In this landmark episode of "The Apartment Guys Podcast", I get to spend an hour with Mr. Michael Becker, multi-family maven who currently owns over 6,000 doors worth $440mil just in Dallas/Ft. Worth and Austin, Texas. Starting from a background in commercial banking, Michael started acquiring apartment properties in 2013, just 8 short years ago. Some of the principles that he shares from his banking days:
1. Don't buy in the "hood". (Buy in lower crime areas)
2. Don't be under capitalized going into a deal.
3. Don't use poor property managers OR self-manage remotely. 4. Use smart debt-fixed rate, long-term debt.
We talk about the keys to scaling up well:
1. Pick a good market with LOTS of inventory and velocity (such as Dallas/Ft. Worth)
2. Nurture long term broker relationships and do many transactions with the same brokers.
3. Bring in quality Human Resources. Pay more for higher-level employees that willl make your life easier.
4. Redundancy in Systems and Processes.
We also discuss the difference between and "Owner" and "Employee" Mindset and the necessity of having both in your business. As host of both the Old Capital Podcast and The Multifamily Investing Show (https://itunes.apple.com/.../MZStore.woa/wa/viewPodcast...), Michael is an internationally known thought leader and speaker. Michael can be found at https://multifamilyinvestingshow.com/