantic states, and this guy's 82 years old, he bought this building back in 1984. Wow. Early 1980s. Right. He bought it for very cheap and now it's worth millions and we're trying to buy it. However, he's selling me Hutch. Send me something that's not on the computer. So I had to snail mail this gentleman an entire package of what we're proposing. we can phone call, but he doesn't want any emails. He just wants me to send him something in the mail and we communicate that way. I identify a buddy who lives in the city and then I email it to my buddy, he prints it, then walk it over to him. So, you know, so there you go. Know your audience. Know your audience. I got two more questions, before we move on. what do you wish you understood earlier in the multifamily journey. Analysis paralysis that was my bias. but once I understood that as my weakness, I made it a strength. Okay. Awesome. And to what do you attribute your success in this competitive space? faith, persistence and, High energy, low iq. I would not compare that to a Marine, but yeah. All right, Andy, thank you so much for sharing your insights with us on another episode of the Multifamily Real Estate Experiment podcast, It was early in the morning for me and this conversation really woke me up I really appreciate that, Randy if listeners, want to get in touch with you, what is the best way for them to do that? To learn about invest Arc yourself and also your, your coaching? Well that's first of all, thanks again for the opportunity. you obviously are passionate about the space and for, I'd love to chat with anybody. There's two means. If you want to talk to me about coaching and mentoring, it's multifamily, maestros, all one word, multifamily maestros.com. There's a contact us page on there, and that's where you can purchase the,$97 passive course if you want. My syndication business is Invest Ark There's a contact page there I'd love to chat with anybody. I'm on, I'm on the social media's, the LinkedIn, Facebook, I, I really enjoy spending time with, your listening audience. Alright, listeners, if you get some value from this episode today, please leave us a, fair rating, five star, preferably and some good solid comments and feedback about this episode. Thank you for spending time with us. Randy, thank you for dropping some really good gems for us today. And listeners, until next time. Keep experimenting with this great thing of life that you have. let's continue to own more of America. Until next time, I'm Hutch the Marine investor out.