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SHOW NOTES – EPISODE #001 WITH JOE FAIRLESS
In this episode we hear from Joe Fairless, a real estate investor and podcast host who has amassed $28 million in apartment buildings in three years.
About Joe
Joe Fairless is Principal at Fairless Investing and Host of the extremely popular leading iTunes podcast – BEST REAL ESTATE INVESTING ADVICE EVER. He started buying multifamily properties in 2013 and now controls over $28,000,000 worth of real estate in Dallas-Fort Worth, Houston and Cincinnati AND WHAT IS AMAZING IS THE FACT he achieved this in just 3 years. He currently lives in Cincinnati and has been investing in real estate since 2008. Prior to that, he was the youngest vice president at an award-winning advertising agency in New York City. His latest acquisition was a 155-unit apartment community in Houston and he currently consults other investors on multifamily investing. As host of the popular show Best Real Estate Investing Advice Ever, which is the world’s longest running DAILY REAL ESTATE PODCAST he has interviewed guests such as Barbara Corcoran from the popular show Shark Tank and Robert Kiyosaki, author of the leading real estate investor book RICH DAD POOR DAD. He is a strong advocate of GIVING BACK and serves on the Alumni Advisory Board for Texas Tech University and the Board of Directors for Junior Achievement in Cincinnati. AND, I also understand he is writing his first book that is due to come out soon.
Additional Highlights of His Background
- Had four single family homes but started getting interested in multifamily real estate after he was working out in a spreadsheet how many homes it would take for him to become financially independent.
- Started educating himself on multifamily in 2012
- Got a cash-out re-fi on one of his single family homes and had $50,000 to invest
- Started his own REI company
- Bought his first multifamily property in 2013, a 168-unit apartment in Cincinnati, while he was still VP of an advertising firm in New York City
- Waited two years before he bought any more – wanted to learn by owning
- Two years later purchased a 250-unit and 155-unit apartment communities
- Currently has a 320-unit under contract in Carrolton, TX
Find out how Joe made THE BIG JUMP from single family homes to apartments (168 UNITS) with almost NO MONEY DOWN from him!
- Hear how his broker found the property (publically listed on LoopNet.com), valued at $6.5 million, AND a seller willing to do creative financing
- He shares a little known secret technique known as a Master Lease which basically gave him complete control of the property without having to pay up front.
- IMPORTANT FACT: If you ever do a master lease, you must get the bank’s PRIOR APPROVAL otherwise they could call the note to pay it back immediately or negate your transaction.
Now – He had to raise the down payment!
- Find out how he set out to raise $400,000 but, instead, raised over $1,300,000
Biggest Mistake – He had two!
- Poor due diligence on the property inspection with 168-unit deal
- Realized later that there were things he would need to fix
- Raising extra money for down payment but not setting funds aside for he operating budget or improvements to the property
- He almost put no money into the deal until this happened! So he ended up putting in his own money in to cover operating expenses and property improvements
Biggest Success
- Starting a daily podcast
- Helped him raise over $800,000 for his deals
- Learned great amount of information
Advice for Those Looking to Get Started in Real Estate Investing
- Get educated – read a lot of books
- Get educated before you get the mentor!
- JUST DO IT!
What Are You Excited About With Your Current Business?
- His podcast and where it is going
What Vision Do You Have For the Future of Your Company
- Reach $1 billion in holdings and then assess from there
Rap-It-UP! Session
- Favorite Real Estate Book: The Complete Guide to Buying and Selling Apartment Buildings by Steve Berges
- Favorite Business Book: Crucial Conversations by Kerry Patterson and Joseph Grenny
- Favorite Real Estate Web Site: BiggerPockets.com
- Favorite App: Quotiful
- If you only had $1,000 to start your real estate investing business what would you do with it: Buy the items I need to start a podcast and do it!
FREE STUFF
He Will Send You A Free REI Resources Guide FOR FREE that includes:
- Top recommended “must read” real estate books
- Top Real Estate and Business Web Sites
- Top Real Estate and Business Podcasts
To get the Resource Guide Free: Send a TEXT to 38470 and type the word BEST
AND
A Free Money Raising Spreadsheet
- Send email to: info@joefairless.com, put the words “Money Raising Spreadsheet” in Subject line and mention the Old Dawg’s Podcast in the body copy.
How to Reach Joe
- His web site: http://joefairless.com/
- His podcast: http://joefairless.com/blog/podcast/
To Find Out More About the Old Dawg’s REI Network go here!
To reach our sponsor Meno Studio: send an email to menostudio777@gmail.com.
3 comments. Leave new
Could Joe explain how he raised the money in more detail? Perhaps in the comments or do another show on it. When you’re new and have little credibility/experience, how do you convince people to pitch in to the deal? Did he advertise? Did he understand all the SEC rules? Was it through an entity? etc.
Ryan, Thanks for your question. Unfortunately, it’s pretty difficult to cover very many details in a 30 minute podcast. I do know Joe pretty well and know that he had a mentor and a good SEC attorney that helped him put together his financing and syndications on all his deals. We will be featuring more podcasts on raising money (one of our most popular requests) so please stay tuned. Joe provided his contact information on the show notes above and is pretty good at getting back to people. If I were you, I would just try to contact him directly. Thanks, bill.
Unbelievable story and one to aspire to reach! Quick feedback: the music in the wrap-up session was a little to loud which made it difficult to hear your conversation. Respectfully, Jason J.