Real Estate Investing #MakingBank #S7E30
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Real Estate Investing #MakingBank #S7E30
Welcome back to Making Bank. On today's episode, we have Mat Simmons who is a 20 year business veteran and a 16 year veteran in Real Estate and investing. He has built multiple successful companies over the last 20 years, including three seven figure exits, and with over 200 million under management and 470 million in total transactions since 2014. Matt has been seen as a forward thinking business operator with a take no prisoners type of attitude. He's often called upon by business owners across the country and real estate leaders for his business ideas, strategies and sales training capabilities.
Check out today's episode with Mat Simmons on Making Bank.
(2:20) Background
Mat Simmons talks about how his business life started from him not liking school, to being a professional motocross rider who later then got injured and was then shown the business side of life by his mentor and this was the main reason as to what kick started his journey in the business world.
(4:49) Getting Into Real Estate
Mat Simmons talks about how in his career he invested into real estate and many other businesses. Then he also went back to race professionally which then left him injured for a year and his entire business crashed as well. The only thing left constant was his Real Estate investments and this was why he decided to completely focus on just Real Estate.
(8:20) The Downfall
Mat Simmons says that his main downfall was like most entrepreneurs, always like to do things alone and hence, many things failed when he was not around. This was his first downfall in the business.
(9:37) Real Estate Portfolio
Mat Simmons stated that they started off with smaller multifamily and ultimately grew into larger complexes. They focused primarily on class B and class C. They stayed away from anything class A luxury.
(11:15) Class B & C Vs Class A
Mat Simmons' take on this was that Class A properties are easily bought off by big companies and competing with these big companies will be hard. Moreover, with inflation happening all around, these properties soon become a liability making the market go for Class B and C. This is why they concentrate mainly on Class B and C.
(14:24) Property Evaluation
It has to fit in with the buy box. Mat Simmons says they primarily buy in the Sunbelt area, which is North Carolina, South Carolina, Georgia, Florida, Texas, Tennessee. These are the main focus from day one.
(17:31) Advice For Beginners
Make sure that your interest rate is lower than your cap rate, so you're not negatively leveraged and make sure that whatever you're buying right now with any loan program or debt you're using, does not have a prepayment penalty on it within the next two to three years.
(22:38) Investing In Real Estate
If someone wants to invest in real estate, they can come in, invest with us. The minimum is 50,000. Our multi-family pays a 9% preferred dividend, which they start making within the first 30 to 45 days of investing with us and from that point on, they're into the deal with us.
(24:16) Tax Benefits
If you invest a hundred thousand dollars with us and because of cost segregation and our depreciation that we passed through our investors, you might be able to write off up to sometimes $60,000, $80,000 in that year one against your income that will reduce your tax liability.
(26:19) Key Takeaways
Know that you can actually start buying and investing in real estate much easier with less out of pocket than you actually thought.
Links
@realmatsimmons