Rob Rowsell runs down what is in his real estate buy box. That is to say, what criteria every multifamily property must meet in order to interest him in buying it. Take a look at the population, amenities, and demographics when you’re looking to buy and fill rental properties.

What’s in Rob’s Real Estate Buy Box?

Rob has seen his share of ups and downs in the US real estate market. Thus, he has experienced his share of failures along the way to amassing wealth. Only through these hardships could he learn what he requires to fill his real estate buy box.

1. City Population of 75,000 or More: Filling and staffing multifamily properties is very challenging in a population lower than 75k. The farther from a large metro area you search, the less competition you encounter, but that is for a good reason.
2. Major Airport Within 30 Minutes of the Property: Nobody wants a long drive from the airport to inspect their properties. Due to reliability and available perks, Rob strongly prefers that the airport be a major international carrier.
3. Job Growth of 3-5% Year Over Year
4. Population Growth of 3-5% Year Over Year
5. Building Contains 80 Units or More: This rule of thumb applies for syndications. Smaller complexes may make it into the buy box, but would likely need to involve a joint venture.
6. Built No Earlier Than 1980
7. 7% or More Average Cash On Cash Return Over the Life of the Deal: Knowing you can promise this figure to your investors is key to securing their trust.
8. AAR of 20% Over the Life of the Deal: This means cash on cash amount combined with the increased equity at sale.
9. No Coastal Properties and No Flood Zones: Nobody wants a letter of cancellation or arbitrary, huge increases from their insurance company. These are out of your control, so don’t risk it!

Join Our Community

Do you own multifamily properties? If not, do you aspire to one day? Then you should consider joining our online discussion group, the ATL Community! Each month, Rob Rowsell will teach you what you must do in order to build wealth in the real estate business. It’s not as easy as it looks! Property taxes, liens, and legal fees can all be hard to navigate, so having a successful guide in your corner like Rob is a must! Enroll today!

Let’s talk about Real Estate Asset Management after you close Escrow. Rob Rowsell has the rundown on what you should expect from your property management company’s business plan once you close on Escrow. Work hand in hand with your on-site manager and his team, so they know what to expect from you, and vice versa. Regular weekly meetings are key tools to keep up with the management team’s progress. Rob recommends quarterly on-site visits as well.

Real Estate Asset Management through a Property Management Company

You’ve closed Escrow on your new multifamily investment. Now what? When you hired a property management company, they agreed to your written business plan for your real estate asset management. Make sure this plan includes:

1. Monday Morning Reports (MMR): Train your onsite manager on how you want this spreadsheet filled out weekly. They should report how much rent is collected, vacancy percentage, evictions, renewals, number of maintenance calls made and performed, and number of parties interested in the property.
2. Weekly Meetings: After each Monday Morning Report, you should email your questions and concerns, then have a phone or Zoom meeting to discuss them. For smaller properties, you may not need to meet each week, but at least bi-weekly meetings are important. Ask the hard questions!
3. Review Income Statements: You’d be surprised about how much money is leaking out the door due to regular tasks being put off or neglected. Examples include overdue electric bills accruing penalties, and utility bills not being switched over to tenants as soon as they move in. Perhaps the property has bought equipment or tools that the maintenance staff should already own.
4. Site Visits (as needed): You should occasionally drop in to see the rental property in person. Quarterly is typically the right frequency.
5. Managing Construction (Value Add): Usually, you or a teammate will need to oversee your construction manager for repairs.
6. Negotiating Contracts with Vendors
7. Approving Cap Ex proposals
8. Regular Investor Updates: Rob posts videos in his online portal to update his investors on their property.
9. Quarterly Investor Disbursements
10. Whatever Else May Come Up…

Join Our Community

Do you own multifamily properties? If not, do you aspire to one day? Then you should consider joining our online discussion group, the ATL Community! Each month, Rob Rowsell will teach you what you must do in order to build wealth in the real estate business. It’s not as easy as it looks! Property taxes, liens, and legal fees can all be hard to navigate, so having a successful guide in your corner like Rob is a must! Enroll today!

Ready to cash in? Rob has all the tips on preparing to sell rental property! You’ve bought, sold, and renovated your multifamily investment. Go through this checklist to make sure you are prepared to sell it!

Preparing to Sell Rental Property When It’s Time For the Sale

Rob starts out by explaining the full cycle of real estate, which is “buy-fix-sell”. The final step, of course, is selling your property. Here are some tips to get you ready for that sale:

1. When you are preparing to sell rental property, you must understand that it has been an ongoing process since you acquired it. The entire time you own a multifamily dwelling, you are continually repairing and upgrading it.
2. Gather any and all documents you will need for prospective buyers. The more information they can easily access about your property, the better. Keep all of these documents online in Dropbox or Google Drive.
3. Interview the selling broker. Make sure you vet them properly.
4. Negotiate the broker contract. A good contract benefits both sides.
5. Review and qualify potential buyers’ offers. The broker may provide you a spreadsheet so you can see each buyer’s qualifications.
6. Select the buyer. Offers will soon roll in. It’s up to you to choose the right one.
7. Open Escrow. This process will pave the way for the last steps in the selling process.
8. Manage all the buyers’ requests while Escrow is opening up. They will be looking for your title agreement, income reports, and more to make sure everything is kosher. Again, you should have digital copies online for them to review.
9. Maintain occupancy and collections during Escrow. If your buyer is applying for a federal loan, you must keep occupancy at 90% minimum for 90 days. Otherwise, you will need to file for an extension. Your deal will fall through if you can’t get one.

Join Our Community

Do you own multifamily properties? Do you aspire to build wealth? Then you should consider joining our online discussion group, the ATL Community! Each month, Rob Rowsell will teach you what you must do in order to build wealth in the real estate business. It’s not as easy as it looks! Property taxes, liens, and legal fees can all be hard to navigate, so having a successful guide in your corner like Rob is a must! Enroll today!

506B or 506C Syndication? Multifamily investor Rob Rowsell explains the differences between these two types of Regulation D investing plans.

Regulation D Investing Plans – What is the Difference?

Rob jumps in to explain the difference between Regulation D Investing Plans. Is a 506B or 506C syndication plan right for you? Read on.

506B Investment Plans

Real estate industry pros refer to the Reg D syndication deal 506B as the “Friends and Family” plan. If you seek out this deal, the main rule is that you must have a preexisting relationship with your investment partners. Before signing the PSA, you must provide proof that you know them. You also may not solicit investors publicly for these properties. This includes online advertising, print ads, and in person public appeals through your local chamber of commerce or other forum.

506C Investment Plans

Regulation D investing plans classified as 506C are for accredited investors only. This means you must have a net worth of at least one million dollars. That net worth excludes your personal residence. You can also qualify if you have earned over $200,000 in the previous year as a single, or $300,000 as a married couple. Financial institutions also need confidence that you will earn that same amount in the following year in order to approve your plan. If you are approved for a 506C investment plan, you are free to advertise your deal to other investors publicly.

Join Our Community

Do you own multifamily properties? Do you aspire to one day? Then you should consider joining our online discussion group, the ATL Community! Each month, Rob Rowsell will teach you what you must do in order to build wealth in the real estate business. It’s not as easy as it looks! Property taxes, liens, and legal fees can all be hard to navigate, so having a successful guide in your corner like Rob is a must! Enroll today!

What are the best wealth building books for your shelf? Rob Rowsell, successful multifamily real estate investor, reveals what material you need to read in order to increase your financial IQ!

Best Wealth Building Books – The Wealthy Code

Rob starts the video clip by introducing the book The Wealthy Code by George Antone. Specifically, he covers the three levels of affluence it covers, relative to financial independence. Each level (Rich, Wealthy, Job) centers around businesses. Rich Dad, Poor Dad author Robert Kiyosaki defines a business as an entity that can operate independently if you, the owner, were physically absent for a year. If that statement isn’t true for you, you have a job, and can’t be financially independent. A job requires your time and attention for a minimum of ten hours per week.

If wealth building is your goal, then you must develop passive income. Anyone with a job that pays above their means can start small, investing that extra money into investments that appreciate in value. Eventually, those properties will generate cash flow. Cash flow is wealth. Learning that fact and amassing the knowledge on how to properly redirect those funds was a game changer for Rob Rowsell.

When Rob first started his house flipping business, he was not setting himself up for regular passive income. A mentor advised him to keep every third or fourth property and collect rent from the tenants, rather than selling it. This meant that he could gradually decrease the work hours he invested in his real estate business. Over time, that business became less of a job, and more of a passive income engine.

Best Wealth Building Books – Money: Master the Game

Next, Rob shares a page from Tony Robbins’ book Money – Master the Game. This is one of the best wealth building books, cited by countless successful investors. The page features an illustration of a mountain, outlining a wealth journey. The peak of the mountain, labeled “Critical Mass”, represents the point where we retire. As we climb the mountain, we are accumulating money for our retirement. The de-cumulation phase occurs on our way down from the peak.

The “Nest Egg Theory” says we should have a big enough bag of money saved up to last us the rest of our lives when we retire. However, life happens. The nest egg may not last us the rest of our lives. We may have to work another job in our golden years in order to make ends meet. Ideally, we have a passive income stream instead that ensures that we make it through.

Join Our Community of Investors.

Do you own multifamily properties? If not, do you aspire to one day? Then you should consider joining our online discussion group, the ATL Community! Each month, Rob Rowsell will teach you what you must do in order to build wealth in the real estate business. It’s not as easy as it looks! Property taxes, liens, and legal fees can all be hard to navigate, so having a successful guide in your corner like Rob is a must! Enroll today!

Here’s entrepreneur Rob Rowsell, discussing real estate deal acquisition from a 30 Thousand Foot view. Examine the big picture of a rental property deal with Rob, a proven multifamily investor and business coach.

What Does Real Estate Deal Acquisition from 30,000 Feet Look Like?

In the first segment of this deal flow talk, Rob lists a few real estate websites he frequents, specifically Loopnet and Crexi. He does not search these sites in order to find property deals. Rather, he uses them to build relationships with brokers who are selling properties in specific locations he is interested in. Rob requests that they put him on their email list and offers to meet them for lunch to talk business when he is in their town. Eventually, these often lead to property deals that fill Rob’s buy box.

Once you’re ready to make an offer, it’s time to underwrite it.  This can be a tedious process, but it is necessary. Next, you make the offer, moving into the LOI (letter of intent) phase. This phase also includes the back and forth negotiation between the buyer and seller. After that, it’s time for the lawyers to get involved. Each party’s attorneys work to draft the PSA, or Purchase and Sale Agreement. Once the PSA is complete, the buyer works with a Transaction Coordinator to open an Escrow account. A Critical Dates Document outlines when specific payments would be due for the property.

Ready to close yet? Nope! Next, your lawyer has to do financial due diligence, proving the property’s value and income are correct, and making sure all accounts are current. Nobody wants to buy a run down property that owes a bundle in utility bills. Pro tip from Rob: No income statement from a seller matches up 100%. As long at it’s close, you’re good. Your broker and attorney should have access to all the records you requested in your spreadsheet.

Physical Inspections

Often, your chosen property management company will want to walk the doors and physically inspect everything with you before the sale. Expect to pay them a reasonable fee for that service, because you get what you pay for. Hire third party specialists to inspect the roof, plumbing, and HVAC. Many times, the property seller is unaware of problems in these areas.

Rob usually purchases properties that require some renovations. Part of his business plan includes setting a schedule for these renovations to take place. When the property is renovated, it can command a higher amount in rent. Potential new tenants need to know that these improvements are worth the extra charge.

The Final Steps of Real Estate Deal Acquisition – Engaging Your Power Team and Investors

If everything checks out, you need to make sure you’re engaging regularly with your Power Team. This includes your lawyers, lender, property management company, and insurance company. You also likely have a team if investors who have pledged capital to your venture. Keep them in the loop every step of the way to ensure good faith.

Take over the property and celebrate! That was a lot of work! There’s plenty more yet to come, so take a break and reward yourself now!

Join Our Community

Do you own multifamily properties? If not, do you aspire to one day? Then you should consider joining our online discussion group, the ATL Community! Each month, Rob Rowsell will teach you what you must do in order to build wealth in the real estate business. It’s not as easy as it looks! Property taxes, liens, and legal fees can all be hard to navigate, so having a successful guide in your corner like Rob is a must! Enroll today!

Multifamily real estate investor Rob Rowsell outlines the 7 Investment Tips for Business Owners. You can take total control of your finances when you invest profits intelligently! Compound interest and your own unique advantages are just two facets of your wealth building journey. Make sure you also have an exit strategy…from life itself! Pass your estate on seamlessly to your heirs, but not all of it. Most of it should be given away to good causes.

Breaking Down 7 Investment Tips for Business Owners

You want to build a business, and not a job, right? Of course you do! These are the seven investment tips for business owners who want to grow into a passive income and out of the rat race.

Tip 1: Grow Your Business

If you want to have money to invest, you have to grow your business. How? Stack cash! In order to stack cash, you must increase your gross sales, gross profit, and net profit.

Tip 2: Intelligently Invest Your Profits

Once your cash is stacking up, investing it wisely is key. Set aside spare time for education outside of your business. When you look at yourself from an outside-in perspective, you can identify your advantages in the marketplace. Some business owners, such as Rob, have found their fortunes in real estate investing. Other investments may play more to your strengths. Over time, the money you put away for your outside investments will overtake your annual salary.

Tip 3: Control Your Personal Spending and “Leakages”

Live within your values, not your vanity! It’s hard to fill a bucket with water when there are little holes all over it. In much the same way, you can nickel and dime yourself out of untold wealth with unneeded purchases. Think of how much that former smokers estimate they save each year after quitting. Now, think of your daily candy bar or Starbucks habit. How much spending can you avoid each year by giving that up? Better yet, what if you invested all of that money in a mutual fund with high yield compound interest?

Investment Tips for Business Owners – Advanced Steps to the Finish Line

Tip 4: Actively Reduce Your Tax Drag

It’s not what you make, it’s what you keep! Saved taxes is an income bucket. If you find (legal!) ways to save on taxes, investing that money can equal huge cash returns over time! Remember, you are the quarterback of your finances. Nobody will care as much as you should! That includes your CPA and investment strategists, so don’t just blindly trust them to do the right thing every time. You’re not their only client, and everybody makes mistakes, so keep an eye out.

Tip 5: Avoid Stupid Capital Losses

We’ve all been tempted once in a while by new financial trends promising big short term returns. Hopefully, you have not been conned by cryptocurrency schemes or other random investments with no due diligence. Everyone (including Rob!) has fallen for this kind of snake oil. Don’t get fooled into thinking that you can successfully invest as easily as you can run a profitable business. Line your pockets, and not a con artist’s!

Tip 6: Let Time Compound My Net Worth and My Advantages

When you put the previous tips into practice, the goal is to build an additional wealth engine. This engine is independent of your business. The longer you work at establishing it, the less work you will need to put into it, as the engine will start running without your help. How? Once again, remember that the keys to starting this engine and keeping it running are using the education you’ve acquired in the marketplace to gain experience. Nobody starts out as an expert in any given field. If it were easy, everyone would do it. Putting in the work over time will both compound your net worth and your advantages.

Tip 7: Build My Estate Plan and Philanthropic Legacy

As you approach the finish line of your career and life, money will be less and less of a worry. Since you have built passive income over time that will serve you in retirement, you should turn your thoughts to what that money can do for others after you die. After all, you can’t take it with you! You invested your wealth both to provide a comfortable retirement and to help your survivors.

A staggering 70% of all wealth transitions do not end well! Regarding inheritances for your family, Rob recommends the book Preparing Heirs. It’s a game changer! Bottom line, choose an amount of money that can help your heirs live comfortably. This shouldn’t be an extravagant figure. Then, you should pick an age when your heirs will be mature enough to wisely invest that money. You should give the majority of your wealth away to philanthropic causes. We all know that helping others through scholarships, church mission funds, or other good causes will do exponentially more good than just giving it all away to our kids.

Conclusion – Investment Tips for Business Owners

That was Rob Rowsell’s quick and dirty outline of seven investment tips for business owners. These are the same strategies Rob has used for years, literally working his way up from nothing. From a homeless drug addict to working in an auto repair shop, to then owning multiple shops, to finally selling those businesses in order to concentrate on real estate investing. Most importantly of all, he also teaches others to build wealth like he has. That means you! If Rob did it, then you can too! Why not join the ATL Community and let Rob guide you personally? Sign up today.

Rob opens up the group to a victory huddle. During this time, our community shares our wins, losses, and challenges with each other. Adding new family members was surprisingly the sole topic. We discussed new great grandchildren being born and the joy of quality time with kids and grandkids. One guest also brought up his recent blessing of adding a new son in law or daughter in law to his family by marriage.

Victory Huddle on New Family Members and Quality Time

The conversation starts off with Rob contrasting the game of football with other endeavors in life. Seasoned pro athletes may not need to huddle in order to win on the field. However, in the game of life, sharing our wins with others in a tight knit group is key for success. Sometimes that means opening up about our challenges and failures, allowing others to lift us up. It can also mean celebrating our victories in the huddle.

Gary informed us he and his wife just welcomed their twelfth great grandchildren. Rob added that the Bible teaches us that the birth of grandchildren is a reward for a life lived wisely. He mentioned how things like playing catch with our kids and grandkids may seem small to us, but they are building huge memories for them. When Rob and Claudia bought their motorhome, one goal was taking one week out of the year to take their grandkids on vacation with them.

Another group member Brad shared the victory of his son getting married recently. Rob reminded us this is another opportunity to mentor his new daughter in law.

Join Our Community

Do you own multi-family properties? If not, do you aspire to one day? Then you should consider joining our online discussion group, the Addicted To Life Community! Each month, Rob Rowsell will teach you what you must do in order to build wealth in the real estate business. It’s not as easy as it looks! Property taxes, liens, and legal fees can all be hard to navigate, so having a successful guide in your corner like Rob is a must! Enroll today!

Wouldn’t it be great if someone explained the kinds of real estate deals in easy to understand language? In this video, successful multi-family property investor Rob Rowsell does just that. Are you a cash flow investor? Perhaps are you looking for back end equity instead? Either way, you will learn the nuts and bolts of these investment deals in this video.

What Kinds of Real Estate Deals Are There? How Do They Work?

Rob starts the discussion off on the kinds of real estate deals. He explains that a cash flow investor puts his or her money into an investment and receives a regular return on it quickly. A back end deal, however, works differently. An extreme example of a back end equity play involves injecting capital into a new construction project. You may have to wait a long time in order to get a return on your investment. Some factors in that deal include waiting on the land purchase to go through, hiring contractors, and building inspections before getting paid. Depending on the specifics of your deal, your payout could come at different times during the life of the building. Many times, a balloon payment is made to catch investors up when the building is sold.

Other factors to consider is turnover of tenants and renovations to an existing property. If you are in a position to wait these out, you could conceivably make a greater return than you could over the life of a cash flow deal.

Join Our Community

Now you know about the kinds of real estate deals. Why not consider joining our online discussion group, the Addicted To Life Community? Each month, Rob Rowsell will teach you what you must do in order to build wealth in the real estate business. It’s not as easy as it looks! Property taxes, liens, and legal fees can all be hard to navigate, so having a successful guide in your corner like Rob is a must! Enroll today!