YouSaid · the spoken record

Keith Wasserman

lines on the record
62
first
2019-02-05
most recent
2019-02-05
sittings or episodes
1
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podcast

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  1. “upgraded the interiors spent probably $3,000 $4,000 per interior and we added a lot of money to the bottom line to the NOI and real estate's based on comps and then the income approach so if you have higher income the property is worth more”

    2019-02-05 · Invest Like the Best · Keith Wasserman – Real Estate Investing - [Invest Like the Best, EP.120] · IDENTIFIED FROM THE TRANSCRIPT · source

  2. “loans and another gentleman that could help us raise more money so in December of 2009 we bought a 78 unit property for 3.9 million we raised 1.3 million of equity from around eight investors and we invested around 300,000 into that property upgrading the property all the fencing around the property was shot we put in new fencing gave it a facelift new paint it had two clubhouses one that was totally shut down and closed up we converted that into a gym We feel like adding amenities, you know, people love having amenities on the property. It makes it a better community to live in. And literally, so people don't have to pay for gym membership now that you have a gym on the property. They weren't allowing pets, for example. We started allowing pets and charging $25 per month per pet, which is immediately just adding to the bottom line. So we did a lot of, and we added washers and dryers to the community. So just made it a better community and lifted the rents in the process. And we obviously.”

    2019-02-05 · Invest Like the Best · Keith Wasserman – Real Estate Investing - [Invest Like the Best, EP.120] · IDENTIFIED FROM THE TRANSCRIPT · source

  3. “cost so we didn't do as well as we thought and and we learned an important lesson of really focusing on buying in better areas and maybe paying a little bit more to buying those better areas because operations will be a lot healthier and stronger. But we learned the business by doing. We were driving to Bakersfield two hours each way, two, three times a week buying these buildings overseeing all the due diligence, doing all the renovations, leasing them out. And I think the best way to learn any business is by doing. And literally, we had nothing to lose. We were buying these small little buildings, still living at home. And so if you're making mistakes, the mistakes are very small. We had one investor, then two investor, and we literally built this business one building at the time and one investor at a time. And literally, I think the biggest breaking point was a year later, we brought on two new partners we call them the gray hairs because we were young guys. I was 24. My partner was 29. So we brought on a gentleman that could help us get on large.”

    2019-02-05 · Invest Like the Best · Keith Wasserman – Real Estate Investing - [Invest Like the Best, EP.120] · IDENTIFIED FROM THE TRANSCRIPT · source

  4. “Looking back, the first 15 buildings we bought were all these small little fourplexes. They previously sold for 400 to $500,000 during the height of the market, 0506. They were financed with residential mortgages because they're under four units, one to four units you can finance with those residential mortgages. People were getting them without any credit and money. So they were really driving the prices up. We purchased these for $100 to $150,000. So immediately it was well below replacement costs. So when you're buying something, if you could buy it below replacement costs, that's the first thing we look for. Second, they value it based on the income approach. So our mortgage payment for these little four plexuses were $600, $700, $800. Each unit rented for around $600. So if we had two units rented, it was paying for itself. If we had three or four units rented, it was cash flowing like crazy. However, little did I know these were in the rougher parts of town and they had a little bit higher vacancy and higher turnover, higher repair and maintenance.”

    2019-02-05 · Invest Like the Best · Keith Wasserman – Real Estate Investing - [Invest Like the Best, EP.120] · IDENTIFIED FROM THE TRANSCRIPT · source

  5. “I think in business, you have to be tasteful in how you negotiate, but everything in life's pretty much negotiable. You can't be afraid to sort of turn someone off and you make money on the buy just like in real estate. If you buy something right and you buy it below market where you think it's below market, you're going to have an immediate profit margin built in and a level of safety. In today's market, we've had 10 straight years of a strong market in real estate. You're not going to essentially steal anything. But if we feel that there's a good story behind something and we've see value where maybe our competitors don't see value and how to add value, we'll pull the trigger and make the purchase. And we feel like we're buying something right and have that margin of error built in, then you're going to be much safer on an investment.”

    2019-02-05 · Invest Like the Best · Keith Wasserman – Real Estate Investing - [Invest Like the Best, EP.120] · IDENTIFIED FROM THE TRANSCRIPT · source

  6. “Yeah, so downtown LA, my father is an attorney and he had clients in the apparel business, and I started talking to them and one person led me to another person and I went downtown and I scoured the market and I found these leather jackets that a jobber had. And literally they were just sitting rotting in the warehouse. They weren't able to sell them. And I negotiated them down to that $10 price. They wanted $20 or $30, but I paid them all cash on the spot, you know, $1,000 for those 100 leather jackets and learned not to be fearful of negotiating one of my mentors really taught me that and said, you know, just come in and negotiate and don't be fearful of the guy had these jackets. They were just sitting there. And it sort of reminds me of the Dollar Shave Club story where the gentleman who started that, I think he literally had a gentleman that had”

    2019-02-05 · Invest Like the Best · Keith Wasserman – Real Estate Investing - [Invest Like the Best, EP.120] · IDENTIFIED FROM THE TRANSCRIPT · source

  7. “It's based on oil and agriculture, and we felt that through the recession, those industries would really fare well and add a lot of jobs, which it did. So really started very small. As an entrepreneur, without a lot of resources, we figured out how to do this. We got an FHA loan, only put down around 2.5% down. We borrowed $5,000 from a friend. We got a cash advance of $10,000 on our credit card. And that's what got us into the first fourplex. So just being really resourceful. And that's how we got started in this business.”

    2019-02-05 · Invest Like the Best · Keith Wasserman – Real Estate Investing - [Invest Like the Best, EP.120] · IDENTIFIED FROM THE TRANSCRIPT · source

  8. “To $100 a piece to all the students, the faculty, the teachers, the parents. I had a whole car of leather jackets. I smelled like a leather jacket, but I made around $10 grand being a high school student. And I realized the importance of negotiating and making money on the buy, which led me to my next business, which was Keith's Bargain Center. All through my college years of 2003 to 2007, we ran one of the largest eBay stores. We sold around 200,000 items ranging from electronics, DVDs, clothing, whatever I could buy for a good price and resell for a higher margin. That business sort of slowed down as eBay got more and more competition. PayPal kept raising their fees. And, you know, I realized my next venture might be in real estate once I saw the market turning and crashing in late 2008. So my cousin and I, he came to me with the opportunity to buy a single four-unit building in Bakersfield, California, which for the viewers is around an hour and a half to two hours north of Los Angeles in the central valley.”

    2019-02-05 · Invest Like the Best · Keith Wasserman – Real Estate Investing - [Invest Like the Best, EP.120] · IDENTIFIED FROM THE TRANSCRIPT · source

  9. “Definitely. So I've always been very entrepreneurial to tell you the truth. I've never had a job in my life. So when I was 10 years old, I would go with my parents to Costco and we would buy candy bars wholesale and then go to the park and sell them retail one by one. When I was 13, I had a bar mitzvah and I started investing my bar mitzvah money into the stock market. I wish I still held on to those stocks, one being Netflix was my biggest holding back in the early 2000s, and I wish I had that one still. Real estate, like the stock markets, you know, buy and hold is the best strategy if you're holding on to good securities. And then I'll take you to high school. When I was in high school, I really learned how to make money on the buy, which has brought me into my real estate career. I bought 100 leather jackets for $10 a piece. They were irregulars, IRs. They had small little blemishes on them, essentially. They retailed for $300. They were Perry Ellis, beautiful lambskin leather jackets. I bought them for $10 a piece, and I stole them for $80.”

    2019-02-05 · Invest Like the Best · Keith Wasserman – Real Estate Investing - [Invest Like the Best, EP.120] · IDENTIFIED FROM THE TRANSCRIPT · source

  10. “Resident has to take care of all the buildings themselves, anything that goes on within the four walls. So you're just literally renting them the space and it's affordable housing at its core. The lot rent is $300 to $500 a month. And when you're having rising home prices, rising rent prices, this is really marketing to people that will own their own homes and have affordable living at its core.”

    2019-02-05 · Invest Like the Best · Keith Wasserman – Real Estate Investing - [Invest Like the Best, EP.120] · IDENTIFIED FROM THE TRANSCRIPT · source

  11. “I'd say when the market's good, you could potentially have higher returns in office and those more riskier asset classes hotel, especially hotel where you have, when there's a recession that occurs, hotel changes the rates daily, essentially. So it's the first one to really get hit. But when the market turns, it's the first one to really come back strong. And I'd say there's potentially higher returns in that, but it's offset by the heavy capital expenditures that are needed. hotels you have a lot of ff that constantly needs to be updated you know every few years it's really running a business per se and i'd say for the risk adjusted return i really like the multifamily space and and the the best in my opinion which we just started getting into is the manufactured housing space essentially i'll explain for the listeners you're renting a piece of a space a pad they call it and you don't own any of the actual structures the homes”

    2019-02-05 · Invest Like the Best · Keith Wasserman – Real Estate Investing - [Invest Like the Best, EP.120] · IDENTIFIED FROM THE TRANSCRIPT · source

  12. “That's a great first question. And definitely we started with apartments due to the size and when you're leasing an apartment, if it stays vacant for too long, essentially you just lower the rent a little bit and you'll have someone that moves in. My family's been involved in office buildings and shopping centers. And when there's vacancy, it could sit vacant for a long time. And once you find a tenant, you have to pay a broker's fee, which could be very sizable. You have TIs, tenant improvements, dollars that have to be spent. A lot of free rent up front has to be given. So the cash flows are more lumpy on those kind of asset classes. Whereas apartments, it's more stable and pretty recession-proof. If you buy it without over leveraging it and being very conservative, it's more of a guaranteed way to build wealth over time, whereas commercial, of office, retail. If you have any one large tenant that has a lot of space, it just a lot more risk. And we like low risk. So that's why we're.”

    2019-02-05 · Invest Like the Best · Keith Wasserman – Real Estate Investing - [Invest Like the Best, EP.120] · IDENTIFIED FROM THE TRANSCRIPT · source