You don’t really need to know everything about everything to get started in real estate. You just need to surround yourself with the right people. This is exactly what Kyle Mitchell did when he got started in multifamily syndication. He was committed and persistent and that is how he grew his business. Kyle is now the Principal of Limitless Estates, an author, and currently has 55 million assets under management. Join your host Dale Corpus as he talks to Kyle Mitchell on his entrepreneurial and real estate journey. Real estate takes trust, just because you found a deal that doesn’t mean you’ll get money. Listen in and start networking today!
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Multifamily Syndication Is Based On Trust And Finding The Right People With Kyle Mitchell
A lot of people want to get into real estate investing but they are scared or fearful of failure. They might have thoughts of, “What if it doesn’t work out? I don’t want to be embarrassed. How do I find deals? How do I do this and that or what do I do next? What if the brokers and investors don’t even take me seriously? How do I deal with issues?” I have a secret for you. You don’t need to know everything to get you first started in real estate investing or any business for that matter.
What you need to do, first and foremost, you need to be committed to that business or that idea of what you want to do. That’s number one. You need to surround yourself with people that have already been successful at doing what you want to do so that you could model them. What they have done for you is it’s a blueprint layout for what you should be doing. Focus on the who and not the how.
At the beginning of the year in 2021, I read this book called Who Not How by Dan Sullivan. It shifted my mindset on the ability for myself to even do bigger things. It’s a formula to achieve bigger goals. When we want to do something, we have been trained to ask ourselves, “How can I do this?” There’s a better question to ask. One that unlocks a lot of ease and accomplishment and this book taught me that we should ask instead, “Who can do this for me?”
It’s a paradigm shift and it sounds simple but it goes to show you that there are people out there that can help you achieve everything that you want in both your business life and your personal life. It’s teamwork. I have even revamped my real estate sales business after reading that book as I have a staff. I have two virtual assistants. It grew my business and it’s freed up more of my time. The funny thing is I’m more productive. I’m able to even do more such as this show.
Real estate, in general, as I have said, it is a team sport. Make a team, find a mentor, assistant, business partners, CPA brokers, etc. You won’t be able to do it alone. That transitions me to my guest. My guest is Kyle Mitchell. He knows all about this commitment I’m talking about and also the team aspect of real estate. He switched careers from being in the corporate world to going full-time into real estate. It would be interesting to hear his story.
A little bit more about, Kyle, is that he’s a real estate entrepreneur and the best-selling author of Best in Class He focuses on multifamily syndication and has 55 million assets under management. He’s the Managing Partner and Cofounder of Limitless Estates and the Asset Management Summit, where their mission is to positively impact the lives of their investors and the communities in which they invest in the highest level of transparency and fiduciary responsibility. He’s also the host of a weekly show called Passive Income Through Multifamily Real Estate, where he speaks with various experts in the real estate industry to help educate and create clarity for passive investors and new operators. Kyle, welcome to the show. How are you?
I’m doing great, Dale. How are you?
I’m good. Happy holidays to you. Any good plans for Christmas?
I live in Arizona which is where we do most of our investing. We moved here and most of our family is in Southern California. Any holiday or once a month, we go back to California to see our family. I will be doing that for the holidays.
For my audience that doesn’t know you, tell me a little bit more about yourself, perhaps the things that the buyer doesn’t even cover.
Born and raised in Southern California. I grew up playing golf and I was an avid golfer. I hopped into my first job during high school as a summer job with the golf industry. I worked in the golf industry for 22 years before I’ve got into real estate. There was a small stint there where I played golf professionally. I was fully engulfed in the golf world, and then the corporate world on the management side. What I did there, was property management for golf courses, and that’s where I learned a lot of my management and operations background that I now utilize in the apartment industry.
The idea of real estate investing, how did that find you? Were you reading books or did you meet somebody that put the bug in your ear to even consider that? How did that work out?
I found real estate investing back in 2010. I started investing in some single-family homes and it was through shows and the purple book that everyone knows from Robert Kiyosaki, Rich Dad Poor Dad, and then CASHFLOW Quadrant, which is one of my favorite books from him. I liked that one more than, Rich Dad Poor Dad.
As soon as I read that book, I completely changed my mindset. I had my own primary residence. I sold that and I utilize that money to start investing in real estate because I realized that I had purchased a liability in my primary residence, and I wanted to purchase assets. That’s where the mindset shifts started changing. I started buying up single-family homes. I’ve got to about ten and I quickly realized that it was tough to scale.
I wanted the point where that could replace my income and I could be a full-time investor. I realized I would have to get to 100, 200 of these homes. I stopped in 2013, 2014 for a couple of years. I was focused on my career. I’ve got burnt out in the golf business and started looking for something else. That’s when I stumbled upon an online course randomly on Google for multifamily.Once you find a deal, that does not mean that money will immediately come. There's a trust factor when you're raising capital from other people. Click To Tweet
There was a huge mindset shift for me during that time because I didn’t think that I was someone that could buy apartments. A lot of people don’t think that they can buy apartments. They think it’s for the rich. In general, people who buy apartments are people like me and people who want to invest. We do what’s called multifamily syndication where we pool money, so we can buy these larger apartment buildings.
As soon as I found that, I fell in love with the business model because a lot of what I did in the golf business was managing P&Ls, budgets, CapEx plans, managing people, and hiring people. A lot of that carries over into the apartment business. Eleven months after I found that I left my full-time job to pursue this full-time.
It looks like you are already planning your exit strategy out of corporate after you did the math on the single-family types of rentals and it was harder to scale up. You wanted something that you knew would be a better business plan for you to be able to execute that a lot faster. Is it mainly only multifamily that you are investing in? Is that your main asset class, or are you doing anything else out of curiosity?
We are doing one other project. It is still multifamily but it’s an office conversion to multifamily. Our main bread and butter is multifamily. We have looked into different asset classes like self-storage, mobile home parks, and those are great investments but we are trying to stay hyper-focused. It’s very easy to lose focus and have that squirrel syndrome or shiny object syndrome. We are focused and we are heavily invested in the multifamily asset class and we believe in it in the long-term.
I know that you and your wife Lolita are doing this together as well. Can I ask you, was she always in alignment with you when you’ve got into this? Did you do this jointly together and decide that this is the path that you wanted to go to build your wealth?
Rewinding a little bit further back. This was at a time where she was my girlfriend and we were dating. I was looking for a way out of my job. We had these weekly Mastermind meetings with friends. We call them Moonshot Mondays, where we get together and she was involved. We would talk about different business ideas. At that point, we weren’t even talking about real estate, and then I stumbled upon that course but she was there the whole way with me.
We took the online course together. We started our meetup and show together, and then she supported our family while I left my job to pursue this full-time. I’m more involved in the business. She still helps the show with raising some capital for the company. We were hand in hand and the vision and alignment started even from the beginning on what we wanted to do with our future.
What was that progression like? You said you had accelerated the process within ten months and whatnot, and you were able to quit your corporate job and you got into multifamily. The first deal that you did, was it something that you took down yourself? Was it already syndication? I want to learn more about that.
I had not done a deal before I left my full-time job. We didn’t get our first deal until after but it was syndication, it was a 42-unit property. I had two other partners on the deal. That was a deal that we could have done as a joint venture because it was a smaller deal but I knew I wanted to be in the syndication business. I wanted to have that property be my test for syndication from start to finish. Doing a joint venture, you can still learn a lot but I wanted to understand what the syndication process was A to Z so that I could build up my knowledge and be prepared for the next one as we grew and scaled.
Did you have the property or the investors first? What came first?
The investors. We had been building up our investor database and list for eighteen months before we started raising for that deal. Is that the perfect way to do it? Eighteen months is a lot of time. We were trying to find our first deal but at the same time in tandem, we were getting investors. They say that if you find the deal, the investors or the money will come. I don’t fully believe that’s true.
If you have a track record and you have experience, then yes, that is somewhat true but if you are getting started and you find a deal, it does not mean the money will come. There’s a trust factor there when you are raising capital from other people. You are a fiduciary to those investors. You have a lot of responsibility there. Investors want to see some type of experience and track record to know that their money is being protected.It's very important to just focus and really know one market instead of five. Click To Tweet
We started a meetup as I mentioned then the show. People saw our progression and the level of seriousness that we took our business to. We attracted a following and that’s how we’ve got a lot of our investors for our first deal. We were building that list for 12 to 18 months before we’ve got our first deal.
You kept everybody engaged with these different channels like meetups. They’ve got to see you in person. They know, like, trust you and whatnot. You are a real person. The show gets keeps everybody engaged. I have been listening to shows too and you have done a great job. It’s also an inspiration for me to even do my own show as I was a guest on yours. Is there anything else you kept everybody engaged with because a lot became your audience? It did take a while for you to get your first deal. Was it very easy for them to be interested even your very first offering, since you were brand new or how did that work?
We had a lot of different channels to keep everyone engaged. We have a monthly newsletter that goes out on the first of the month. We had a drip campaign that went out once a month as well to educate them on the markets that we were looking in and investing in real estate in general. Also, we repurpose the content from the show and put it on a YouTube channel.
We had a lot of things going on. I would do a quarterly blog as well. I would say some of the investors were interested but not all. We had a lot of people that said, “We like what you are doing, Kyle and Lolita. You are doing a great job. However, we want to see how the first one goes, and then we will get into the second one.”
Some people said, “I want to see how your first couple go, and then we will get into the third one.” It is a natural progression and that’s why we started smaller. We didn’t start with a $10 million deal. The first deal we did was $1.7 million. We raised about $1 million. We’ve barely got there. That was a struggle in and of itself. We were able to get there because we built the list to a sizeable amount. We felt like we could raise about $2 million and it ended up being about $1 million.
How did the experience of that first deal go? Were you able to even hit the projected, even returns or lessons learned from that overall experience? I’m curious.
We did hit the returns. We sold it already. We sold it in 23 months. It ended up being a great investment for our investors and us. It was a great experience. I’m still sad. I was emotionally attached to that property. I drove by it. It was a fantastic investment. On that investment, what I learned was more on the front end and having the right mortgage broker and right lender that you have a strong relationship with. Unfortunately, that mortgage broker, they were trying to take advantage of the fact that I was a first-time buyer. There were a lot of things that weren’t disclosed where added fees got added on the backend that wasn’t disclosed.
We ended up moving away from that broker 29 days before closing. We closed at the wire. That was a lesson learned. Setting up your team in advance. We were originally going to try and do this with ourselves, signing on the loan and doing it ourselves. We had to bring on partners because it wasn’t working out. Setting up your team in advance is huge that you don’t create any bottlenecks during the close. In multifamily syndication or real estate in general, once you are under contract, there are so many things going on at once, where if you have any type of bottlenecks, it can slow down the close.
In syndication, you are getting your PPM documents ready, investment summary ready, raising capital from investors, setting up bank accounts, and doing due diligence. All of this happens in about a 3 or 4-week period. If you are not prepared in advance there’s a large chance that you are not going to close on time.
That is a huge lesson learned. I’m glad that you were able to figure out that something wasn’t right with the original mortgage broker that you are working with, move on from there, and still close a deal. Being new, it’s tough. You put yourself out there. Another thing I wanted to talk about is sometimes being new. It’s even hard to get people to take you seriously, especially when you are working with commercial brokers. I was assuming that you source your initial deal probably through a broker. If that was the case, how did you even get that person to take you seriously being it was your first deal?
That was difficult. It takes persistence and consistency. My wife and I were driving to Tucson, Arizona, which is where our first deal was. We would leave at 2:00 AM on our only day off during the week because we still had our corporate jobs while we were looking for deals. We would get there around 9:00 AM. We toured properties, and meet with brokers and property management companies all day long, and then drive back home and get home at 1:00 AM the next day.
On one of those drives, this was after I left my job, a broker called me and said, “I know you are going to be out here. Do you want to see a deal that I’ve got? You would be the first investor. It was the right place, the right time. It was also putting in the effort that no one else is doing. You want to be doing things that other people are not doing. That showed the broker that we were serious. Who else wakes up at 2:00 AM to drive eight hours to Tucson? Not many people. That was one thing.
Proof of concept or we created our platform. We have a website, a blog, and a YouTube channel. When people look us up online, they see that we are serious. We have a real business, it’s not a Gmail account and that’s all there is. There is some proof of concept or credibility that plays a part in that as well. Most of it is overtime. People see the consistency, seeing our growth and things take time and that’s one of them.
How are you finding deals now? Is it still through the broker network? Are you doing any other special way of getting deals? Is there a secret?
There’s no real secret on our end. We are big on broker relationships and that’s what it is. That’s why earlier this year we decided to move to Arizona, so we can continue to build those strong relationships. The only other secret is being able to move quickly. The fact that I’m now boots on the ground, a broker can call me now, I could go see the property in 30 minutes. We can have an underwritten before the end of the day. We can have an answer back to the broker that day.
Whereas when I lived in California, it was, “I will be out next week.” By that time, it’s too late. That’s separated us from our competition but now that we have been able to close 6 or 7 deals, we are now getting more of a reputation for being closer in the industry and this market. We are getting a lot more attention from the brokers. We are getting a lot more calls for off-market deals. There’s more deal flow coming across our desks, which is a great thing but that took three years to build up to that point. It didn’t happen overnight.
In terms of geographical location for where you are buying a property, is it mainly close to where you are at or tell me more about where your properties are? Where are you buying all your multifamily?
Most of our focus, 95% is in Phoenix and Tucson. We do have one property in Arlington, Texas, and we have boots on the ground out there that manages those. We will add some properties to Texas but mainly focus in Arizona, which is why I moved here. We are heavily focused here. It’s very important to focus on the market that you invest in.
We are not the group that invests in 5 or 6 markets across the United States. We want to know the market. We want to have strong relationships in the market. We want to have boots on the ground. When you have 5 or 6 markets, I do think it’s more difficult to fully understand everything going on in that market. Being here, living here, I’m seeing the market move in real-time. That’s extremely important. We mainly focus in Phoenix and Tucson.
For Phoenix and Tucson, why these markets? What metrics were you looking at and made it appealing for you?The key to real estate is surrounding yourself with the right people. The more you can do that, the faster you'll grow. Click To Tweet
When I’ve first got started, we were looking in Ohio. What I found difficult while I had my full-time job was getting to that market. First of all, it’s three hours ahead of us. When I’ve got off work, calling people at even 3:00 or 4:00, most people are already off work. I couldn’t get ahold of them. Traveling would take several days. I wanted to find a market that was a little bit closer. We changed to Arizona. One of the reasons is proximity. It’s not the only reason but we look for pro-business markets, pro-landlord markets, and ones that have 5, 10, 15-year plans and building out infrastructure.
That’s what we like out here, especially in Phoenix. They are building out freeways and infrastructure. They are very pro-business. You see in that migration, 220 people are moving here every day. There’s not enough housing. It’s simply supply and demand. The fact that we are bringing in businesses, wage growth is keeping up with rank growth and all those factors.
I believe in the Arizona market long-term for the next 10, 15 years. Real estate is hyper-local. What happens in Arizona is different. That’s going to happen in Texas and then Florida. No market is prone or recession-proof but there are some recession-resistant markets out there and Arizona is certainly one of them.
To get an idea of where you are at now and the types of properties that you are looking at, your first multifamily was a 42-unit, what properties are you targeting for your next acquisition?
Hundred-plus units. We do Class B and C, although we are leaning more towards Class B products. A little bit newer. I would say Class C is more 1970s, early 1980s. We are trying to get into the later ’80s. There are not a lot of ‘90s product in Arizona that was built. There are some but anywhere between the late-‘80s and early 2000s is what we are targeting great locations. We are not at the bottom of the market. I can’t tell you if we are at the top of the market,m but we are not at the bottom. At this part of the cycle, we want to make sure we are investing in location
I didn’t even know that you had a book until I read your bio. Your book, Best in Class. Tell me about that. When did it get published and what’s it about?
That got published earlier this 2021 in July. That was a book I wrote with Gary Lipsky. We both have a background in management and operations. There’s a gap in the market where people are being taught how to buy apartment buildings but not how to manage them on the front end. The sexy part of real estate is buying $10, $20, $30, $40 million properties raising millions of dollars of capital but what do you do with it after you close on a building?
That’s the most important part once it’s closed, you need to execute your business plan. There’s not a lot of education out there as far as what to do, the systems are put in place, how to manage people, how to manage your business plan, and that was my background in the golf industry. I did it for several years. I was in management, building budgets, managing capital, improvement projects, hiring and firing people, and managing people. That’s what it is once you close on a property. Holding your property management company accountable.
A lot of people think that once you buy a property, you hand it off to your property management company and that’s it, and they take care of everything. If you are not keeping an eye on that, then you are losing money on the bottom line. There’s no doubt about it. In the last 10, 15 years, the market has been hot that you can get away with those things. As the market changes, it’s going to heavily rely on the fact on the management side and the systems that you have in place to execute your business plan quickly.
That’s what that book is about. You can flip to any chapter and if you are going through due diligence and disposition, you can read about that. Managing the manager, KPIs, and all that good stuff on how to manage a property. It’s not the sexy side of things but it can definitely drive millions of dollars to your bottom line and your investors’ bottom line.
Has it done anything for your business now? Next time I see you. I want to get your book. I want your autograph for me.
I do get that from time to time, which is still something that is foreign to me. It’s a cool thing. When people read it and say, “This has added value.” That was the point. We wanted to make sure we were adding as much value to people in the industry. I love this industry. It’s a small industry and a small world. Everyone helps everyone out in this industry and I love it. I want to be a part of that.
Your main focus is multifamily. For me, I do a little bit of multifamily but I do mobile home parks, self-storage and other things. I differentiate in asset classes. The fact that you invest in multifamily, how do you diversify by staying in the same asset class, in multifamily or how do you put thought into that?
I said it earlier, real estate is very hyper-local, which is why we introduced Texas because we wanted to give some diversification to our investors. Now, Phoenix and Tucson are high-growth markets, maybe a little bit less cashflow. Dallas is a more stabilized market with higher cashflow, less appreciation. We do diversify in that sense. Phoenix and Tucson are two different markets as well. We have the difference between Class B and C assets. Some are riskier with more upside but diversifying between markets is what we do.
Going back to your growth in multifamily, what’s contributed to your rapid growth? You haven’t been doing it that long but how did you even figure out how to do everything? From A to Z and to where you are at now. Who helped you along the way? Did you have a lot of mentorships?
You hit it earlier, is modeling after others. I’m a big Tony Robbins guy and he always talks about modeling after others not recreating the wheel. I certainly did that. Surrounding yourself with people who are already doing what you want to be doing has been important. It’s surrounding myself with the right people but I completely dove right in. Even while I was still working my full-time job, I would drive about an hour and a half a day each way to my job. During that time, I would listen to podcasts and books solely to do with multifamily syndication.
I listened to a podcast on two X speed. I was listening to 3 hours to 6 hours of podcast a day, driving back and forth to work six days a week. After work, I would go to meetups and meet people. I would fully throw myself into it. I can be an expert in something as soon as possible. I was trying to get to my 10,000 hours as much as I could. Even the friends and people that we hang out with now are in this industry. It was changing who we were. That’s how I learned about it but the key to this business is surrounding yourself with the right people. The more you can do that, the faster you will grow.
You have molded your mindset. You are an entrepreneur now. A lot of times when you are hanging out with a lot of other entrepreneurs that think big, you think big like them. It’s like a side effect of what happened. Any other big goals that you are planning on that you are excited about in your business?
You mentioned Who Not How, which is my favorite book of 2021. I’m reading his new one. It’s The Gap and The Gain. You should read that. It’s a fantastic book. I’m a part of Strategic Coach. I love that. I’m trying to find my who’s for 2022. We want to hire a fractional CFO. We hired an asset manager. We are going to hire a COO. A couple of the acquisitions managers as well. Finding the who’s to be able to help drive the business, so I can work more on the business as a visionary and not as much in the business, which is what I have been doing. That’s my number one focus.
Speaking of a team and who you consider part of your team that’s crucial to running your business, who is part of your team? I’m trying to figure out what that entails.
I have an executive assistant who plays a crucial role in managing my calendar, my schedule, and doing a lot of the stuff that I’m not good at and I don’t want to be doing. I have an asset manager that manages each asset on the day-to-day business and the execution of the business plan. We outsource a lot of our staff. I have an accounting team that does all the accounting on everything. As I said, we want to hire a fractional CFO and a COO to manage the business as well. We have 2 or 3 virtual assistants that do things like presentations, decks, managing emails and social media.
When you made the transition over to being a full-time real estate investor, entrepreneur, and whatnot, did you ever have negative self-talk? Was that still going through your head? How did you manage that?
I still have it from time to time. Being an entrepreneur and being in this business, it is up and down, sometimes multiple times a day, depending on what’s going on. One thing that I do is every morning I read my one-year goals, my current year goals, and my five-year goals. That helps me keep aligned and stay focused but it also allows me to see how much progress I have made. That’s what that book The Gap and The Gain is about.
A lot of people are in the gap thinking about where they want to go and comparing themselves to other people but it’s also important to look at the gain. How far have you come over the last 12, 18, 24 months? When you do that, you realize, we have been successful over the last 12 to 24 months and you come from a place of gratitude. I’m grateful for the strides that we have made and it helps motivate me for moving forward. Those are some things that I do.
Out of curiosity, do you still run a meetup group?You can make money in any asset class, any market, any industry. You just have to know the game that you're playing. Click To Tweet
We moved to Arizona. The one in California, I can’t do anymore and with COVID, it put a damper and things I liked getting in front of people and meeting them face-to-face. We did do it for a while virtually. My partner still runs a meetup in Southern California. They do it both virtually and in person. They have taken over that piece of it. I would love to get more involved in that in the Arizona market. It’s something that I’m thinking about but hasn’t quite pulled the trigger on yet.
When you started at the meetup group before in SoCal, was that hard to do? Do we all gung ho about that?
I’m a natural introvert. I have never liked speaking in front of people and that’s definitely changed over the few years. I have had to get out of my comfort zone but I am a natural introvert. I don’t like speaking in front of people but I do it now. My wife helped me with that when we started a meetup but at first, it was 15 people and 10 of them were people we forced to be there because we didn’t want the room to be empty. They are friends and family.
Over time as we produced good content and put time, energy, and effort into it. We were getting 40, 50 people at each event, which is fantastic. It takes time to build up and you need to do it intentionally. If you are not doing it intentionally and not adding value to people, then it’s not going to take off as much as you would like. It’s focusing on how can you add value to the people that are going to attend, and then it naturally grows via word of mouth.
You started in the real estate investing space initially doing single-family home rentals, knowing what now would you have started the same way?
I would have hopped straight into multifamily. I was buying turnkey single-family home rentals. The problem with turnkey is that there’s a middleman making a commission, which reduces the amount of equity you started on day one. If I was doing single-family homes, I would have gone to the BRRRR strategy, where I was buying and rehabbing them myself versus buying them from the person that was doing that.
I’m a believer that you can make money in any asset class, in any market, in any industry, you have to know the game that you are playing. I do love multifamily and for me, with my background in management, I gravitate more towards that than a single-family home. I would have hopped straight into multifamily.
How important is networking even still to you now? Are you still doing a ton of that? What are you doing to that?
It’s key and it’s something that with COVID, everyone got away from a little bit. It’s easy to hop on Zoom and do networking, which is good but there’s nothing better than shaking someone’s hand and meeting them in person. Going to events around the country, going to other people’s meetups, meeting with brokers. We have our own platform where we have events that we invite people to in Arizona and try and get people to come to invest in this market and teach people about the market, and things like that. Any time you can network, even if it’s not even in the industry. We are golfers. If you can network with people at the country clubs or whatever it is, that stuff goes a long way.
What is your favorite real estate strategy that you employ in your own stuff?
It’s the value add. It’s adding each of the properties. We buy mismanaged or undervalued properties and add value to them by fixing deferred maintenance, putting money back into the property, and forcing appreciation, which is why I love multifamily. The stronger your bottom line in multifamily, the more it’s worth. There are lots of things you can do to control that. In single-family homes, they use the comparison approach.
“My house is going to be worth the same as the one next door based on the comps if it’s the same size.” If I have identical multifamily properties sitting next to one another, if my bottom line is stronger, my property is worth more. I love the control of that and the fact that you can implement certain strategies to drive your bottom line and increase the value. There are some risks adjusted returns there, where you can force appreciation, increase the value, even in a downturn.
For folks that are newer to investing in multifamily syndication, how do you help somebody through that process of feeling comfortable with it? Do you go through an education type of funnel if you are dealing with a newer investor that’s contemplating doing pulling a trigger on multifamily syndication?
We are very serious about making sure that you don’t invest in any of our opportunities until you are ready. We want to make sure it’s a win-win and that you feel comfortable. There is some education there. That’s why we started the show. Depending on how you like to learn, you can go on the YouTube channel, or read our blogs. We have a passive investors guide that helps educate you to know the things that you need to know before you get your first indication. We are happy to have calls with you.
We have what we call a drip campaign but monthly emails that go out and educate people on the process of syndication and why syndication. There is a learning curve. Investing in apartments and real estate is becoming more mainstream but it’s not quite there yet. It has gotten a lot of attention, which is great over the last few years. It is still a little bit new to some people. There’s that learning curve that you have to go through.
For those folks that are aspiring multifamily investors that want to do it actively, what advice do you have?
Surround yourself with other people that are already doing it. If you are going to be a multifamily syndicator, in my opinion, take it very seriously and be intentional about what you do. We raise capital from private investors. You are in charge of other people’s money. If you don’t know what you are doing and if you are not fully educated, then you need to have a team around you that is or you are not being a fiduciary to your investors’ money. You have a ton of responsibility versus investing your own capital.
You don’t want to lose your own money but when it comes to other people’s money, you have to understand what you are doing. Getting the knowledge and surrounding yourself with other people that are doing it are the key factors in there. This is a team sport. I’m not the one that’s doing everything. We have partners that are stronger than other areas that focus on those things. I focused on the things that I’m strong at. It’s a team sport, which makes this industry fun.
For the investors that you are looking for, are you only looking for accredited investors or do you have some partners?
At this time, we do, what’s called 506(c) and it is for accredited investors only. We have in the past done 506(b) but we have gotten away from that on our last four deals.
Final questions for you, anything that you are extremely excited about what’s going on in your business now?
The thing that I’m most excited about is that we are in the hiring phase and the growth phase. We are finally breaking through with a lot of the brokers. We are seeing a lot more deal flow and we are now in the mindset of growing and hiring people and hiring that C-Suite of executives. I’m excited to see where our team is in 2022 to see how much we are built out. I’m finally able to work on the business versus in the business and that’s like I mentioned, my main goal for 2022.
Did you ever see yourself doing what you are doing now?
If you would have told me I was doing even half the things I’m doing now, I would be shocked. Even being on a show, running my own show or speaking in front of people, and educating, which I love now but I would have said, “You were crazy.” We closed on a $27 million apartment building. That’s crazy to think of if this was several years ago. Now, that’s something that we are actively pursuing daily. It’s exciting and very grateful for the last few years.
I’m excited for you. I’m curious. I like to ask this to my guests now. You could answer it any way you like, what does success mean to you?
If you would ask me this a few years ago, it would have been completely different but success to me is living a lifestyle by design. It’s very easy when you are starting your own business and becoming an entrepreneur to create your own rat race. A lot of people leave the rat race of the W-2 job to create their own financial freedom and then create their own rat race themselves. I have been in that a little bit over the last few years. For me, it means being able to be in control of my time, spend time with my family and focus on that, and have a lifestyle by design.
What is your unique skillset? What is your superpower that’s contributed to everything that you’ve got going on now, your current success?
I joined Strategic Coach with Dan Sullivan and we are going through the process of finding out what my unique ability is. I don’t quite have that yet, I can’t share what that will be but I’m excited to find that out. One of my biggest strengths is consistency. I’m very consistent. You can beat out 95% of your competition by being consistent. A lot of people can’t do things for long a time. They do it for a couple of months and then Peter off. I have been fortunate enough to be able to be consistent month in, month out on what I do, and focus on my goals, and keep driving ahead.
I said in the intro, one of the things you need to do when you are jumping into a business venture is number one, be committed. You are consistent with that commitment and you show up every day, and you do what you’ve got to do to make stuff happen. That’s why you are where you are now. When you first started and you made that commitment, did you ever think that it would not work out or was that not an option?
There’s always that doubt that creeps. The one thing that allowed me to be comfortable with leaving my full-time job and my six-figure salary were, I did a fear-setting exercise that Tim Ferriss teaches. I’m a big Tim Ferriss fan. His exercises are in his 4-Hour Workweek book but you go through an exercise. It’s very simple. “What’s the worst thing that could happen if I left my job?”
I came to the realization that the worst thing that happened if I failed is that I would have maybe a few hundred thousand dollars less than in the bank but I would have to go get another job in the golf industry. I would be exactly where I was at that day is my worst-case scenario. When I realized that there’s zero reason for me not to take the jump. That helped my mindset change. In the course of the last few years, has there been up and down? Like I mentioned, every day is an up and down in this industry. You’ve got to know that is the life that you have chosen and that’s what being an entrepreneur and a business owner is.
Is there anything else that you would like to tell the audience or say to them?
Feel free to reach out. I’m always willing to help out and add value to anyone that wants to learn what we are doing, what we are investing in or how to get started in this industry. I’m happy to help in any way I can.
How can somebody get ahold of you?
You can go to our website, Limitless-Estates.com, sign up for our newsletter, and we have a free passive investors guide that we give out that teaches you how to get started in multifamily syndication.
Thank you very much. Thanks for joining me on this episode. It’s exciting to hear about your growth and how you’ve got into this space, and then how you are progressing, and how you scaled it up. It’s very inspiring. You are very relatable and it was very informative. To my audience, feel free to reach out to Kyle directly, if you have any questions for him or if you want to network or connect with him. Thanks for checking out this episode of the show. Remember to leave a review on iTunes. It helps me attract other great guests like Kyle. Until next time. Live life abundantly.
- Who Not How
- Best in Class
- Limitless Estates
- Asset Management Summit
- Passive Income Through Multifamily Real Estate
- YouTube – Limitless Estates
- Rich Dad Poor Dad
- CASHFLOW Quadrant
- 4-Hour Workweek
- The Gap and The Gain
- Strategic Coach
- Guest – Passive Income Through Multifamily Real Estate Investing Past Episode
- iTunes – The School of Cash Flow
About Kyle Mitchell
Kyle Mitchell is a Managing Partner of Limitless Estates whose passion is in helping others reach their goals in all areas of life by doing things the right way and creating long lasting relationships based on trust and clarity. Kyle has been investing in income producing real estate since 2010 and currently manages and operates $107M AUM in multifamily assets in the Arizona markets. Kyle has been a successful business operator/owner for more than 20 years. Kyle is also the Co-Founder of the Asset Management Summit which is focused on teaching people how to become best in class operators. He is also the author of the best-selling book, Best In Class.
Kyle hosts meetup groups, educational webinars and is the co-host of the Passive Income through Multifamily Real Estate podcast.