Jacob and Arleen Garza are a Texan power duo in multi-family real estate, distinguishing themselves with a people-centric focus. They founded REEP, managing 22 properties valued at $690 million with an in-house management approach, prioritizing tenant care.

Subscribe

Apple | Spotify | iHeart

Guest Resource

Reep Equity – Your Path to Passive Income.

3 Value Bombs

1) One of the main ways that we benefit from investing in multifamily is depreciation. As owners and investors, we can take advantage of a property depreciating. Everything except the land is depreciating.

2) There’s a #1 reason why people will leave a property and that is if they’re not getting good service. Be prompt and efficient in maintenance and repairs. Make sure that service levels are the highest and best that they can be.

3) Take action. Educate yourself on multifamily investing.

Sponsors

HubSpot: The HubSpot Sales Hub supercharges your sales process so you can find, track, and close deals all in one powerful, easy-to-use platform. Make the switch to HubSpot Sales Hub at HubSpot.com/sales.

Shopify: Shopify helps you turn browsers into buyers with the internet’s best-converting checkout! Sign up for a $1 per month trial period at Shopify.com/onfire!

Policygenius: Your family deserves peace of mind, and a life insurance policy through Policygenius can give it to them. Visit Policygenius.com to get your free life insurance quotes and see how much you could save!

Show Notes

**Click the time stamp to jump directly to that point in the episode.

Today’s Audio MASTERCLASS: Why Multifamily – All the Reasons to be All in Now

[1:44] – Arleen shares something that she believes about becoming successful that most people disagree with.

• You ruin your kids. Start them early with showing them the value of hard work and the value of money.

[3:08] – Multifamily real estate is a prime choice for generating steady cash flow.

• You have cash flow coming in from multiple rental units as opposed to single family.
• With multifamily, it’s a cumulative effect. Since there are multiple units within one complex, there are multiple renters paying all of those expenses for you.
• When you have more units in one property your operational costs are lower, therefore leaving you more cash flow at the end to benefit from a stable demand.
• Every 9 to 12 months you have an opportunity for rent increases.

[6:13] – What contributes to the increased demand for multifamily properties?

• Population is growing. Look at areas where people are drawn to.
• When people come into a market, most people rent first. They want to check out the area.
• Changing demographics also contribute to increased demand for rental housing.

[8:45] – The taxes and tax benefits that can come with multifamily real estate.

• One of the main ways to benefit from investing in multifamily is depreciation.
• We have a mortgage on the property, so all the interest we pay on that mortgage is deductible.
• Various operating expenses, maintenance, repairs, utilities, etc – that can be written off.
• Every bit of the cost of those capital improvements can be depreciated or expensed over time, so that’s additional tax deductions.

11:35 – A timeout to thank our sponsors!

• HubSpot: The HubSpot Sales Hub supercharges your sales process so you can find, track, and close deals all in one powerful, easy-to-use platform. Make the switch to HubSpot Sales Hub at HubSpot.com/sales.
• Policygenius: Your family deserves peace of mind, and a life insurance policy through Policygenius can give it to them. Visit Policygenius.com to get your free life insurance quotes and see how much you could save!
• Shopify: Shopify helps you turn browsers into buyers with the internet’s best-converting checkout! Sign up for a $1 per month trial period at Shopify.com/onfire!

[15:16] – How property management services can actually simplify the investment process.

• Investors love that using property managers help make this truly passive.
• One thing that a property management company does for the investor and for the property is tenant acquisition and screening.
• Property managers also are the ones negotiating the leases. They take care of rental agreements and lease renewals.
• Property managers are also taking care of maintenance and repairs, as well as tenant relations.

[20:09] – Having a positive impact in your tenants living conditions and creating thriving communities in and around your investments.

• Be able to improve communities and improve residents’ living situations.
• Amenities are big. People will pick where they live based on the amenities at that property.
• A recent study showed that women in particular will pick where they live based on the amenities for their pets.
• There’s a number one reason people will leave a property and that is if they’re not getting good service.

[24:32] – Arleen’s key takeaway and call to action.

• Take action. Educate yourself on multifamily investing. Check out the group that you invest with because they’re the ones that are going to be making sure that your money is successful.
• Reep Equity – Your Path to Passive Income.

[26:36] – Thank you to our Sponsors!

• HubSpot: The HubSpot Sales Hub supercharges your sales process so you can find, track, and close deals all in one powerful, easy-to-use platform. Make the switch to HubSpot Sales Hub at HubSpot.com/sales.
• Shopify: Shopify helps you turn browsers into buyers with the internet’s best-converting checkout! Sign up for a $1 per month trial period at Shopify.com/onfire!

Killer Resources!

1) The Common Path to Uncommon Success: JLD’s 1st traditionally published book! Over 3000 interviews with the world’s most successful Entrepreneurs compiled into a 17-step roadmap to financial freedom and fulfillment!

2) Free Podcast Course: Learn from JLD how to create and launch your podcast!

3) Podcasters’ Paradise: The #1 podcasting community in the world!

Subscribe