Randy Langenderfer

Randy Langenderfer (00:00)
as I sit here today, I’m a finance guy at heart. I probably got 35 percent of my net worth tied up in various multifamily projects across the country.

I’m in about 1,500 doors as a general partner, and that equates to probably well over 200 million in assets under management, the values of those properties. That may seem daunting, but it’s really not.

Kevin Daisey (00:28)
Hey everyone, what’s going on? This is Kevin Daisey, your host here on the managing partners podcast. And you know, I’m always trying to find unique guests out there. And I’m not sure if you know this about me, but I do have some real estate. Me and my wife, outside of marketing. and my wife also have some, some real estate properties and I’m trying to build that out, to diversify. And of course all my lawyers out there that I know I talk to often.

I know a lot of you that are in the real estate, maybe you and your buildings for your firms. You’re looking at other opportunities to put money away for yourself and your families and build wealth. so I want to bring Randy on the show here because he’s deep in real estate. He’s got some cool things to share ways to build passive income and I hope it’s valuable to you. So we’d love to see, have any comments, questions, if you can post those.

When you’re watching this, we happy to connect you with Randy or to respond to those questions. And yeah, just trying to bring up something a little bit different here. And Randy, welcome to the show.

Randy Langenderfer (01:40)
Kevin, thanks so much for being on the show. It’s really a pleasure to be here this afternoon as we record this. I’m Randy Langenderfer. I live in Houston, Texas today. My wife always tells me that I don’t say I only talk about business. So I am a husband, a father of many years. I have three adult children. I actually have four adult children, five grandchildren, three girls and a boy that are out living their lives.

Kevin, my story started, if I can jump in there, really about 10 years ago, 10 years ago after the Great Recession, I was working for a private equity firm in Cleveland, Ohio at the time. And if anybody knows anything about private equity, they’re really hard chargers and I was working my butt off and I was just really afraid I was going to get laid off. Not because of any performance problems I had or anything, but just because of the economic times after the Great Recession.

Kevin Daisey (02:11)
Yeah, yeah, tell us your story.

Randy Langenderfer (02:38)
As an executive, I had a pretty good number on my back that would have been a cost reduction. And that was just a real aha moment for me that, excuse me, I needed to find another income. And at that time, I wasn’t really ready to quit the corporate world, but I started looking at all kinds of things, buying small businesses, buying a franchise, other opportunities like that.

I came upon real estate. I had a brother-in-law that got me first interested in it. We were living in Cleveland, Ohio, and we were hard money lenders to a group out of South Florida, Dade County. That means we were lending them money to buy the houses, repair the houses, and flip them for profit. And we would take a very nice return, percentage-wise, on the gain.

So that’s how I got started and then moved into multifamily when I was looking for a job and moved to Houston, Texas from Cleveland, Ohio. And I got involved in a large, I became the chief compliance and privacy officer and cybersecurity exec for a large academic medical institution here in Houston. And so I’ve worked with a lot of attorneys. I’ve had attorneys work for me on the corporate side and just really

pleasure to be on your show and.

spent a lot of time with attorneys that way on the compliance side.

Kevin Daisey (04:06)
Yeah. Well, I appreciate you joining me and interested to talk about some of this stuff. I just have some single family homes that are short-term rentals and we’ve done good and we’re scaling it up. multi-family, I’ve been to some of grant card owned stuff in Miami and learned a lot about that stuff. I had a client here, actually a non-law firm that owned like 60 multi-family complexes.

50 million, 60 million per property type stuff. And, you know, he lives right here where I’m at and very intrigued listening to him and going, how do I, can you get into that? And how is it even possible? no matter what your income is when, do I get into a deal that size? Now, I think it’s a little daunting, to think about. So, so it’d interesting to see like your perspective on that.

Randy Langenderfer (04:59)
Well,

Well, it is daunting when you’re at the bottom of the mountain looking up, or when I was in 2011, 12, thinking about what in the heck am I going to do. It is daunting. And I would say there’s nothing wrong with it. I mean, there’s many different ways to make money in real estate, from single family to multi-family. But what I learned in single family, doing the hard flips that I was doing, it’s just very difficult to scale, to get a lot of traction.

Kevin Daisey (05:27)
Mm-hmm.

Randy Langenderfer (05:29)
and it was limited to the amount of money I had. So how much money could I put in a building or a single family unit to buy it and flip it? My partner and I were the bank. So we were somewhat, yeah, you’re putting out a big outlay and hopefully getting it back in six months, maybe nine months. So.

Kevin Daisey (05:43)
And you don’t have the cash flow, right? You’re not building the cash flow up.

You got capital gains, you got all the other things you got to just keep, I guess you just got to keep stepping up and yeah, 1031 exchange and step up, step up, step up. Right.

Randy Langenderfer (05:59)
You got up, it’s not even capital gains. It’s not even capital gains.

Yeah, but it’s not even capital gains. It’s ordinary income flipping houses because it’s less than a year. So, it’s ordinary gains just like W2. So it became heavy taxed. But there are, there are lot of advantages to it. I was able to graduate into it, but I think the perception that I’m going to go where I’m comfortable in becoming, I’m going to buy, I’m going to build, I’m going to own a big chunk of something. So I’m going to buy a two unit complex or two houses and you are the man per se.

And, you know, I don’t want to be the person that’s getting called for the toilet leaking in the middle of night or the air conditioner going off in the middle of summer or somebody at my car in the parking lot. The advantage of multifamilies, we hire a third party property management to do that. They are the people on site every day dealing with what I say, tenants, toilets and termites. So that’s that’s the real advantage to some of this. And so.

The other one is, is, you know, from an investment perspective, I mentioned, I was at the Baylor College of Medicine and I got to know our chief investment officer real well. And when I first started there 11 years ago, almost 12 now, it was the traditional, we had a $1.5 billion endowment. That’s what the B billion. And we had the traditional asset allocation that everybody preached about. So.

Kevin Daisey (07:25)
Yeah.

Randy Langenderfer (07:32)
I’m a finance MBA, CPA, so I’m all into asset allocation. Had a traditional model of 60-40, 70-30 equities, bonds. Well, over the ensuing time period when I left there of that 1.5, we had anywhere from 8 to 12 % of that portfolio allocated to real estate. And if you look at some of your bigger allocations from your endowment funds, they all have a chunk anywhere. So I’m going to say it.

8 to 20 percent just been how aggressive they want to be and where they are in the cycle. Devoted to real estate. It’s a venue to boost your returns. Yes, it’s a longer runway, but it’s a venue to boost your returns and complement what you’re doing in the market. So today, as I sit here today, I’m a finance guy at heart. I probably got 35 percent of my net worth tied up in various multifamily projects across the country.

I’m in about 1,500 doors as a general partner, and that equates to probably well over 200 million in assets under management, the values of those properties. That may seem daunting, but it’s really not. It’s like owning a piece of a mutual fund. So what I’m comparing it to is you own, or somebody who owns three rentals owns a lot and a little. I own a little and a lot.

Kevin Daisey (08:56)
in a lot.

Randy Langenderfer (08:59)
So I have a small percentage and a big pie. Those who go after single families one at a time, they own a big piece of something smaller. Neither one of them is bad. It’s just that maybe I’m lazy in my old life, on my old age. I didn’t want to do all that work.

Kevin Daisey (09:16)
yeah. I’m my new property has been, you know, it’s, it’s a short-term rental. So it’s not a tenant, which that sounds terrible to me to have single family tenants, but, but yeah, this is the lift. and then yeah, there’s problems, know, you got resources, but you know, you have that backup resources and sometimes there’s no resources. So you, it’s you. So, but it was our way in. I’ve been to lot of.

Randy Langenderfer (09:26)
Yeah.

Kevin Daisey (09:45)
things on getting into multifamily and I learned what general partners were and all this other stuff and are trying to do your own structure, your own deal as a general partner and

To me, my decision was, okay, well, I can go buy some stuff now that I feel comfortable with to get my feet wet and to see that it creates cashflow and revenue and increases in value and give me more leverage to buy something else. And that’s worked out well so far, but I’m still intrigued with everything out there, commercial, multifamily. And so I definitely want to move.

in that direction and anyone listening, you know, if you’re not in real estate, you know, you should be, I don’t care if you’re a owner of a firm or just a law student listening. Yeah. Real estate. not your, your home. That’s a liability more or less. You’re putting money into that constantly fixing it up and paying bills, but you know, getting into real estate, no matter what it is.

Randy Langenderfer (10:35)
W-2 employee.

Kevin Daisey (10:52)
is just a good way to go. Everyone that I know that’s wealthy has real estate, every single one of them. And the sooner the better, because it’s never a good time or the right time to get into it. So.

Randy Langenderfer (11:05)
Yeah, and you hit it on the head, the wealthy. If you look at me, whether you like or dislike Donald Trump, I’m not political side, but he’s done an awful lot for the real estate profession and bolstered its image. as the one guy told me, Randy, you don’t have to be smart in this. All you have to do is follow the playbook of those that have gone before you. This isn’t brain surgery. It takes work and some capital, but you know.

Kevin Daisey (11:26)
You

Randy Langenderfer (11:35)
And I just wanted to go back to the comment we talked about the other illustration. had a conversation, then this is very breakfast this morning with a potential investor. And he’s the same thing. He owns three rentals and he’s contemplating single family rentals. And he’s contemplating, does he want to grow that or does he want to go into something different? And I said, again, neither venue is wrong. It’s what your comfort level is. But I said, do you want to be

Kevin Daisey (11:50)
Yeah.

Randy Langenderfer (12:03)
The illustration I heard best put to me was illustration in the airplane. Do you want to be the pilot in the front of the plane who’s worried about air traffic control and the weather and ground crews and all the headaches he or she has? Or do you want to be the passenger sitting in the back sipping your favorite beverage and reading a book and letting everything else to the guy up front? And that’s kind of the way a syndication works. You know, you have a general partner.

Kevin Daisey (12:30)
Yeah. Yeah. I want to talk about what, you, you know, want to talk about today. And, cause I don’t know much about that myself, so I’m here to learn just like everyone else. And again, this podcast is hopefully bringing us some good information to y’all and, and to me again, as the host, I’m learning every time. which is, which is awesome.

Randy Langenderfer (12:40)
Well.

Well, you’ve got the enviable, so you get to hear all your guests, unless your audience tunes in for every podcast. But you get to hear every one and leverage that knowledge. But yeah, syndication is really just that. mean, it is a group of investors coming together that’s going to buy a multimillion dollar asset that none of us could buy alone, period. None of us could buy a loan.

Kevin Daisey (13:01)
Absolutely.

Randy Langenderfer (13:16)
There’s going to be a general partner. He’s going to be the pilot in front of the plane. He or she is going to be the pilot that’s putting the deals together. They’re going to be the ones that are finding the deals, working with the mortgage companies, working with the SEC attorneys to make sure this deal is going to fly. And then that acquisition needs lots of passengers in the back sipping their favorite beverage or limited partners.

Kevin Daisey (13:43)
You

Randy Langenderfer (13:44)
And that’s the easiest way to do it. So in a typical syndication, there’s probably, I’ve been taking down some very big assets with other partners, not with myself, but we’ve taken down, you know, $120 million deal. I didn’t do it all. It took multiple people to do it. And we’ve done as small as a $7 million deal where it takes a lot less people. so,

You just, you know, in the words of Robert Helmsley from the real estate guys, you know, invest where the money, where the, where it makes sense and live where you want to live. So I’ve invested in assets in Columbus, Ohio, Tucson, Arizona, Greenville, Texas, Greenville, South Carolina and South Carolina, excuse me, Greenville, North Carolina, Columbus, Ohio, Shreveport, Louisiana.

It’s a matter of finding the place that you’re comfortable with the leader or the general partner and their track record and, you know, buying into their vision and a goal. Just like, when…

Kevin Daisey (14:42)
All of us.

So the general partner, they… So let’s just say you’re buying a multifamily. Not only are they like, you know, there’s the money to buy the property, but then the, maybe the upgrades to the property that they’re trying to raise the money for. So then they can then raise the rents and then cash out refi and a couple of years and then pay their general partners back or their limited partners back. Plus a return, right? Is that kind of how it works?

Randy Langenderfer (15:22)
You’ve listened well. So yeah, when a syndication comes together, they’re generally looking at a five-year hold. They’re modeled on a five-year hold. They may have, I’ve been in one anywhere as short as 21 months, and the longest is eight years, still running for me. So it’s anywhere when you achieve the business objective. But generally, the syndication comes together with a pro forma and investment summary.

Kevin Daisey (15:26)
You

Mm-hmm.

Randy Langenderfer (15:50)
that talks about the opportunity, the asset, where it’s at, the local market, what the business plan is to improve that market. And as your audience may or may not know, the beauty about commercial real estate, specifically multifamily, is the value that property is based upon the cash it is generating, not the comps next door like my primary residence is. So I think.

Kevin Daisey (16:15)
Yeah. Like the property I just bought, I had comps for the houses that just sold down the street. Yeah. Commercial and multi that’s, that’s going out the window pretty much. look at how much. Yeah.

Randy Langenderfer (16:25)
It still has an impact, it’s, mean, everybody at the bank and all them and potential buyers down the road are looking at how much cash is this thing generating? Pure and simple. So the, the net operating income is the number income minus expenses gives you net operating income. And so as we, as the new owner of this XYZ property, if we can increase that NOI, that net operating income, we increase the value of the property.

So how do we do that? We either increase rents, or we lower expenses, or a combination of both. And that’s really what you do when you take over any commercial property. You’re looking to increase NOI, as well as let the market appreciate while the tenants are paying your debt down. It’s a beautiful thing.

Kevin Daisey (17:12)
Yeah. Well, so yeah, I’m, you know, this is speaking from what I know and I’ve learned, but I haven’t done. so, but yeah, like say you go in, you reface the building, you do landscaping, you do some, you know, add some new, like washers and dryers, whatever. You don’t have to like maybe redo the whole thing, but you’re, fixing it up. You raise rents that cost, you know, a thousand units for a hundred bucks a month. mean, boom, that’s, that adds up to quite a bit.

Or you wait, yeah, or you’re waiting for this rent to go up because you’ll build up a percentage increase each year or whatever it might be. But the rents are gonna go up anyway, right?

Randy Langenderfer (17:42)
Foggy.

Usually you break your capital plan into interior and exterior items. interior items are just that. Improvements you’re going to make to the units themselves. You’re going to put in new cabinets or counters or plumbing fixtures, lighting fixtures, carpet, anything in between. Some big stuff is relationally tech packages where you can open your unit and control the thermostat with your phone. That seems to be.

Kevin Daisey (18:17)
Mm-hmm.

Randy Langenderfer (18:20)
We put that in for my latest property and we’re getting $50 a month bumps just for that. We took over another property and we started charging for reserve parking. Otherwise, everybody parks in the open lot, but hey, you want a reserve spot, $35 a month. You want a storage locker, another $35 a month. It’s just like any commercial property you see, any commercial thing, the add-ons help immensely.

Kevin Daisey (18:41)
Mmm.

Randy Langenderfer (18:49)
boost your revenue and your NOI thus your property value.

Kevin Daisey (18:55)
So yeah, you know, there’s like tons of tax advantages. So if you’re a higher earner and you have a bunch of real estate, there’s a lot of advantages to having that. And you know, that’s most wealthy people have real estate and they like, well, they don’t pay a lot of taxes. Like, well, you know, because there’s all these advantages to that. So, you know, maybe, yeah.

Randy Langenderfer (19:18)
Back to the Trump guy in 2016, when again, we like him right now and him and Hillary were debating and she was criticizing him for paying no taxes. And he said, that makes me smart. And so, you if you think a guy like, yeah, and it’s not tax evasion, it’s tax avoidance. Tax avoidance to my legal friends out there is legal. Tax evasion is illegal. You know, I can tell you, I left the corporate world in 23 to do this.

Kevin Daisey (19:30)
Yeah, it’s in the tax code

Randy Langenderfer (19:47)
I just signed my 23 return today and I am proud to say that I paid zero income tax for 23. Not because I’m a smart.

Kevin Daisey (19:56)
I just saw mine yesterday, so.

Randy Langenderfer (19:58)
But I’m not bragging or anything. I’m just saying it’s the advantage of real estate. And you’re taking all those passive losses you’ve created. Now, I am able to say that I’m a real estate professional designated by the IRS. So I’m able to take those passive losses I have and offset the ordinary income I had. But even if I didn’t have that real estate expert designation by the IRS,

Kevin Daisey (19:58)
Well…

Randy Langenderfer (20:24)
anybody can qualify with the right qualifications. Those passive losses, I mean there’s three buckets of tax. There’s ordinary income, there’s capital, and there’s tax. Just like your capital gains sit in a bucket and they’re there to your losses offset future capital gains. Same way in your passive income. So even if you’re not a real estate professional for years, it’s a great track tax strategy to buy multifamily to let your depreciation and your losses accumulate so that when one sells

Kevin Daisey (20:34)
Mm-hmm.

Randy Langenderfer (20:53)
You get a small portfolio of those, it’s effectively a tax-free game. You’re just punning it down the road. again, I didn’t develop it. I didn’t think of it. I’m just following the playbook.

Kevin Daisey (20:57)
Mm-hmm.

Well too, as an, as a limited partner in one of these deals, you know, let’s say a hundred million dollar property. mean, so you’re getting the, was it, depreciation.

Randy Langenderfer (21:20)
Bonus depreciation year one and then depreciation every year. So I mean, the beautiful thing about real estate is you should get a positive cash flow as a passive investor, quarterly or monthly, depending on the property, and a negative or tax loss every year on your tax returns until you sell the property. I mean, you’re eventually going to have a gain. But yeah, I mean, so you have favorable tax treatment and positive cash flow.

Kevin Daisey (21:20)
on.

Mm-hmm.

Randy Langenderfer (21:47)
Depending on how active you want to be, if you want to go out and find buildings, that’s great. Or if you just want to invest and reap the advantages, that’s great too.

Kevin Daisey (21:55)
That’s interesting. So, you know, the other thing too, that I’ve learned is maybe you can explain this real quick is say they bought, you bought your own building. So I go buy my own 20 unit building or whatever. and I fix it up, increase the rents, go back to the bank and say, Hey, it’s now. And they go, all right, now it’s worth this. Sometimes they give you a lot more than what you paid for it. you can do a cash out refi as a tax free event.

Correct.

Randy Langenderfer (22:23)
Can you do that on your personal property? No. No. mean, if you went to…

Kevin Daisey (22:27)
So you actually get your money back that you put in, still have a positive cash flow on it and take your money off the table, roll that right into the next deal.

Randy Langenderfer (22:36)
Yeah. The only way you could do that in your primary residence, like I said, is to sell it. Is to take advantage of the appreciation. So, you hit it on the head. You buy a property. You’ve increased the value by increasing the rents. You didn’t do anything else. You’re just making it a better property and finding better tenants and you’re getting more revenue. So, back to my equation. Your NOI goes up substantially. The lender is going to let you refinance that, you’re right, on the

NOI value, not what the comps are saying. And when that happens, many times you’ll get a cash out refinance for anywhere from 50 to 100 % of your investment. mean, the best thing to do is to get all your money back and hold it. And that becomes an infinite return then. When you get all your money back. mean, think about that.

Kevin Daisey (23:26)
infinite return.

Randy Langenderfer (23:29)
You put, let’s say, $50,000 in a building. Five years later, you get a cash out refinance. You get all your money back. And the group decided to hold the building. That’s a beautiful thing. You don’t pay any taxes.

Kevin Daisey (23:40)
Yes, I wanted for people listening, I wanted for people listening that aren’t familiar with this kind of stuff. Like, so yeah, let’s just say right now I have, and I’ve heard different numbers, some of these general partners that have different thresholds and things like that. But for some people listening, they’re like, well, how much money are we talking about here? And how do I get into a deal or whatever? I’ve seen stuff where it’s $100,000 or it’s different levels and some are higher than others.

but just for, for people listening, like, you know, what kind of deals have you seen out there where if I want to be in a deal, I’m in a partner, what’s kind of the minimum entry level.

Randy Langenderfer (24:18)
The general rule of thumb, I’d say as any rule of thumb, are exceptions, but the general one is $50,000. So you’ll see some bigger assets where you ask for $100,000. They want to get fewer $100,000 investors versus many $50,000 investors just so they don’t have to deal with investors. And from that perspective, it makes sense. from the average investor wanting to get in this, and then you can go out to crowdfunded sites today and you can get in this for as little as 500 bucks.

Kevin Daisey (24:37)
Sure.

Randy Langenderfer (24:48)
I wouldn’t encourage that. But for the typical private placement offering, of which these all are, they have a requirement of, I’ll say anywhere from 50 to 100,000. There are deals that if you want to put in more than that, you’ll get a bigger return. I mean, if I put in 500, you’re going to get a bigger return than the average LP. But as a general rule of thumb, I would say 50. 100 is the number seven.

Kevin Daisey (25:16)
Okay. So yeah, I mean, that was, that was kind some of the numbers I heard, but I think most people would be like, all right, it’s a million dollars. Like how much do I have to have set aside to do this and get into a deal? and so, yeah, it’s not.

Randy Langenderfer (25:19)
And yet there’s.

The other one I want to say is on that one is Kevin. Sorry. I mean the ropia The easiest way to get in that is even even high-income earners say I don’t want to put 50 grand in my first deal So the way I got started in my first deal because I’m a finance guy and very risk adverse I started a self-directed IRA So I took some of my IRA money and invested you can do this very legally you just have to transfer out of the Fidelity’s or the Schwab’s into a

Kevin Daisey (25:31)
you’re fun.

Randy Langenderfer (25:57)
A different custodian, the biggest one is Equity Trust in Cleveland, Ohio, or Quest Trust Company here in Houston. Transfer your money there and then you can invest in crypto, real estate, anything you want to invest in. So there’s a venture there too.

Kevin Daisey (26:12)
So don’t take your life savings and throw it into a deal.

Randy Langenderfer (26:16)
Well, certainly don’t take, yes. I mean, I’ve actually advised people not to invest because I don’t want to be the guy that takes their last $50,000. And, you know, I got a kid going to college in two years or something and no, it’s not, it’s not worth it. The potential life.

Kevin Daisey (26:33)
Yeah. Well, we got some good earners on this, on this audience here on this show. So, yeah. I, know, I just, everyone, listen, I just think, you know, we’re focused on growing our firms, my marketing firm, your, your law firm. but you know, we gotta be looking at these other things and put our money elsewhere and having a gross mark. think the other thing too is, if you like, I know my, like my building here that I’m in, more owner occupied my business partner bought this building.

himself right before we kind of formed our new company and he was already built, you know, buying this, this building. I had a lease on a building in Virginia beach. He was buying this. We decided to come here. We pay him a profit every month to be owner occupied. This has gone up a ton in value. and you know, again, he, makes, you know, we pay him.

Randy Langenderfer (27:31)
It gets.

Kevin Daisey (27:32)
more, more than, than he owes on it. That’s for sure. And so it’s looking at investment for him. And now he’s got like six commercial properties plus a couple of short-term rentals. And he’s, you know, he’s looking at different opportunities there too. So there’s a lot of things you do. you, if you have a law firm owner occupied by your building rent out, you know, the extra space that’s available. think there is like a percentage that you have to be occupying for certain like SBA loans and stuff like that. But

There’s some advantages and loans you get out there too for that kind of stuff if you’re in occupied with some good rates, SBA loans with good terms. So there’s a lot of opportunities of course out there for real estate if you’re, know, that you can do through your firm. Yeah.

Randy Langenderfer (28:13)
If you’re serious, and if you’re looking, yeah. And yeah, I like multifamily, you know, primarily for the reason everybody needs a place to live. Not everybody needs an office building or a strip mall or an industrial park, the other commercial real estate classes, but in America, everybody needs a place to live. So that’s the thing I really like to it. And when there’s a shortage of houses, units, whatever you want to call it.

Kevin Daisey (28:27)
Yes.

Yes.

Randy Langenderfer (28:43)
America and that isn’t going to change anytime fast because we’re not building fast enough and the barrier for people to buy them so you know the Millennials I have three millennial children and only one of them owns a house only because they make good money but they don’t have and daddy’s not gonna give them the down payment so we are becoming a nation of renters

Kevin Daisey (28:56)
Well.

Yeah, it is. I was going to say, yeah, so totally agree with you. yeah. And you think about the pandemic, like office space and commercial space was devastated. And if you earned a bunch of rental space for office space, it wouldn’t be very good for you. If you, know, if you have a law firm, you’re always going to be physical. You want, you know, own your building and make money on, you know, to rent out other parts of it. That’s great. but to your point, Randy, yeah.

More people are not buying and younger people are be they’re waiting longer to purchase homes They want to be flexible. They want to move around they want to Not be stuck with something and so yeah, there’s gonna be more and more and more multifamily It’s not gonna be less of it. It’s gonna be smaller spaces that are crammed together. Yes, so, you know, it’s just Especially with the prices right the rates inflation and

The barrier to entry is just So, great investment and it’s always going to be there. It’s not going anywhere, that’s for sure.

Randy Langenderfer (30:11)
And I’m in Texas, in the Houston area, and I think I saw the average median price of a starter home in Texas is like $350, $370. And that’s probably low compared to the rest of the country. But still, that’s going to require you to have a $60,000 $80,000 down payment for the newbie. And so if you’ve got a double income, maybe you can do that. Maybe you can save it. And then the other end of the spectrum is you have people like me that are baby boomers that

Kevin Daisey (30:23)
Yeah.

Randy Langenderfer (30:39)
are looking to probably downsize and get out of the house and the maintenance and all the repairs and that stuff. I can still do it today, but give me another 10 years. I probably won’t have any interest at all. So there’s just a mindset paradigm across the country.

Kevin Daisey (30:51)
you

Well, yeah, too. If like, yeah, there’s, there, yeah, it’s not enough homes out there. And then also if me and you are in like a 3 % interest rate and I want to buy another house for some reason, like I gotta go to a seven or a six or so everyone’s holding tight. They’re not selling. There’s not a lot of inventory. and then when there is the prices are through the roof and the interest rates are high. So it’s a real disadvantage for anyone trying to get in their first home right now. That’s for sure.

Randy Langenderfer (31:12)
Yeah.

Kevin Daisey (31:26)
I have a friend.

Randy Langenderfer (31:26)
And developers aren’t building them as fast because of the interest rates. Developers, even in Texas, that they still build, but just nowhere near what they did five years ago.

Kevin Daisey (31:36)
Yeah, but if you can build a scale, right? Build, you know, 300 units on a property versus, you know, 20 houses. You know what mean? Where is the money going to be? Right. I know a lot of developers, so they’re going to get it for multifamily.

Randy Langenderfer (31:52)
Well, the latest project I’m doing, the latest project I’m doing right now is, I don’t know if you’ve heard in Virginia Beach, but build to rent town homes or houses where they’re actually, these are four town homes and a building that are going to be 16, 1700 square foot homes, two story homes, three bedroom, two baths, garage, small back porch. But they’re just as they said, they’re built to rent. They’re not built to sell.

And, you know, again, a lot of people willing to pay more for something like that than living in an apartment building. And we just happened to place this project in Melissa, Texas, and it’s got lot of upside on it. We just love it. But another demographic and paradigm change across America.

Kevin Daisey (32:25)
Okay.

No, it really is. it’s, you know, again, I was just listening to, I’ve listened to all Grant Cardo and stuff. Grant Cardo is big in real estate. think he’s out, he’s like five billion plus, in management or something like that. But, I was listening to 10X Mentor. I’ve listened to his other books. He breaks it down. He goes through all this. He talks about how he used to do single family and he used to do this and that. And you know, once he got into multifamily, he’s never looked back, but.

Randy Langenderfer (32:46)
Thank

Kevin Daisey (33:15)
because he’s even though I made money on the single families, they were never, they were never cashflow and they’re passive. They were always expenses. I had to pay for them. I had to keep them up. had to do all this and I made money on the end, but I had to wait and the economy had to go up and I had to, you know, and then I had to pick that money and immediately put it back into something else or I would have been taxed like crazy. So with multifamily, just the advantages are endless to be honest with you. So.

Randy Langenderfer (33:33)
Yep.

Kevin Daisey (33:45)
I wanted to see, you know, for people listening and to take a time, is if someone’s like, hey, how do I get into a deal like that? What would I, what’s it really look like? And then obviously I want to get, how they can connect with you and learn more if they’re interested.

Randy Langenderfer (34:01)
Well, happy to do that, Kevin. So one thing I would say is a partner and I that are actually developing a course on a passive investor course, what a passive investor should know. And we priced it dirt cheap just because we want to give back to the profession and kind of help others out. So I’m going to be 197 bucks. So and it’s consisting of like six modules, online modules that you can take at your own leisure. It’s going to give you a really good introduction to how to be a passive investor.

And that’s, you can go out and look at the website. It’s multifamilymaestros, all one word, multifamilymaestros.com. The passive course isn’t out there yet. We got an active course out there of how to find a property to buy. But we’re coming out with that because we just found a lot of people are like this, want to understand, well, how do I do this? And the simple answer of where you find deals. I was just recording a session on the passive course saying.

There’s no 12 step process. It’s hang with people. And I say, you’ll find what you seek. If you’re looking for a new car, you’re going to find a new car or a red Bentley. You’re going to find a red Bentley somewhere. There’s meetups. There’s podcasts. You can get on my mailing list when I have opportunities like this BTR project in Melissa, Texas. So there are opportunities. It’s just a matter of how fast.

your audience wants to go. Love to chat with them whenever if anybody wants to talk about anything legal or professional, though I’m not a practicing attorney.

Kevin Daisey (35:42)
No, I appreciate that. And I think, you know, for everyone listening, I, to learn more about exactly what he’s talking about and pretty much what he shared today, like I probably spent 10 grand to go to a, an event, you know, a real estate type event. know, there’s, there’s, they’re out there and you meet tons of people and, you know, I a Slack group that we created that had like a hundred and some people that were all into this kind of stuff.

Randy Langenderfer (35:58)
I have too.

Kevin Daisey (36:13)
So there’s definitely a lot of information out there, but you know, it’s been 10 grand to go to an event to meet people for the first time. so, you know, it’s good that you have this information out there. So, I would definitely take a look at what he’s got. And again, you know, this episode might not be for everybody, but, if you’re looking to take your money from the firm that you’ve, know, and put it elsewhere and build that up, and protect some of that, honestly.

and have a tax savings and passive income. These are things that I’m looking to do and doing. I hope, again, you folks out there and good friends of mine, attorneys are interested.

Randy Langenderfer (36:42)
Yeah.

Kevin, would.

Sorry, I was just going to say, if I have one thought I’d leave your audience with today, some people that are very smart, most of them are lot smarter than I am, is really just invest in your education. Think of the money you spent investing in your legal education and your undergraduate education. If it’s not with me, spend a few bucks with somebody else to learn it before you invest in it, just so that you’re comfortable with it and you begin to know, like, and trust those you’re investing with.

Education is a lifelong experience for all of us.

Kevin Daisey (37:31)
Yeah, it’s, you know, I’m always trying to learn. So there’s great books out there. you know, just like you’re reading on the business books or if you’re learning marketing with, you know, kind of stuff I do, there’s those good books out here for this. There’s other, there’s people to follow influencers. what’s the guy, his name’s Ken. he’s a, yeah, Kim McElroy is a great YouTube videos. there’s a lot of good information out there. So just, if you’re not familiar with this kind of stuff or multifamily, would.

Randy Langenderfer (37:49)
Ken McElroy.

Kevin Daisey (38:01)
I would suggest exploring it and getting familiar with it. But you have any questions? Yeah. Ask me or I connect you with, with Randy here. If you’re looking on LinkedIn or wherever you’re seeing this episode for driving your car, ping me, reach out and, be happy to connect you and, talk to you for as much as I know about it, but I’m not playing the game yet. So, that’ll be next, but this is, this is motivating me to do it for sure. So I’m excited about it.

Randy, anything else you want to share before we go?

Randy Langenderfer (38:35)
Just a large thank you, Kevin. It’s really been a pleasure. I’ve been trying to talk to separate audiences like this. And the legal audience is one that really should be thinking about that back to where we started on diversification as well. And it’s just a great way to build generational wealth.

Kevin Daisey (38:57)
Yeah, well, I appreciate the conversations before and during the recording and everyone just, you know, get out there, live the best life you can, you know, work on your firms, grow on your firms, but make sure you put in some of that somewhere else that’s going to grow and build wealth for your family. So we’ll see you all soon. Thanks for tuning in. Randy, I appreciate it very much and we’ll talk to you all soon.

Randy Langenderfer (39:23)
Thanks, Kevin.