Rob’s Words Of Wisdom

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1
Dec, 2023

How To Build A Successful Company Step By Step

 

Rob Rowsell shares how to build a successful company from the ground up. Rob built a multi-shop auto repair business and invested his wealth wisely. Eventually, he cashed out and sold his business, transitioning to a passive residual income. Here’s how he did it.

Build a Successful CompanyBuild A Successful Company – Step By Step To An Extraordinary Business

Rob starts out the discussion by introducing us to a five point strategy to build a successful company. This takes in all of the phases, from purchasing the business all the way to cashing out and retiring into a new life post-ownership. Here are Rob’s steps to business success:

Intelligently Invest Your Active Income

Congratulations! You now own a business. Chances are you are working the counter and doing other jobs as you establish the systems and processes your employees will follow. Ideally, others will handle all of the day to day operations once you are more established. Meanwhile, you need to be socking away whatever cash you can from your active income. Opportunities will come along to increase that income as your business grows. As your income increases, your investments should, too. Rob goes into great detail about those investment opportunities in our monthly Zoom meetings. Are you serious about growing wealth as you build a successful company? You owe it to yourself to join the ATL Community.

Pay Yourself Tax Efficiently

There are many tax benefits to owning your own business. You must pay yourself first, but don’t take chances. Make sure you consult with your CPA regularly to find legal tax advantages. The more money you can keep, the more you can invest.

Build a Successful Company by Using Active Income to Build Your Net Worth

Your business is an active income machine. It’s easy to keep escalating your lifestyle as the money rolls in, but avoid going overboard! A few Community members also have worked in the auto repair industry, and can attest that it is a great bang for buck investment. When you purchase and renovate an automotive shop, the revenue will soon pay you back.

Grow Your Company’s Value

Business growth is always an unrealized gain. Therefore, it is extremely tax efficient. Over time, you could very well 10x the value of your business from the purchase price over the years. This could be done by opening more locations and finding new revenue streams. You will not take a tax hit on the value of that business until you eventually put the business up for sale.

Transition to Passive Residual Income Over Time – The Final Step to Build a Successful Company

There are many opportunities to invest your active income. If you play the money game right, you can eventually replace your active income with regular passive residual income. Eventually, that means you can retire and live off of mailbox money derived from your investments. Remember, to build a successful company is only one part of the financial journey. The end goal is to eventually work yourself out of a job!

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 ATL Inner Circle 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! Sign up today!

29
Nov, 2023

Buy and Hold Real Estate Deals Explained By Wealthy Investor

 

Multifamily Investor Rob Rowsell explains the nuts and bolts of buy and hold real estate deals. Is this right type of property investment strategy right for you? Watch now and find out!

Buy and Hold Real Estate Deals - Rental Property Investment StrategyWhat Are Buy and Hold Real Estate Deals?

Rob and Claudia only buy two categories of deals. One of them is Buy and Hold real estate deals. When engaging in this kind of multifamily deal, Rob refers to the asset as a Legacy Property. After completing the purchase, Rob holds the property in his portfolio for ten years. Then, he “checks the temperature” of the market to decide if he should keep or unload the investment.

The Velocity of Money Deal category is one example of a Buy and Hold. You buy an underperforming property. Since you can’t keep the units at 90% occupancy, it voids your qualification for a conventional loan. Therefore, you apply for a bridge loan and inject a ton of capital into renovations and attracting new renters. After you’ve finished those tasks, the property is 90% full, and you can refinance the loan. Get back all or most of your capital investment, and let your investors stay on at the same rate of return they agreed to initially. Now, the value play is done. Everyone can sit back and enjoy ten years of cashflow.

Join Our Community

Do you own multifamily properties? Do you want learn how to build wealth through passive income? 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!

24
Nov, 2023

Real Estate Buy Box – Rob’s Multifamily Must-Have Criteria

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 your real estate buy box for multifamily 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!

17
Nov, 2023

Real Estate Asset Management After Closing Escrow

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 Managagement - After you close Escrow, what do you look for in a Property Management company?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!

3
Nov, 2023

Preparing to Sell Rental Property – Full Cycle Sale Tips

 

Time to Sell Your Rental Property? Make sure you have all of your ducks in a row!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!

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