Three Pillars Of Multifamily Investing With Jake & Gino #MakingBank #S6E51

In this episode of the Making Bank podcast, we welcome Jake Stenziano and Gino Barbaro. Jake and Gino are multifamily real estate investors, educators, operators, and the founders of Jake & Gino LLC. They have managed to accumulate over 175 million in assets under management. They have grown their real estate portfolio to over 1800 multifamily units as leading experts in investing and operating in the multifamily real estate space. Now Jake and Gino teach others how to invest in multifamily real estate through Jake & Geno LLC — a multifamily real estate education company founded on the three pillars of sound apartment investing: buy right, manage right, and finance right. Their students have closed over 400,000 growing units and have accumulated over 2 billion in deal volume.

This week on the podcast, Jake and Gino dive into the three pillars of multifamily investing. They also give valuable insights on the right time to invest and what you should look out for before you get started in the multifamily real estate space.

Listen to Josh, Jake and Gino discuss multifamily investing:

(2:26) The Beginning Of Jake & Gino
For Jake, it was all about the state he lived in aligning with his values. At the time, he lived in New York but wanted many things that New York didn't provide. That's when he created a spreadsheet and found that the best place for him was Knoxville, Tennessee. In Tennessee, Gino was working out of his pizzeria, and the two of them, friends at the time, were trying to figure out how to have a passive income. They started looking into multifamily investments, and after two years, they got their first deal, and they created Jake & Gino from there.

(6:39) The Right Time To Invest?
The most important thing is supply and demand. The right time to invest is really dependent on where you're situated. If you're in a growth market where the population and the jobs are growing, you've got an opportunity to make money. The problem isn't always your market; sometimes, people make excuses and talk themselves out of the real estate space. Don't fall prey to being doubtful. Instead, get educated, get your mindset right, and take action to start.

(12:41) Key Things To Look Out For Before Investing
There are four keys to getting started in the real estate business. The first is to set your goals, decide what you want to accomplish, and have clarity about what you want to do. Next is to select your market; pick a market that's good for you because it takes time to get things going. Then you have to start networking and getting acquainted with brokers and others in the market. Finally, you need to get educated on your selected market, the procedures, and the space in general, because you can't succeed without being educated.

(17:04) Biggest Hurdles Of Multifamily Investing
The most common struggle in real estate is property management. You need to be able to lead and dictate the way things should be for your property manager. Hold your property managers accountable and maintain a tight relationship with them. Another common mistake is not having an exit strategy. It's one thing to get started in the space, but once you buy a deal, you need to figure out if you're going to sell the deal, hold it for the long term, or refinance it. Your exit strategy is crucial to your success.

(19:52) Top Three Things To Pay Attention To In A Management Company
The first thing is to have accountability. Knowing and understanding your key performance indicators — your vacancies, collections, delinquencies, economic occupancy, etc. You need to be proactive. The second thing is to determine if your management is a good fit for your core values and culture and if they'll be a good team member. Finally, the third thing is don't be cheap and make sure you pay your management companies.

Links mentioned:
Jakeandgino.com
Instagram: jakeandgino
Twitter: JakeandGino
Facebook: jakeandgino
LinkedIn: linkedin.com/company/jake-and-gino/

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