Quick Facts:

• Profit Strategy: Buy & hold
• Number of Units: 40
• Personal Money Invested: 30% of the purchase price
• Amount Earned: 20%
• Prior Experience: Prior to Lance’s training, Rafael had purchased and rehabbed multiple 2- and 3- family buildings, accumulating 20 doors, however, all using his own money as he lacked the knowledge and confidence to find and use other people’s money

Rafael’s Call to Adventure

Like most immigrants who come to this country, Rafael came with a dream. He came to the US in 1990 from the Dominican Republic. He was a chemical engineer in his country. Obviously a smart and ambitious man, but his English was limited. However, that dream — to make money, and lead a good life — was something he couldn’t do in his country. America was the answer.

He started working in a field related to his education. Then in 1994, he discovered his passion. That passion: real estate. He read every book he could find. Attended seminars. Thought about it constantly, but he was afraid to take that first step.

His lack of English-language skills in combination with a pattern of procrastination and little confidence caused him to stay stuck. He was a man with determination, though, and finally, in 2004 he started investing in real estate.

His first purchase was a 2-family rehab. He and his wife lived a frugal life. They saved a lot of money. Not knowing how to get financing from others, he used money from a home equity line of credit. He rehabbed that building and sold it — a flip. He was expecting to profit $50K from this deal, but he didn’t factor in all the added fees. None of the books told him about the fees. None of the gurus who lead the seminars he attended educated him about that expense. As a result, his profit was reduced to about $10k. He was really disappointed, but he had taken the first step. He used his new knowledge and pressed on.

In 2005, he started purchasing other 2- and 3-family buildings. He continued to look for “value-added” properties. His goal continued to be one of rehabbing and holding for passive income. After a while, he had accumulated 20 doors! He set his personal goal at 100 doors.

He was using his own money though, so the speed with which he could acquire units was limited. He had no knowledge of how to put together a proposal or presentation to enlist the help of a financial partner. And the fear… the fear could be debilitating.

Things started to change — in an amazing way. In 2019, he got a free book from Lance. This book changed his perspective. Lance’s influence and his Bootcamp (equipped with coaches) inspired a passion for larger multi-family buildings. This would help him get to his goal of 100 doors so much faster!

Rafael’s Quest

He had read books about investing in large apartment buildings, and he’d attended many seminars. He tried to invest in multi-family using other people’s money but wasn’t successful. But 2019 was a turning point. When he started training with Lance, he got clarity and confidence. He started sending letters around the US.

His first response was from an owner in Dayton, OH. The seller had a 5-unit building. At first glance, the building looked like a good investment, so he discussed the deal with one of Lance’s trainers. They looked at the deal with him. After the analysis, they agreed it was a good deal. “Go after it,” they said.

His confidence was boosted. He went to Dayton and interviewed the owners. After negotiations, he purchased the property. While it was 5 units, only one was rented. And it was a rehab project. Work needed to be done and tenants needed to be found.

Next, he initiated a relationship with a broker. The broker started sending him properties. This was during 2020 and 2021. The real estate market was booming. He found a great 6-unit.

Then the pandemic hit. He lost his job. Remember, he’d been using his own money for investments. This was a very stressful time.

The broker presented him with a 29-unit property. It was priced at $1.6 million. “I can’t do $1.6 million,” he told the broker. He admitted, “I never thought I could purchase something over a million.” He was comfortable with 100-, 200-, or 300-thousand dollars. But not $1.6 million!

Between math, negotiations, and soul searching, he was able to purchase this property for $1.4 million. He told the seller, “If you fix everything, I’ll give you the 1.6 million. If you don’t, I will give you 1.4.” He converted a retirement account to a self-directed IRA to purchase the property.

Reaching beyond his comfort zone — and being successful — was extremely impactful. “Now when I see a property at 1.5 million I think, ‘I can do that!’”

He admits, “I need to start using other people’s money.” That objective is necessary for him to hit that 100-unit goal. That’s his next big area for growth.

His Dream

He explains, “I don’t need to be rich. My dream is to maintain my current level of living — my current status — but not work. Making $10K/month wouldn’t change my life because I’m living that way now. I just want to keep having what I have. And I want to be able to travel and visit people.” He shares, “you program your future, so maybe it will turn out even better than I think. If I can leave a legacy for my grandchildren, that would be great!”

He says it again and again. His goal is 100 units. He feels this is a worthy target because it should create the income he’s looking for. But this target has to be adjusted all the time. “I don’t believe in making excuses, but life can hit you hard.” He continues by explaining his wife is ill and needs a transplant. This time is rather rough. She’s not working and she’s struggling with her health. There have been a lot of changes for them.

So, how does he keep himself focused on real estate when he’s facing all these life challenges? “I have the goal of 100 units written in my office, on a board, where I can see it every day. The goal says ‘2022,’ and I don’t think I will do it this year. But I will do it. I know it.”

The properties aren’t creating as much cash flow as he anticipated. Lance has explained to him that value-add properties can take a year to see the expected cash flow. Rafael thinks that in 6 months he’ll be getting about $4K per month.

A New Man

Rafael reiterates that he has confidence now that he didn’t have before. “I owe it all to Lance, his training, and his coaching team. I now know how to analyze a deal. I feel comfortable. I’m not afraid to talk to anyone. For this, I owe Lance. I feel so lucky. He increased my confidence by more than 100%. I’m no longer afraid of talking to anyone.”

He admits that procrastination used to be a problem. Well, it’s still a problem. “But I have tools! I have a board in my office, and I write my to-do list on the board. When I see a task day after day that I still haven’t done, I embarrass myself and I finally do it!”

Another transformation he experienced was around his accent. He struggled so much in the beginning because he didn’t understand other people. When he’d send the letters, he’d be afraid to answer his phone when he’d get calls.

But he did answer the phone. Even though he didn’t have confidence. Even though he wasn’t fluent in English. And, after the first 5 or 6 calls, he realized, “I can do this.”

In addition to language struggles, confidence issues, and procrastination habits, he was also unfamiliar with computer technology. He’s improved so much. He is still learning, and he asks his kids how to do things when he needs help.

Always Growing

Rafael has achieved amazing accomplishments — even with his struggles, insecurities, and limitations. “I stuck with it because passive income stuck in my brain. If others can do it, I can do it. I lost my job, but I continued my life. I know that there is a great future in front of me if I just continue what I’m doing.”

His next step is to learn how to get financing from others for deals. “That’s my big problem at this time.”

New Lessons

As a landlord, he realized a part of him that he wasn’t expecting. “I love to treat good tenants like persons. People love me a lot. In fact, they love me too much. They treated me like family. But if you are so good with them, it may not be right for you on the financial side.” He wasn’t increasing rent as he should have been. His solution? He switched from self-management to using property managers. “I am a good person and I am very weak.” His new challenge is learning how to deal with property managers. He has learned that a good property manager can make a big difference.

Rafael’s Final Advice

“Get prepared, get the knowledge. Start. Any way you can.” Remember, he studied real estate for 9 years and never did anything. He explains, “I finally realized I had to start. I had to do something. I thought I was going to make $50K on that first deal. I only made $10k. But it was great! I did something.”

He believes, “even if I lose something, I realize I did it! Anybody wanting to get into real estate just needs to start. You have to do the first step. You may be afraid. That’s okay. Just do something.” 

Just. Start. Do. Something.

Quick Facts:

• Profit Strategy: Rehab and hold
• Number of Units: 14
• Personal Money Invested: $390k
• Prior Experience: As a physician, Neal did not have prior real estate experience, but did benefit from the guidance of his father, Harish, who had 8 years of experience through owning 3 single family rentals in Cleveland, OH

Neal’s Story

Neal has been a physician for the last two years. Med school was expensive, and while being a doctor pays better than many occupations, he realized early on that he would need another source of income.

Neal’s Call To Adventure

He began educating himself on different options for financial independence. He started with “Rich Dad, Poor Dad.” From that, he sought mentorship through seminars.

He dipped his toes into real estate investments by partnering with his father. He was exposed to the process when his father purchased a four-plex. But Neal was new, so he wasn’t very active in it.

He decided to focus on a buy-and-hold strategy because his time was limited, and he was striving for passive income. He wants to create a legacy. He is seeking financial freedom.

He’s realized that financial independence will allow him to pursue other interests rather than simply seeing patients constantly. He loves educating others and has determined that between lectures and media appearances, he will be able to share his expertise with other people.

Neal’s Quest

To trigger his extracurricular dreams, he needs more time. He determined that investing in multifamily real estate is the best way to get this. His goal is to own 100 doors in five years. It’s not a specific dollar amount he’s seeking but rather enough passive income to “live without having to look at the bill and to work as a hobby.” He has set his time frame to achieve that goal at ten years.

Outside Guidance

Neal is an intelligent guy. He recognized he was a good student, but he was never taught financial strategies in school. He knew “you can only learn so much from books, YouTube videos, and other online sources.” He sought like-minded people and mentorship. Enter center stage — Lance Edwards’ Bootcamp.

Neal’s Obstacles

He candidly shares, “there are many different moving parts in real estate. I needed to determine the type of real estate, number one, and how to approach people in the real estate industry and talk to them. I didn’t know the terminology well, so I wasn’t confident in having a conversation with realtors. I didn’t want to look foolish.”

He also learned how competitive the real estate industry can be. “Where do I start? Where do I find deals? That’s a big challenge. A lot of people are investing in multifamily buildings. How do I learn to find the right market, navigate, and study it?”

He sought guidance from Lance’s group and subsequently closed on a 14-unit property. But it wasn’t smooth sailing. Many units weren’t occupied, and the property needed some repairs. But the timing was poor.

He wanted to rent the units, even though he hadn’t yet remodeled them. However, COVID limited his ability to do that. Now the property remains unoccupied, and the renovation is beginning. He looks forward to the income the apartments will bring.

His Realization

Neal had worked through obstacles during his ten years in med school. So he had learned not to give up. While he’d experienced the trials and tribulation of extensive education, he knew a financial education was even more critical.

“Finance isn’t taught in school. You learn how to be a good worker. But I thought, is this what I’m going to be? So I had an internal conflict. I started thinking maybe there is another way. I looked outside the box. I had been taught there’s only one way to practice medicine: you have to work, see patients, and then retire. This didn’t make sense to me.”

He shares, “investing in real estate has given me peace of mind. Now I can work in my practice and have comfort knowing I am now multifaceted. I can say with confidence that not only am I in the medical field, but I’m also doing real estate. Now I have the assurance to go to another project, maybe even a bigger one.”

But he recognizes that real estate can be a slow game — especially a buy-and-hold strategy. “I’m not looking for a quick jump and a huge boost. I’m seeking passive income. Even if I get a little bit monthly initially, I know my money will work for me. As a physician, I have to work for money, and while I enjoy what I do, it’s nice to know that now I can sleep and still generate income.”

Lessons Learned

His first investment was a 14-unit property in Ohio. Because he bought a property in another state, he realized he needed “to have eyes on the ground. So having people there to help me was necessary. But you must do thorough due diligence and homework on the property management company.” He had to learn this the hard way. His first management team “looked good on paper. They were good talkers. But they didn’t do their part. Things started breaking. The units — already in poor shape — got worse. The management company went out of business and left me with a mess. I did more extensive interviews and became more involved.”

He adds, “I wish I had kept some of the tenants, but I went in aggressively.”

He also learned to visit the property before purchasing and do a better job with due diligence. The numbers looked good, and he didn’t want to lose the deal. He may have made a different decision. But, lesson learned!

Since one of his most significant discoveries was the necessity to thoroughly investigate the property managers, he offers this advice, “ask how much experience they have. Ask them what type of properties they have managed. Another question is to find out what type of support they have and how big the team is. Find out how often they will report to you.” He clarifies, “Lance has a great set of questions to ask property management companies.”

Neal’s Excited

Despite the challenges, Neal feels that “real estate is incredible. It’s a strategy that has been tried and tested to create millionaires. It excites me to know that there are many possibilities for different real estate avenues. The language is fun. The financial game is fun, too. Once you learn the ins and outs and see there are ways to make money outside of your job, it’s inspiring.”

He adds, “there is a light at the end of the tunnel. I thought I was going to work until I couldn’t think anymore. As a doctor, it is kind of disheartening and discouraging. But with passive income and new knowledge, I’m very excited to know that I have a lot of potential outside of just having to work a job and still be financially safe. Now I can sleep at night.”

Finally, he can envision a future where he’s happily married, can do his hobbies and has a strong team running his real estate business. He knows he won’t have to work until his mind gives out and can now create a lifestyle for a family that he can feel proud of. And leave a legacy, yes, leave a legacy.

His Advice

His first suggestion stems from his experience with property managers. “Don’t be so trusting. Be involved. Don’t just sit back and think the management company will do everything. I realized I had to do my part. Get on top of things, so you get it done right.”

He explains that you have to act. “Some people might just take lectures and seminars and use YouTube but never act on it. Lance stresses action. It’s all about action. And I was very hesitant. Nervous. But I’m so proud of myself for doing it. If you don’t do it, you have nothing to show. Now I can say good or bad – I was able to do something.”

Expanding on this, “do whatever you have to do. Make a change, so you sleep at night. The biggest thing is to do something. If you do nothing, nothing will happen. If you do something, something will happen. Hopefully, real estate investing will help you sleep like a baby, just like I do.”

Do. Something.

As I always say, “Buying Small Apartments is 5th grade simple.”

In this Apartment Wealth Nugget, I share a couple of success stories from my students, including one who at the “ripe old age” of 10 bought his first property!

So if a 10-year old can do this, anybody can! Just start where you are today.

Whether you’re a first-timer or experienced in real estate, this Nugget is for you.

Find Out How to Get Started in Small Apartments by Working with Me, My Team and My Network: https://fcg.isrefer.com/go/sm2n3/ejv/

Quick Facts:

• Profit Strategy: Buy & hold
• Number of Units: 10
• Prior Experience: While Jean was a career dental hygienist, Norman had been involved in a multitude of real estate endeavors, including buying, developing and selling real estate in MD since 1973.

Here’s their story:

Eager to win Lance Edwards’ trademark 90-Day Challenge after attending his boot camp in June 2019, Norman and Jean Lutkefedder did something out the ordinary after zeroing in on a 10-unit multi-family apartment listed for $330,000 in Columbia, South Carolina.

With the clock ticking, the Lutkefedders made the rare move of negotiating up! To encourage the seller to select their offer over the large handful of others that were being made and settle quickly, the Annapolis, MD couple submitted their contract offer for $335,000, with a $5000 deposit check (to their Title & Escrow company), a 20 day period for Inspections and Financing, and closing to be held within ten days after the expiration of the inspection period.

Norman and Jean were introduced to Lance via his 2018 webinar “7 Moves to $1 Million with Small Apartments” by being longtime members of Ron LeGrand’s Gold Club. Though, LeGrand’s program focuses on single family houses, Norman incorporated the logic of a few of his philosophies into their decision to offer more than the asking price. “One of Ron’s sayings we like is ‘Don’t kill the goose, keep the goose alive,” and we agree that the longer we keep this property, the more we can make,” he says. “He also advised not to worry about small amounts like 5% when the deal rests in the balance. Sometimes, it’s important to take a look at your potential downstream profits. Another $5-10,000 is no big deal when you realize that the property will go up in value. Why worry about five grand when you’re talking about potential $40-50,000 profit down the line? It’s peanuts.”

Considering the current climate for traditional bank financing, the Lutkefedders plan on future deals to follow Lance’s advice and seek out properties where owner financing is an option. Unfortunately, to complete their first transaction, they were unable to make this happen. Based on the couple’s conservative analysis and prior to receiving the Deal Review, they submitted a Letter of Intent to the Seller/Owner’s agent at SVN, showing two options for owner financing at 100% and 90%, along with an all cash offer. The owner rejected both options and stated that she needed the cash to purchase a home for when she moved from her present apartment (on the property) after settlement.

“After calling several finance organizations and being rejected because of the short 20-Day financing period, I received a return call from a mortgage broker close to our home in Annapolis,” Norman says. “He had located a firm in Florida interested in providing a full recourse 80% LTV mortgage fixed at 6.0% for 30 years. This loan could also be “Fixed at 6.625% for the first 60 months if we selected the 5%, 4%, 3%, 2%, 1% pre-payment penalty reduction option, and thereafter at Prime Rate (currently at 5.25%) plus 1.375% adjusted every 12 months. We selected the reducing pre-payment penalty option, and finally received financing approval on September 12, 2019…a 34-Day financing period. We signed 6 addenda to the contract, because of the extended financing period, the need for electrical and plumbing repairs, and other matters.”

Realizing that opportunities for owner financed deals are often difficult to find, the couple also plans to work on establishing strong relationships with finance organizations which provide reasonable rates and terms for apartments in the states they have selected. Their primary reason for initiating this business is to maintain a comfortable income stream after Jean – a career dental hygienist who had held the same job for 22 years – retired at the end of 2020. Their plan is to purchase additional multi-family buildings from Maryland to Florida, with at least partial owner financing.

The numbers they’re aiming for are ambitious: a total of 100 apartments (or “doors,” in Lance’s words) within their first year, which at $100 profit per door per month, they estimate will lead to $120,000 in income.  Though their three adult children are all successful and comfortable in their current lives and professions, the Lutkefedders are looking forward to building a business that they can become part of – and eventually inherit.

While Jean worked in the dental industry, Norman has been involved in a multitude of real estate endeavors after years of working for several government agencies, including the Navy Dept., NASA, the Department of Transportation, the Federal Energy Admin. and the Department of Energy.

His experience includes buying, developing and selling real estate in Maryland since 1973. His first development was a 4-condo subdivision along Spa Creek in Annapolis in 1976. Since then, he’s been involved in assembling, subdividing and developing other waterfront, assisted care, multi-family and commercial properties. He also established and operated a real estate brokerage with up to 19 agents and licenses in Maryland and DC. Norman was also hired by Lennar Corp. (one of the nation’s top five residential housing companies) as Senior VP Land Development and developing several major projects in Maryland and Delaware, comprised of 1,000+ acres and 1,000+ homes each.

“I’ve listened to Norman doing real estate for years and some of it was bound to sink in,” says Jean. “Now I’m tired of working for everyone else. Rather than do the 8 to 6 routine every day, I like the idea of being in my pajamas, drinking coffee and looking at the computer for deals and checking in with the property management company we’ve hired to see if profits are coming in. The multi-family concept is very appealing because even if you have a 10-20% vacancy rate, the profits can still flow. In the long run, the stock market and mutual funds don’t offer the returns that real estate provides and won’t take as long to recover should there be a major recession.”

The ownership of the apartment building in Columbia and all subsequent investment properties will be in the name of the Lutkefedders’ corporation, Chesapeake Properties Development, LLC, registered in the state of Maryland. Anticipating the potential advantages of having a minority owned business (in this case, a female owner), Jeanie owns 51% and Norman 49% of the business. “Jeanie is faster on the computer than I am, and can search for and locate potential new investment properties much quicker than I can,” says Norman. “She also has a woman’s sense of what makes sense or doesn’t, and she also has great talent in dealing with property managers. In South Carolina, she enjoyed sitting down and making a deal with someone at the property management firm we eventually hired for the property. I’m really enjoying collaborating with Jeanie on these very challenging endeavors.”

Despite his many years in real estate, Norman says there is a constant learning curve in a realm where Murphy’s Law often prevails and there are so many potential obstacles to hurdle before a deal can come to fruition. One of the most important details he and Jean gained from Lance’s teachings is the need for a great property manager to “take care of tenants and toilets.” Along the way, they also learned about the need to incorporate as an LLC and apply for certificates that allow them to do business in other states.

“You always have to be concerned about new unexpected expenses, vacancies, property damage, insurance…so much can go wrong when you’re buying a building and after you have it,” says Norman. “Yet for us, there was also the excitement of successfully completing the 90 Day Challenge and the possibilities of enjoying a lot of passive income in the future and working with our kids in the business. Ultimately, if you want to be successful, you can’t let setbacks discourage you, you have to work very hard and you have to pull the trigger when you believe you’re getting a great property. I’ve been in this business 40 years, and every day is still like a school day with many new lessons to learn.”  

Quick Facts:

• Profit Strategy: Rehab & hold
• Number of Units: 8
• Personal Money Invested: $80k
• Amount Earned: $859 monthly cash flow
• Prior Experience: A community outreach program coordinator by trade, Jessie had no prior experience in small apartments aside from previously living in a triplex in which he and his wife resided for 10 years in Boston

Jessie has a stable job. But like most people, it is an 8 to 5 — work, home, then back to work. His occupation provides a consistent income that covers his bills and allows him to help family members but doesn’t provide much extra for “fun,” such as vacations.

As a child, he watched his mom struggle to make ends meet. He knows he wants something different for himself and his family.

He grew up in Louisiana. He lived many years in Oklahoma, both of which were much more affordable areas than his current residence in Rhode Island. When he initially left the south, he moved to Massachusetts and learned quickly that more money was needed to live there.

His retirement savings was less than he desired. He knew this needed to be addressed. One alternative was to work a second job. That would take him away from his family even more than his 8 to 5 job. This wasn’t an appealing option. He craved a solution.

Jessie’s Call to Adventure

Over the years, his mother purchased rental properties in the south, and he even occasionally invested with her. The idea of expanding his “portfolio” grew. In addition to providing an extra stream of income and fattening his retirement fund, he knew real estate also provided some tax benefits. He explains, “it sounded like a win-win opportunity.”

His ultimate dream is to own a few more properties. He’d likely manage them himself as he didn’t have the best experience with his last management company. Besides, he’s passionate about real estate. He wants the opportunity to interact with residents, “get to know their story, and help provide safer housing for them.” He continues, “I feel that would be a real accomplishment. I’d like to know that I helped others with my own two hands. I love that feeling. And at the same time, knowing that I’m making money.”

Jessie Searches for Guidance

His most significant obstacles were financing the property (including the source for the down payment) and learning about non-conventional alternatives like lease-option agreements with sellers. He also needed to discover how to find partners.

Jessie acknowledged that he couldn’t accomplish his goals alone. He borrowed money from his retirement fund to purchase the property for his first deal — an 8-plex. He realized that this model wouldn’t be sustainable for acquiring additional properties. He concluded, “I knew I needed someone with far more experience and knowledge to provide me with the tools to help build my real estate portfolio. I did the typical things that people do. I joined the local Real Estate Investors Association. Unfortunately, most of these people were in the same situation I was in.” Jessie realized this resource wouldn’t provide what he needed, so he looked for a better mentor. That’s when he found Lance’s Bootcamp.

Jessie’s Vision

Jessie loves learning about real estate investing — it thrills him. And the idea of helping other people in the process resonates with his ideals. Indeed, the financial benefits are also of value. He’s been able to take some trips with his wife, and he’s looking at buying a new car. He has disposable income that was out of reach before. “The properties have helped shape our future financial situation. I’m excited about that.”

Looking at what has changed already and the potential for the future, he’s thrilled that this business will allow him to “expand our family and be able to set aside funds for college. Knowing that ‘mailbox money’ will be there is very inspiring.”

A bonus for Jessie is that his wife is also inspired to invest in real estate. This endeavor has made them even closer.

Jessie’s Realizations

Jessie discovered that his communication skills benefit him in this business. “Being personable with people is very important. Knowing how to talk with real estate agents and sellers is valuable. I had the people skills, and Lance’s training gave me the scripts and the knowledge. That has led to some exciting opportunities.”

What worked against him in the beginning, was his openness. He’d heard from other investors that real estate investing can be “pretty brutal, backstabbing, cutthroat.” He expands, “I haven’t seen cutthroat. But on one deal, the owner mentioned he would be willing to do a ‘gentlemen’s agreement’ on two properties he owned that I couldn’t purchase right away. He then sold those properties to someone else, even though he had verbally given me the first option to buy. I think this happened because I was open and honest about the fact that I was new to investing. This may have worked against me.”

However, he’s been surprised at how quickly he has learned and implemented Lance’s training. He says, “it works, and it isn’t as hard as I expected. That exhilarates me.”

Jessie’s Vision

When Jessie started, his expectations were much more conservative. He’s changed his perspective, “I’ve grown to know that it is doable to own a 24- or 36-unit property versus only investing in triplexes and quads. It is possible. The process has opened my eyes to the potential and accessibility of larger properties.”

His Advice

He wisely suggests, “invest in training and education. Even though I’ve mentioned small apartment investing is easier to learn than I expected, it is still challenging. People can sense when you are unsure of what you are doing. You want to have an intelligent conversation and convey that you are knowledgeable. That will make them far more interested in working with you.”

His second suggestion is to take a chance. “The training helps keep you from losing money. You will be able to identify good deals. Believe in the training and what the coaches and trainers tell you.”

Invest. In. Yourself. Get. Training.

Quick Facts:

• Profit Strategy: Wholesale
• Number of Units: 44
• Personal Money Invested: $100
• Amount Earned: $36,000
• Prior Experience: Peter had previously run a successful construction company that replaced windows, doors and roofs, but no prior real estate experience.

Peter worked in construction — roofing, windows, and doors. He had renovation skills but had no interest in real estate investing due to an experience in his youth.

His parents owned a two-family house, but all he remembers is the nightmares with the tenants. He told himself, “I don’t want to do this ever. Nope, nope, nope.”

Peter’s Call to Adventure

Over time, however, he learned the merits of real estate investing. He realized that “many people have become wealthy from investing in apartment buildings. From this, they create generational wealth. They own the building, put it in a trust, and take care of their family for generations.” He exclaimed, “I wanted to do that!”

He emphasized, “I wanted to create something that would outlast me.”

Peter’s First Mistake

Ten years ago, Peter was working on a construction project in Florida. He was earning a good living, and life was going well. Money was flowing. Cash was good.

He found his first deal.

He took the project on without any guidance. In his own words, “that was a big mistake. Huge mistake. I didn’t know what I was doing. Luckily I realized I was in over my head, so I backed out of the deal. I realized I needed to learn more.”

Peter concedes that he isn’t a “detail person.” This was the first hurdle he needed to overcome. As he puts it, “there are details, but I figured, I’ll work that stuff out later. And let me tell you something. Those details are critical.”

Peter’s Next Steps

He finds another deal: a 44-unit building.

But sometimes, life turns, and you don’t see it coming. In this case, it started with the economy. The job ceased, and the money dried up. He elaborates, “we were drowning in debt. We were trying to survive. A wise man once told me that love goes out the window when money problems come in the front door. That is precisely what followed. I went through a divorce, and it took me a while to bounce back. I was just trying to survive at that point.”

This downward spiral hit at the exact moment that he was working on his first deal.

He found Lance’s course and saw the light at the end of the tunnel. Perhaps if he learned from Lance, he could salvage the deal and make some money.

The problem: Peter didn’t have enough money to invest in Lance’s course. But as he proceeded through his first deal — before Lance’s extensive training — Peter realized he needed to find a way to enlist Lance’s help.

His Realization

He elaborates on how dire his situation was. “People ask me if I truly only invested 100 bucks in my first deal. They don’t believe me. But I didn’t have any money. We had money before, but when this deal started, our money problems began. And suddenly, I didn’t have enough money to put food on the table, let alone try to get this deal done.”

Somehow, someway, Peter found the resources to work with Lance. That decision was the best one he’d made. Peter now had the tools to salvage — and ultimately close — the apartment building.

The process to get to that point wasn’t without lessons.

The following story illustrates what Peter needed to overcome. “It was fear. I had the deal in place. The contract was signed. Everything was good to go. All I had to do was give a deposit. But as I mentioned, I didn’t have the money. I had to borrow the money. I put a check in an envelope. It was ready to go with stamps on it. I had that envelope in my hands. And I’m holding it while pacing in front of the mailbox. I’m thinking, I’ve just got to put it in now. And that’s it. That’s all I have to do. Ten minutes pass. I couldn’t stop doubting myself. Finally, I threw the check in the mailbox. The relief was incredible. That struggle may seem ridiculous, but it was a mental struggle. Once I got past that, only little steps remained. Once I got to that point, I knew I could finish the deal. Anything else I encountered would seem easy.”

Peter’s Vision

Peter has big plans, but as he puts it,  “if you don’t set goals, you won’t go anywhere. I want to create wealth beyond me. I want my grandchildren to enjoy it. The goal that I have in mind is to have assets worth $333 billion.”

His ultimate dream is to own a couple of homes. One on the beach, one on a lake, and maybe one in the mountains. He’ll have a management company taking care of his real estate holdings, and he will have money coming in. He’ll enjoy life “the way it is supposed to be.” He imagines fishing with his not-yet-conceived grandkids on a little boat on his lake.

Peter certainly has lofty financial goals for himself and his family. But he also wants to give to others. He explains, “money is only money until you do something with it. God doesn’t want us to simply pile up money. He wants us to help each other.”

Peter yearns to set up a couple of college funds. Additionally, he visualizes helping an organization he works with already that cares for neglected farm animals.

Peter’s Evolution

Peter’s confidence soared as his mindset shifted. He describes his internal dialogue, “I realized if I could do this, I could do anything. So that was a tremendous experience.” He says he owes a lot of his success to Lance.

Peter describes how he has changed. “That deal taught me to be persistent. I decided to use everything I learned in my life and run for Congress. That wasn’t an easy decision. But I realized I could do this because I now believe in myself. I know I’m tenacious enough to get it done. In addition, my kids see me as an example. I teach them to have the same determination.”

He shares that one of his sons wants to be a general manager for a football team. Another son wants to be a neurosurgeon. His daughter is starting a restaurant, and she’s recorded an album. While achieving those goals will take determination, he knows his kids are equipped to achieve them. They tell him, “Dad, we are your children. That’s why we know we can do it.”

The Deal Changed His Life

This experience forever impacted Peter’s life. He describes, “I have money now. But I remember a point when I had $0.35 in my pocket. I was asking myself, how will I make things happen? But I realized I just needed to keep moving forward. And now I am in great shape.” 

The fear is absolutely what got in his way. He explains, “I told you my story about standing for 15 minutes in front of a mailbox, getting up the courage to put the deposit in the mail. Come on. To mail a letter. That was pure fear. Now that I’ve overcome that, I know if fear ever sticks its ugly head out, I’m not afraid anymore. You have to believe in yourself.”

He summarizes the reasons for his success: “I knew I could get through it by listening to Lance and taking on the challenges with him by my side. I’ve learned if you can find someone to lock arms with, you can get through anything you encounter.”

His future is going to be “immensely better.” He explains, “I know we’re on the right track, and now I’m ready for any obstacle that might come my way.”

He raves about Lance’s influence on his life. “Lance has a heart of gold. I have worked with him on and off for at least ten years. He asked me to trust him, and I did. I went forward. And a lot has happened.” He continues, “I’m happy. One of the happiest moments in my life is the experience I had with Lance Edwards working with me on my deal. He’s a great guy.”

Peter’s Advice

His advice is simple and straightforward. “Know that fear will raise its ugly head, but you’ve got to trust that Lance knows what he’s doing. I am incredibly grateful for Lance’s support and training.”

Lock. Arms. With. Lance.

Quick Facts:

• Profit Strategy: Buy and hold
• Number of Units: 2
• Personal Money Invested: $170k cash
• Amount Earned: $1,100 positive cash flow per month
• Prior Experience: Teri and her husband originally ventured into real estate investing in the mid-90s doing single family house fix-and-flips, then she became a licensed real estate appraiser

Here’s her story:

A health and fitness specialist by training who was once the owner of two health clubs, Teri Domanski originally ventured into real estate investing in the mid-90s doing single family house fix and flips with her husband in Maryland. Discovering the downside of being uncertain and essentially unemployed as soon as she finished a deal, she became a licensed real estate appraiser, working in both the public and private side of the business. The many years she spent as a county assessor and in other capacities in that realm now serve her well as she engages in investing in small apartments after attending one of Lance Edwards’ virtual bootcamps in March 2021.

Teri had been through other investing bootcamps and coaching over the years, but never resonated with them the way she did with Lance’s system. In addition to not having to learn about syndication at the same time as multi-family investing, she resonated powerfully – for obvious reasons related to her appraisal background – with the Doable Deal Generator (DDG), a simple yet empowering spreadsheet which, as she puts it, “shows you if a deal works or doesn’t.”

She also liked the way her instructor, Bob Thornton, explained that the process of finding and generating deals starts with having one conversation a day with a buyer, tenant or broker – which she found appealing due her outside time demands. In the months since, Teri’s gone from a single conversation to five and now 15 per day, all as a way of challenging herself to create greater success and income streams from multi-family investments.

Pretty much all students who attend Lance’s boot camps appreciate and agree with his training on the importance of mindset – but Teri has taken that to the next level, creating for herself both a vibrant vision board and an inspiring multi-media PowerPoint presentation full of striking images and empowering words that help her focus on her personal and professional goals. In addition to the type of properties she would like to own and beautiful images of nature, the board includes cards that say, “We Make a Living By What We Get, But We Make a Life By What We Give,” “In 2021, I will tithe $15,000,” and “I control (blank) units that generate (blank)/month passive income right now” – the latter of which she can adjust to reflect her current totals.

Teri’s PowerPoint Presentation is a work of motivational and spiritual art featuring two minutes and fifteen seconds of an array of nature images, inspirational sayings and stated goals set to a segment of Beethoven’s 6^th Symphony. It begins with the phrases, “I will begin each day with a grateful heart” and “My family is my ‘why’ for doing what I do,” then gets down the business with “We effortlessly generate $20,000 a month over a stirring image of a drop of water hitting a pool. These are followed by personal reminders of self-encouragement like “Gratitude is the sign of noble souls,” “My workouts energize me and keep me fit,” “I am peaceful in every situation” and “Service is what keeps us connected.” Drawing on her background in health and fitness, she includes (over a photo of a lavender field) “Nature can heal the body and soul.”

Like many multi-family investors, Teri is – as that one phrase affirms – doing this not only to give her more financial freedom in the short term, but to build a legacy of wealth she can pass on to her two adult sons. Interestingly, she found her first post boot camp deal because of one of her sons, who got into real estate investing around the same time and began investing just a year ago.

“It sort of came in the back door,” says Teri, a “Jersey Girl” by background who does most of her marketing and deal-seeking in the area around her home of Winchester, VA. “Shortly after the boot camp, I met a local gentleman via cold calling who told me had a two unit property he was selling for what he called ‘dirt cheap.’ I checked it out and felt it would need too much work and started looking for property in a different part of town. My son, however, saw potential, bought it and fixed it up. Three months later, the duplex next door came on the market but before I could bite, it went under contract.

‘While I kept looking elsewhere,” she continues, “my son saw that it had fallen out of contract and was back on the market for $180,000. I was told it fell out of contract because of a financing contingency related to the habitability of a duplex. One unit was definitely in better shape than the other, but we ran the numbers through the DDG, including cost of repairs and post repair value. My husband had just refinanced one of his investment properties and we used some of that money to offer $170,000 in cash with a four week close. We liked the fact that when you come in with all cash, you only have to own the property for six months before you have the opportunity to re-fi, if you so choose. With rents in the area going up, that is a viable option for us.”

For now, that duplex is a buy and hold which Teri estimates will give her and her husband $1100 positive cash flow per month, as long as the “good” unit (which rents for $1000/mo.) stays occupied. The inspection went smoothly because there is no basement or crawl space and the electrical wiring and plumbing had been upgraded in the last ten years. With those inspirational sayings as daily reminders, determination to reach her financial freedom goals and the confidence to make multiple calls a day, Teri is already moving beyond that first deal.

She and her husband currently have another property, a three unit building in the tiny town of Delray, West Virginia, under contract that they plan to quickly wholesale. They found it by simply mailing the postcards Lance’s organization provides as part of the boot camp. The Domanskis’ plan with that one is to quickly wholesale it. They also have a cash “backup” buyer in case the buyers currently under contract don’t complete the deal for any reason.

“Lance’s program made me feel it’s okay to start small and keep building momentum at a pace that makes sense for me and my husband,” says Teri. “When people ask for advice on how to do this, I say, ‘This is gonna sound cliché, but just do it.’ You don’t have to beat yourself up over little mistakes you make along the way. When I started, I made one call a day five times a week, and sometimes two or three. It’s still scary sometimes talking to people because you don’t know how the person on the other end will respond. But it goes back to mindset and remembering why you’re doing this in the first place.  

“Another key to success is keeping consistent, a quality I know well from my many years of work as a private trainer,” she adds. “Just as you can’t impact your mental, physical health unless you consistently work at it, you have to follow through and be accountable to yourself and others as you start, maintain and grow your business and build your investment portfolio.”

.

Quick Facts:

• Profit Strategy: Wholesale
• Number of Units: 15 units total (9 unit and 6 unit buildings)
• Personal Money Invested: Only $600 total in deposits ($100 and $500)
• Amount Earned: $40k total ($15k and $25k)
• Prior Experience: Fix-and-flips, fix-and-rents, buy-and-holds with single family homes prior to the 2008 crash in which she lost everything to bankruptcy

Stacey’s Call to Adventure

Life had become challenging for Stacey. Being self-employed meant irregular and unpredictable income. Her work was in music and engineering, which she enjoyed. But the financial struggle was real. 

One day in 2006 or thereabouts, she stumbled upon a newspaper ad for real estate investment training. She’d always had a passion for homes. She decided to go out on a limb and enroll in the program. 

For the next couple of years, she traveled the country and attended numerous courses and workshops. She spent thousands of dollars and significant time learning the business. The training was highly flawed, she realizes now in hindsight. The primary method they endorsed was using your credit cards to buy houses. She recounts, “I had tons and tons of credit cards back then! These were the days when you could buy a home in a distressed area in Detroit or Kansas City for a couple of thousand dollars!” She did it all — fix-and-flip, fix-and-rent, buy-and-hold. 

Then the great economic crash of 2008 hit! 

She lost it all. Everything. Well, just about everything.

After being buried alive in mounting debt, she filed for bankruptcy. Digging herself out of this hole would prove to be her awakening. But not before she must revisit the grind.

Stacey’s Road of Trials

Living without credit after filing bankruptcy means every penny must count. And count twice. She took a job driving for Lyft. It was terrible money and a thankless job. She hated it, but what was she to do? She had piles of debt looming over her. Her previous failures had left her without confidence, without assurance. 

On top of it all, she was scheduled for intense knee surgery. She’d be out of work for months. She began searching for a solution that could change the direction of her life. 

Her Dream

The initial goal — which she couldn’t see past at the time — was to free herself from debt. There were other goals — her big Why — but for starters, she just focused on the debt. 

She found an ad for Lance’s boot camp. “Is this the answer to my prayers,” she wondered. She enrolled in the boot camp, and literally with a cane in hand, embarked on her new journey. 

Now some people would be surprised by this decision. After all, hadn’t she lost everything in real estate just 9 or 10 years ago? That was the case, but Lance’s program dangled an irresistible carrot: she could make money without risk by doing apartment wholesaling. She learned the skills well — how to analyze and evaluate apartments long-distance and how to “sell.” Now she just needed to put them into practice.

Unfortunately, because of her financial situation, she didn’t have money to do marketing. She decided to use Craigslist to find her deals. “It was like searching for a needle in a haystack,” she remembers. Most of the properties listed on Craigslist were wholesalers trying to get buyers for their deals. Lots of patience and time were needed to find the right deal. “When you find a good deal, get it under contract right away. If you don’t, someone else will,” she encourages.

She found this great old home with 9 apartment units in St. Joseph, Missouri. The doubts flared up, “it’s priced too high!” “What if I can’t sell it?” Overwhelmed and in a panic, she emailed Lance’s group. While she didn’t have the money for a coach, she found Heather (her email contact) was instrumental in giving advice. She pushed through. 

Once she got the contract from the seller, she submitted the listing to Lance’s group. She also splurged and marketed it on Loopnet. Loopnet enabled her to build a list of buyers. These two resources — Lance’s group and Loopnet — were all she needed to get the job done.

She ended up with 2 full-priced offers. Personally, she liked the “team of guys.” But in the end, she decided to proceed with a woman who was using a hard-money lender. The woman could close quickly, which was critical. The hard money deal turned out to be less solid, though, and after extension after extension, Stacey became increasingly nervous. The deal might fall through.

Then COVID hit. A worldwide pandemic. Banks stopped lending.

Remember, her first real estate venture ended with the worst market crash since the Great Depression. Is her second one doomed to fail because of a worldwide pandemic?

Not for Stacey. No, not for Stacey. She would make this work. 

She went into a frenzy to help her buyer find a lender. Neither she nor the buyer had any success. After months of extensions and negotiations, the deal collapsed. 

She had only asked the woman for a $1K deposit. She had not stipulated a time for the deposit to be nonrefundable. The woman got her deposit back, and Stacey had to start over again. She was devastated because this deal was going to make her $25K. 

She dug in and decided, “I am not going to quit.”

A new buyer surfaced. He lived abroad and asked Stacey to find a domestic lawyer. However, when the lawyer received Buyer 2’s fraudulent check, that deal died too. Finally, Stacey found Buyer 3 — “the perfect buyer.” The new buyer was a woman in California — like Stacey. She loved cool old buildings. Stacey had to adjust the price a bit, so she only made $15K — and it had taken 8 months from start to finish to close.

“That first check was so exciting!” She recounts.

In addition to the “life-changing $15K,” she learned some valuable lessons along the way. She 

learned to require more money down (she insists on $10k down now) and to make it non-refundable after a specified period. 

With this new confidence and swagger, she finished a second deal quickly. The second deal was a 6-unit apartment in Ohio. The seller would accept seller-financing, making it much easier — and faster — to sell the property. After days of hounding the seller, she finally got it under contract. Once again, the listing went on Loopnet and to Lance’s group. One of Lance’s students bought this one. She made $25K. It took 2 months or less from start to finish. Quite a difference from the first deal.

Her success is a display of perseverance. She has that in spades. She shared this wisdom, “A lot of obstacles are in your head. It’s usually the fear of doing something wrong. Push past the uncomfortable. If you hit a roadblock — something you don’t know — are you going to let the obstacle stop you or are you going to find a way to blow through it, climb over it, go around it? Have dogged determination. Make it work. Make it happen.”

Real estate investing enabled her to pay off debt. It gave her more time. But most importantly, it taught her that she could do it. With all hardship she had to face, she got it done. While she recognizes $15K isn’t typically “life-changing,” she feels it was life-changing for her. Before she closed that first deal, she felt intimidated at real estate investor meet-ups. She had no confidence. But after the first deal, she found her swagger. She remembers an event after her first close. She laughs, “I’m an apartment wholesaler! I just did my first deal. Got a second one under contract, wanna buy it?!”

Now she can eye her real dream: retire in 5 years, and marry “a good guy.” They could live it up! Travel! She says, “We’d live wherever we’d want to live. I could finally have peace and flexibility to go and do and contribute. I would know I’m going to be taken care of in my older years with the properties I own.”

Never. Stop. Keep. Moving. Forward.

Quick Facts:

• Profit Strategy: Buy, rehab & hold, AirBnB
• Number of Units: duplex and a lakehouse
• Prior Experience: Some single family home flips, but no prior multifamily experience.

Lynn grew up as an only child. Maybe that is why her story ends with “community” being of paramount importance.

Lynn’s Call to Adventure

Like many people, Lynn worked in a field unrelated to her degree (psychology) and decided to work for FedEx. She loved the fast-paced environment and driving. She retired less than a month ago.

Lynn inherited her parent’s property, which is how she got into real estate investing. Before this, her financial situation was bleak.

Her parents passed away just three months apart. She was able to pay for her mom’s funeral cremation with money from her mom’s modest 401K. But when her dad died three months later, she didn’t know how she’d afford to finance his funeral. Her solution was to have a friend’s son move into the home and pay rent. She says it was strange because he had to live amongst all her dad’s belongings. She hadn’t even had time to clean. It was a situation of “help me, and I’ll help you.'”

The house was owned free and clear, but you inherit property taxes, utilities, insurance, and other expenses along with a home. She needed education on managing property immediately. She needed to learn how to manage cash flow.

She found the Fortune Builders mentorship program and started doing fix-and-flips because she loved the rehab process. She did her first one with her own money — got a loan, and then used her savings for the rehab and paid for contractors.

She experienced nightmares common to others with the unreliability and expense of contractors. But she completed that project and rolled into another one with a partner. But the partnership didn’t end well.

She decided to switch gears, acquire properties and pursue long-term renters. She already had a long-term renter in her parent’s house. Next, she purchased a property and turned it into an Airbnb.

COVID hit.

She continued quietly marketing the property for a couple of months. To her benefit, because it was in a rural area, people started renting it. As a result, the property did well during COVID.

She decided to pull money out of her parent’s house and use the money as a down payment for another lake home. She turned this into another Airbnb and bought a duplex simultaneously. The coordination of the financing didn’t happen quickly, so she borrowed private money for that down payment.

After refinancing the lakehouse, she paid back that private money loan. Her next project is to turn her parent’s home — on a beautiful lake as well — into an Airbnb. She loves sharing the experience of the great outdoors with vacationers.

Her Realization

Her reason for pursuing multifamily investing developed from learning that small apartments offered economies of scale. She realized having more units offsets a vacancy.

Her upcoming retirement led her once again to seek guidance and education. She is learning how to do multifamily investing with Lance’s training. Another exciting change unfolded from her mistakes and hurdles she’d already experienced — she had become skilled at remodeling properties without the aid of contractors.

Lynn’s Mission Unfolds

She got clarity on a mission she hadn’t previously developed: she could use multifamily investments to help others. Her first step was to join forces with the Salvation Army. “They have a program that assists people in rough situations — be it physical abuse, mental abuse, or victims of violence — reestablish their life.” So far, she’s been able to help two individuals and their kids restart life.

This program is similar to Section Eight, she explains. “They provide grants through the Salvation Army. They take an assessment of people’s financials. Then they help with the security deposit, the first month’s rent, and sometimes even the second month’s rent. In addition, they subsidize whatever is needed. It’s a one-to-two-year program.”

This organization offers other community-based programs that provide financial assistance, education, and support groups to help the participant transition into a better life.

She’s now considering purchasing a commercial building to turn it into a four-plex. That might become her next project. She anticipates using the same program. She reveals, “I’ve discovered this is what I need to be doing.”

While her financial goal is to earn $10,000/month in passive income, her dream extends far beyond this. “I want to help more people — not just myself and my family.”  Sure, she wants to travel the world, but her bigger goal — her “why” — is to help families and animals in need. “I’ve always had a passion for animals. So that’s one of my significant driving forces — to set up a ranch to rescue animals.”

And she wants to influence people in other ways. “I’ve taught people the AirBnB model. I will be fixing a neighbor’s property so they can maintain it. I like providing knowledge and building others’ confidence to move forward.”

The Importance of Community

Building a community becomes vital to her, and it starts at home. “My wife and I joined fortune builders together. I got hurt at work which enabled us to accelerate quickly through the course. We had our first rehab in two months. I like to do the numbers, so I underwrite many of our deals. I find the private money. She is good at fix-and-flips. I feed her those deals and venture off independently to make more income and have a bigger impact.”

She recognized her goals would be achieved even faster by bringing in outside partners. “We have new partners down in Phoenix, Arizona. We started doing fix-and-flips there, and one of my partners also has a huge heart for helping people and animals. So perhaps I will form a partnership for that purpose.”

She marvels at how the partnerships in Phoenix sped up progress. “We’ve got one property rehabbed, and now we’re under contract to purchase the house next to it. Last night one of the partners brought me in another deal in Scottsdale. We’re also looking to purchase something in Georgia. Things are now moving quickly. Originally I had doubts, and I wanted to take things slow. But once that momentum starts, it just keeps going.”

Investing in real estate has changed her life in so many ways. “I’ve gotten healthier. In the last six months, I’ve lost 20 pounds, and I’m in a better relationship. We are meeting incredible friends. They are truly incredible people. We are forging relationships with people who have the same mindset. Before, I associated with less inspired people, and I wasn’t accomplishing things that were important to me.”

Her Advice

“Don’t do what I did, ‘analysis paralysis.’ I was afraid of making a mistake and not having the answers. I have learned that you learn by your mistakes. It’s okay to make mistakes. A body in motion stays in motion. If you’re sitting around, you’ll stay there.”

She muses, “I haven’t hit the big one yet, but many little wins add up. I keep plugging along and don’t give up. I think without the community, I may have given up. But the support of that group is so tremendous it has kept me propelling forward and not giving up.”

She suggests others surround themselves with like-minded people. “Build a community that will help you succeed and give you knowledge and confidence.”

“Get the education, but don’t get stuck in the minute details of it. Take action, and get a mentor. Enlist the support of partners and find an accountability partner. And never be afraid to reach out and ask for help.”

FIND. A. PARTNER. BUILD. A. COMMUNITY.

Whether you’re a first-timer or experienced in real estate, this Nugget is for you.

None of us can predict the future but looking at some key facts from a historical perspective will give you a much better picture.

Find Out How to Get Started in Small Apartments by Working with Me, My Team and My Network: https://fcg.isrefer.com/go/sm2n2/ejv/