Me? I'm gettin' back rubs from these leather seats, Negotiatin' equity positions you'll never be - From "Status Symbol" by Nipsey Hussle
The late, great Nipsey Hussle made one of my favorite hip-hop albums, Mailbox Money. In it, Nip throws hints at wealth building and looking to inspire the listener to think about long term goals. One direct verse he has is "Stick to the script until the scene switch." That's the plan for wealth. It's not a secret Real Estate is the best vehicle that will allow you build and retain wealth over time. It's a long game, and like in the quote above, you can only participate if you negotiate equity positions. The question is... exactly how?
Just ask Donald Trump, Oprah Winfrey, Grant Cardone, Emmitt Smith, Ray Kroc, Arnold Schwarzenegger. The list goes on and on. Wait, Arnold? Yes, he has been investing in multifamily real estate for several decades. So, how do you get into the game?
So, how do you get into the game?
Real estate investing is not a "thing." It's more than one house or a duplex. It's not meant to be thought of as what we see in our neighborhoods or see on HGTV. The wealthy are not buying houses in your neighborhood. Let's focus on shifting our mindset on what investing in income producing hard assets is. Within this, we find two types of investors.
These rich people rules I believe in, Manifested, gave me blessings - From "That's How I Knew" by Nipsey Hussle
There are two general types of investors:
Active - involved daily in the trenches managing the day to day operations. This includes overseeing the progress of the business plan, meeting with investors, preparing reports, managing the contractors and property managers to make sure projects are meeting certain deadlines.
Passive – These are individuals who may have some capital to invest, but they don’t have the time or desire to educate themselves and be involved in day to day operations management of the property. They still would like all of the benefits real estate ownership can provide.
1. Active Investor. Here are some things for you to think about if you desire to become an Active Investor:
Doing all the work yourself can be very stressful and requires time and attention to do it correctly.
Your team needs to consist of reliable trust worthy contractors, project managers, property managers, CPAs, real estate attorneys and bankers to keep you out of trouble.
You will be managing these team members in some fashion daily.
Time is the ultimate factor here and will determine if you want to be active or not. Keep in mind – most people invest in real estate to create a lifestyle of FREEDOM. Being active can hinder your freedom if you aren't properly prepared or educated.
A lot of people think real estate is easy... like the gentleman we purchased our building off of in Clearwater. He had made some cash with an engineering patent he sold and thought he would invest in multifamily to live off of the residual income. Great idea... except he wasn't educated nor prepared. He made just about every textbook mistake, such as:
Not properly managing the Property Manager (they were stealing from him by charging miscellaneous phantom repair fees)
He didn't properly approve tenants (they had a drug haven)
Avoided repairs which caused massive water leaks (made two units unlivable)
... and the list goes on and on.
This was a real person, and he literally cried to Myron and I at a Starbucks when we sat with him to review our offer. That's not FREEDOM.
If you truly want to be Active, ask yourself - do you have the flexibility of time to go through all the contractor bids and follow ups, scrutinize property managers and work with attorneys to properly manage the Asset? Do you really have the time to take on another job?
If not then keep reading …
2. Passive Investor. I am passionate about helping investors become Passive Investors. It's not that I discourage from actively owning, on the flip, I encourage my investors to focus on what they truly enjoy doing. Own your own barbershop? Focus on making it the best in the city, and let your wealth grow passively. Are you an artist? Focus on your art and get that Mailbox Money to offset your bills.
Keep my eye on this game and let the money invest - From "A Hunnit A Show" by Nipsey Hussle
Real estate is not a "thing." It's more than one house or a duplex. It's not meant to be thought of as what we see in our neighborhoods. This mindset shift started during the Baby Boomers purchasing power days, because as the world struggled to adapt to the buying power, they were able to purchase multiple properties for additional rental income. However, this model was short lived after the demand shock subsided.
What real estate was and has always been, an investment art. Yes. That's how the wealthy have done it for decades and decades and decades. It's the world of finance and assets. That's where magic happens. Investing in at least one deal per year, letting that money grow over time at a safe, predictable and accelerated clip with above-average returns.
Made a plan and I stuck to it - From "A Hunnit A Show" by Nipsey Hussle
Over the years, we’ve been blessed to be able to nourish and cultivate relationships with high income earning individuals who have the desire to invest in real estate, but don’t have the time. We introduced the wealth model of fractional investments into income producing assets to them. This will diversify their portfolio and build wealth while not having to be mindful of the project, and still reaping all of the benefits of being an owner of real estate.
Some of these investors include:
W2 & 1099 High Wage Earning Employees
They all love the benefits of what real estate can do for them while they focus on what makes them happy and what makes them money. We introduce an interesting alternative to Wall Street.
Passive investors love what we call Mailbox Money!
That's they model, equity, You know what I mean? At the highest level of business there's mailbox money - From "Stay Loyal" by Nipsey Hussle
Get into the game.
Decision time, let's get you into the game. Your next question may be – I'm ready for my Mailbox Money, how do I start? This will depend on what your investment vehicle is. For example:
Investing with discretionary cash? There's not much to do! Jump on our portal and let's get you on the next deal by clicking below:
Investing with an IRA, 401k, 403b or other retirement vehicle? Let's get you linked up with our specialists by clicking below:
Plus scared money never made a purchase - From "Count Up That Loot" by Nipsey Hussle
Join the wealth transfer revolution. And we’re only just getting started.
“I’d rather invest in real estate — invest in some assets as opposed to trick all my money in diamonds and cars — it look good but at the end of the day you’re losing value. It ain’t appreciating, it’s depreciating. (I’m trying to get) a real asset. Take care of my people.” – Nipsey Hussle
We are Ten15 Capital, and we are innovating the world of real estate investing via apartment complexes. We create lucrative opportunities via syndication or joint venture projects.
To learn more, please go to our website: www.Ten15.co