Stop Thinking Small: The Real Way to Build Wealth with Multifamily Syndications | Adam Williams

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Speaker 26 What's up, Science of of Flipping podcast fam? I'm back with a very special guest. He is a business partner of mine, one of my best friends, a true real estate

Speaker 26 genius. He's been doing this for a little bit longer than I started in 2004.

Speaker 26 He's flipped hundreds of homes and he has moved from the single-family asset into apartments and is now flipping apartments. And I need to know what the hell he's up to.
Adam Williams.

Speaker 27 Hey, man, thank you for having me. Matter of fact, you actually came out here to Scottsdale to do this, which is rare because usually I have to come to Miami to see you.

Speaker 27 So it's a treat to have you here, man.

Speaker 26 Dude, this is phenomenal. I'm in your studio for all the watchers.
I'm in his studio. If you're in Scottsdale, it's an incredible studio here.

Speaker 26 Listen, we've known each other a long time. Yeah.
You've done a very good amount of single-family assets, and now you're moving yourself into the apartment space. You've done several already.

Speaker 26 You're a doer, which we're going to talk about because I think there's a difference between why you've reached success and why others maybe haven't.

Speaker 26 But talk to me about the general idea behind single-family assets and apartments and why you've chosen to essentially move into a different direction.

Speaker 27 Yeah, I mean, when I found this game, like I grew up around real estate, right? My dad had a couple like single-family rental homes. Not a lot.

Speaker 27 He was not like super successful in the game, but from being a tiny little kid, I remember he had a couple of rental homes, maybe three or four little shitty rental homes, and a little five-unit building that he had had since he was like a late teenager.

Speaker 27 He kind of got in the game early. And so I went in and I remember like helping him move furniture furniture out and helping him go collect rents and all those things as a little kid.

Speaker 27 But it was very, very lower class, like D class type properties, right? Really like slumlord almost. Yeah.
And so with that comes very dirty and gross.

Speaker 27 And like I remember like moving a chair out of a place and cockroaches scattering everywhere as a kid, right? And it's just freaks you out. So I was really turned off from real estate as a kid.

Speaker 27 And he kept telling me as I was a teenager and getting into my early 20s, you got to get into real estate. You got to get into real estate.
I was always an entrepreneur. Yeah.

Speaker 27 But I was struggling trying to figure out like what business I could generate real income at. And my dad would always tell me, you got to get into real estate.
You got to get into real estate.

Speaker 27 I was like, dad, I don't want to deal with cockroaches and going at 2 a.m. to collect rent because that's the only time they have it and all the things.

Speaker 27 But I was in my late 20s and I got invited over to a buddy's house for a Halloween party. And I pulled up to this house and it was the biggest house I'd ever seen.

Speaker 27 It like wrapped around the whole corner. It was like, I was just like mind-blown, right?

Speaker 27 And here, like, I was running a decent little marketing company at the time, but I walked in and met the kid who owned this house, who was way younger than me, by the way. I was probably 26, 27.

Speaker 27 Kid was 18. No way.
And I'm instantly like, what do you do? And how can I get involved? Right. And he goes on to tell me, you know, I own a mortgage company, but that's not how I make my money.

Speaker 27 I invest in real estate. So this thing just kept popping up.
Right.

Speaker 27 And so I went to, long story short, because that's a whole nother, we could go on about this story for 45 minutes, but I went to meet him at his office the next week because that's what he told me to come do if I was serious about getting involved and found out what he was doing was he was buying and flipping single family homes.

Speaker 27 And so that's how I got in the game. And this is when? This was in 2004.
Dude, you're old. 2004.
I am old. But, uh, but, but I did very well with him.
We struck a partnership.

Speaker 27 We did 252 single-family residences in just under three years. But I, what I realized was about a year and a half into that, like, I'm like you, man.

Speaker 27 I don't want to do anything super small or take 100 years to get there. Yeah.
And I'm, I was looking at like, okay, this is cool. We're making money, but how can, how do the guys get 10,000 units?

Speaker 27 Yeah. Right.
It's taken me a year and a half to get, you know, 100, 150. Yeah.
I'm never going to get to 10,000. I'm going to be 100 years old.
Right.

Speaker 27 And so I started studying apartments and multifamily and how the whole game worked.

Speaker 27 And what I found that was so brilliant about it and why, to answer your question, I quickly moved from single to multi was a number of reasons.

Speaker 27 But the main reason reason is single family investing, whether you own rentals, whether you own a couple Airbnbs, whether you're a flipper, whatever it is, all great ways to make money, but you can't really operate it like a business.

Speaker 27 A single family residence, there's a lot of emotion tied to it. You've got renters, you know, you've got a lot of risk.
With multifamily, it's all operated as a business. It's just numbers.
That's it.

Speaker 27 It's how much cash flow is that asset spitting off every single month. And that's how you value what it's worth.
That's right.

Speaker 27 And so I quickly found that instead of flipping one house at a time or two houses at a time, we could go flip 200 at a time.

Speaker 27 And now I could get there and was just very lucky, fast forward, lucky enough to partner with an amazing operator, started our own, my wife and I started our own private equity firm, LOS Capital, partnered with an amazing operator.

Speaker 27 And now, I mean, with them, we have over 11,000 doors. That's incredible.

Speaker 26 And so that journey is not a straight line.

Speaker 27 Oh, God, no.

Speaker 26 And I think that's what I think most people need to hear also is 2004 to 2025, it's not a straight line to find, oh, 11,000 doors, billions under asset, and

Speaker 26 whatnot. But talk to us about like the idea of that journey for a little bit, right?

Speaker 26 Like, what does it take to get to a place where you can have extreme clarity, understanding where I'm going to go for the next decade? I'm going to put my head down. I'm going to go do it.

Speaker 26 How do you get there? Because a lot of, you know, that, that age-old,

Speaker 26 it's like iconic. It's a drawing of like a squiggly line to success, right?

Speaker 26 That's the reality, yeah, right. And so, how do you get to that point where you all of a sudden you do have a straight line?

Speaker 26 I know exactly what I'm going to do, and I'm going to go crush it for a decade.

Speaker 27 I actually, um,

Speaker 27 I painted this. I'm not an artist by any means, but there's a painting in my house that I actually painted.
Uh, it's the only one. Yeah.
Everything else somebody else did.

Speaker 27 I painted this painting, and I'm actually pretty proud of it. It's called, I get Vince to get a picture of it and send it over to you so you can put it on there.
It's called Abundance, I called it.

Speaker 27 And it's a pretty large painting, and the whole bottom of the painting is black.

Speaker 27 And it has this thin, like creamy kind of white line. And then above that, about a quarter of it's gold.
And I think of it like that, right?

Speaker 27 Like you're going through this black, muddy, like no clarity, like just, this is where everybody gives up. This is where dreams go to die, right?

Speaker 27 And entrepreneurship is interesting because you get punched in the face over and over and over and over and over again while you're in this.

Speaker 27 Your plan that you thought of, that thing you drew on the napkin, that vision you had of driving Lambos and sailing on yachts with a hot chick, that's not how it ends up, right?

Speaker 27 And so you're going through this muddy part, and that's where most people give up.

Speaker 27 But if you can get to where that little line is envisioned and you can punch through that, it just gets so much easier on the other side. That's that clarity that you start to get.

Speaker 26 And you have to give yourself enough runway, right? So initially everyone starts out, I want to go make money. I want to make some, again, Lambo, boat, whatever.

Speaker 26 But then you have to understand what is the purpose I'm doing this all for and get some clarity around that.

Speaker 26 And, and listen, there's a lot of really hyper-successful people that you and I both know that are in their 20s. Right.

Speaker 26 I would argue they're hyper successful financially in the cash flow business and in the sense of like making money. Yeah.

Speaker 26 I believe most of the people that I surround myself with that you do, that clarity, that little gold line, you start to get there in your late 30s.

Speaker 26 You start to really understand what am I doing it all for? Money's fine. It's all fun.
You've made a lot of money. I made a lot of money.
But then there's, what's it all for?

Speaker 26 And if there's not a bigger purpose of what you're going to fight for, that's where it fades away.

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Speaker 1 When you invest with Fidelity Go, it does all the work for you.

Speaker 3 So while Fidelity Go monitors the markets, rebalances your portfolio, and tracks your progress to keep your investments aligned with your goal, you can invest your time however you want, all while paying no advisory fees under 25k.

Speaker 3 Invest your money, not your time, with Fidelity Go.

Speaker 6 Get started at fidelity.com slash go. Advisory services offered by Strategic Advisors LLC, a registered investment advisor.

Speaker 6 Brokerage services provided by Fidelity Brokerage Services LLC, member NYSC and SIPC.

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Speaker 27 Well, that's exactly right. And the two things that you said there, number one,

Speaker 27 putting these false timelines, which are just complete BS, anyways. Like, I can say, I want to be here in one year.
I want to be here in 10 years. Okay, cool.
Great.

Speaker 27 But if you tie yourself to that and that's your end-all, be-all, well, what if you don't get there? That's right. Like, you're just going to give up? Yeah.

Speaker 27 No, you're going to keep, hopefully, you're going to keep going. The second thing, and that's what you have to do.
Most people do give up. They're like, oh, I didn't work in two years.
I'm out. Right.

Speaker 27 Well, good luck. Then you're just going to start something new and that's going going to fail in two years and start something new, and then you're going to be 50 and you've never done anything.

Speaker 27 But the second thing, and more important, is this sense of like purpose, like why, right? And

Speaker 27 I mean, I have two kids, so people say, my family, my kids, and all that's my purpose.

Speaker 27 My wife and I are very into our, we're very into animals, so like our dog rescues and stuff like that that we support.

Speaker 27 And until I started, like I pinned it, I have a notes thing on my phone, like everybody does.

Speaker 27 And I have my goals and my purpose and my clarity on there that I review every single morning while I'm eating my breakfast. And that evolves too, right?

Speaker 27 That's not just doesn't stay the same all the time, but it's because I'm constantly putting it back into my mind, like, thank you so much, God.

Speaker 27 I'm so grateful to have this amazing opportunity in front of me today, right? I don't ever ask for anything. Right.
I just thank for the opportunity. And here's what I'm going after.

Speaker 27 Even when I got kicked in the nuts yesterday, because I still get kicked in the nuts. We all do.
Hard. Oh, yeah.
Who said it?

Speaker 27 Who was saying not too long ago I watched, who's the the guy with the beard that everybody knows? Frisella? No, not Frisella. The guy that did this created school.

Speaker 26 Oh, Hermosea. Hermose.

Speaker 27 Yeah, yeah. He said, being an entrepreneur, this is the thing about being an entrepreneur that most people that are just starting out don't understand.

Speaker 27 Being an entrepreneur is like getting punched in the face every single day for two years straight just to get a glimmer of hope and get kicked in the nuts the next day. Yeah.
I mean, and it's so true.

Speaker 27 It's so true.

Speaker 26 Right. Whatever level.
Now, you said something about,

Speaker 26 first of all, you talked about kind of writing it out and reviewing it every day. So I do something similar.
There's a five-minute journal you can get on Amazon.

Speaker 26 Every morning I write out what I'm grateful for. What's going to make today a great day? What did I learn yet? So every morning I have this ritual to do that.

Speaker 26 But you said something about it changes over time.

Speaker 27 It does.

Speaker 26 And I think that's where, you know, we can talk about Elevest, right? And what Elovest is today and where it came from, because this is your company. I'm a minority owner in it, but you run it.

Speaker 26 But it literally, people have this vision of what their end goal is, and they think it is this like

Speaker 26 that there's no iterations of how to get there or what it will ultimately be. L of S today may not be the same L of S in 10 years.
It just may not.

Speaker 26 It might, but it might not.

Speaker 26 There's iterations, and people don't give themselves the opportunity to understand the iterations in business or in life. And they don't give themselves enough grace to iterate.

Speaker 26 They think they're failures if they have to change from this vision that they put out there, right? That like, oh, it's going to be this thing.

Speaker 26 And if they don't do it the exact way that they have in their head, they feel like they're failing or whatever the case is. Yeah,

Speaker 26 all of the successful people iterate. I'm going to use Grant Cardone as an example.
What did you originally

Speaker 26 think of or hear of Grant Cardone? What was he initially when he first started?

Speaker 27 He was a car salesman, and then he started training other car sales into sales. Car dealers.

Speaker 26 What do you think about Grant Cardone today? Who is real estate guy?

Speaker 27 Real estate guy. Yeah.
Iteration. Yeah.

Speaker 26 He's done well along the way, but he has changed how it got him to where he is.

Speaker 27 Exactly right.

Speaker 26 So let's talk about Elevest. Let's talk about what we're doing with Elvest, what your mission is, but then also that iteration and how you had to find that within yourself along business trajectory.

Speaker 27 100%, yeah. With Elivest, which look, we're a relatively new company.
We started this just under three years ago. So although I've been investing in real estate...

Speaker 26 What have you been able to do in three years?

Speaker 27 A decent amount.

Speaker 27 I've been investing in real estate for nearly 21 years. I'd been investing in other people's syndications.
I'd been investing in other operators and sponsors.

Speaker 27 So I've known this business for two decades, right? And been in it. But I started to see, like, what did I like about the things I was investing in? How did I feel they were doing a great job?

Speaker 27 How did I feel they could do a better job? What were the things I just hated? Because, you know, every operator is different, every fund's different.

Speaker 27 And so I felt like we could build what my ultimate vehicle would be. And,

Speaker 27 and when we set out to build it, I think the biggest thing, and you talk about evolution of like ideas and stuff, and we're still in our infancy stage, that's why I preface with that, but we've already iterated a dozen times in just under three years.

Speaker 27 Right.

Speaker 27 And now my big, what I wake up every single morning and I come into this office and I do is I focus on how can I educate more people on how to build wealth with this multifamily investment syndication vehicle.

Speaker 27 Yeah. That's it.
If I focus on that and and that alone, everything else seems to fall into place. And I don't charge for it.
I'm not, you know, none of that.

Speaker 27 I just, I just give away as much education. I know you do this.
You give away a ton of education, help people as much as you can. And then I want them to come do deals with us.
Yeah. Right.

Speaker 27 And it's why you and I hit it off so well. I hired you as a coach and then we started doing deals.
We've done what, nine or 10 deals together now. Some, some single, some multifamily.

Speaker 27 Now you're here with me in L of S. We're doing some more stuff together.
That's right. But

Speaker 27 the evolution is crazy. I mean, that's a perfect example.
I hired you as a coach, literally paid, I don't know, 10-12 grand to coach with you. Yeah, we hit it off, became fast friends.

Speaker 27 You're like, Holy shit, this guy actually does what he says he's gonna do. I started doing now, we're partners on deals, yeah, but we never knew that in the beginning, right?

Speaker 27 And now you're an equity owner in my company, which is awesome, right? And what and I'm sure 10 years from now, we'll be doing three other things that we're not even thinking of, right? That's right.

Speaker 27 But when we talk about the evolution, what's what's so

Speaker 27 eye-opening to me that I think most, especially people just getting started out in business, don't quite know yet. And it's not their fault.
It's just that you're right. It's maturity.

Speaker 27 It's, it's, it's knowing, it's doing it for long enough.

Speaker 27 Everything around us is constantly evolving, right? You're evolving as a human. You're growing.

Speaker 27 Your family is evolving, whether you have a wife, a husband, children, whatever may be, people around you, right?

Speaker 27 Relatives are getting older and dying, right? Like it's everything is evolving. And then the world around us is evolving, especially some people aren't in real estate.

Speaker 27 If you're in tech, I was having this conversation with one of my venture guys the other day who's an investor in some of our deals.

Speaker 27 And he's like, the crazy thing right now about all these tech entrepreneurs is by the time they get the idea out of their head onto a napkin, somebody else has already built it three times.

Speaker 27 It's just everything is evolving so rapidly right now. If you're not willing to be fluid in anything you're doing, just give it up and go get a job.

Speaker 26 But you also have to go. What you brought up is what I see all the time.

Speaker 26 People want to perfect their what, let's just use l of s as an example what is l of s going to be and you do this brainstorming mind mapping maybe you hire a consultant to map out the entire organization

Speaker 26 yeah meanwhile you have a guy that literally comes in says i'm going to go invest in apartment buildings not really know what i'm doing i'm going to raise some capital i'm going to make some calls i'm going to do the thing yeah might do it a little bit wrong to start but just went and did yeah and what i appreciate about what you've done is is you and i have done deals more in the single family space an apartment already and you just said dude i have a different vision of what I want to be doing.

Speaker 26 And I'm going. And as recent as two weeks ago, you were with me in Miami.
You iterated again. You brought to me like, here's this new way.
We're going to do this new thing.

Speaker 26 I mean, there's these iterations, but you go. You don't wait around.
You don't perfect. You don't make sure everything is perfect before you move.
You start running.

Speaker 27 Well, you have to because, you know, this whole, and I know it's cliche, this paralysis analysis, it's a real deal. Oh, yeah.

Speaker 27 People will sit there and run this idea they have through their brain a million times and never do it.

Speaker 27 What does that do for you? They're wasting your time.

Speaker 27 I heard a guy say,

Speaker 27 we're going to try some shit. We're going to learn some shit.
We're going to try some new shit.

Speaker 26 Yeah.

Speaker 27 And that's it. But if you don't try some shit, if you just think about shit, you ain't getting shit.
You're doing nothing. No doubt.
Right. You got to try.
You got to go out and try.

Speaker 27 When we started Elivest, I had known by being an investor what I thought I wanted this world to look like.

Speaker 27 But when you go become an owner of a private equity firm and create these funds to invest tens of millions of dollars in real estate tools, it's a whole different animal.

Speaker 27 I'm learning, you know, SEC regulation. I'm working with just completely like upside down from what an investor experiences in this business as a passive investor.
So

Speaker 27 no matter what you're looking to do, real estate, start a business, whatever, like if you see a pretty girl and you're single and you want to get with that girl and you keep thinking about it, but you never go ask her on a date, you're probably not going to get with the girl.

Speaker 26 This is why I was so successful as a single man, by the way. Yeah.

Speaker 27 You can just share it. Hi.

Speaker 26 My name is Justin. Right.
I can just go say hi. That's great.
I just, I had a look at my phone real quick while doing this interview because I wrote down a note.

Speaker 26 Someone sent me something that I thought was so impactful, which goes to this. There's something called the three C's of success.
And I've never heard that before. And I was like, what?

Speaker 26 So he sends me this thing.

Speaker 26 And it's talking about you have to make a choice. And you've heard me say this, the number one law of success is decide what you want.
So you have to make a choice

Speaker 26 to give yourself a chance, which is the second, you got to take a chance on it to change your life or to change where you're going. Yeah.
So make a choice to give yourself a chance to make change.

Speaker 26 That's right. And so if you're sitting here watching this and watching Adam, and by the way, everyone follow Adam, follow Elevest.

Speaker 26 We'll put everything in the comments.

Speaker 26 Or where can they find you on Instagram?

Speaker 27 AW Invests.

Speaker 26 AW Invests.

Speaker 26 Also, of s the capital but the the point of making the choice is that's how you give yourself a chance to succeed and change the trajectory

Speaker 27 and i thought that was so impactful because that's what people lack well it's so impactful because most people don't make a choice right they have an idea they have a want but they never make a choice draw that line in the sand and jump over that line and say i'm in it now yeah i'm going yeah right what's the worst that can happen the same happens you and i all the time It's going to happen anyway.

Speaker 26 Eat shit sandwiches. Yeah.
Or, you know, the other side of this is it won't happen to you, but you have to be okay with living a pretty mediocre life at best. Right.

Speaker 27 Yeah. And well, and life's getting more and more expensive, right? It's just to live a very basic life now is very expensive.
So I don't care if, well, I don't want fancy cars.

Speaker 27 I don't want a fancy house. Cool.
No worries. Not for everybody.
But even a very basic life is extremely expensive and getting more and more expensive.

Speaker 27 And I don't know anybody that wants to eat top ramen every single meal for the rest of their life. No.
It's great pennies to pay rent. No.

Speaker 26 Well, and people need to know how to invest. And that's why, like, even the apartment we're talking about today, tonight we're having an event.

Speaker 26 You guys will hear this afterwards, but we're having like a small little get-together. I think 30, 40 people will be here in the office.

Speaker 26 We're talking about a 248-door property in Dallas. Yep.
Massive discount. This thing sold in 2022.
We're buying it 2025 at a 30% discount from their price. Yep.

Speaker 26 But people need to understand how to invest because if life is getting more expensive, they need to know how to take their money and make their money work for them.

Speaker 27 Well, and that's what happened to me. So I, you know, over and above the real estate stuff, I'm just an entrepreneur.
I've been building businesses since I could crawl, right? Like

Speaker 27 I

Speaker 27 built a ton of businesses and a lot in the marketing space, the call center space,

Speaker 27 you name it. We did it in that arena for about a good 20 years.
And what I found was a lot of those I failed at.

Speaker 27 right a lot of those i failed at but when i had success which i did once every for some reason every seven years, I knock one out of the park. When I had success and made a bunch of money,

Speaker 27 we're about seven years right now, right? Okay.

Speaker 27 When I had success and made a bunch of money in those businesses, I needed a vehicle to take that active income and put it into so that money could start working for me. That's right.

Speaker 27 And what I, what I, where I made a lot of mistakes early on in my, like, my first success, where I was like, oh my God, I went and made, you know, a couple million bucks and I thought that was all the money in the world, which it is not, because if you don't keep making it, that shit goes fast.

Speaker 27 What, What happened was I went and I found like my buddy had an idea for a business, so I invested into his deal. And then this guy had something that sounded fancy that I could make a bunch of money.

Speaker 27 So I invested in his deal. And that shit went away because none of it worked out.

Speaker 27 My second go-around, I was already investing in real estate and doing the real estate deals, but my second big win where I was like in one of my businesses where I made some money.

Speaker 27 is when I really started investing in the syndication stuff. And this is exactly what we teach people now with Elivest.

Speaker 27 Our ideal client is either the high W-2 income earner, you work a job, you don't have to be an entrepreneur, you don't have to own a business.

Speaker 27 There are guys that work jobs, guys and gals that make, you know, 500 grand a year. Yeah.
All day long.

Speaker 27 If you're a high income earner for a W-2 job and or you own your own business and you do very well financially, let's just use easy numbers for just number's sake.

Speaker 27 Say you make a million bucks a year, right?

Speaker 27 You should be keeping your expenses to about 20% of that, if you can, right?

Speaker 27 And I know life's expensive and we all like fancy shit, but if you can keep your expenses to about 20% of that, you're going to have some tax liability. You're going to have some things.

Speaker 27 Whatever's left over, you should be shoving into these multifamily real estate deals, these multifamily real estate syndications.

Speaker 27 And the reason is, I call it, and I'm going to talk about this tonight at our event. I call it the fuel and the gas tank.

Speaker 27 Your active income that you're going to work to earn every single day or running your business earn every day is the fuel. That's the gas.
This is the gas tank.

Speaker 27 And you need the fuel to fill up the gas tank.

Speaker 27 But once you get that gas tank really, really full and you're able to do this and shove that couple hundred grand, two, three, four, five hundred grand every single year, year over year over year into this gas tank and watch these things start to compound, we're talking about syndicating and being a part of an equity owner in 150 doors, 250 doors, 350 doors at a time.

Speaker 27 And then

Speaker 27 we get in, we have a very strict business model where we get in, we acquire the property,

Speaker 27 we execute our business plan and renovate all the units, increase the rents up to market rent for the new Class A units that we've now created for the workforce housing.

Speaker 27 And then we're selling off that deal. That's why I say flipping apartments instead of flipping houses.
We're in and out of these as fast as we can. Our average hold time right now is 17, 27 months.

Speaker 27 So we do not hang on to these deals. We get in, we do the business plan, we get out, right? Take a property we bought for 33, 34 million bucks, put about 8, 10 million into it.

Speaker 27 We're looking to sell it for 65 million. It's wow.
Quick, right?

Speaker 27 You can't do that in a single family but as a as a one guy i'm not going to go write a 30 million dollar check and then another 10 million to renovate like that's just i'm not going to do that but we can syndicate these deals together so you justin can just keep running running your business doing what you do to create that gas to create that active income and then take whatever portion move it into this gas tank right into these deals we do all the work over here our investors don't have to do anything they get their monthly distributions all the way along and when we exit that property the smart ones 92 of our investors, 1031 into the next deal.

Speaker 27 And so now you're just building your wealth over time. And you look back 10, 12, 15 years, you've taken whatever you've done and you've doubled it about every three to five years.

Speaker 27 It doubles about every three to five years on average. So not only are you building your net worth, but you're building your passive income because we do monthly distributions.

Speaker 27 So you're, you may only be getting when you first start a thousand bucks a month. Nothing exciting, right?

Speaker 27 But if that doubles every three to five years and now it's two and now it's four and now it's 8,000 and now it's 16,000 and now it's 32,000.

Speaker 27 You fast forward 15 years, you're 32,000 a month before you get out of bed and there's ways to mitigate taxes on that and have most of that, if not all of it, tax-free.

Speaker 27 I don't know anything else that does that. Yeah.
Right?

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Speaker 26 Well, the reason why I love real estate in a general sense, apartments more so because they're technically easier to have tax write-offs.

Speaker 26 But one of the main reasons, real estate gives you a tax write-off. Real estate gives you income.
Real estate gives you what I call bankability.

Speaker 26 And that's riding the ride up to gain the equity to be able to do things like pull out more mortgages or refi and go buy another property. It gives you bankability.

Speaker 26 And I think all people need to understand. And then you have what I call like the profit where you exit and you have this big payday, right?

Speaker 26 There's four really great things that you can do with real estate. People just need to be educated.
So a lot of this is new to a lot of investors. Syndication, what is that, Adam?

Speaker 26 I can't afford to buy this $15 million. How do I do this?

Speaker 27 So what are people looking for?

Speaker 26 Like what makes a good syndication? Why is LS and why is this opportunity good and protecting people's downside? Because there's a lot of people out there that don't understand it.

Speaker 26 They don't even know what to look for.

Speaker 27 Yeah. Syndication simply means that we all pool our money together to buy a larger asset together.

Speaker 27 So we pull in money from various investors, guys and gals that are like the client that I just talked to you about.

Speaker 27 You know, they're running their business, they're working their job, they have this income that they know they need to move in a passive income strategy.

Speaker 27 I invest in every deal alongside our investors. So we put our money together, the operator brings their capital in, and we go buy this $30 million asset.

Speaker 27 Adam's not going to write a $30 million check, right? Right. But together with a couple hundred of us, we can.
So that all goes into one entity. We have an LLC, right?

Speaker 27 The fund, and then the LLC goes and acquires the property. Now we execute the business plan.
We sell it. Everybody gets their principal back plus their profit plus their cash flow along the way.

Speaker 27 And that's basically a syndication. They're equity owners of the deal.
So you get all the tax write-offs. You get all the stuff that we have.

Speaker 26 You're not just an investor. You're not just a bank.

Speaker 27 You're an investment. This is not a debt fund.
We're an equity fund. So

Speaker 27 you can say, I own a piece of that 600-unit building right there, right? And you do. Yeah.

Speaker 26 And it's a piece of a 548 building in Houston, Texas. That's it.
And I do. I'm a very small owner of it because it's a $100 million piece of property, but I own it.

Speaker 27 I'm reownering it. Yeah.
And that's really what it is. Now,

Speaker 27 you have to be careful in some sense because as an investor in these deals, and we won't get too deep into the limited partner, you know, limited partner and general partner.

Speaker 26 Well, and by the way, guys, hit up Adam right now. If you're already having questions, go find him on Instagram, hit him up, ask me, hit me up.
Hey, you guys were talking about this thing.

Speaker 26 Follow us and then start engaging with us.

Speaker 27 Right. Because

Speaker 26 the unclarity of what might be going through your mind may give you paralysis analysis. Stop.
Get some clarity from Adam. Get some clarity from me about these type of deals.

Speaker 27 Yeah, they can book a call with my office and I'll get on a Zoom with them. If they're here in Scottsdale, we can meet for in-person.
Like, I love meeting with investors.

Speaker 27 So, but here's the thing about the whole thing. I don't want to get too complex because,

Speaker 27 you know, it seems really complex and it is, but my definition of success is finding simplicity on the other side of complexity, right?

Speaker 27 So it's really complex, but that's why you have LVS capital. That's why we have the operator.

Speaker 27 That's why we have a team between us and the operator of over 300 employees that handle all the complexity. That's why we have two teams of attorneys for securities.

Speaker 27 So you don't have to do any of that.

Speaker 27 As an LP or an investor in these deals, you literally have to evaluate the deal, take a look at it, say, Hey, I like this. I like this.
I like this. Hey, I got a question about that.
Cool.

Speaker 27 Get all your questions answered. If you have a team that you want to run it by, maybe your CPA or your your legal advisor or whatever, run it by them, get their questions answered.

Speaker 27 And then you sign the docs and you wire your funds in. You're not doing the work on these deals.
You're back at your job or running your business, making your money, more fuel for the gas tank.

Speaker 26 I think everyone needs to understand their money needs to make money.

Speaker 26 If you're an income earner, if you have money in an IRA, by the way, it should be a dead IRA, right? Meaning an old job.

Speaker 26 If you have money in your savings account, if it's just sitting, you guys have to understand what Adam's talking about here.

Speaker 26 This is a way for you to literally make money while you sleep in multiple different verticals, right?

Speaker 26 So, if you include the tax benefits, the tax write-offs, if you include the actual income every month, you include the upside of the exit, your actual return becomes pretty darn staggering.

Speaker 27 Oh, yeah. If you've got money sitting in a bank account, it's dying.
Yeah. Every single day, you're losing purchasing power.
I was just on a phone with a guy. He invested in Fund 59.

Speaker 27 We're now in Fund 60.

Speaker 27 He pulled all of his, and I'm not saying you should or shouldn't do this. This is just what he did.

Speaker 27 He pulled, it was like 450 grand out of an old 401k that he had, moved it all over to self-directed, and he's splitting it up between four deals. Right.

Speaker 27 And he's like, look, I'm just done relying on the market and these ups and downs and the crazy swings. And somebody says something and I lose 15%.

Speaker 27 He's because I'm just done. Yeah.
You know? And he's like, look, there's risk in everything. These deals are not risk-free.
Neither is anything you'll do in your entire life.

Speaker 27 But in my opinion, in my experience, they're on the lowest end of the risk spectrum as possible. As long as you have a good operator, a good solid team that's running the deals.
Look, we're

Speaker 27 60th acquisition, 11,000 units, never lost an investor dollar, never missed a debt payment. So you want to bet on a horse.
It doesn't have to be us, but bet on a horse like that. Yeah.
Right.

Speaker 27 Go out and find, do your diligence on that operator that you're going to put. If you're wiring this guy or y'all, 100 grand

Speaker 27 or 200 grand or 500 grand or whatever it is, you got to bet on the right horse like anything.

Speaker 26 You got to meet with them. You got to understand who they are, what their track record is, what they've done, what's their you know resume that's right that is absolutely it how can um

Speaker 26 how can people like i think people think that like they don't deserve or they can't get into a big space like this

Speaker 26 i mean what what what can you say to the people sitting there like adam i don't i don't know like i don't know if apartments are for me or maybe i should do a single family asset what can you tell that person like this is a better reason to go into this way and you can do it through me through justin through us talk to the person that might be thinking smaller rather than thinking the way they should be thinking.

Speaker 26 Well, everybody does that, right?

Speaker 27 That's one of the things I'm going to talk to.

Speaker 27 And I'm actually doing a side-by-side comparison at our event tonight. I have people all the time that come in and they're like, hey, I've been running my business for 20 years.
I make good money.

Speaker 27 I wanted to get into real estate. I thought I should go buy this Airbnb or I should go buy this single-family rental.
And so I went and I put 30% down. And,

Speaker 27 you know, I got this house in Anthem, Arizona, and, you know, I'm renting it out for $2,500 a month. And I say, oh, that's awesome.
What's your cash flow on that? Cash flow?

Speaker 27 I pay $100 every month to have a house.

Speaker 27 Okay, so let's get this straight. You took and put 30% down on probably a $500,000 house.
So you took a massive chunk of your savings and you put it into this rental house.

Speaker 27 You put your own credit on the line, right?

Speaker 27 Then it took you probably a month or two to get a tenant in there, right? And this, you had to do no repairs. You got a tenant in there and you're not even breaking even.

Speaker 27 And that tenant hasn't moved out. You haven't lost any rental income from it being vacant, right?

Speaker 27 With a single-family residence, if that tenant moves out and it takes you one, two, three months to get a new tenant in there,

Speaker 27 how much have you lost? Three, four, five years of cash flow in two months.

Speaker 27 God forbid, a HVAC goes out and it costs you 12 grand, or a roof needs completely redone at 20 grand, or this or that, or all the mit, I did 252 of these things. Yeah, I know what a pain in the ass.

Speaker 27 You've done

Speaker 27 thousands of these. Yeah.

Speaker 27 With an apartment building, I don't put my credit credit on the line. I don't have to sign on the loan.
I don't have to put a down payment down.

Speaker 27 And I don't even know if five tenants move out, 10 tenants move out, 20 tenants move out. I don't even feel it.
I don't get a phone call when an HVAC needs repaired.

Speaker 27 I don't get a phone call when a toilet needs replaced or plunged. I get zero.
You know what I get? I get a financial report every single month in my email and in my investor portal.

Speaker 27 And I get a wire or ACH sent to my bank account in my cash flow.

Speaker 27 And when we're getting, and when the deal is getting ready to be sold three, four, five years down the line, I get an email that says, hey, we're getting ready to sell this deal.

Speaker 27 You're getting $186,000 on the $100,000 you invested. Would you like us to send that to you, to your bank account?

Speaker 27 Or would you like us to send that to a qualified intermediary so you can 1031 into the next deal we're going to do? And oh, by the way, here's the next deal. It's, it's really brilliant.

Speaker 27 That's the difference.

Speaker 26 I mean, it's being a part of these, right? It's something that

Speaker 26 I think you got to treat it like a business, I don't think, but people need to treat this like a business, right?

Speaker 26 So if you don't have to work in your business and you can just be an investor in your business almost an angel investor but it's your business because it's run like that it removes the frustration it removes the headaches and that's where i think people think they need to start small um and it's not necessarily true right and by the way it one of the things that people think is i don't have enough money you think that because you just don't know right you actually don't know the reality of it right and that's where i would tell people make sure you're reaching out to adam make sure you're reaching out to me get some clarity behind this because a confused mind can't make a decision but what's even worse is someone who just doesn't know anything and won't give themselves a chance, right?

Speaker 26 They don't make a choice, they don't give themselves a chance to make the change that you really deserve, which is wealth accumulation, higher income, most likely being able to quit your job and move on to better things.

Speaker 27 Yeah. What I will say about this business, about the whole multifamily syndication, this is not a get-rich-quick scheme.
No, it is not. This is a long-term wealth-building blueprint.

Speaker 27 You will become wealthy beyond your wildest dreams for sure, but it will take 15, 20, 25, 30 years of time and compound pounding to do that heavy lifting.

Speaker 27 But during that time, you don't have to do any additional work. That's the beauty of it.

Speaker 27 You just focus on what you're already doing in your job, your business, whatever you're doing to earn that fuel to keep filling up that tank.

Speaker 27 And if you do that long enough and you bet on the right operator, you're going to have, you're not going to be worried about retirement. That's right.
Right? Yeah.

Speaker 27 If you go to flip flip houses or or or buy a couple single family rentals here in airbnb you know you might do okay i'm not saying that that's a complete no-go people make money doing it totally but i don't see it as a long-term wealth building strategy yeah i just well not until economies of scale i mean listen you have 700 single family assets it's the different it's this equivalent of an apartment right or two right but it would have taken me 10 years to get 700 single families i've done 600 units so far this year right and we're just coming out of of Q2.

Speaker 26 And I'll tell you, there's more headaches in dealing with 700. Like I bought 56 last year,

Speaker 26 and the headaches have been massive, right? Turning those into single families.

Speaker 27 Not want to be you. Right.
56.

Speaker 26 And so think about the framing and like, okay, what's an easier path to be able to create the same type of agenda, right?

Speaker 26 That's that's where the iteration can come in to say, my biggest mistake is obviously, and I've said this time and time again, not getting into rentals soon enough.

Speaker 26 And I didn't need to be me or you when I first started.

Speaker 27 Yeah, I could have just bought one.

Speaker 26 Single fan, like get into the game, right? And that's what I would encourage everybody. And I'd encourage you to follow AW Invests, follow L of S Capital, go to the website.

Speaker 26 We have a pretty cool event tonight. We're going to be teaching more of this kind of stuff.
And this was awesome, Justin.

Speaker 27 Anytime you want to get back and just talk about this stuff, my number one goal, it's my mission. It's the top thing on that note that I told you about.

Speaker 27 My mission is to help as many people as I can learn this stuff because this will change your family for generations to come.

Speaker 27 If you learn it, implement implement it, and then your kids see it, and then their kids see it, and so on and so forth. So, man, anytime I can come on here and chat with you, love it, brother.

Speaker 27 This has been a blast, dude.

Speaker 26 Thank you very much. We'll do this again.
If this is pretty cool, and you might think a couple people need to hear about this, maybe even about the deal. Share this with two of your friends.

Speaker 26 We'll see you on the next episode.

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