What is the quickest route to financial freedom through real estate? Do not pass Go. Do not collect $200. Go directly to… Multifamily. But how do you overcome a lack of experience and capital to accelerate the timeline and jump straight into apartment building investing?

Josh Eitingon is the founder and manager of JAE Property Group, a real estate investment company specializing in 50- to 150-unit value-add multifamily properties outside the New York metro area. With the guidance of a coach, Josh made his first multifamily investment in 2012, and now he is up to eight deals. He began his real estate career while working as a software developer, eventually joining a Long Island investment group where he led the acquisitions team in securing $100M in real estate. Today, Josh is a full-time investor in his own right.

Josh joins me to discuss the early investment in a coach that facilitated his shortcut to multifamily. He addresses how he overcame a lack of experience to do his first 20-unit deal and the personal guarantee he made investors to raise $200K for the renovation. Josh explains what he loves most about multifamily investing, describing the challenge of finding a formula to optimize each new property. Listen in for Josh’s advice around investing in your own deals, choosing the right location, and scaling up a multifamily business.

Key Takeaways

How Josh got started in real estate

  • Hired coach to force action
  • Multifamily made sense as asset class

Why Josh invested in a coach

  • Working 9-5 for software company
  • Long-term time, financial freedom

Why Josh went straight to multifamily

  • Dumb luck + mentor’s help
  • Ability to scale

How Josh overcame a lack of experience and money

  • Partnered on distressed 20-unit in Cincinnati
  • Raised $200K from family, friends and co-workers

How Josh overcame his reluctance to do the first deal

  • Poor condition, no background in renovation
  • Concerns around taking on debt
  • Believed in deal, commitment to go all-in

The factors for success on Josh’s first deal

  • Coach reinforced right path
  • Good location, visibility
  • Less than $10K/unit

How Josh raised $200K for the deal

  • Talking up real estate for 6 months prior
  • Personal guarantee at 9% interest
  • $10K chunks

The additional risk of raising money in debt

  • Bank loan for 80% + promissory notes
  • ‘I carry burden, not investors’

How Josh’s first multifamily deal played out

  • 20% occupancy, 0% economic occupancy
  • Spent $5K/unit on interior renovations
  • $50-70K on exterior, mechanical improvements

Josh’s subsequent multifamily investments

  • One or two deals per year ever since
  • 44- and 62-unit in same market
  • 70-unit in Florida

What’s next for Josh

  • 90-unit in Minneapolis under contract
  • Continue on same path, 2-3 deals/year

What Josh loves about the business

  • Creativity (partner, invest and find deals)
  • Find formula to optimize each property

The challenges of scaling a multifamily business

  • Source of equity
  • Right partner for any given deal

Josh’s advice for aspiring multifamily investors

  • Start saving money to invest in own deals
  • Commit to ongoing education
  • Right people around you (accountability)

Josh’s AHA moment around location

  • Good schools, retail in area
  • Allows for operational consistency

Josh’s top mistakes

  • Could have done more deals
  • Checks and balances on construction management

Connect with Josh

JAE Property Group

Resources

Financial Freedom with Real Estate Investing: The Blueprint to Quitting Your Job with Real Estate—Even Without Experience or Cash by Michael Blank

Rich Dad Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not by Robert T. Kiyosaki

The Deal Maker Blueprint Training & Certification

The Michael Blank Coaching Program

Free eBook: The Secret to Raising Money to Buy Your First Apartment Building

  • Download
  • Text “secretbook” to 44222

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