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