WS1241: Underwriting 800 Deals to Win One with Mike Angelo | #TechandTacticsTuesday

EPISODE 1241

[INTRODUCTION]

0:00:00.0 

(Mike Angelo) MA: All the new kids that come in and talk to me, they’re like, what can I do? I said, Go learn the market, learn underwriting, because when you learn underwriting, you’re a better investor relations person, right? That sophisticated investor and even a newer investor, they don’t know anything, and by understanding the deal and the language, you can communicate better and show them one, your competence and then that gives them confidence in you to be able to say, “Okay, I like Mike, I like what he’s saying, I understand that.”

0:00:29.3 

Whitney Sewell (WS): This is your Daily Real Estate Syndication Show. I’m your host Whitney Sewell. Today, our guest, and he underwrote 800 deals before getting to the first one, he goes into the amount of hustle it takes, and there’s numerous things about his story that I hope just motivate you that should encourage you. Go make it happen. Right? Don’t expect it to happen the first time, the first try. Right? He did not quit, and he has numerous examples of that, his name is Mike Angelo, and he found NK Development Group with the desire to help others find the path to financial freedom through multifamily real estate. 

For the last two decades, Mike has had roles in executive leadership, technical support, and strategic sales for two multi-billion-dollar organizations in the construction supply business, he currently holds fractional partnership interest in 437 multifamily units in the South West. And Mike started as an LP, started investing, learning as a passive investor, and you know what, he had been thinking about doing this, but then he talks about how his position in this other role got eliminated, he didn’t have a choice but to go make it happen, and we’re gonna talk about that. Talking about his team, how he built his team, he knew he had to have all this expertise to make this business happen, but he didn’t have time to go become an expert in all those things, I mean, he underwrote 800 deals. I’m just so impressed at the level of hustle that he exhibits, and I hope that you see that and are motivated by his story. 

[INTERVIEW]

Mike, welcome to the show. I’m looking forward to this conversation. You and I have interacted on many different assets over the last few years, and I’m grateful to see this happen, I actually, have you on, and I know you have had many roles in executive leadership and technical support, and the strategic sales all these things, I think your intro, it said for two multi-billion dollar organizations and the construction supply business, and it’s like, Wow, those skill sets are pretty useful in our business, man, many of those things I’m sure you learned in those roles, so I’m looking to getting into that today, give the listeners a little more about who Mike is and let’s dive in.

0:02:35.3 

MA: Whitney, thank you so much for bringing me on the show. This is awesome, an honor and like I mentioned earlier, I would listen to you for about two years and then was it one of these days I’m gonna get to get on the show. So, today’s the day. It’s been great. My background, you know, 20 years plus in construction supply and B2B sales, so calling on contractors and selling products essentially, and then moved into leadership and all of those roles, and I think back to basically the two big companies that I work for. They really taught me what I needed to do when I went off on my own. And I had been looking for ways to exit the corporate world for a while, and I just really didn’t know what it was and how to do it, and funny enough, a good plug for your show, but I started listening to your show and I was like, huh, I could buy apartments and what, this was mind-blowing. 

And so, I came up and told my wife and I’m like, “Hey, one of these days we’re gonna figure how to do this,” and that day came right at the end of 2019 and jumped in full time, so a lot of folks do the bridge and then do double time and I just, my position was eliminated at my second corporate role, and so I had a separate package and some savings and nothing but time, and so I kind of worked through like, okay, multi-family syndication, that’s what I wanna do, and I don’t think I even knew the word syndication in June of 2090, and we’re doing our worth one now. It’s been pretty cool. It was going great.

0:03:48.0 

WS: Congratulations. That is awesome, I’m sure. Your wife said, Stop listening to that podcast. 

0:03:55.0 

MA: That’s right she’s like, what are you doing now? So yeah, she’s been a great support, but it’s been a heck of a journey and it’s been a lot of fun and I do, oh, honestly, your show has kept me engaged to listen to all the different ideas, and I probably reached out to every person you’ve had on your show, by the way, related to multi-family. 

WS: That’s great.

MA: And most of all them are, almost all of them had replied back and giving me tips and a great, it’s a great space to be in a really awesome community.

0:04:18.0 

WS: That is incredible, and I would just encourage listeners to listen to that if you have not taken advantage of reaching out to guests on shows that you listen to, I did that and I’ll stick this in here right now, probably like five years ago, I was listening to a podcast, I haven’t a clue on what syndication was, really, at that time, I was in a small multi-family, and I heard Vinney Chopra on a podcast and guess what, he put his phone number out, and I thought, well, okay, I texted him and I had loved to talk to you, I mean like two weeks later, he called me or something, we finally connected and I saw, okay, who is this guy, you know, and anyway, he become a friend… Right, but we help each other now in all kinds of stuff, so. 

MA: Absolutely.

WS: Reach out, right? I put my phone number and email out at the end of most podcasts when I’m interviewed, and very few people will take advantage of that, so I try to help the ones that do that, so I appreciate you saying that and sharing that, ’cause that is a it’s a way to quickly build your network and reach out.

0:05:09.1 

MA: Absolutely, you never know, you just really never know how they can help you and connect you, and that’s been, I think that you talked about, what’s a superpower, that’s what I can, you know, just take action. What’s the worst that can happen, right? So, you got a 50-50 shot.

0:05:21.0 

WS: That’s right. so, your position, you said was eliminated me, you pretty much had no choice, right, thankfully, I think you had been thinking about this real estate stuff and moving in maybe that direction, and so you just pretty much got pushed, right, in a big way.

0:05:36.2 

MA: In a great way. It was the best day, honestly, there was a writing on the wall. So, I knew it was coming, so it wasn’t a shock. And we had financially planned and prepared for whatever that day could come, but I didn’t know if it was gonna be multifamily, it’s the month of December off, and I was like, I’m gonna buy a pull business, I’m gonna start a laundry mat, I’m gonna do all these other crazy things. And she’s like, just pick something. And I also had four corporate interviews lined up, that I never went to.  To basically do the same job, and I just put, my body was freaking out about going back to the corporate world, I said, this is the window I have, and if I go back to another role then I’ll never do this. 

WS: Yeah. 

MA: And so that was the great push that I needed to get in there.

0:06:14.1 

WS: I heard so many stories where people lose their job or something like that, and it’s like, man, it’s now or never. Sounds like man, you took advantage of that and you did well, you know, tell me if the first couple of steps maybe you took that the listener could take as well as they’re plunged into real estate, potentially.

0:06:32.5 

MA: Yeah, so I knew nothing about multifamily at all. I knew real estate, I flipped some houses in the pre-recession and those were a disaster, one was good, a bunch of them are bad, and my wife is still angry about those, but, yeah, I knew nothing about it, so I listen to a ton of podcast, YouTube videos, I found an education platform to join, there’s some of the big guys that are out there invested in myself into that, and that was what I would say, out of that education platform, I learned all the terminology, they’re vernacular, you gotta know before you just pick up the phone call brokers, you gotta kinda know what you’re saying, and it’s part of it is, they say, “Fake it till you make,” to kinda give them a clue of you’re not just some total newbie. I learned the vernacular, I learned to, this is right before covid, so the first couple of months of 2020, I was trying to find every networking session I could find in person here in Phoenix to just go and immerse myself, and that was my job, I didn’t have anything else other than take the kids to school and make lunches so I was doing the dad thing at home and real estate, so that was a good six, seven months of grinding, and finally got in front of brokers, got deals coming in and they say, What do you bring to the table? So, if you need a key experience to be able to be underwritten for a loan, I didn’t have that.

0:07:47.3 

MA: You have to have a good balance sheet to qualify for a loan. Well, I didn’t have that. I was trying to find deals and I could underwrite and I was learning to underwrite, so I said, okay, well, maybe that’s a skill I could bring to a team. And so that’s what I did, I underwrote tons of deals, and I just reached out to other key principles to say, “Hey, what are you looking for, what markets are you interested in? How can I partner with you and bring value to the table?” 

And so that was a good six, seven, eight months of grinding, and I don’t know, I think I underwrote 800 deals in 2020. Yeah, a lot, a lot. I can underwrite now, but it’s not something I enjoy, it’s just something I had do ’cause I didn’t have the full liquidity to be able to go do that, and along the way, again, I found operators like yourself to say, if I wanna be an operator, I should understand what it’s like to go raise money and be on the LP side, the limited partner side, so I invested in a couple of projects and that was a great experience and I can see what worked well, and then I interviewed probably 10 or 15 other operators, and I just took some best practices, called it, to see if I build my own model from scratch. What do I want it to look like?

0:08:47.9 

WS: I wanna get to some key things that you said, but I wanted to ask you right there, you said you took away some best practices, give us two or three of those that you learned that. You know what, I love this. You don’t have to say the operator, but like I love this and I wanna do this in my business as well.

0:08:58.7 

MA: I think one of it, it was ease of investing, right? When you’re getting ready to deploy your capital, that’s a big step, and many times, most folks don’t have a personal relationship with that operator they’ve heard of on a show, they’ve seen them somewhere, they read about them. And so you’re trusting them. And so I was one, I think familiarity with that person is key, but then the portal, the investor portal is the biggest take away for me, ’cause you’re signing these documents that you really don’t know what what you’re really looking at. And they made it easy. And so we actually adopted the same platform, and all of our investors on our last couple of deals have just said, man, it’s a pretty seamless process. And I said, “Yeah, it’s because I was on your side of the table and I wanted to make it a seamless process.”

0:09:43.4 

WS: Would you mind sharing the platform? 

MA: Yeah, InvestNext. 

WS: Awesome, awesome. We use them as well and yeah, think of a lot of them. They just continued to improve. We’ve used them a couple of years now, and it’s just getting better and better.

0:09:55.2 

MA: Lots of good support and they walk you through it, and I know what I was doing, and so it’s been really good to use that portal, and we were very happy with the feedback from our investors too.

0:10:03.5 

WS: Awesome, I love sharing things like that with our listeners because often times you’re like, Well, okay, you said It was great, but which one is it? Right?

0:10:09.8 

MA: Which one is it? Yeah.

0:10:10.8 

WS: We love InvestNext, and that’s funny that you bring that up because I’m actually interviewing one of the co-founders today as well of InvestNext. That’s cool. Okay, so I wanted to get to, you mentioned there’s many positions you figured out you didn’t have, whether it was KPI’s, balance sheet, all those things that you were to figure out, Okay, we’re gonna buy multimillion building. Well, it’s a little different than say, buying a duplex. Right. And all of a sudden, man, that could have been so crushing almost, right? It’s like, “Well, how am I gonna find these people?” Or, “How am I gonna fill these roles?” Do dive into that. How did you do that? How did you get past that? 

0:10:43.9 

MA: So I think the education platform, I mentioned right, they kinda walk you through, one, what do you need, what’s your checklist of activity, they don’t just tell you to go start calling brokers, you gotta have a plan and have a team built, so we didn’t have a team when I was calling all these brokers, we were working on building the team, and so it was really a lot of swings and a lot of strike outs to again, I mentioned I reached out to as many operators as I could, and those guys will get blasted by a lot of people, and I’m fortunate to say people are calling me now to do the same thing, and so I’m trying to find a way to give back and help, but early in the journey, it was a lot of struggle, and I think the one thing I was able to do is to say, Hey, can I put offers out in these markets, I’ve learned this niche market, I’m not trying to find apartments all across the United States ditching down to the south west, specifically Arizona, New Mexico, these are the two big cities, and I know I spent time there, I have experience there, and this is the type of asset I’m going for, and I’m going from a two million to a 200 million deal on eight to 12 million, and this is the space that I think I can bring the best value, if that’s the space that they operated into, so I was trying to figure out what do you like to buy? So I can find a deal and send your way, and again, lots of strikeout though, but eventually I had a few guys that say, “Hey yeah, we’ll do a deal, he’s our bio when you put an offer in send this with your LOI, and that will help build credibility.” And so we just did that and like I said, I think I put 800 plus 9, 8 in our offers in underwrote that I probably offered 150 offers out there in 2020. And we had one LOI accepted.

0:12:19.6 

WS: Wow, did you close that deal?

0:12:20.8 

MA: Yeah. We did close that deal. Yeah, we closed that one. We had one after our loan, which we walked away from for a lot of good reasons, but yeah, we closed the first one, which is awesome, and then 2021, we closed two other deals and we’re getting ready to close here about two weeks, man or 200-unit deal. So super excited. It just took a while, and it does, and this is a game of resilience and not giving up because it’s tough.

0:12:43.5 

WS: It is. I just think it’s an amazing story, right, 800 deals, underwriting 800 deals and submitting, would you say a 100 plus LOI’s and getting one accepted. Well, I guess what, you got one accepted. And you gotta close. Congratulations, I’m just not giving up. I just love stories like that, so you started network, you started meeting people, you started figuring out those team members, I guess, ’cause the question I get off and I was like, well, I don’t have any experience, I’ve not done a deal yet, I know I need these team members, I know. How do I get that operator to take me seriously, to give you their bio, like you mentioned, be able to say, hey, send this with your LOI. So they’ll take you more seriously. How did you build that relationship to make that happen?

0:13:28.5 

MA: I think it’s proving to that operator that you do bring something to the table, everyone is busy, and the last thing season operator’s gonna wanna do is put their bio or their reputation at risk for somebody they don’t know. So you have to figure out, again, what is, dig deep and figure out what is the skill set, and I kinda mentioned it, if you have capital, you can help raise money, that’s one piece. Much more difficult and the art actually do that. I think underwriting, all the new kids that come in and talk to me, they’re like, what can I do as a go? 

Learn our market, learn underwriting, because when you learn underwriting, you’re a better investor relations person, right, that sophisticated investor or even a newer investor, they don’t know anything, and by understanding the deal and the language, you can communicate better and show them one, your competence. And then that gives them confidence in you to be able to say, okay, I like mine, I like what he’s saying, I understand that, and I think that’s the skill set that I focused on, and I think anyone knew it’s the easiest one. By the way, right, it’s not the easiest on the lowest hanging for lowest cost, right.

0:14:30.5 

MA: But it’s not easy ’cause it’s a lot of grinding and going through the same thing, and when that deal turns green, you’re like in your spreadsheet you, depending on the tool you use, if it’s green, you’re like, Oh man, did I mess up. ’cause I’ve never done that. Right, and learning how to manipulate those spreadsheets to understand the levers that you can pull, those are very nuanced, and you can only do that if you know the markets that you’re in and are they growing markets? Sub-markets, yeah, there’s so many pieces to underwriting, but again, I don’t love to do it, I just had to do it, and now I have folks helping me do it, which is fantastic.

0:15:04.6 

WS: But let’s talk about that. Talk about the folks that you mentioned folks, how did you find them? Tell us about your team. What does that look like as you’re starting in this business to be able to start to scale ’cause this is a team sport. We’ve talked about that so many times on the show, I can’t stress it enough. It is so much about the people you surround yourself with. How did you do that? How did you build your team? How did you find people? Let’s dive into some of that.

0:15:27.0 

MA: I was going, so a quick story, I mentioned, I had an KP that says, Hey, let’s partner, I met him on Bigger Pockets, and so we went after a bunch of deals, and I had a deal here in Phoenix that I was best in final in, and so that was my first deal, best in final, I was super excited, all of a sudden he says, Hey, he was out of the Midwest, he says, Hey, I can’t be part of this deal. And I was like, Hey man, we’re investing final. He’s like, Sorry, I’m out. 

And so I had zero partners, right. He was my KP balance sheet experience, etcetera, and that was out. I went on our Facebook page, which is the part of the mentorship group, and I just put out there, I said, Hey, best of final, I have this 80 unit deal here in Phoenix looking for help. And Michael, my brand partner, reached out and says, Hey, I’m in Phoenix too. Let’s talk and I might be of help, and so he connected to us to another key partner that she brokers loans, and we got on the phone and we were able to put the packet together and send it in, we didn’t win that deal, but we were able to save our reputation by being able to do that, and so that fostered into our team, and so that those two guys were on our first deal, and then our other partner, he was actually an investor that I think I met on Bigger Pockets or on our first meet up and we just talked, and we didn’t actually meet until December of this year, so almost two years of talking and working together on Zoom, We finally met in person, so we have the core team is basically myself and two guys, and just again, through lots of communication working on deals, the second one invested with us first, then became a KP with us, and then we’ve expanded out, so I mentioned all these in-person meet-ups here in Phoenix.

0:17:01.5 

MA: I met our other few partners, one is helping me underwriting now doing Becker relations, I’m not paying them, they’re working with me, and I’m actually helping to find his first deal in Oklahoma City, just, he’s 23 years old, and he bought a 16-unit complex and basically didn’t syndicate, joint venture, I connected it with some investors and walk them through the deal, and I’m so proud of him of what he’s done at such a young age, so I could be his dad, I’m much, much older than him, but it’s amazing to see what he’s doing again, mid-20s, so he’s a fireball, and we have a few other folks that we’ve connected with that are on our team, and they just, we all have common goals, and so everyone knows and everyone has different streams of revenue, so they know that this project is coming out of the ground, it’s gonna take a while to get paid compensated, but everyone has a piece of card out for equity. But that’s how we’ve done it. Right, that’s how we’ve done it, and I’ve been blessed to be around again, really great people with better skill sets than myself.

0:17:56.0 

WS: Yeah, that’s awesome. And I wanted to point out too, you mentioned this guy backed out, who is your KP, your balance sheet you’re expressing, and it’s like, Man, that could be kind of devastating again, but you didn’t quit there, but you had already surrounded yourself with a group, it sounded like her a mentoring program of some kind, and I wanted to point out, ’cause I feel like this is often a part of a mentoring program that’s not valued, is the network. Right? People do not think about this mint. 

This coach, whatever you wanna call them, they spend a lot of time and effort like building their Rolodex, right, and you’re really paying to come into that right, but it is so valuable. It’s so valuable, I’ve so many people or mentors, I would call them now, that I can reach out to and say, hey, who do you use this for or who do you use to do this. Right, and that saves so much time being able to just go straight to the person they’ve already vetted or used, so valuable, but in this case, you needed this person who could act as that KP and have the balance sheet, and you went out there to this group that you had already become a part of and found that person.

0:19:01.3 

WS: Right, and that led to more things or bigger things, but, ’cause often times you would say, I don’t wanna spend the money on a mentoring program or those things, and you’re investing in yourself, and you’re investing in things like that that I think at first are hard to put a monetary value on it. And so you did that you met this individual through that group, or I guess speak to that a little bit, how did you kind of vet him to know that hey, this is somebody that I should move forward with, or was it like, okay, we gotta do this deal potentially, and he fits the criteria that we need, we just gotta do it.

0:19:34.1 

MA: No, and so you totally get up the ballpark in the education that you get out of these programs, it’s not worth the price you’re paying, but the network is, right, the network absolutely is. And if you just do one deal, your tuition cost is more than covered. Right? With this person I mentioned, he’s helped a lot of these students out over the course of a year, so he’s very well-vetted. Great brand in the industry, and so I knew him, but I didn’t know him. And so, I got connected through him, but this introduction that for again, Michael, my future, my current partner, that was how ’cause he was able to talk to him. And he’s in high demand. So, it was kinda hard to get a hold of them. 

But that’s the power of the network, I would say. And they do these annual events, you just went to one here in October of last year, and now we have another group of folks that we could potentially partner with on the next scale of deals, so if we’re in the, again, everything’s an evolution, if we’re not chasing 20 unit deals, we’re trying to say in the 60 to 100 plus units, we just put an offer in on a 350-unit deal that there’s no way I could have thought about it’s like over 100 million to go after that, and I’m like, how am I gonna do that? I need a team and now we need a different team, and so it’s been really fun to kinda go from the smaller stuff to the medium stuff now, or chase an institutionally quality product faster than I thought we would. 

We pivoted and we actually, I always wanted to be in development, that’s the name of our company, is NK Development Group, but I didn’t have any business in development, I have no experience other than I sold products to construction guys, that was the span of my experience. But we have a development company where we bought a piece of land and we’re gonna build apartments, but I found a developer that did that, and he liked me enough to wanna partner with me and shared the vision again, and it’s the same thing. 

Anything is possible, you have to know kind of what you want and you’re not gonna know every step, but you gotta move forward and figure it out along the way, and again, find experts and get them to share what they do and again, you never know, they might wanna just partner with you. And I think the hustle is part of why people wanna partner. You gotta be able to hustle, this is not an easy game, and you can’t sit back and post an ad and expect deals to flow through. Right? 

0:21:37.8 

WS: Yeah. I love that. You do have to be willing to hustle, I just think as an entrepreneur, that almost has to be your middle name. (MA: That’s right, that’s right.) You have a background in construction and supply, and maybe you expect this question, I’m not sure, but I just wondered about your thought behind the ongoing supply chain crisis and particularly in obviously construction materials and being able to get those things. And what are your thoughts about that and what that looks like over the next six to 12 months?

0:22:06.8 

MA: Yeah, I don’t think anyone expected it to be as bad as and I’m not an economist or a supply chain expert, but knowing that, we’re working on a project right now trying to get a bid for 17 unit department complex, and our pricing is going from here to here, right, and everyone’s pointing to materials, materials are part of it, and we know that there’s issues with imports and production, the production lag that Covid started, but it should get better. It should, the challenge we’re not fixing yet is labor, the labor shortage is legitimate, but there’s a lot of folks exited blue collar work and went to do something else, which is phenomenal for that, it’s just really, I don’t think anyone realized the impact of it, right, so you probably feel it at restaurants and bars, you don’t see on the back end of, hey, why does it take so long? 

Well, if there’s less production workers, there’s less product, I think that’s gonna be an issue, but think it also the construction supply space, especially raw goods like lumber, they were always very low margin product, and I think this was an opportunity for those producers to increase their margins, not to say any negative. I don’t have any friends in that space, but I think there’s an opportunity to say, hey, everything else is going up, why don’t we do the same thing, and we, as the end users, are the ones paying the bill. Right, for that. And is that the cause of inflation? I think that’s part of it honestly. Every inflation is a natural thing, but I think this was a little more artificial forcing of goods to go, hey, which we have an opportunity to make some more money here and let’s do that. That’s the right approach.

0:23:33.3 

WS: Yeah, I know, just to get your take on it, since you do have more experience in that field than any of us, probably. So, Mike, what’s been the hardest part of the syndication business or process for you just getting in besides underwriting 800 deals to get to the first one.

0:23:49.4 

MA: I think finding the right partners. A lot of folks don’t realize when you buy an apartment, in this syndication, you’re married to your investors, your GPS, which we’ve had, I’ve seen now four deals from other folks fall apart because there’s a disagreement, so as if anyone’s looking to get in the business and you have to be able to understand who your partners are, vet them, just like your investors vet you and understand that you’re getting married for three to five years, depending on your business plan or longer. Right? And that is hard to do because you kind of date as you get to know each other and you don’t really know what’s gonna happen until something bad happens, then everything’s good. It’s just good. So, I think that’s the hardest thing, to be able to put some trust out there and go, okay, I feel good about this person, and then build that camaraderie to go after deals together, but that’s tough.

0:24:39.0 

WS: Yeah, no doubt. It is tough, and I love that. You said it’s like a marriage. It is, you’re together then for a number of years, for sure. One way or another. What would you have done differently? Say on that first deal or the first couple of deals, anything that you could say, hey, you know what, I wish I had known this.

0:24:53.6 

MA: Exactly, the team piece. I spent too much time looking at four deals without anyone to take him to, and so I should have slowed down and focused on, hey, let me build this team first, and that way we could have probably accelerated our time window, but in retrospect, I don’t know if I would do it differently Whitney, I think all of the things I learned along the way, and a lot of those speed bumps were good speed bumps, and if we had maybe earlier success, it could have been good, but it could have also maybe made us a little bit jaded or tunnel vision of, Hey, these are things that you’re gonna experience that we didn’t get to feel some of those pains, maybe we helped ourselves to not feel those pains ’cause we didn’t get too bullish into something or yeah, I don’t have any regrets. I think it’s been a great journey. And should it have been, I told my wife I need a year and a half to two years. So she knows I always underestimate. Anyway, so it’s good.

0:25:42.9 

WS: That’s still a success though. It, that’s incredible. What about do you have any predictions Mike, just for the real estate market over the next six to 12 months?

0:25:50.6 

MA: It’s insanely heated. I think the markets that are growing in population because of job growth are gonna feel, are gonna be less more insulated, more insulated to whatever it changes come, I think it’s gonna be a global impact, whether it’s currency-related, I don’t know, Is it gonna look like 2008, it’s hard to say, but we all know the asset prices are through the roof. Single-family is an easy one to point out, but even in multifamily, you know this, it’s really hard. I live in Phoenix, I can’t buy a deal in Phoenix, we’re building in Phoenix because the replacement cost at this point is less than buying a “value-add” that’s 40 years old, it’s at the same price point, and that’s a strange place to be, so how do you do it? 

Our vetting process is purely, again, everyone says under it conservatively, but it does a cash flow on day one or close to cash flowing, how do we ride the storm out. Align your debt correctly, the fixed versus variable deal, there’s so many to that risk interest rate will probably go up, which will likely soften the market, but again, you have this artificial push to keep it down, so it depends on how hard that push is, right. Do we have another 12, 18 months runway? I think, I hope we’ll build a department, so I hope so, but it’s hard. I think something will correct, I just don’t know if it’s gonna be on that grand of scale, that was prior.

0:27:11.0 

WS: What’s your best source for meeting new investors right now?

0:27:13.7 

MA: So, we do a monthly meet-up actually tomorrow, in virtual and in person, and so that’s been a great experience, it’s kind of our way of giving back to. And we have to educate the public and some sophisticated masters too, they’d like to join us, so that’s our way of today, we’re trying to figure out a way out of scale actually, and so it’s a good, my partner and I talk about this yesterday, do we do email campaigns and SEO and all kinds of good stuff? 

We’re not there yet, but right now I love the in-person, whether it’s virtual or being able to shake someone, and that’s how we wanna grow organically, and we don’t wanna have 10,000 investors, we really don’t, I wanna know each and every one of them and have a relationship with them.

0:27:49.2 

WS: Michael, what are some daily habits that you are disciplined about that have helped you achieve this level of success? 

0:27:56.0 

MA: The gym. So 5 a.m or 5:30 sometimes, if I don’t work out, there’s such a correlation between this business entrepreneurship and health, and I’ve become healthier since leaving my corporate world because I’ve found a way to, number one, this is a really stressful job, and so you gotta find a release, and I think it’s getting to the gym in the morning, and if I don’t work out, I don’t feel good. Throughout the day, I feel foggy and I have my coffee cover here, but coffee doesn’t do it, it’s getting out, getting the heart going. That’s my daily habit, I got to do that. And then the rest of thing is awesome.

0:28:25.3 

WS: How do you like to give back? 

0:28:28.1 

MA: Our meet-up is one big one. So that’s free. We do charge. We charge a small entry fee, but all of those funds, it’s 100% donation to a group called The (inaudible) Foundation, it’s a organization here in Phoenix that basically helps young children going through cancer treatments, they provide services and support and counseling, and so I think to date we’ve piped up about $3,000 in, so not a lot, but we just give every chance we can, so we promote that through our meet up, I’ll take our sales call through there, and then we just did a weekend is this weekend we took my daughter and a couple of our friends went and spent the day with the family is helping them again, we had a little work stations, it’s their way of giving back and spending time with those kiddos.

0:29:13.4 

WS: Mike, I appreciate you giving back in that way, but also just giving back to us to say all of your story of how you said your position was eliminated, it’s like you were pushed into this business and maybe where you may have tipped toed before. Right? And it’s like, hey, you have to go make it happen. And I feel like sometimes that’s the best position for us to be in where it’s like you don’t have a choice but to step out, be a little uncomfortable and work through that, and you did many things, and I just appreciate you being real and transparent about these things. How you found, this KP or this guy that the balance sheet back out last, man, all these things, 800 deals under it to get to one. That’s just real. 

And you talked about the hustle and you have expressed that in so many ways of how you had to do that, and now you’re looking at deals, would you say that are 100 million or so that’s just like I want the listeners to think about that. It didn’t start there, right. And neither did we. And there’s just such a time in the beginning where you just gotta be willing to hustle like Mike talked about, and I just appreciate your transparency around that, tell the listeners how they can get in touch with you and learn more about you.

0:30:09.7 

MA: My phone number, it’s 9-0-9-7-3-0-5-0-9-6. Text me, call me, I challenge you to do that again, that’s the first thing I said on the show. And do that. Very few people take advantage of that. I’m on LinkedIn, just Mike Ashish Angelo, and you can email me at [email protected]. 

Thanks, Whitney. It’s good stuff.

0:30:30.1 

Whitney Sewell: Thank you for being a loyal listener of the Real Estate Syndication Show, please subscribe and like the show, share it with your friends so we can help them as well. Don’t forget to go to LifeBridgeCapital.com, where you can sign up and start investing in real estate today. Have a blessed day. 

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