Building Your Multifamily Team

Building Your Multifamily Team

Hi! I’m Rod Khleif. Each and every week I
record an interview with a thought leader that I know you’re gonna get a ton of value
from. Now here on YouTube are the video versions of my podcast, Lifetime Cash Flow through
Real Estate Investing. Now to make sure you get the latest information please subscribe
and hit the notification bell. Let’s get started. Rod: Welcome to another edition of How to
Build a Lifetime Cash Flow through Real Estate Investing. I’m Rod Khleif and I am thrilled
you’re here, and I know you’re gonna get value from the gentlemen I’m interviewing today.
His name’s Matt Picheny and I met Matt at a one-day event that he was am seeing up in
Boston recently for some friends of mine, and so Matt is in about 2,000 doors passively
and actively. He’s the managing partnered MJP Property Group and their website is
and, you know, Matt’s got a very interesting background, and that he’s done project management,
he’s done advertising, he’s, actually, in theater as well. So, it’s fascinating. So,
let’s get into it. Matt, welcome to the show brother.
Matt: Hey, Rod. Thanks for having me on here. It’s a real pleasure.
Rod: Absolutely. Now, you were just saying right before we started recording that you
also run a meet-up, and where is that exactly? Matt: I do. We run a meetup in Newton, Massachusetts.
So, right at, we’re just outside of Boston. Rod: Okay.
Matt: Meet monthly and, you know, the whole point of it is to educate people at all different
levels whether, you know, you’re just never done anything in real estate or you got five
thousand doors to just come together and help one another and we have good topics. But it’s
really more about the networking and building the relationships with one another.
Rod: Sure, sure. Well, you know, we were talking about where you could add the most value on
the show and you speak regularly in front of your meet,-up, obviously, and you’re starting
to talk about a deal you just did and the title of your little presentation called With
the Help of My Friend. So, why don’t we talk about that? That sounds like a great topic
and how you took that deal down and, you know, why don’t we go there?
Matt: Oh, thanks Rod. Rod: Yeah.
Matt: Yeah. I titled it With a Little Help from My Friends, probably, because I’m just
such a big Beatles fan and there’s that, that famous Beatles song and but I really think
that’s really what has helped me get deals, especially, in such a competitive market that
you have here. It’s really that relationship, building those relationships and those turning
into friendships. And so, what I did for that presentation in front of the group was just
talk about the relationships that I’ve built in a particular market; how I built those
relationships; and sort of how, you know, from the time I decided on that market, which
is three years ago, through all of the building of relationships, meeting people, putting
the team together and then, talking about, you know, all the way up to when I, you know,
I syndicate my deals. And so, right up to the time I had an investment deck ready to
syndicate. And I feel like that’s sort of the thing that passive investors don’t necessarily
know about or people that are looking to become syndicators, there’s some great education
out there; teaching people how to look at deals, how to analyze it, but sort of I feel
like it’s a little bit behind a curtain from, alright, once you’re just about ready to get
that LOI in or once you get into best and final to the point where that investor deck
is ready and all the different mechanics that are going on. And it’s important to have relationships
and have a team to help support you with that. Rod: So, let’s talk about some of the components
of your team. Some of the people. I mean, if you, you know, just talk about the different
pieces that you put together and if you wanna name names, you’re certainly welcome to, you
don’t have to, but I’m really more interesting the roles that you brought in to help you
in that process. Matt: Yeah. Well, I mean, I think the first
thing that one of the most important things when I first went into that market was …
Rod: By the way, do you mind sharing in the market?
Matt: That’s fine. Its Kansas City. Rod: Kansas City. Okay.
Matt: Kansas City, you know, I mean, it’s a decent market. It’s not a Dallas or an Orlando,
right? But I think it’s a nice steady city but just like all cities across the United
States, I think people are having a hard time finding good deals.
Rod: Sure. Matt: You know, the asset prices are very,
very high. Cap rates are compressed so, not any different in that market. I chose that
market because I had spent some time there and I had a very good friend who lived there
and I started going around and building relationships. Rod: Perfect, perfect.
Matt: And …. Rod: Can I stop you for one second? Let me
stop you for one second just because you said something that I wanna flag for my listeners
and that is, you said because I had a that lives there. And guys, that’s huge, you know.
I tell people when I’m doing my live events. If you can select one of the following four
markets as your target market, you’re that much further ahead. The first one being, obviously,
your backyard. Within, let’s say, a two-hour drive. Second one being, a place you grew
up or you went to school that you know well. But third is a place where you have boots
on the ground. Like you did. And so, I just want to flag that because that’s such a huge
piece because that person is gonna know what’s going on there. They’ve got their ear to the
ground. They know what businesses are going in and out. They know where the paths of progress
are. They know where the areas are, you don’t wanna collect rent at night, and they can
help you, you know, in your analysis and your due diligence and everything else. So, and
then, the fourth place, just so I finish that conversation, is somewhere you’d enjoy visiting
or might even want to retire is a great option as well. But anyway, please continue. I just
wanna draw an exclamation mark on what you just said.
Matt: Yeah, sure. And you know, for me, at the time when I first started this, I was
living in Miami but I live in Boston right now and in both of those cases, not really
the best at least for the type of garden style of apartment investing that we tend to do.
Rod: Right. Matt: So, we go out of town. So, I went into
Kansas City. I started meeting with brokers but I think the most important relationships
that I made early on was with property managers. I think that the relationship that I have
with the property management that company that I work with right now is the most key
relationship that I have there because they know all the vendors. I mean, I ended up getting
introduced to my local attorney from my property manager, you know, I also use a syndication
attorney that’s not based in Kansas. He’s a, probably, you know, he’s based in California
but you need to have a, you know, a local attorney that knows the local laws because
that’s what you’re signing. Rod: Right, right. Let me put an exclamation
mark on something else you just said, and that is, you know, you got referrals from
your property management company. And guys, the best way to build your team is through
referrals. There’s no more yellow pages. You wouldn’t want to use them even if there were.
You don’t want to use Google. You’re gonna find the best people through referrals. So,
I just wanna flag some of these nuggets that you’re thrown out there, Matt. So, you’ve
and I couldn’t agree with you more on the property management thing, you know, we just
came from reviewing assets in both Louisiana and Texas and it was night and day between
the two assets based on the level, the competency of the management. So, we’ve got an issue
in one of the markets. I’m not going to throw anybody under the bus publicly here, but we
definitely have an issue in one of the markets we need to deal with and its management related.
A good property management company will make you wealthy. So, alright, please continue.
Matt: Yeah. So, I mean, those are some of the relationships. I also have a relationship
with a local tax consultant. I found that to be really important. Not the last deal
I did but the deal I did before had I not had the conversation that I had with the property,
with the tax consultant, we would not have been able to do the deal.
Rod: Wow. Matt: But he had some information that the
broker didn’t know that, frankly, I think a lot of people just didn’t know about….
Rod: Can you be more specific about what happened? Or is it okay?
Matt: Yeah. It had to do with the taxes, the way they were being calculated and where they
were going up and some new legislation that had been passed in the state. And this was
actually a property that we had in warrants and this was a little over a year ago. So,
there was just some miscalculations I think in terms of the way where we thought taxes
where were going to go, where the broker had thought taxes were going to go, in speaking
with the consultants, he was very confident on where the taxes would be. We put together
a five-year plan on where the taxes would be and so far, we’ve had one increase and
it was spot on exactly …. Rod: Okay.
Matt: Like he said it would be. So, he’s been key to have just because of meeting with him,
I just didn’t go after a deal recently because of a major tax increase that the broker was
unaware of that will be happening. Rod: Interesting, interesting. Okay. Alright.
Well, that’s great. Now, let me ask you this. Let me throw something else in, you know,
… Matt: Sure.
Rod: Like this solid management company we’re happy with. I mean, they just turned us onto
another fantastic deal that no one else really knows about. So, you know, that’s another
plus from when you agree from a property management company.
Matt: Oh, 100%. Rod: Yeah.
Matt: 100%. I mean, I look at them as my, you know, partner.
Rod: Sure. Awesome, awesome. Matt: When I’m looking at something especially
if it’s a sub market that I’m not entirely familiar with, you know, conversation with
them before I even run the numbers. Rod: Sure. Love it.
Matt: So, yeah. Yeah. They’re key. Rod: So, who else? Talked about some of the
other team members. Matt: Yeah.
Rod: Say property management is a great place to start.
Matt: We got the property management. We’ve got, we covered legal. We covered the tax
consultants. You know, the brokers, right? Rod: Sure.
Matt: Developing the relationship with the brokers is key. The quite, frankly, the last
deal I got, I think, as far as I know, I was not the high bidder. It actually went to best
and final and I lost and it was going through continuing to go through it, you know, machination
with the new buyer and it ended up falling apart before the PSA was even signed. It was
about 30 days prior since they had awarded the contract, and it was part of a three-property
portfolio and the seller was looking to 1031 exchange everything so he had a very tight
timeline. So, this deal falling apart made everybody very anxious ….
Rod: Right. Matt: To get a new buyer in there. Went back
to the best and final group, and I still I was not the highest bidder but I had, I was
aggressive with the terms that I was offering, number one. But secondly, I had the confidence
of the broker who I’d known for about two to three years. He had seen me close a number
of other deals in the area and he said to the youngster. I wasn’t on the phone call
but I’m sure he told the client, “hey listen, we know Matt. We know he can close deals.
He’s being a very aggressive on the terms and I think he was, he …
Rod: Talked about what you mean by aggressive on the terms. Just for people that may not
understand. Matt: Yeah.
Rod: What you mean. Matt: Well, in this particular case, I knew
that time was the issue, right? There was a timing issue and a concern and most people
were going in with a 30-day due diligence period. Because of the team that I’ve created
there and the faith and trust that I think we all have in one another; I was able to
offer 14 days of due diligence. Rod: Nice. So, half, half the due diligence
times. So, I assume you bringing the property management company in to help you with that
process, that’s what you mean with team? And of course, boots on the ground, there was
one? Matt: Yeah. And, you know, making sure my
attorney was on board with that and there was a number of other things regarding title
and survey. I had to talk with the guy that we have that does our surveys to make sure
he’s gonna be able to get that done in time because there’s things in the PSA alluding
to that. There was, there’s just a number of different things that need to happen. You
know, we wanna make sure we can get a plumber out there cuz, you know, I like to scope not
ever …. Rod: Scope the lines? Yeah.
Matt: You know, a sampling. Make sure you get a roofer out there just make sure we had
all the trades in place to get out there and act quickly and we were able to do that, but
also, on the loan side, right? So, my money was, you know, fortunately, I didn’t have
to have a lot of money going hard on day one but it was gonna go hard right after due diligence
so I wanna make sure there was no deal breakers from a financing side as well. So, it was
about getting everyone from the lenders side …
Rod: Sure. Matt: Out to do the PCA, all the, you know,
the appraisal, everything that they need to do and enough time to get the results back
to make sure we’re still looking okay to go ahead and get the loans.
Rod: Yeah, yeah. Guys, you wanna involve your lender and your property management company
just as soon as you’re even, you know, thinking about a deal and so, no, that’s awesome. And,
you know, I’m sure that your project management experience really comes to into play with
all these little details that you encounter especially when you’re fast tracking a deal
like that so, you know, … Matt: Yeah, yeah. I mean, my career before
real estate was, you’re right, project management in New York City. I worked at these advertising
agencies and I would work on large-scale projects for clients like Verizon and Coca-Cola. We
would have like 100 people on the deal. So, you know, my job as a project manager was
to make sure things were getting done on time, on budget at the highest quality possible
and I think those skills are really important for anybody who wants to syndicate deals to
make sure that you’re good at keeping things on track.
Rod: Do you use one of the off-the-shelf project management software? We use Asana. I’m just
curious if you used something like that. Matt: Well, so, no. When I first started it
in the business, there really wasn’t a lot of project management software and I’ve created
… Rod: Basecamp. Yeah.
Mat: Oh, yeah. Basecamp. But I use, I have a spreadsheet a …
Rod: Your spreadsheet. You’re an Excel guy, okay. I love it.
Matt: It’s worth and it’s got conditional formatting and all kinds of bells and whistles
within it that I think make it a good tool, but yeah, there’s some great software out
there. Basecamp’s fantastic. Rod: Yeah, you know, we used to use Basecamp.
We use Asana now and I’m just real pleased with it. It just really has been a real game-changer.
Matt: And some people like Slack. Have you ever looked into it as well?
Rod: Yeah. We use Slack as well for an interoffice communication but it’s really, it’s better
for that. It’s not the best project management but Asana is fantastic. We plug all, we put
all our documents in there. We put our pictures in there. You know, we can assign tasks and,
you know, we love it. But anyway, so back to your, you know, your presentation regarding
The Help of My Friends, just saw a great movie about that. But anyway, so, what, any other
pieces that we haven’t covered? I feel like we might be in the finish line here, but …
Matt: Yeah. I mean, we touched on it very briefly just now, I didn’t mention earlier
but the loan, right? Rod: The loan. Yeah, yeah, yeah. Okay. Good.
Matt: I got a broker here in Boston who’s fantastic.
Rod: Right. Matt: We bring him in right away and he’s
really, really … Rod: How did you find him? Just curious.
Matt: He cold called me. Rod: He cold called you. Okay, okay. Awesome.
Matt: He cold called me … Rod: Good for me.
Matt: And I ignored him for about, you know, a couple of months there and then, finally,
I was like, “oh my god. This guy is so annoying. Fine. I’ll meet with you.” And he’s a great
guy and best thing I ever did was to meet him. He’s fantastic.
Rod: Loved it. Loved it. And you just said something else that’s really important as
well. Is guys, you gotta meet these people. You can’t just have a phone, you know, phone
relationship with them. Everything changes, you tell me if you agree with me or not, Matt,
that everything changes when you actually break bread with them, you meet with them,
they see that you’re real, they see that your passion, they see your enthusiasm. I really
believe that you can start the relationships over the phone if you’re buying in a market
that’s not your backyard but you have to go meet them. Do you agree I agree?
Matt: I agree a hundred percent. And I found that, you know, when it came to Kansas, I
was getting very little just from a few phone calls in terms of deal flow but then, when
I got out there and was meeting people face to face, like you’re saying, shaking hands,
breaking bread …. Rod: Right.
Matt: That’s when you could really start to develop that relationship.
Rod: Right. Matt: Yeah.
Rod: So tell me how you, do you know if there’s any strategy that you utilize to really, you
know, set yourself apart as it relates to the people that are the belle of the ball
like brokers right now, is there any anything unique that you do? Or, you know, I mean,
obviously, it’s building friendships but is it, is anything else you do? I’m just curious.
Matt: You know, I think I know one thing that’s kind of unique about me that is kind of like
the record scratch when I walk, when I’m talking about real estate in an environment and I
say this and like the music stops and everyone turns and looks at me is because of my involvement
which you mentioned earlier in theater and that kind of actually is interesting because
it does make me sort of stand out and people like, “what? What do you do? What is that?”
And so, that’s something that that’s a differentiator and I think it’s important to have a differentiator.
You know, I just invested passively in a deal …
Rod: Right. Matt: And the guy sent me like a gift. Like
a closing gift. Like when we closed on the property. And I was like, “Wow. That’s unique.”
Like no, you know, I’m in 2000 … Rod: The broker did? Or, who did?
Matt: No, no, no. The syndicator. Rod: The syndicator in your, in the production
of the theater production? Matt: No, no, no. A real estate syndication.
Rod: Okay. Matt: So, I invested in a real estate syndication
recently and I was surprised and delighted to get a package delivered to my house a couple
days after closing and it was like, “hey, congratulations we closed.” And I was like,
“oh, that’s unique.” Rod: That’s a nice touch. That’s a nice
touch. Yeah. Matt: It’s a nice touch. And it’s a uniqueness
and that’s what I’m saying like, I think there’s so many people out there doing things that
if you have one thing that makes you sort of stand out and makes you unique, that’s
great. My uniqueness is not that I have a million door so I can go into a broker and
talk about, you know, I’ve done it. I’ve done a good amount of stuff both passively and
actively now, but still not, there’s people who are way more successful than me so far
but my uniqueness I think is my passion and love for the Arts, right? So, if you can start
to relate to people on that level, you can stand out from a crowd a little bit.
Rod: Nice, nice, nice. No, that’s a great tip. So, guys, be authentic. Be yourselves.
You know, that’s really the secret and, you know, if there’s anything you can do to make
yourself a little different, it really will pay off. I mean, I’ve heard lots of examples
of different things people have done and, you know, one guy’s got a partner that has
sports memorabilia so he’ll send a signed football or something to…
Matt: Oh, wow. Rod: You know, broker or something, you know,
of whatever their team of choices so, you know, cool stuff like that, but the gifts
is a nice touch too. You know, you go break bread with them and then, you send them something
nice afterwards. Gotta be the best money you ever spent because you’re setting yourself
apart, you know. Love it. Love it. So, talk about some of the hurdles that you’ve faced,
Matt. You know, talk about maybe a time you got your nose bloodied and either the lesson
or what you, how you handle it. I know you weren’t ready for this question so sorry about
that, but just to Matt: No. That’s good. It’s good, you know.
In terms of getting my nose bloodied, I mean, I think, I got beat up quite a bit when I
first started trying to get into the syndication game. I mean, there sure from a passive investment
standpoint, that wasn’t too hard. I mean, …
Rod: Right. Matt: Investing in some deals I probably shouldn’t
have and learn the hard way and learned how to look at deals better, but when it comes
to syndication and wanting to get involved as, on a sponsor level, and trying to look
at deals and find deals and just even trying to initially get my foot in the door, get
the deal flow and then, be able to compete, it’s been tough, you know. I mean, I was,
I did one of these, you know, mentor programs and I worked my butt off and, you know, it
took me almost two years to get my first deal. Rod: Sure.
Matt: It’s a lot easier after that but that’s first day, and it wasn’t that I wasn’t committed
or working very hard on it because I was, but sometimes it takes a while to get there
and to sort of, in this competitive environment, make yourself standout.
Rod: Sure, sure. We’re in the hottest market we’ve been in a decade, you know. And I’m
really glad you said that. That’s another nugget that I want people to get and that
is, that the law of the first deal. That first one’s always the hardest, takes the longest,
it’s the most stressful but once it’s done, it’s like, “My god. That’s all there was.
BAM.” And then, they’re like, you know, they’re like dominoes. I see with my students
all the time. I mean, you get the first one and then, I blink in there at a thousand doors
or more and it’s like, “wow”. And so, no, it absolutely couldn’t agree more and
so those of you that are that are trying to make this happen and I shouldn’t have even
used that word, those are you that are committed to making this happen, you know. Recognize
the fact that, you know, God’s delays are not God’s denials”, or whatever you believe
that it will happen, you know. That, you know, you just got to stick with it. Keep studying
it. Keep evaluating deals. Keep building relationships and it will pop. So, don’t get frustrated.
I’m really glad you said that, Matt. So, let me ask you this, buddy. What did you have
to give up or sacrifice to get to the success that you’re at so far in your career?
Mat: Oh, that’s a good question. Let me think for a second here. What did I have to give
up or sacrifice? You know, I think for me, oh well, a certain amount of so time, …
Rod: Sure. Matt: And the what am I looking for sort of,
assurance or stability. I would say stability. So, for me, you know, the way that I got to
where I am now was, you know, working, I think, my butt off. You know, when I lived in New
York City and being able to put together some finances by swirling it away and saving up
money. So then, I had capitals, start deploying, and luckily deployed into some good things
and I’ve had some losses too, right? But… Rod: Right.
Matt: That sort of helped me get to a point and then, about four and a half years ago
when my wife got a really cool job opportunity and we moved from New York to Miami, that’s
when sort of I let go of the stability and kind of just jumped out of the parachutes
and, “you know what? I’m gonna do this real estate thing full-time. I had been doing it
part-time for ten years.” But it was scary. I mean, luckily, the investments that I had
done both, we invested in some property shows and also some real estate that we’re all doing
pretty well enough where, “okay, we did that.” My wife had a job and let’s see how
this goes but it was scary. Rod: It’s a little scary, you know. And
that fear can, you know, that fear can paralyze you. That’s why I tell people don’t do what
you did. You know, make sure you’ve got your income replaced before you’re doing.
Matt: Well, well … Rod: But …
Matt: We were at a point where it was okay. Rod: To close. Yeah, yeah.
Matt: Yeah, yeah. We were at the point but it was like, “ah, well let’s see how this
goes.” And it wasn’t like, “okay, well, we’re not gonna be able to, you know, …”
Rod: Right. So, you had food on the table. It wasn’t like you’re have a problem there.
Well, yeah. Matt: I got one child. I had a one-year-old
child at the time. Rod: Oh, wow.
Matt: So, we can’t put ourselves in a place where we weren’t gonna be able to pay rent.
Rod: Right. Matt: You know, had I not been able to do
the real estate stuff we’d be eating peanut butter and jelly sandwiches every meal, you
know. So … Rod: Been there. Yeah. Okay. Alright.
Matt: We were able to do it and I was able to start doing all right.
Rod: Were there any defining moments or epiphanies in this journey of yours that come to mind?
Matt: Every day’s an epiphany. I learned so much everyday talking with different people,
you know, really experienced people like yourselves or people who’ve just never been it, never
got anything before who want to chat. I love talking about real estate and I’m always learning
things and trying to think if there’s one particular thing and I don’t know that there
is. Rod: Okay.
Matt: It really has been, the past four and a half years has been a tremendous learning
experience for me. Rod: What do you think has been the most courageous
thing you’ve done? I mean, when did you really have to suck it up and say, “okay I’m pulling
the trigger on this” or something? Matt: First time I ever signed a loan form,
… Rod: Yeah, yeah.
Matt: For 2 million dollars Rod: Yeah, yeah. That’s something in it. Yeah.
Matt: It’s non-recourse. Rod: Right. Still.
Matt: Yeah. But there’s …. Rod: See all those zeros. You’re like, “oh,
good god.” Yeah. Matt: Well, the other thing that a lot of
people don’t tell you is unless you’ve got a really good attorney, which I have right
now, those final, those loan documents that you get a lot of times, you’re just getting
signature pages. And you’re signing signature pages and FedExing signature pages over. And
you’ve not seen the actual documents. Now …
Rod: Right. Matt: Hopefully seeing the Fannie Mae template
but you have to get your signatures to at least every deal I’ve been involved, to get
the signatures to the attorney and then, act close like the day before closing and then,
at closing they send you the actual documents. Now, if there an issue, you could tell, call
your attorney and say, “don’t attach my signature, we’re out of here,” but it’s
all boilerplate stuff anyhow and you’ve hopefully reviewed the boilerplate. But the first deal
that I was involved, and I was a KP on that deal, I did not get to see the boilerplate
ahead of time and really freaking out when I did it but I knew that I could call up and
can’t. I mean, I’d be hosing the whole deal but I knew that I could do that once I got
the documents. Luckily, I had an attorney friend that sent me the documents I could
review them. Rod: Okay.
Matt: I was comfortable with it. But … Rod: Yeah.
Matt: It’s scary. It’s really scary. Rod: Yeah, yeah. You know, with non-recourse
you usually okay but, you know, god forbid you’d never do that with bridge debt. You’d
have somebody scour the documents if you did some bridge debt, but have you done any bridge
debt or has it been all non-recourse? Matt: I haven’t done bridge but, actually,
here’s another thing in this, this might be an epiphany or something that might be good
for your listeners. If they’re not doing like a large Fanny debt maybe they’re doing bridge
debt, I recently bought a smaller property, a six-unit actually, because of a 1031 that
I had, it’s kind of a long story, but I went, you know, at that size you’re not getting
agency debt and I realize a small local lender and I looked at their document. their loan
documents and there was a number of things that I thought were unbelievably onerous like
…. Rod: Right.
Matt: Unbelievably. And they were the boilerplate and I spoke with the president of the bank
and I said, “hey, I can’t sign these.” And he was like, he said, “let me review
these because I haven’t read them in a long time. I mean, I read them the first time.”
Rod: Sure. Matt; And no one has pushed back.
Rod: Right, Matt: So, we found out. These boilerplates
hadn’t been changed for ten years. Not a single person has pushed back but the president of
the bank said, “you know, candidly man, I agree with you. I wouldn’t sign these either.”
And he went back to the attorney for the bank and got them changed.
Rod: Yeah, yeah, yeah. Matt: And you can get things change ….
Rod: But with a local bank, for sure. Matt: Yeah.
Rod: With the local bank, for sure. You, that’s great. That’s a great nugget because, guys,
you know, you can negotiate with local banks so there’s a lot more leeway than you’re gonna
be able to do with like a Fannie Mae or a Freddie Mac. And really that’s a great nugget
because you’re right. Most people sign whatever gets put in front of them, but, you know,
you’ve been in the, you were in their larger commercial environment so you used to really
studying the documents and you’re obviously analytical anyway. But, no, that’s a great
tip. So, guys, don’t sign whatever gets store in front of you. Get legal help. That’s the
bottom line. Even if, you know, because you may not even recognize something that’s onerous
so get some good competent legal help. We finally found a really good attorney we’re
thrilled with and I’m not putting his name out there cuz I don’t want him get too busy.
But, anyway… Matt: I’m just curious. Or is he …
Rod: He’s transactional, yes. He’s completely transactional. It’s not the SEC person. This
is a person that’s, you know, like we’re involved. We’ve had two, we’ve got two big insurance
claims recently but one, 101-unit asset that was completely destroyed by a tornado. My
partner’s up there right now looking at the first finished unit today. Right this moment.
And then, another one that got in a massive windstorm in Dallas. Not even a tornado, you
shouldn’t believe the damage that, but there was just a tornado there as well. But, anyway,
we’re in some in, you know, some possible. I don’t it’s gonna go to litigation because,
you know, we’ve got, you know, very, very solid grounds to stand on but, you know, that
kind of a person, and he’s the guy that reviews our loan documents and, ………. Yes.
Matt: Oh, wow. That’s cool. That’s awesome. Rod: Yeah, yeah. So, very, very, very grateful
to have him and, obviously, if a case gets started, you have to get local counsel but
he can certainly advise on the transaction as long as, you know, it doesn’t it doesn’t
go to litigation then you’d have to get local counsel that he would consult with in that
regard. Matt: Got it.
Rod: Alright. So, well listen, you have, this has been a lot of fun. You’ve added a lot
of value. Let me ask the question that I like to ask and you might have heard it, it been
asked it before and but sometimes I get unique answers. You know, if you could go back and
tell your 20-year-old self-something with what you know now, is there anything you’d
do differently? Matt: Well, yeah. And I think, the classic
thing that everyone says … Rod: Go bigger, go bigger faster. Yeah.
Matt: Or earlier, you know, the thing that kind of, oh, you know, you talked about epiphanies,
I mean, well, I ended up kind of sort of doing a house hack but not really but not realizing
it…. Rod: Right.
Matt: Until then, I learned about house hacking. But yeah, man. If I could have gone back to
my 20-year-old self, I was, “yeah. Buy something. Buy a duplex. Buy a 4-plex. And house hack
it. I mean, I know guys who come to my Meetup who are doing that here in Boston area and
they’re on their second, their third. They’re doing really well for themselves.
Rod: Right, right. Living free and then, living free then when they rent out, move out. They’re
making cash flow and, yeah, love it. Love it.
Matt: Yeah. Rod: Well, listen man, I really appreciate
your being on the show brother. it’s been a real treat. Great to see your face again,
and guys, his website is and thanks for coming on, my friend.
Matt: Rod, thanks for having me. It’s been a real pleasure.
Rod: Likewise. Take care. Hey thanks for watching. Please subscribe
to my channel and if you listen to podcast join me on iTunes, Stitcher, or wherever you
listen to those podcasts just search for a Lifetime Cashflow to Real Estate Investing.

One thought on “Building Your Multifamily Team

  1. Great to see Matt Picheny here on the Show, we connected via broker introduction in the KC market.
    Agreed 100%, team on the ground is the second piece to focus on once you choose a market.
    That allowed me to operate in the US while based 80% of time in New Zealand.

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