Buying Cross Country - Mike Tighe

Mike Tighe joins Jerome Myers on the Myers Methods Presents Multifamily Missteps Podcast to discuss the missteps with purchasing his first property cross country in a joint venture. We learn the risk associated with bridge debt.  Mike shares how your partners can influence you to stretch yourself and how to build repertoire with brokers over the phone.  He also takes us through a break down on his first off market deal, being under capitalized and the financing struggles with closing the property

Mike believes that you have to be willing to delay gratification in order to live an amazing life.

In this weeks show we learn about:
- bridge debt
- helping increase the number of showings at your property
- importance of having an experience partner
- house hacking
- BRRRs
- paying contractors a fair wage
- collecting delinquencies
- value of mentorship


If you are interested in getting more multifamily investing education go to www.myersmethods.com

Say hi to Jerome
Say hi to Mike

Transcript

Jerome Myers:   0:00
but back to the bridge debt. So we were undercapitalized and we were pursuing bridge yet with our lender that we met with, and the only terms that we were getting were 18 months with no extension. Most people did not want to work with us because we had no business acumen or commercial real estate resume, so it's really hard to get good terms without that. Otherwise, you'd be looking at three years to one year extensions if you had a good president, 18 months, no extension and at 18 months of notes

Jerome Myers:   0:32
as an operator, I know other investors are romanticizing multi family investing, and I'm looking to learn from other investors Mistakes. I know you are, too. You found the right place. Welcome to Myers Methods present multi family missteps. Hey, everybody! And welcome to my, whose methods presents multi family missteps. I'm your host, Jerome, and I've got the great opportunity to have Michael tie with me today. Michael's out in Sunny California. How are you? But

Mike Tighe:   1:18
doing well? It's not to study today. A little overcast, but clouds roll out tomorrow

Jerome Myers:   1:23
raises some for you. It

Mike Tighe:   1:26
doesn't rain. You know what I know? Growing up in the Midwest, maybe even on the East Coast, where you see clouds about the rain and in California took me a while to realize after moving here from Cleveland that clubs don't mean rain. It's just basic.

Jerome Myers:   1:40
So do me a favor to tell the listeners a little bit about yourself in your background.

Mike Tighe:   1:46
So as far as the real estate background does, well, I currently work as an air traffic controller. Haven't aviation background As a pilot, I'm a private pilot. Um, and I started investing when I was working at an aircraft control job up in Los Angeles. I started with the House hack and just buying a cash flow asset, but at the time, I didn't know those terms. I had the concept in my head, and I I don't know why I knew this. I'd never read a book. When I made that transaction, I just knew, and maybe there's some common sense to it, too. But I just knew that I wanted a property that if I had to move out that it would castle that the rents would cover the mortgage. Um, I guess a lot of people don't consider that that's that's actually common in San Diego, that the mortgage is greater than the rents, and people are kind of not so well when they move out. So I just knew that I wanted a property that cash flow or the rents cover the mortgage, and I wanted to air be, indeed a two bedroom sounds of 300. So it started with that living in about a year and 1/2 and then I moved to San Diego for a promotional job promotion in my job feels intercepted shoulder and, um, I bought air being. I wanted to stick with the Airbnb model, since that's kind of what I knew. So I turned a three better in Los Angeles into three individual Airbnb that wasn't really advertising. It is one entire place because there's more, more lucrative to do. Three individuals. And then I bought an Airbnb with my V a loan in downtown San Diego, and that just required that, um, I couldn't. I couldn't live in our head to live in the property for a year. I couldn't rent it out right away. That's just kind of the parameters of the Avon, but the benefit is there's no cash down required to acquire that long. Um, so I got the loan, bought the property, live in that kind of for years and turned it on Airbnb. And then I started renting from then on out bought a four plex in Cleveland all the while trying to get more of a yield place. So these Airbnb is especially the San Diego condo. There's not. Not much, Not much meat on the bone, not much past blow. But I had no money in the property, just kind of made sense. And and all the money I was using I just built up when I was working as a government contractor in Afghanistan. You know, you don't really spend much in those jobs, so they get the candle iReport doing traffic control and you don't pay taxes was able to save up a lot of money. And I just wanted to act on that and use that money. I'm in the real estate market. Once I realized the most lucrative about avenue anyway, So some partners at work are some co workers. Happy what I was doing with real state. They had no experience in real estate, and I just kind of told him how it worked and my properties cash flowed. And obviously you have 10 and paying down your principal. And they were just kind of astonished. And they were really intrigued. So we they started getting into it. I recommended some books to them. Um, and they read those books, and they were looking at birds initially, Um, the by the by. Rehab, refinance, rent. Repeat what it said in the wrong order model.

Jerome Myers:   4:51
Now you got it right.

Mike Tighe:   4:53
Get it right. Okay. I will get. Those are computers. Too many of them. So we started looking at birds. I know, like my partner, Sean was looking in Louisville. Rich was looking around. I was looking in Cleveland acquire when it was just too much work and my partner, Rich who? You know, I kind of brought him into this reading books. He read some books and a partner investing. And he's like, Mike, what? What you're doing. The sf r is, um there's no use. You can't be building equity on these properties unless you buy below market value. You kind of hoping for luck. As far as equity goes, um, you can cash flow, but he's like if we get this apartment game, look at these formulas and he just kept texting me, like bugging me. The forms like Mike. Look it. If we if we bought evaluated, we could raise rent six months. If it's this kind of market we bring up, you know why this much this is how much evaluation increases. And I was just kind of like, Whatever dude I have, my mind was kind of made up. I wanted that. Just do after Fars know and small multi, no commercials.

Jerome Myers:   5:51
But

Mike Tighe:   5:51
he,

Jerome Myers:   5:52
you know, just drilled

Mike Tighe:   5:53
it in so so consistently and so persistently that I son and I eventually decided to get on board. When you're right, you're right, Bridge. But let's partner, Let's meet up for drinks and let's discuss what this looks like for us. So we we read, we all read a book together, multifamily millions. But they've Lindell kind of set our educational foundation, and we acted on that like immediately. I know a lot of people just keep reading and reading and don't take action. I'm taking action is a really important step. What you get in college once you feel comfortable. So we're calling brokers And, as you know, Jerome, like when you're calling a broker for the first time, you have no deals. They're kind of hesitant to work with you. I don't know if you can close on the deal. That's their main concern. You know, we we didn't really know what to expect, because, you know, when you're a residential buyer looking for house, you call an agent. There happened work with you. They're like, Let's make moves, buddy. But in the commercial states, you need kind of a resume or you need clout on your team. You need someone you know, you need a partner, someone who has a resume or you to prove yourself in some way be a business plan and just your network. Um, so we kept calling brokers. No, look, you know, they were all they were sending us deals, but they were outside of our parameters, and they were just kind of it was the garbage deals. There wasn't any value. Add. Um, and Rich was talking with the broker one day in Indianapolis. This guy Darryl from Marcus and Millichap. And, you know, Darryl came the usual. Sorry, don't have anything for your rich, but he's, like, a little bit about yourself. Go where? Air traffic controllers. And there was like, Oh, um, you know, he knew someone who had a controller, and that kind of bonder connection led Darryl. Do you know what, rich? I got something. Check your e mail in, like, 30 minutes and then to the deal. So that's where we got the off market deal. You know that that term that everyone loves to hell here, which doesn't always mean it's the best thing,

Jerome Myers:   7:42
but usually it wth issues, right? Especially if because we were broken, man. But I think the story is amazing, and I don't want anybody to miss it. Right. The building, the report with the broker is what shifted everything. A lot of people and then plate marketplace or trying to find a deal. They don't know if they have a deal. They get these leads. And what you get it initially is a bunch of leads. None of them actually turns out to be a deal. Yeah, You know, you guys kept chugging along and through going through the process of building report and staying consistent with the broker, you're able to get something that pencil, So I'm sorry. Go ahead.

Mike Tighe:   8:23
Oh, no, it's okay. I mean, you make some great points, and you know that that's not to be overlooked when you're starting out in commercial apartment buying? Um, yes. Oh, Richmond, that bond. Like I said, that the broker he's finished a deal of this off market deal. And this one, unlike most of the deals we saw him at the 40 or 50 wasn't total garbage. I mean, we looked and we kind of had an arbitrary method back then. As soon as we got a deal, we used to software platforms. We would look at Neighborhood Scout with the neighborhood like we kind of had a median household income floors that we were looking at. So if we could completely just send it back if it wasn't, you know, within those parameters and even the crime rate and everything like that on market fundamentals, we look at the market fundamentals. And then we went to rent ometer dot com, which we use other platforms now. But that's kind of how we started. And we compared the rent roll with what market rents were, and that's how we determine. Okay, are the market fundamentals there. And if this doesn't have value, add potential. And this one looks like it. Excuse potential, because there were one in two bottoms every 2 to $300 below market run. But with that came a seller who put no money into anything. Um, so working with this seller initial problem we had was her father owned it, and he passed away. Um, so there was a brother and a sister fighting over the property in a probate issue. So we had and I don't know if we had a signed contract, but we hadn't. We had an agreement in principle in L. A y. Maybe, um And so we were waiting on the probate the whole time, like the court result. And the broker just kind of kept us on standby and, you know, wanted get your first, you under the belt. We're getting so anxious, like, man, we just move on from this deal and start looking for others. So rich is kind of calling brokers in the cyber occasionally not not on the street when they were getting some deals, but nothing. Nothing matches up to the value of potential. This just kind of waiting it out. And eventually Darrell gave us the go like a pro probate court. I'm gay for the green light to sell to you guys. So but back to the bridge debt. So we were undercapitalized, and we were pursuing Bridgette with our lender that we met with, and the only terms that we were getting were 18 months with no extension. Um, most people did not want to work with us because we had no business acumen or commercial real estate resume, So it's really hard to get good terms without that. Otherwise, you'd be looking at three years to one year extensions if you had a good president. So 18 months, no extension. And at 18 months and notes, d'oh, when you have to execute on your business plan, refinance out whatever you need to do. Um, So we've realized it wasn't gonna be obtainable and, you know, and I mentioned at another one your podcast, that we were talking to you, coincidentally, 20. Come on, your show right now discussing this. But Jerome was on our show and just kind

Jerome Myers:   11:13
of a

Mike Tighe:   11:13
little side talk. Before the show, we brought up some of the numbers And, you know, Jerome kind of brought up the notion that some of these banks almost want you to fail just so they can collect the asset. It's almost more lucrative for them. And you actually following through on business plan. And I was already apprehensive on phone through Bridgette, but that was my all Hell, no moment.

Jerome Myers:   11:34
Wait.

Mike Tighe:   11:36
We follow through with the podcast. I don't have time to talk to my partners, you know? But he's in the background. Mine has her interview. Jerome. As soon as this podcast is over, I'm telling you guys that I'm back and I'm sorry we didn't have an LLC agreements signed. We need to find other lending options. So we backed out of the bridge yet, thankfully, and especially with the current market climate, um, this was a slow things down even more. And with bridge debt, you have 18 months to execute. You don't have to 18 18 month. They want you to start refinancing. They got start the paperwork, Um, a couple months out. So now you're looking at 13 months. Oh, and by the way, they don't just give you so they're gonna give us 506 $100,000 for renovation money. They don't just give you a check for 600,000 and say you go to work. We'll give you, like, 20 25,000 $50,000 Chuck chunks,

Jerome Myers:   12:23
you gotta

Mike Tighe:   12:23
go out, approve the work, and then they give you the money

Jerome Myers:   12:27
and

Mike Tighe:   12:27
then you can start the next piece of work. So it's going to slow everything down. Um, yeah. So executing on that in hindsight, I mean, there is a small chance that would've worked, But I don't like her obs. And with money on the line like that, Why, Why risk it, um when you don't have to write. And so we've pivoted to conventional lending and we got some.

Jerome Myers:   12:49
We

Mike Tighe:   12:49
had to raise more money. Three of us, my two partners in our rich and showing you brought three others on board who kind of joined us in a joint venture capacity. So they weren't limited partners. They're active members on the LoC, but they just kind of wanted to pass it. When we were fine with that, it was a win win for both. They get the experiences, Davies and we get the experience. Are we get the money from them to closing this deal and they get the returns. You know, we split it just based on equity percentages. Um, so we close on the property got the conventional lending. It's a 55 year note advertised over 25 years, and that was December. Be closing it. And now you know we're falling through the renovations, kind of getting arrested with reposition, getting rents up and even in this current climate, were generate enough leads off the Facebook marketplace and everything that we're getting a lot of applications this week and units are being filled. Um, everything's going according to plan it. Things are actually going deader than plan. There's weird aspects you never underwrite for, such as tenants who Oh, the cellar money. And now they're paying us. It's money that was owed to us. One guy he had like like $2000. He lost his job. I don't know his full story. We inherited him and he said, Oh, I'm like, I'll pay back. The property manager was setting him up for the deaths that were rolled over, and he's gonna pay back with his tax returns, and it's it's okay. We don't underwrite for money that we didn't even really earn from last year. But, you know, if you must bounce that his ledger than we'll take it and keep him. And, you know, it seems like a promise, Lieutenant. Well, full speed ahead with the re position now,

Jerome Myers:   14:26
So tell me. We talked a little bit earlier. You mentioned you aren't using Facebook marketplace before, uh, advertising units and you got Where were you guys doing before? And how are you keeping the property manager on is considering your 7000 miles away.

Mike Tighe:   14:44
Yeah, And I know I know you have a good story about working with your first property manager in dishonesty, right?

Jerome Myers:   14:50
A

Mike Tighe:   14:50
lot of your listeners would you talk about it? So our property managers far is keeping them honest with renovation costs,

Jerome Myers:   14:58
renovation, cause even getting the units ran it up. I mean, you know, you said you guys moved to Facebook, but, I mean, who made that push to make the adjustment?

Mike Tighe:   15:08
Okay, that's a good question. So, yeah, that's hard. And it's a 32 units. There's no on site meeting staff. Um, so with that, you know, we run into a hurdle, you get a lead. Let's say I get a lead on the marketplace and I send them to the phone number to call the schedule brother. The property manager gets a voicemail. They wake up the other voice. Now they have to get back when you have free time, and then they have to contact that person and set up a showing and their schedules both have to work out. There's so many moving parts. The odds of this conversion rates was showing was too low, so we came up with something better. Um, and the property manager initiated this actually using their tenant Turner software. They were able to medicate completely automated. So when we get these leads on the marketplace were actually controlling the marketplace. We're responding because we realize a lot of work and no property manager is gonna dedicate this much time responding. They just don't care enough. I mean, that's just I see it. We're getting 40 messages a day that I know, and to be fair to probably managers, they're busy. They're not just with the thumb. A good one is working all day, so they're not really thinking about Let me see who message Mike's apartment all the time, where we're like, assuming from a response like, Hey, what's going on? What can we do to help you? You know, great customer service, because we care, because when you're the owner, you care the most, right? Um, so we send them to this number number and its automated they can. It gives them the lockbox totes. All the units have lock boxes on them. Obviously, there's a risk. With what if someone steals the fridge or something? Does something crazy. You do run that risk, but there's the added convenience of you conversion rate of lead to showing. I don't have the numbers, but I'm assuming some 100%. Then it's so easy that they Texas number. They get a code to get the address. I think they first have to send a photo i. D. A picture of the photo ID's software, and then it went on that they go to the unit that they'd just text when they leave, and it kind of eliminated the whole chain of Call the PM wait for the PM to call back. Hope our schedules a line. You know, once we started doing that are showings went up in her application, went out. Um, so that's how we kept at PM, honest with showings. And it almost

Jerome Myers:   17:17
there, almost

Mike Tighe:   17:18
keeping themselves on it. Um, and then with renovations, You know, they came in a little high. They were around 12,000. In turn Have you're done when That much Have you Kind of You kind of go lower than that. Yeah. So these units were, um I haven't mention this yet, but you're basically buying bricks and land. All the cast excited. Seem to be replaced. All the unit it was 19 sixties.

Jerome Myers:   17:43
Vintage and seller

Mike Tighe:   17:44
touched

Jerome Myers:   17:45
nothing

Mike Tighe:   17:46
except the roof. I think so. We had to put a lot of the units

Jerome Myers:   17:50
and

Mike Tighe:   17:51
we kept him honest by getting other bids. We had this contractor who live in Louisville and was willing to drive up and stay for the week just to get the job. So he got the bends down to 8500 and we sent our PM the bids and said, This is why we're not going with you. This is what they need to look like. And what's interesting is so he did about I think he did the 1st 4 turns and he actually asked her Break you. You mind if I take a week or two off? I'm going to keep it going. You have the PM to give a quote for the next term, and they coincidently matched the bid. So, you know, magically their numbers changed, their math changed. And now they're bids were also 8600 and I think they were actually cheaper than him in some certain areas. They were really cheap on floor. I think they may be by math supplies. And they had a way that they were cheaper than him. I'm flooring, So they're they're floored. Number came up to hiss, but they also came down and everything else

Jerome Myers:   18:38
Well,

Mike Tighe:   18:39
that's just fine with us, You know, if they want to make a little extra money there, but as long as they come down to the total number. So that's kind of how we kept them. Honest. Initially, I feel like the property manager was kind of testing you like. Okay. How much money can we make up these guys? Interns. How much? How much room should be? How much room is there to make some extra money

Jerome Myers:   18:57
and if you guys would have went with the bridge, that with the increase expense and not having that flexibility to make the transition,

Mike Tighe:   19:08
and I didn't mention this. But when you go with Bridgette, the lender requires you. You have to tell them who you're contractors, and you were harder to work with that contract because they underwrite for that contract. So if that contractor starts that contract, Tractor has all the leverage on you. Rick, you are because they know. Hey, this guy hasn't known how he can't get competing bids. We can charge him. Weaken, Let's bring the numbers up 2030%.

Jerome Myers:   19:32
What's up, guys? Is your host, Jerome. I just want to let you know we lost my methods in the follow 2019 with ambition to inspire a new breed of multi family. If you are interested in getting in a multi family, are scaling your current business up over to our Web site at my methods dot com grabbing free forceps guy. How to get Now Let's get back to the O.

Mike Tighe:   19:57
Yeah, and it's kind of it's kind of a weird game negotiating because I feel like when you talk him down too much. I mean, you want the guy to make enough money where he enjoys working, treating every time you talking down, You're saying I want myself to have more money and you two have left. That's what I feel like you're saying. So there's the game of Okay, give me a fair number. But also don't cheat yourself. What use is in a problem of contractors? But they won't with guy we got from Louisville. He was working so hard for us that he actually wanted to stop working. He's like, manages Worth, and he's like, uh, I think he's getting burnt out, and he's like, I usually make expert weekend. I'm making 50% of that because he wanted to come in so low on business. Felt pressure because we knew him. Um, so there's that aspect of it that you want them to get a fair way. Which would they enjoy working for you and want to get the work, too?

Jerome Myers:   20:42
Yeah, I think there's a balance, and as long as you make it work, there's no reason to beat somebody up on. Be greedy. The other thing. I wanted to talk about it. You said you guys got to mentor ship deal. Um, and it's gonna help you scale your business. And so I think a lot of people eventually run out of money. We're just friends and family, and then they've got to go to that next step. And so you guys have gotten there already, So doing me a favor and dive into that And what your strategy is around that

Mike Tighe:   21:10
Yeah. I mean, we did it for the very reason that you just said, like, way want to be financially free and we quite our first asset. But we also

Jerome Myers:   21:19
exhausted all of our

Mike Tighe:   21:20
capital. So the next avenue, the next progression in this field typically is due syndications and raise money. So we wanted someone on her team that had experience to bring cloud to the team. Someone we're raising money. We can leverage their experience in their resume. Um, So we started interviewing mentors all the big programs that you might see on Web sites, and, you know, all the biggest of the big guy's podcast and things like that. Um, and

Jerome Myers:   21:47
a lot

Mike Tighe:   21:47
of them weren't taylor to what we wanted. We had certain things were looking for, and we wanted to work directly with a syndicator. So we found a mentor. We lied when our podcast was airing are still airing. But after interviewing certain guest, we asked him if he knew anyone who would be invented for us. And he said, Oh, well, my brother and I are looking to do it, and these guys had an outstanding resume. They just didn't have, you know, exposure that other people had. They don't really care about reading books are getting the name out there via Social Media, our podcast, they just for doing deals. So we were excited to work with them, and we knew we'd be working directly with them. And we were kind of like, uh, we were their proteges. Essentially, you know, they think they think they're gonna take pride in making the successful. And then, you know, that's kind of what we wanted that kind of relationship, rather than working with university that had 5000 students 1000 students, and you're kind of just another name. You don't really even know the people who run the program. That's what we were looking for personally, to each their own, because I know these bigger programs provide a lot of value of guys that started from nothing. We already had a deal under Brooks felt so we could a little bit of knowledge, right? We weren't starting from just a single family rental. Um, so these guys have to start from a single family space and then just want to jump in these programs could be appropriate. And the great for mentoring, too, because you need a lot of people in that big network you can raise money from. I know, but, you know, that's kind of why we went that route.

Jerome Myers:   23:13
That makes a lot of sense. The one thing I haven't been able to put piece together. How did you guys get your first long? Who is the experience partner?

Mike Tighe:   23:22
So we didn't have an experienced partner. We just sold our business plan to the bank. Bank of the West in Indianapolis. Um, and yeah, they bought on like we didn't have. Well, you know what was the guy's one of the investors does have three units. So,

Jerome Myers:   23:37
you know,

Mike Tighe:   23:37
I I misspoke

Jerome Myers:   23:38
there. My new d step full.

Mike Tighe:   23:44
Let's go back here.

Jerome Myers:   23:46
That

Mike Tighe:   23:46
was, um Yeah, I completely overlooked him because he's kind of wild and everything. But his resume might have been the reason. They didn't really say that they were looking for an experienced resume. Aid they were underwriting was interesting is they said we're not underwriting. The individuals were underwriting the property. It's not like a residential. Own words like a What's the credit? What's your What's your debt to income? They want to see how a house is this property really good performance, You guys say.

Jerome Myers:   24:12
Is it because of that?

Mike Tighe:   24:15
It is recourse that, yeah, it

Jerome Myers:   24:17
is

Mike Tighe:   24:17
Fannie Freddie yet

Jerome Myers:   24:18
signed a personal guarantee.

Mike Tighe:   24:21
Did I kind of personal gain? Ti umm what recourse! So how does that work are? LoC had to sign the guarantee, right?

Jerome Myers:   24:28
Yeah. If you if you go back and look through your loan docks, you'll see that there is one page That's a personal guarantee for everybody that owns probably more than 20% if not everybody. Okay, so yeah, it's It's really interesting. That kind of slips through. Are you the manager of the LLC or somebody else?

Mike Tighe:   24:48
So it was a J. You're all equally managers are vote counts based on our equity percentages. So, based on how much you want to be put in,

Jerome Myers:   24:58
there should be at least one person. That's the actual person that can actually sign for the LLC.

Mike Tighe:   25:04
Not that it's interesting. We don't have one. Chief manager. I think, according to our policy agreement, it's all six of us. It

Jerome Myers:   25:10
makes

Mike Tighe:   25:11
the French having even number two, but based on equity percentages. So some someone's vote counts more than another.

Jerome Myers:   25:18
Yeah, that's really cool, though. That's awesome. But it's great that somebody had 300 units

Mike Tighe:   25:28
forgot. A guy has 303 100 units. Well, small detail, right?

Jerome Myers:   25:32
So, Michael, give me some words of wisdom for the listeners. They're getting into the space, and they're either doing their first deal or scale into their necks. What would you want him to know?

Mike Tighe:   25:43
You know, I would think go big. I know it's hard for me to answer that question, and what I based my response off is what people that come to our meet up in San Diego always say there's There's just a lot of fear and a lot of limiting beliefs, so they always everyone, I think, and maybe you experiences to. They want. They want toe, come up here like a mike. I'm really excited. I want to buy the single family rental in San Diego. And I'm like, Why did I buy a single family man, if I'm gonna cash and the first they feel like a little challenge and they almost feel like a little insulted, but I'm trying to help them. I'm trying to get get them down the right path of thinking where it's okay to buy outside your market, and it's okay to go bigger. They're like, Well, and they have They have a lot of lot of these guys have a lot of money to buy a single family in San Diego you need they have enough capital buying an apartment because they tell me what they're working with. And I was like, Dude, you need to partner with someone over there. They're trying to do the same thing. They have a similar amount of money as you read this book partner and my apartment's Midwest. And your return is gonna be exponential compared to what that single family were buying the negative cash every month. Just you have a rental property, so I think there's that limiting belief of, you know, I don't wanna invest outside of my market. I'm not comfortable. You don't need to see the property. I mean, it's good to see it eventually, but you can write a deal without seeing the property I'm reading office. Um, and even even if you do inspect the property, let's say okay, you buy an apartment. San Diego, you're walking through it. Are you an inspector? Do you know you know what to look for? I don't know what to look for. I can check and check out the neighborhood and get a feel for the neighborhoods like, But I can tell you with the roofs good. Or if the foundation's good pay, those guys do their profession. I'm sorry to say, investing outside your market go big. And, um, I don't know what you encountered those those kind of similar beliefs when you when you talk to people that you know.

Jerome Myers:   27:32
Yeah, but I struggle, right? And you talked about the way that you approached your multi family mentorship that struggle with the guys that say, Hey, you're on a single family home. Now let's go buy a $2 million complex and you're gonna be the lead on that. I don't think that's realistic. I think that's jumping into the ocean and trying to hunt Moby Dick. You're gonna be just like Captain 1/2. Instead, go go tuna fish and go dolphin fishing. Go buy something that's, you know, 500,001 0.5 maybe a little bit bigger, depending on your network, but go. But I want a deal in that range. Get close, get the experience and then you could be your own experience partner, right? Like those air. The things that you know we teach at Meyer's methods, and we want people to understand, especially when they're getting into the cane, because that experience learning their doesn't bankrupt you. You go mess up one of 56 10 15 $20 million deal that gets you in trouble really quick, and there's not a whole lot of way to get out of that. I think the other thing that bothers me the most about education overall is you know, we got these five or six groups around the country that are all chasing the same deal, and there's only so many of those pills, right? You're getting 18 offers on a complex money's hard the first day. There's a whole lot. If there is, I don't know 10 200 unit complexes in the city that you're in. There's probably 100 20 unit complex cyst spread around the city that she can go learn with. And so I encourage people to go do those swallow deals, but bigger than a single family. And so this to nose and dolphins is what I want people to go catch. You do that, you get comfortable with that, you get a drum, you get your team together cause is great. Look at somebody's website and say, Oh, well, they could do this. But once you started working with him, then you really understand what they can and can't do because every property manager has their own strengths and weaknesses, and it's just like anybody else. You answer your team, and so you know, that's that's where I'm at on it. And that's what we try to help people do is get into those deals, get some experience box checked on, you know, we give him the knowledge through the education program. They know the difference between Leeds and deals, even though they have the same letters and So with the leads and dills, then they go do what you talked about, right? They go through, they build report with brokers, they maybe do some direct melts the owners, they get their deal flow up and then they find something. Then they partner get the experience box shut. And then from there, you know, the capital is the last thing to close the deal and get this thing going. So yeah, man, we we see the same thing. But I don't think it's realistic with some people are saying, And I think people get some really rude awakenings when they go into the big programs and think they're gonna just gonna go grab a big. I've only heard of one success story so far where people actually got in and did the deal. They thought they were going D'oh! Upfront. What I don't know is what happened to the equity on the back end of that?

Mike Tighe:   30:39
Yeah, No, we had. And this show that age doesn't really matter, either. There's a guy on our podcast, Cal Marquette on 21 years old and he bought a 104 units and he went through. He had a mentor port. Obviously, just like you said, Act on his own,

Jerome Myers:   30:52
your That's the show. That's the only success story that I know. That's the only success story I know of. But I don't know what how they chopped up the equity on the back end. And so, yeah, he has experience box check. But how much does he really own? And was it worth it? Or did the mentor just come in and take everything out of it? Which happens

Mike Tighe:   31:12
with the mentor? Probably have most a general partnership, but I would say he doesn't regret that decision. I think he went big and maybe it's a learning lesson. But I also think there's something to be said for what you said just partnering and just one would find attendant.

Jerome Myers:   31:27
Absolutely nothing. You're in the and this is the hardest deal you're gonna do right, because the bigger the deals, the easier it gets. But actually cutting your teeth and understanding the intricacies of it and being able to point to that success and building your credibility, um, you know, at the end of the day, when people walk in, you can actually talk about that story and what you did. Just like you guys with the 32 you know, like you're gonna be able to tell that story and all the lessons that came with it. So you could go see you guys for sure.

Mike Tighe:   31:57
And I'm sure a lot of people just want to know, Like how? Okay, when things go wrong, how do you respond? Committed? Are you guys are you guys just gonna flop when things go around? So I think just like you said that two people partner in your neighborhood wanted by attending it with your help and they experience in trials and tribulations that we overcome. That's only gonna make them better. And if they do want, eventually raise money, that's part of their story. That's part of the brand name

Jerome Myers:   32:19
it ISS and the stories matter the most when you're getting to know folks that you're bringing to the gills. And so the last question is, if people want to get in touch with you, Michael, how do that?

Mike Tighe:   32:28
So we have a instagram page, the multi family take off its way. Bring the takeoff in there because of our aviation background files on your track controllers and then my email is Mike at the multifamily takeoff dot com.

Jerome Myers:   32:43
Thanks, Mike. I really appreciate you. Eddie got drunk and it's in the end. The pack is with you. Please go out there and take down some deals and be good. Corporate citizens will talk to you guys soon. You made it to this juncture. So you really love what we shared on this episode of Meyer's methods. Presents multi family Mr Do Us a Favor. Give us a five star rating, give us a review and share this with somebody who's interested in things.