Five years ago Brad Tacia was just a regular guy, working a 70 hour week as an engineer to support his family. In 2011 he began to invest in real estate. After making the switch from single family to multifamily investing, Brad managed to replace his income in just 2 years.
In this episode I talk to Brad about the amazing progress he has made over the last 2 years, investigating the reasoning and mindset behind his life-changing actions, as well as the habits he has developed to achieve his goals. From his first multifamily deal, to the syndication of a second complex, the results of Brad’s determination and decision-making can serve to inspire anyone interested in multifamily real estate investing.
Key Takeaways
[03:05] Brad’s backstory: from 9 – 5 to real estate.
- Brad has worked in auto engineering all his life.
- Layoffs in the auto industry inspired Brad to seek out a second source of income.
- He realized he needed a ‘Plan B’.
[04:56] The thought processes behind real estate investing.
- Now with a family, Brad was starting to think about how to secure a financial income.
- He moved into a new family home and began to rent his old home.
- Gravitating towards real estate, he started researching and investing in single family.
[07:23] Thinking about replacing income with real estate.
- Maintain flexible and ever moving goals.
- First goal to replace 25% of income, then 50%…
- Recently achieved goal to replace 100% of income with real estate.
[9:09] ‘The idea was to buy one house per year’.
- Transitioned to the multifamily market after buying his 5th single family home.
- Did not start with multifamily because the thought was too daunting.
- Wishes he had started sooner.
[11:45] Making the move to multifamily investing.
- Brad started to educate himself, reading over a dozen books on apartment investing.
- Started analyzing deals to get comfortable with the numbers.
- Analysed 50 deals and gained confidence in the market.
[14:14] Brad’s first multifamily deal.
- 12 units.
- Agreed on $850,000 ($71,000 per unit).
- Raised rents to market value for an instant cash flow boost.
[19:50 ] A change in comfort zone and a shift in goals.
- The benefits of finding a good property manager.
- Finding more money to invest in multifamily.
[25:25] The ability to make deals directly impacts the scalability of the business.
- After the first 12 units Brad set his sights on fully replacing his income.
- He wanted to cover his family's living costs, his ‘rat race number’.
[26:04] Brad’s motivation for doing what he does
- At first it was to provide for his family
- Now it’s about gaining freedom with his time
[27:21 ] Why Brad keeps doing new deals even though he’s met his financial goals
- Brad loves analyzing deals.
- Wants to pursue more syndication deals.
[35:35] Real estate investing alongside a full-time job.
- Utilize your free time in the most effective way possible.
- Research deals on lunch breaks, use your daily commute to make phone calls.
[36:25] Changing your habits and finding your why.
- Do something every day to keep your deals moving.
- Don’t let anybody else own your time.
- Find your drive. Brad’s is to spend more time with his family.
[42:26] What Brad would tell his younger self.
- 1st get expenses under control
- Go into multifamily sooner and build the right mindset
- Start young, start early, be serious about it.
Connect with Brad
Cell Phone: 248-881-4570 (call or text)
Email: bradtacia at gmail dot com
Resources Mentioned
The Complete Guide to Buying and Selling Apartment Buildings by Steve Berges
