257. How to Invest in Apartment Buildings

Summary In this episode, Justin Williams talks to Jason and Pili Yarusi about their journey and experiences in the world of commercial real estate investing. The Yaroussis began working in the restaurant and bar industry, moved to house moving and flipping, before venturing into large-scale multifamily investing back in 2016 and have since acquired a significant real estate portfolio. They discuss how to make the transition from single-family homes to apartment buildings and share insights into establishing broker relationships, understanding the difference between active and passive investing, and the importance of mentoring. They also delve into the importance of understanding the dynamics of taking calculated risks, seeking a business-savvy network, and the tax advantages investment properties offer. Furthermore, they delve into the different opportunities available for both accredited and non-accredited investors. To have a successful and thriving real estate business, The Yarusi's emphasize the significance of constantly learning, taking action, building relationships and educating oneself. Links https://www.yarusiholdings.com/ https://www.costar.com/ https://cre.moodysanalytics.com/ https://www.yardi.com/products/matrix/   Time Stamp 00:00 Introduction and Background 00:42 Guest Introduction: Jason and Pili Yaroussi 01:47 Journey into Apartment Investing 02:06 Transition from Restaurant Business to Real Estate 04:00 Challenges of Running a Construction Business 04:25 Transition into Real Estate and House Flipping 05:17 Scaling the House Flipping Business 05:58 Venturing into Large Multifamily Investing 08:48 The Power of Networking and Mastermind Groups 14:47 The Benefits of Commercial Investing 17:52 The Process of Finding and Acquiring Properties 19:24 Establishing Contact with Property Owners 19:35 Broker Relationships and Direct Marketing 20:36 The Role of Brokers in Property Acquisition 20:56 Finding Opportunities through Various Channels 22:08 Understanding the Market and Building Broker Relationships 24:12 The Importance of Real Estate Resumes and Mentors 25:05 The Role of Sponsors in Property Acquisition 25:44 Sourcing Deals and Becoming an Acquisition Specialist 26:06 Active vs Passive Partners in Property Investment 26:14 Understanding the Role of Limited and Active Partners 28:45 The Potential of Passive Investing 32:12 Understanding the Concept of Accredited Investors 34:06 The Importance of Building Relationships with Investors 35:42 The Journey to Success in Business and Investing 36:58 The Importance of Planting Your Financial Tree 38:59 Closing Remarks and Future Plans