Building Wealth One Brick at a Time: Isaac’s Journey to $12.5M in Multifamily

This article is based on a podcast interview with Isaac Lewis, a real estate investor who achieved success in multifamily properties.

Isaac’s Background

• Grew up in a small Kentucky town (population 30,000)
• Second-generation real estate investor (father invested in rental properties)
• Exposed to Rich Dad Poor Dad principles at a young age

Early Struggles

• Purchased a single-family home in Kentucky
• Difficulty managing the property
• Questioned the path to financial freedom through single-family rentals

Discovering Multifamily Investing

• Inspired by a webinar on multifamily deals
• Recognized the potential for scalability and higher returns

Importance of Mentorship

• Sought guidance due to limited experience
• Interviewed several coaching groups
• Joined Jake and Gino’s program due to their connection-focused approach

Overcoming Limiting Beliefs

• Dealt with initial self-doubt and perceived limitations of multifamily investing
• Understood the need to develop a growth mindset

Challenges Faced

• Market Conditions: Joined during a competitive market (2022-2023) with many bridge deals (risky financing)
• Patience: Took 18 months to find the right deal despite consistent effort
• Pencil Whipping Deals: Initially struggled to analyze deals realistically without inflating numbers

The “Buy Right, Manage Right, Finance Right” Framework

• Crucial concept emphasized by Jake and Gino
• Importance of understanding buying criteria, property management strategies, and financing options

Isaac’s First Deal

• 24-unit property in Twin Falls MSA, Idaho (hot market)
• Acquired below asking price due to developer needing to exit
• Challenge: Raising capital due to investor concerns about market conditions
• Solution: Highlighted the opportunity to increase rents significantly (currently below market)
• Financing: Secured fixed-rate debt with interest-only period through existing relationships

Key Takeaways

• Education is Key: Especially for young investors, building a strong foundation in real estate knowledge is essential.
• Relationships Matter: Building relationships with potential partners and investors can lead to better opportunities.
• Patience is Rewarding: Don’t rush into deals; focus on self-improvement and wait for the right opportunity.
• Market Cycles: Buying strategies and financing options need to adapt to market conditions.
• Manage Right: Partnering with experienced property management professionals is crucial.

Isaac’s Future Goals

• Continue building relationships and adding value to others
• Focus on off-market deals through established connections
• Leverage marketing skills for capital raising and investor education
• Help others achieve financial freedom through real estate investing