Those of us who enjoy success in the real estate business are typically introduced to a model, an investor operating at a scale we never considered, who gives us an idea for what’s possible and a vision for the future. And if we’re smart, we can learn from their mistakes and leverage their knowledge and experience as a springboard, affording us a more direct path to our own financial freedom.
Jacob Blackett is the Founder and CEO of Holdfolio, a platform that connects investors with high-yield investments in the real estate industry, and Syndication Pro, a software company that helps syndicators raise capital and manage investors online. Jacob got his start doing fix-and-flips as a 19-year-old sophomore in college, and today, he has placed over $50M into income-producing real estate, building a portfolio of 600+ units (as the lead sponsor) and a network of 3K registered investors.
On this episode of Apartment Building Investing, Jacob joins me to explain how an infomercial inspired his interest in real estate and share his journey from fix-and-flips to wholesaling to SFH rentals to multifamily. He walks us through the steps he took to scale his real estate business, describing why it’s beneficial to have an in-house property management team and how the technology he built to raise capital online became Syndication Pro. Listen in to understand how Jacob overcame losing $40K on his first deal and learn how to avoid his mistakes by joint venturing with an experienced team early on!
Key Takeaways
What attracted Jacob to the real estate space
- Free fix-and-flip seminar (sophomore in college)
- Up to $80K for single flip vs. CPA starting salary
Jacob’s experience with his first fix-and-flip
- Picked up deal on MLS with grandma’s capital
- Didn’t go as planned, ended up losing $40K
Why Jacob pivoted from flipping to SFH rentals
- Very transactional, no tax benefits
- Growing portfolio = monthly income stream
Jacob’s first AHA moment around scaling his business
- Create partnerships with investors
- Build portfolio of 150 SFH rentals quickly
What inspired Jacob’s transition to multifamily
- All rentals in one place with staff onsite
- Banks/lenders prefer multifamily
Jacob’s first multifamily deal
- 46-unit with fire damage at 50% occupancy
- Leveraged investor network for capital
What surprised Jacob most about multifamily
- Breath of fresh air (power of all in one place)
- Had to learn a lot about asset management
Jacob’s background working in property management
- Met investor through wholesale deal
- Managed all his acquisitions within 2 years
The benefits of using in-house property management
- Generates revenue once reach 500+ units
- Control and consistency in best practices
Jacob’s first steps for scaling his real estate business
- Implement use of Propertyware software
- Hire talented leasing agent and COO
How Jacob scaled his capital raising efforts
- Crowdfunding sites caught eye early on
- Built website to raise money online
How Jacob bounced back from losing $40K
- Resolve to fix mistakes
- Determined to pay grandma back
Jacob’s advice to his 19-year-old self
- JV on first flips to hedge risk
- Job at multifamily private equity company
Jacob’s advice for aspiring multifamily investors
- Get on experienced team, see where you fit
- Think creatively, don’t be afraid to take job
Connect with Jacob Blackett
Email [email protected]
Resources
Join Michael’s Mentoring Program
Access Michael’s Syndicated Deal Analyzer
Enroll in Michael’s Deal Maker Mastermind
Download Michael’s Free Report—What’s the Best Investment: The Stock Market or Real Estate?
