A real estate deal can involve millions of dollars. That’s why for many, syndication is the key to start investing in real estate. But, did you know that there’s actually a way for you to do a deal without using your own money? Our guest today, real estate entrepreneur Michael Gilman answered this question and more.
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Michael kicks off by sharing his background as a lawyer and how he transitioned to become a full-time real estate entrepreneur. He also talks about the reason why he chose to invest in real estate to grow wealth, how he derives his income from assets, and why he started buying cash flowing properties. He then discusses the pros and cons of having your own management company, why they chose to start their own management company from scratch, and ultimately, he gives tips on how to do a deal without using your own money. Listen now and enjoy the show!
Key Points From This Episode:
- Michael shares how he transitioned from being a lawyer to a full-time real estate entrepreneur.
- Where does Micahel currently invest in?
- Michael shares that in smaller markets, it’s hard to get larger deals.
- The pros and cons of having your own management company.
- Michael elaborates on ways you can start a deal without using your own money.
- Relationships are key in doing a deal without using your own money.
- Doing a deal without your own money is a high-risk strategy.
- How did Michael minimize the risks with this strategy?
- How does Michael raise capital now for bigger deals?
- Michael shares that when the pandemic hit, he saw it as an opportunity to pool capitals for his deals.
- Michael says changing focus to professional investors made a lot of difference for him and the way his business grew.
- Michael’s best source for meeting new investors right now.
- The most important metrics that Michael tracks.
- What are some habits that Michael is disciplined about that have produced the highest return for him?
- How does Michael like to give back?
“What kind of really resonated or affected me was just how quickly things could evaporate.”
“[It] took me to real estate because it was tangible, it was real, and more specifically at time, just cash flowing.”
“I didn’t want to trade time for money forever. I wanted to build wealth, be an investor, and derive my income from assets. I started buying just cash-flowing real estate.”
“I think the easiest way, the most common way is first you need a cash flowing property, you need a property that the cash flow is going to be greater than your mortgage.”
“The first deal is always the hardest. So obviously, that’s the important step, kind of right sizing it for what you can raise.”
About Michael Gilman
A former lawyer at Wall St. investment banks, Michael has been successfully acquiring and repositioning multifamily assets and generating exceptional returns on capital for over 10 years. After building his own real estate portfolio approaching 100 units across the northeast (self-managed through MSA Properties LLC), Michael established Cross Mountain Capital to bring best-in-class returns to sophisticated investors such as family offices, investment funds, and high-net-worth individuals looking to diversify their investment portfolios with real assets.
Before devoting himself full-time to Cross Mountain Capital, Michael was Head of Legal and Portfolio Management at Easyknock. He managed over $250+ million in residential properties and advised on legal matters related to the company and multi-state real estate business and legal issues.
Michael previously worked in legal and advisor capacities at Wall St investment banks Cantor Fitzgerald, Deutsche Bank, and Bank of America. He held Series 7, 24, and 57 licenses in the securities industry and is also a licensed real estate broker.
When he isn’t working, Michael is spending time with his family or pursuing one of his many hobbies related to the outdoors, including but not limited to skiing, trail running, mountaineering, and obstacle course races. Michael is a strong supporter of environmental causes and a member of POW (Protect Our Winters).
Michael holds a B.A. from Sarah Lawrence College and a J.D. from Brooklyn Law School.
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