Joining us today on the Clever Investor Show is Jerome Maldonado
In today’s podcast episode, Cody and Jerome discuss the challenges of breaking into the multifamily real estate market. Jerome shares his personal experience of moving from single-family homes to multifamily properties and how he found success with the help of a mentor. They also discuss the pitfalls of relying on cash for deals and the challenges of dealing with banks during a market downturn. Jerome also shares how he had to adapt his strategy and scale his business to succeed in the industry. The conversation provides insights into the multifamily real estate market and the skills needed to succeed in it.
HIGHLIGHTS:
He also discusses multiplying your money and making it matter by investing in smart products, such as affordable housing.
Jerome shares his journey as well from single-family houses to multifamily apartments
He advises staying focused on what you currently do well, while also migrating and educating yourself on new investment opportunities. It's okay to learn from successful investors and start executing small investments.
TIME STAMPS:
00:00 - Prelude
00:11 - Introduction to Jerome Maldonado
01:12 - How he started in the multifamily construction industry in 2009 indirectly and became fully immersed in it in 2016
01:35 - Total of units completed under management and under construction
01:47 - Making and keeping money through understanding tax benefits, multiplying money, and making money matter
5:31 - Have to have a partner that's more experienced in the beginning to get in the game
6:40 - How did you build your Power team? How did you approach it? How are you looking at things?
8:31 -Issue of hidden clauses in contracts that can negatively affect people in the future when the markets are not doing well.
22:15 - Sacrifices made to build business
23:20 - Jerome recalls his struggles in building his business
24:26 - Successful people are nonnegotiable
24:50 - The key to success is tackling things as if you have nothing to lose and everything to gain
25:26 - The importance of tackling something with a non-negotiable attitude and the commitment required to build something
25:29 - Cody’s piece of advice
26:51 - The one thing that you can’t replace is CREATIVITY
28:25 - Complacency kills a lot of progress
29:18 - How did the multifamily business of Jerome start?
31:37 - Implementing established systems and processes
42:29 - Prioritizing and addressing only what is within their control
43:13 - Jerome considering selling off their current business to transition into a simpler and more profitable endeavor
44:24 - Amidst struggling with his retail business, Jerome focused on building houses
51:59 - What is 1031 exchange?
52:39 - How is wealth created in real estate?
54:19 - Jerome credits Joe from the Orion Group for motivating him to take action and invest in real estate
56:21 - Embellishing experience on a resume to make it more appealing
58:03 - Success is not just about having money, but also about embracing different opportunities
1:00:18 - Jerome promotes clevercapitalfund.com, an investment firm that specializes in finding discounted properties and offers double-digit returns
1:08:50 - The zoning designation currently isn't as important as the city's willingness to change that zoning
1:11:41 - What to do if we find an off-market parcel of land?
1:19:34 - Reason why Architects are important
1:22:47 - Finding a partner for a ground-up multifamily deal is essential
1:29:24 - Start small, understand the process
1:29:51- Start small but scale FAST
1:31:04 - Importance of experience and vetting in real estate investment and development
1:34:45 - Everything has to do with visibility
1:36:08 - Strategic building process for multi-building projects
1:41:49 - Jerome’s piece of advice
1:45:32 - Experience in pivoting from single-family to multi-family real estate development
1:47:56 - END
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