S3E11 – Matt Hansen – How to turn $50K into $100K in 2 years

Key Timecodes

• (01:02) – Show intro and background history.
• (02:02) – Deeper into his background and real estate business
• (04:08) – Understanding his strategies
• (06:06) – The different approaches to working with real estate
• (08:16) – What are his preferred real estate sizes and locations
• (09:58) – How much time and effort is required to renovate the units?
• (11:41) – The advantages of investing in real estate
• (13:07) – What are the return expectations for investors
• (15:39) – What is the minimum investment?
• (16:39) – What are the funding sources?
• (18:01) – The “renovate to sell” strategy
• (21:08) – Few thoughts about financial planning
• (27:00) – A major key takeaway from the guest
• (29:40) – The worst advice he ever received
• (30:50) – The best advice he ever received

Transcription

[00:00:04.090] – intro

Hey, this is Sean Tepper, the host of Payback Time and Approachable and Transparent podcast on business investing in finance. I’d like to bring on guests to hear authentic stories while giving you actionable takeaways you can use today. Let’s go. My next guest retired from the corporate world in his mid 50s by investing in real estate. As he’s says on the podcast, he could have retired in his 30s if he started in real estate in his twenty s today, he manages a real estate portfolio of 2000 plus units, which is available for both accredited and non accredited investors. His specialty is short term deals where in some cases, investors have turned 50K into 100K in about two years. If you have a steady paycheck and are already investing in the stock market, you are well on your way to building wealth. Now, if you want to complement your stock investing strategy by generating passive income through real estate, this episode is for you. Please welcome Matt Hansen. Matt, welcome to the show.

[00:01:04.680] – Matt

Thanks so much for having me, Sean.

[00:01:06.330] – Sean

All right, well, why don’t you kick us off and tell us about your background?

[00:01:10.010] – Matt

Well, I’m your typical Midwesterner, went to the state college, went off and got a corporate job and worked on that for about 33 years. I retired a few years ago at the level of a global director. Worked my way from the very bottom of the company all the way to the top, but took me 30 some years. So it’s kind of my business background, responsible as a global director, responsible for profit and loss, global logistics and things like that for a large Fortune 100 company. And then my side hustle now is real estate. Retired and my wife and I have been investing in real estate for like 30 years, but the last seven years I’ve really focused on large multifamily purchase. That’s kind of my background in a nutshell.

[00:01:50.430] – Sean

No, that’s good. Can you give the company name or at minimum, chemical?

[00:01:55.790] – Matt

Got it.

[00:01:56.360] – Sean

Okay.

[00:01:57.250] – Matt

Larger chemicals in the world, right?

[00:02:00.020] – Sean

Worked your way up there, great corporate experience, and then in parallel to that, started investing in real estate. So there’s a lot of listeners on the show that they’re in a very similar spot. They have a full time job, a lot of corporate workers here, and they are thinking about ways to exit the rat race. How do I start building some passive income? So I think it’d be fun to hear. How did you do that? So how did you get started with real estate?

[00:02:25.570] – Matt

It’s a really good question. I did Fix and Flip years ago before our kids were born, and then we stopped and then went off to college. And then about seven years ago, I got back into real estate and I was listening to a podcast while I was renovating in a house. And I did most of the work myself because I’d hold it for a full year, so I don’t have capital gains tax, blah, blah, blah, long term. And I heard a podcast about possibly investing in real estate. What? Hold it. And it’s basically like, you buy a business, you have investors come in, you run the business, and it’s kind of like a six year flip. We buy something that’s decent but just needs renovations every four or five years. You need to renovate an apartment complex. And so over those course of those years, you renovate it, increase the rent, and you increase the value of the property. So while I was doing these flip and thinking, hold it. I’m a business guy. That’s just business. There’s no manual labor involved. This just sounds great. So then about seven years ago, I got involved passively investing first in a lot of deals, and then I end up starting running my deals quietly while I was still at my corporate gig because they couldn’t know I did this, even though there was no true conflict of interest chemical company, real estate.

[00:03:32.920] – Matt

But it didn’t look good for an executive to have a side hustle. And I worked for a VP at the time. He said, no, you can’t tell anybody you’re doing it. So I kept it quiet for about four or five years while I was still working, and I was able to run deals behind the scenes and passively invest and made a ton of money doing that. But I had that runway before I retired, and I’ve been retired for two and a half years or so. So you can do both. You got to do it quietly. And real estate is a great way to do it this way because it’s all business stuff. You’re not doing anything physical. It’s all mental. Running the business, analyzing deals and things like that.

[00:04:09.070] – Sean

And we talked about this offline this podcast. We like to dive in to the nuts and bolts a little bit here.

[00:04:14.760] – Matt

You do.

[00:04:15.730] – Sean

And I like to go there. I love that, though. For the listeners out there, a four to five year side hustle matt did while working in executive level job. It’s not glamorous. People think they can start their side hustle, and in three months, I’m out of here. I’m pulling the parachute, and I’m out of it. Does not happen that way. So look at you. That fortitude to stick through. All right, so let’s dive in here. Where did you really start making somebody? Was it like a single family home, maybe a multi unit?

[00:04:47.610] – Matt

It was the large multi family. We used to flip house, and I live in a little town in Michigan here, and we would make sure, oh, I think the worst deal 12,000, the best 30 or 40,000. And I would hold it for a whole year, and so I just took mine. It was a hobby. It was kind of a fun. Kids were off to college. My wife would come in and help pain and stuff like that. So it was just kind of a side hustle that wasn’t super lucrative because it was picking up my spare time, but it was fun. But when the passive investing in real estate and even actively investing in commercial real estate in large apartment complexes, it isn’t you’re not at a site, it’s you’re on the phone dealing with the lender, dealing with the insurance broker, dealing with the lending broker, the legal team, the property manager, asset manager. This is running a business, and this is what I’ve been doing for 30 years. It was easy. It’s fun managing people, managing projects. It’s an easy transition for me. So you hear people, like going from single family home to large multi family, not the same.

[00:05:47.220] – Matt

That really isn’t applicable because one is an active real estate investor, the other is more passive. And you do some work, but it’s all mental work and there’s no physical work. I don’t deal with contractors directly and all that. That’s kind of how it’s set up. And you do have the ability to do it sitting at your home, at your leisure, in your study.

[00:06:06.870] – Sean

I like what you stated there, the two different strategies. One is kind of a no go, and the one is you definitely want to gravitate towards, just to reiterate for the audiences. And we’ve had other people in the show talk about this too, is there’s fix and flips, which is a lot of labor, a lot of time, right? And if you like that, sure, you can do it. But in most cases, it can be a lot of work with not a big payout. The other one is where you’re the landlord of like, maybe a single family or a small multi family, like a four plex, and you’re fixing toilets. You’re dealing with tenants, and that’s not fun either. So you graduated to the stage where you’re doing actual real estate investing. You’re bringing investors to the table, it sounds like, to invest in a larger property. What size are we talking about here?

[00:06:58.580] – Matt

We just closed in a deal a couple of weeks ago. It was a $40 million property in Jacksonville, Florida, 227 units. And we like to buy the Class B stuff. The A is like the luxury apartments the super rich live in. And then the C are workforce housing, which are good, and we do with some C plus stuff, but the B is like the middle. So when the economy is really good, the people that are in the C’s move up to the BS. When the economy is bad, the people in the A’s move down to the B. And so we’d like to be in that sweet zone. And these aren’t heavy renovations. It’s called value add. Our value add is usually $5,000 of renovation per unit. We’re not gutting on walls and all this stuff. We’re putting in new flooring, maybe some countertops and painting and making it in a nice environment. And what we always do is bring in our own property manager. So we have some of the best in the business because typically somebody’s been managing the property for years and years. They get complacent, they don’t see the opportunities for improvement like low flow toilets and water.

[00:07:55.180] – Matt

We do energy conservation things. We always take great care of our tenants because we know where they pay the bill. There are some strategies there. We have a sweet spot. We specialize in value add, large multi family, and mostly Texas, Florida, Arizona, areas where there’s population, employment growth. We’ve got a predefined model that we just cookie cutter. We’re doing deals all the time.

[00:08:17.390] – Sean

Thanks for giving in locations. That was my next question. With some of the states you’re looking at to drill in a little further to the individual cities, are you looking for properties that are in like this? Maybe middle class, working class, maybe near large corporations going to that a little bit?

[00:08:35.350] – Matt

Yes. Location, location. Just like any real estate, it’s location, location, location. So employment growth, population growth, specifically like Jacksonville, Florida is like the number two best rental market in the United States as of last year because there’s so many people moving there, so many corporations moving there. So we always look at employment and we look for mostly the workforce, professional type housing. We don’t do student housing, which I have some friends that lost their shirt on that during COVID or. We don’t do senior housing, which is a totally different beast. Those are all fine. You can make money at those. We don’t do military housing. We specialize in just your average workforce type housing professionals, office, professional type people, medical professionals. So it’s really important. Like some of the properties we just sold in Florida, three of them we’ve sold this past year that we bought Pre COVID, we doubled the investors value. The returns you put 100 grand in, you end up with like 112,032 months. That’s phenomenal. Our returns now, I say our business plan is six years. We’ve been doubling investors money in two to three years, in this last few years.

[00:09:44.300] – Matt

But I set the expectation now probably going to be the full business plan of six years to double your money. Risk adjusted. That doesn’t happen in the stock market, right? It’s backed by real estate, a physical asset. It’s insured by our brokers, our insurance broker.

[00:09:59.130] – Sean

From the moment, let’s say you get investors to help buy a property like this 200 plus unit example you were giving from the moment you let’s say you close the deal to renovate, how soon can you go to market and start bringing people into that unit? Is this like a six month or a twelve month process to kind of renovate those rooms and get them ready?

[00:10:21.430] – Matt

Great. Crest and Sean and something that large, 227 units, it’ll take us close to three years to renovate. All we’ll do like, and it depends that labor is an issue right now. Materials are becoming more available. So as people move out, we never evict as people move out, we’ll renovate. So it depends on that. If we’re turning a lot of people, we can turn more units, and then as people move out, then we renovate it. And usually we can renovate in about 30 days, and then we bump up the rent slightly. And that’s, over the course of our business plan, is usually six years. That’ll be your money in six years. Now, we’ve been able to do that in 24 months. So if we meet our business goal in 24 months, even though it’s a six year plan, we’re obligated to our investors to sell the property. So then we sell it. We give them all their money back, plus all the profits from the sale, because they get 70 or 80% of the profits. So they love that. It’s going to be I get complaints like, hold that. You only had that for two years.

[00:11:14.960] – Matt

Years. Now your money is back and I doubled it. Now you can roll all that into another deal. And we have a high retention rate once you’ve invested. It’s addictive. I passively invest. I passively invest. Totally forgot. 50 grand. And one of my friends multifamily large multifamily deals, I think it was 38 months later, he gave me back $106,000. Where do you do that? And it’s all backed by real estate. I’m pretty bullish on it. Pretty bullish.

[00:11:42.660] – Sean

Yeah. It certainly sounds like well, I’ve had plenty of guests that are on the show that are in real estate. And as our audience knows, I’m big into the stock market. Great tool to use component interest to build your wealth. But the downside of the stock market is you’re not really producing that residual cash flow. Right. You can with like I won’t go into it in this podcast with covered calls, but again, that’s advanced stuff, options and stuff.

[00:12:11.610] – Matt

Yeah, I’m familiar with all those. You didn’t need the Fibonacci method and all this stuff. Advanced stuff. Most people aren’t going to go that far unless you really want to. That’s even more challenging than active real estate.

[00:12:24.260] – Sean

Yes. Now, with your real estate, your fund, is it limited to accredited investors?

[00:12:30.690] – Matt

We do both. The last one we did was a fairly big deal, was for credit only, but that’s the only one I’ve done that way. And I probably won’t do another one because you’re allowed to advertise that one. It was great. I could publicize it, but most of our deals are called 506 BS, which are friends and family people. We have an acquaintance, we have to have the SEC were regulated by the SEC, so I have to have a relationship before I can give them an offering. Just because I need to make sure that they’re financially sound. I’m not taking their last $50,000. That they’re a sophisticated investor. They know what they’re doing. There’s very rigid rules that we follow investing because we are regulated by the SEC.

[00:13:07.800] – Sean

That’s good to know. And I’ve heard that classification many times before is you can be accredited or you can be sophisticated. So to know that you’re vetted a little bit based on a personal relationship, showing some level of sophistication you know how money works and you know how a compound interest works. You also know that if you invest 50,000, you’re not getting that back tomorrow. Like you’re committing to us. Right. Maybe speak to that a little bit. Like if somebody puts in 50 grand. You mentioned the six year plan, but what kind of expectations do you set with your investors?

[00:13:39.850] – Matt

Oh, that’s so important. It’s so very important because I have investor calls. I have a dozen a week or whatever. And I always make sure are you fine with your money being locked up for up to six years? And if you’ve got a kid going into college in two or three years, this is not liquid. It’s not like the stock market. You can’t just sell it. There’s an extreme hardship. But if somebody’s like really destitute or something’s crazy happened in their family, yeah, the partners will usually pull our money together and give their money back. But I think than 15 deals, I don’t think we’ve done that one time and it was an extreme situation. So anyways, always know that your money is going to be tied up for six years and you can lose your money. I mean, I’ve done 15 deals and I had a capital call when I passively invested in and this is terrible. This is how terrible it was. That capital call was because one of the people I invested when walked away from the deal, the general partners that were running it, I only vetted one person and there’s three partners.

[00:14:34.010] – Matt

The one guy I knew really well, the other two I didn’t. Well, the one guy I knew really well stepped away from the deal after six months. The other two kind of ran into the ground. They weren’t following up with a property manager. Our Occupancy went from 95 down to 75 in a couple of months because of the property manager. So those things like that happened. So the worst case, there was a capital call. They wanted another $10,000. I had $100,000 into it. I said, I’m not going to do that. So they diluted my shares. So three years later, they sell the property. They turned it around, they sell the property. And I made a profit of $62,000, but I should have made 100,000 on it. That was the worst case scenario on that one. And again, occasionally the deal can go really sideways, but all of our deals are vetted by a lender. A lender is not going to give you a $40 million loan unless it’s profitable. The insurance company won’t insure unless it’s a safe property. It’s in a good location, and you’ve got all these safety nets. And the property managers there, they want to make money.

[00:15:27.210] – Matt

They’re behooved to perform well. So you’ve got all these other third parties that vet our deals before I can make an offer out to my investors, you remember? Yet you have these some other safeguards. There other industries watching out for us.

[00:15:40.480] – Sean

No, that’s good to know. There’s less risk. There there’s safety. That creates a little more peace of mind for the listeners as well as myself that, hey, this is just not some property where we’re throwing a dot on a map and be like, well, this seems like an all right location. Let’s go here. That’s actually vetted and and you get a thorough process. I want to circle back to the dollar amount. What what is your minimum investment? What do you require?

[00:16:05.100] – Matt

It depends on the size of the deal. That was a $40 million deal. That was $75,000 minimum, and then most of our 50 on average. That’s pretty much it, because when you’re doing, like I’m trying to think, we did the $18 million deal a bit ago, and I think we like 170 investors, an $18 million deal. So you want the larger the number, just from a sense of, okay, I’m dealing with 170 investors. Now. If it was 25,000, I’d have 300 investors. Is that really that practical to manage from that? And it’s a scalable thing. So 50 is usually our minimum.

[00:16:39.210] – Sean

Now, are you raising money from you mentioned friends and family, acquaintances, people you already know as well as maybe like a lender, like a bank?

[00:16:48.290] – Matt

Yeah. So they’re structured usually 70 30, split 70% to our limited partners, 30 to the generals. But I think our last Florida was actually 80 20. We made it even more attractive for investors. So 80% of the profits are going to go to our passive investors. And so, for example, that was a $40 million deal. We raised $14 million from our investors and ourselves as down payment. And what other thing can you we control a $40 million asset with $14 million. What other business does that? We control and profit of a $40 million asset with only a $14 million investment. That’s wonderful. And then that’s the whole business plan, is that we give their money back plus the shares of the profit. That’s what it is. So the cash flow typically for our deals, because we’re doing class B, the distributions may not start for eight months to a year because it takes us time to renovate as people move out. But also our distributions, you’re talking about maybe six $7,000 a year in distribution. So on a quarterly basis, you get $1,000 or whatever. It’s not huge. It’s not life changing money. 67 grand.

[00:17:53.500] – Matt

But the big benefit is when we go to sell the property and you share and you take 70% of the profits. That’s where it really is. That’s the big boom.

[00:18:02.260] – Sean

And with most of your properties. Is that the plan from the beginning? Like we want to renovate, to sell?

[00:18:07.850] – Matt

Yes, it’s always we’ve got a commitment to our investors, usually five or six year business plan. So they know that because there are a few out there will say, hey, we’ve got a ten year business plan. Your money is going to be locked up for ten years. Or I passively invest. I’ve got a friend that has a vineyard and I passively invest a bunch of money in their vineyard. That’s a 25 year investment. I’m not going to see that 100 grand for another 20. And I don’t give any money for the next five years, but once it does, it’s 20 years of returns on that. So it just depends on the model. Just make sure you know what you’re investing in. The sponsor, the general partner sponsor is just as important or more important than the deal itself is. Really want to make sure that person has the business acumen. They really have the experience. They’ve run a couple of deals full cycle, bought, ran and sold. Look at their track record because if they’re like, for example, where I had a capital call and a deal because I didn’t vet all three partners, that was my fault because I didn’t look at all of the other two people were kind of new to real estate.

[00:19:04.180] – Matt

They didn’t really know what they were doing. So it’s a learning lesson there.

[00:19:07.970] – Sean

Yeah, well, you got the 30 years plus of corporate experience and you probably run through the gamut of the good, the bad and the ugly, you could say. And it may not be real estate, but the business acumen translates. I found that with my case, past business experience actually is really applicable to investing in the stock market. It does help. Doesn’t mean you need it, but it does help.

[00:19:30.470] – Matt

It really helps, Sean, because you think that way. I do risk analysis in my job on a daily basis in economic analysis. Okay, if we do this, this and this, this is a potential outcome, do I take that risk or not? So yeah, it really is applicable for anything, particularly investing in stocks. All analytical?

[00:19:48.320] – Sean

Well, so far, I mean, this sounds like a sound strategy. I always like to bring on real estate investors because taxes is an issue and there are people that will sell a business and now Uncle Sam wants their cuts. What do you do? Well, real estate is a great place to shelter your taxes, prevent paying taxes. There’s other people that maybe they significantly made a bump in income. What do you do in that case? Instead of jumping into the next tax tier, which you will automatically let’s start putting that money into some residual cash flow machines, real estate being one of those. That’s another good strategy. Let’s take a quick commercial break. Hey, this is Sean. I’d like to say thank you for taking the time to listen to this podcast. I know there’s a lot of other podcasts you could be listening to, so thanks for taking the time to listen to this one. I have a quick request if you have a moment. Could you please head over to Apple podcasts and leave a five star review? The reason is, the more ratings we get and the higher those ratings are, the more Apple will shares with the world.

[00:20:52.240] – Sean

So thanks in advance for doing that. And then I have a quick comment. If there are any questions you want me to ask the guest, please head over to our Tykr Facebook group. You could drop a question right there. I’ll go ahead and make a note, and I’ll do my best to ask that question on the podcast. All right, back to the show. Before that we jumped on the show. You had a few comments about financial planners. I have to go there. I want to hear your two sons.

[00:21:19.540] – Matt

I’m going to get some hate mail in the shot. I talk to investors, mostly high net worth individuals, like dozen calls a week. And I always get my financial advisor says, my financial advisor says. And like, I’m diversified, they said. So share with me because I’m regulated by the SEC. I got to know your background. Well, I have stocks, mutual funds and bonds. Yeah, those are all paper investments. So you have a goose egg, a chicken egg, and a turkey egg. It’s all in one basket. The bottom line is you still have eggs and you’re still carrying around a basket. You need to invest in real estate, precious metals, maybe a little bit of crypto, maybe a startup to really be diversified. You’re still in the stock market bucket. You’re still playing the casino game. I hate that. Now I’m investing in the stock market. I put 20% of my portfolio still in stock stuff and speculative 60% in commercial real estate and the other 20% in venture capital stuff. Make more off that venture capital 20% than you do all the rest. But that’s that’s why I say, you know what? I think the stock market is great.

[00:22:23.200] – Matt

I made millions on it over 30 years investing in it. I was a foolish young person. Put 100% of my savings and my max out my four hundred and one K. I did the matching plus whatever I could do above that for like 20 years until I wised up and said, hold it, I have a lot of money here. It’s tied up in the stock market. I can’t touch it on 59 and a half. I’d love to retire early, but had I taken the stuff above the matching and put it in a Roth IRA or invested in real estate or something else, I would have much more options in my I would retire at 35 instead of three or whatever. I retired. Yeah, that’s the whole thing. Is it’s a disservice to say you’re diversified. If you have all your money in the stock market 10%, put it in something else outside of the market. It’s not directly controlled by springs that are manipulated and things like that. It in real estate, do pressure, do some other things. But I think that’s really important. So, yeah, I cringe, my financial advisor says I’m diversified. You’re not diversified in one bucket.

[00:23:25.020] – Matt

You are. That’s it. But you’re all still in the stock market, right?

[00:23:28.450] – Sean

And I agree with that. And I can also agree on the fact that everything you listed there, it’s not a reoccurring revenue generator like the stock market we love because of compound interest and you can really accelerate your wealth. You really made your good testimony there. You have had a corporate job for 30 plus years with the discipline to keep putting money into the market, probably every paycheck.

[00:23:53.970] – Matt

Yes.

[00:23:54.650] – Sean

We get investors that they’ll put money in one month and then they’ll wait one month. They’ll wait two months, they’ll wait six months, and then they’ll put in money. Then it’s like you’re missing the point here. You got to be putting that money in. But yeah, I agree. After stocks, my next favorite investments, I’m not doing it personally because I love the stock market so much, but the next favorite is real estate because of the residual revenue generation. And then in your model, because you are a little different than a few other real estate investors we’ve had on the show that they think way long term, where expectations are like 9%, no month returns. But you’re really looking at like ten years we’re going to hold this, whereas you’re looking at get a great property, great location, renovate it with the mission, we’re going to sell this. And like you gave that example, we’re going to turn a 50K into 100K in a matter of a couple of years.

[00:24:49.880] – Matt

Yes, that’s our business.

[00:24:51.550] – Sean

That’s great. Do some simple math there. Dial up the 500K.

[00:24:56.030] – Matt

Right?

[00:24:56.620] – Sean

Just say they invested that much. There you go. You got a million just a few years.

[00:25:00.990] – Matt

You mentioned the tax thing, and I want to touch on that, is that this is all tax advantage when you’re investing with us. And most of my there’s called syndication. I hate to use that word, but basically it’s a syndication. It’s an SEC thing that you’re buying shares in an apartment complex. So this $40 million deal, we sold x amount of shares at $1,000 a share. There was a thousand a share. Do you actually own a portion of that? You’re part owner in that apartment complex, a specific apartment complex. Do you get all the paper losses, the bonus depreciations and all those things? And if you can apply those out of CPA, you can apply those to your taxes. So I accumulated hundreds of thousands of dollars of paper losses while I was doing my corporate gig. Then I retired and became. A real estate professional. I used that to offset my income, all my future income. That’s a situation that you can do that, but talk to your CPA. Then the other thing is, I probably 50% of our investors use their self directed IRA. Now, I had millions sitting in this 401K when I was employed.

[00:26:00.040] – Matt

I couldn’t touch it because my employer and Fidelity had agreement that you can only invest in the stock market. But once I retired, now I’m no longer behooving to that. I can create a self directed IRA. I rolled at $100,000 a pop from my Fidelity over to my self directed IRA. Now I have checkbook control. I passively invest in real estate. I invest in gold mine royalties. I invest in vineyard, invested into all startups and all these other things that are super lucrative. Now, speculative, some of them, others not so speculative. But you have that control, the checkbook control. And that’s another thing. I like the message people to know that, you know what? And if you have an IRA or Roth, you can roll those into a self directed IRA and you’re the custodian. You have control. Stays in your IRA bucket. Still can’t touch it until you 59 and a half. But it is tax deferred, just like in the stock market. But you have options. So self directed IRAs, check it out. If you have a ton of money in the stock market and you want to diversify just a little bit, it’s a great option.

[00:26:59.160] – Matt

Very powerful.

[00:27:01.110] – Sean

Awesome. Before we transition to the rapid firearm, I have one more question, which is, do you have a key takeaway you can give to the audience as something they can use today?

[00:27:11.150] – Matt

I would say do your due diligence. Get out there. You got to have an open mind to new investments. Again, talk to investors all the time, like stock market, stock market, stock market. And I think it’s good. It made me a multimillionaire, but I could have done it in half the time. If I’d done real estate when I was in my 20s instead of waiting until I was in my 40. I mean, pros and cons there. If you want to sit and just put your money and wait for 30 years and become a millionaire, that’s fine. But if you like to escalate that, do a little bit of both. I think you really need to be diversified. So do your homework. Learn new stuff. I learn something new every day. So that’s my tip, is to investigate, consider other things.

[00:27:48.330] – Sean

I love it. All right, well, let’s transition to the rapid fire round. This is the part of the episode where we get to find out who Matt really is. Scary, isn’t it?

[00:27:59.900] – Matt

It is. John. I listen to the show, so I.

[00:28:03.070] – Sean

Kind of know you know it’s coming. If you can try to answer each question in 15 seconds or less. You ready?

[00:28:08.980] – Matt

Okay.

[00:28:09.300] – Sean

All right. What is your favorite podcast?

[00:28:11.350] – Matt

It is a bit of optimism with Simon Finnick.

[00:28:14.550] – Sean

He is awesome.

[00:28:16.350] – Matt

Everything he does, I consider a lot.

[00:28:19.010] – Sean

Start with why you know it. I do, yes. All right. What is the recent book you read and would recommend?

[00:28:27.330] – Matt

The book I read every year, and I just recently read it. Victor Frankl’s. Man’s search For Meaning I think that’s one of those. This guy was in a concentration camp. It’s like, wow, you’ve got to read the book. If you haven’t read it, you need to read it. It’s not a really thick book, not really long, but it’s just your perspective of life will change after you read the book.

[00:28:46.860] – Sean

I’ve had several people mention the book in the past, and when something is repetitive and it keeps reminding you, yeah, it’s got to go to my Amazon shopping cart. I’ll put it that way. All right, movie question. What is your favorite movie?

[00:29:00.710] – Matt

Probably Goodwill hunting. Just the message. And that is just over. And Robin Williams is phenomenal, but the message of the whole movie is just so positive. It really is. But seeking tenacious and going for your dreams.

[00:29:13.370] – Sean

So I always say the famous line, this is where we get to find out who somebody really is. It’s kind of a joke, but there’s something to it. In the movie, nerds out there, when you talk to somebody about the movies, they like, you know a little more about this person. So you like a good story. You like good character development, a good screenplay that’s essentially Goodwill hunting. We know more about Matt now. All right, few business questions. What is the worst advice you ever received?

[00:29:45.290] – Matt

I think and this is probably too central to what I do is like, they always say, the money will come. Like, we’re raising money all the time for deals. If you get a good deal, the money will come. That’s not necessarily I mean, I’ve seen lots of great deals, and people couldn’t fund them because they didn’t educate their investors and all that. They didn’t have an investor base that knew that, okay, Jacksonville, Florida, is a great market. Here’s all the data. So I think that you always hear that, build it, they will come. And I’ve seen people do that, and they get a really good deal, but they haven’t primed their investors. They haven’t educated. They haven’t given them the opportunity to socialize that this is a good investment. So I think that’s one of those that I hear, and it’s very niche to large syndications and multifamily, but it just goes to show that you really need to educate, make sure people are familiar with something before you present it to them, because you can’t make a good decision. You don’t want somebody to make a $50,000 decision off the top of their head.

[00:30:39.020] – Matt

I have people that will write a check for I meet them two weeks ago, and they write a check. Some people six years, I burn somebody that’s following me for six years has finally invested with me and other people. It’s just at your pace.

[00:30:50.770] – Sean

Right. Good point. We’re going to flip the equation here. What is the best advice you ever received?

[00:30:57.170] – Matt

It’s really you’ve got to take risks. I think you do. Comfortably calculated risks. I think when I was much younger, I didn’t take any risks at all, and I look back and say, well, why didn’t I had this big career and everything? I could have taken more risk when I was in my 20s, but I didn’t. I think that’s something that’s good, like Gary Vaynerchuk, he’s putting it out there. You don’t know what you’re doing in your 20s. Go out and take risks, make mistakes, do stupid things. And I don’t think I did that enough. And it turned out all well. But that’s the only regret, is that I would have done a little bit more out of the box things, maybe done real estate when I was in my 20s. Sure.

[00:31:34.590] – Sean

Great advice. All right. And we have the time machine question here. If you could go back in time to give your younger self advice, what age would you visit and what would you say?

[00:31:44.160] – Matt

It would be at 22 years old? And don’t max out your 401K. Do the company matching the 6%, and then do something else, because, again, I would have been in turned out in a great situation, but I could accelerate that probably by 20 years had I done some other things. I’d invested in apartments back then or started in real estate more heavily.

[00:32:05.790] – Sean

Sure. Awesome. Well, this has been really educational. I like your spin, your strategy on real estate. This is a great episode.

[00:32:13.060] – Matt

So thanks for your time, matt thanks so much, Sean.

[00:32:15.310] – Sean

All right, we’ll see you. Hey, I’d like to say thank you for checking out this podcast. I know there’s a lot of other podcasts you could be listening to, so thanks for spending some time with me. Also, if you have a moment, could you please head over to Apple podcast and leave a review? The more reviews we get, the more Apple will share this podcast with the world. So thanks for doing that. And last thing, if you do hear any stocks mentioned on this podcast, please keep in mind this podcast is for entertainment purposes only. Please do not make a buy or sell decision based solely on what you hear. All right, thanks for your time. Talk to you later. See you.