The Elevate Media Podcast
Join Chris as he chats with successful business owners and entrepreneurs and shares his own lessons and successes of building Elevate Media Group.
His mission is to help coaches bring in more clients through video podcasting and content creation so they can elevate their brands and become the experts in their industries without all the time spent doing it.
The Elevate Media Podcast
Embracing Challenges and Achieving Success in Your Ventures
Are mental barriers holding you back in your business or personal life? Join us as we uncover the insights of Jason Yarusi, a powerhouse in keynote speaking, coaching, and private fund management. Jason shares his personal journey from overcoming fear to taking calculated risks, highlighting the transformative power of stepping out of comfort zones. Learn how to dismantle the fear of failure through actionable steps and a mindset shift that embraces growth and success.
Ever wondered how writing down your fears alongside your goals could revolutionize your decision-making? We discuss practical techniques like reverse engineering to break daunting tasks into manageable actions, allowing you to tackle challenges head-on and maintain consistent growth. Jason and I unpack the importance of facing and embracing difficult tasks, acknowledging that while perfection is elusive, the journey leads to significant personal and professional victories.
Explore the landscape of multifamily real estate investment with us, as Jason shares strategies for navigating risks and building wealth. From assessing the stability of larger properties to crafting straightforward proposals for investors, we delve into the art of making informed decisions in a volatile market. By breaking mental barriers and leveraging mentorship, this episode is packed with insights to elevate your life and business to new heights.
This episode is NOT sponsored. Some product links are affiliate links, meaning we'll receive a small commission if you buy something.
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Welcome back to another recording of the Elevate Media podcast. Chris Anderson here, your host, excited to dive into this episode where we're going to be talking about how you can shatter the barriers holding you back in your business, and so brought on an expert. He's also a keynote speaker, he's a coach and he's also a private fund manager of $300 million REI, so super excited to have Jason Yarusi on the show. Jason, welcome to the LV Media Podcast man.
Speaker 2:Yeah, chris, great to be here, excited to talk to you.
Speaker 1:Yeah, absolutely no-transcript.
Speaker 2:Yeah, this is a great topic because we think many times I saw something the other day and it really spoke. True is that, like if you have a circle right and of that circle you look at like all the stuff you don't know, that you don't know, you don't know right, that would be like 99 right of that, one percent that's left. There would be this stuff that you know you don't know right. That would probably be like like 99 of that, one percent that's left and there's that one percent of stuff you know right.
Speaker 2:And so many times in life we don't want to look silly anymore, right, like we. We're born right, we learn all these things, we grow, we learn to speak, we speak, we learn these things. We go to school, we do these parts and we've had these failures. That kind of stick to us. They kind of lead and follow us everywhere we go. And today, as we've grown right, most of us are out there into the adult world and we're going out there that we don't like where we are, but we're too scared, too fearful to take the next step to where we want to be, because we don't want to face this opportunity or potential of failing again. So what do we, do we sit in this?
Speaker 1:basking of just somewhere we don't want to be, but at least it's safe.
Speaker 2:I don't like it, but it's better to be where we are than the chance of having a failure Many times when we really go outside of our comfort zone we're not truly jumping in right, Like it's like when you got on a bike as a kid, like you just go and like fell, like you got back up and you did something else right and you're like, okay, that wasn't good, but I'll just go do it again, cause like the energy's there, you want to try it, you want to do something, you want to do what other people are doing, but here, you're stepping outside of what most around you are doing.
Speaker 2:Most of your friends that you grew up with, went to college with, did all these other things with. They had this pattern. They do this thing. Go to college, finish high school, do something. You go, get this job. You grow and grow with that company. At some point, potentially, you'll get promoted or you'll move to another company where you can level up there and that'll be it, you'll have consistency.
Speaker 2:Nine to five. You'll go to work Weekend, you'll have your weekend right, but here you are going to try something that no one else is doing right. So it's fearful because you don't have the backdrop of support. That's why you come to these podcasts is because you get like-minded people that are talking about this, but you don't have that core element so you may get feedback and advice that, honestly, is from people that care.
Speaker 2:It's not that they're telling you because they don't care, but they're giving you feedback that, in their mind, makes sense, right, like, well, don't go start that business, it's so risky, right, where in fact they could be fired tomorrow and not see the evolution of how their world can change. Right, but for them, you're going to try something outside of it. Right, they see the worst case scenario, and so our mind gets positioned that we start setting up our own roadblocks, right, we said that, well, maybe I better not start that business because Johnny, who's worked with that company for 20 years, is trying to give me advice on starting a business. But it kind of makes sense in my safe mind where the fear of trying something outside of box could be scary.
Speaker 1:Yeah, yeah. So and that's true, like we have that, you know, fight or flight mentality kind of thing and we've got to decide. You know what's going to be best and you really have to. You know, you really have to kind of overcome some of that because there's a lot of risk to get to the levels that you want to get to. You know what was your biggest I guess, barry, you're broke that like you had a lot of fear that you had to, like you know, pump yourself up to be like all right, I'm doing this, or business outside of business, what does that look like for you?
Speaker 2:You know. So our first large real estate investment was a 94-unit apartment building in Louisville, kentucky, and we went from you know buying some houses to buying a 94-unit apartment building.
Speaker 2:And it was that barrier where I didn't come from a family of money, right, I really wasn't surrounded with people with money, I didn't know the idea of large investments. So, like you know, that building at the time was just under $3 million. Right, today we've grown, we're buying buildings that are in the $30 million range. But that first part, when you go from not having money to say $3 million, it seems like light years away. And so the way to make it actionable is that we started breaking down the steps, because so many times we look at the goal but the goal is so far from where we are that we never start right Because it's too scary.
Speaker 2:But if you look at it and say, okay, well, if I want to buy this apartment building, what's the first step I can take? Well, okay, I can go, I can find a mentor. Or I can say what market do I want to be in? Or I can say what kind of building do I want to be in, or I can learn. You can do all these steps that start to give you the momentum and start to give you confidence.
Speaker 2:And where we miss is that, you know, in today's world, today we just see the end result for most, and so it makes us less confident in ourself because we say, well, I'll never be able to get a million dollars in the bank, I'll never be able to go lose 30 pounds or never be able to go start a business that you know can employ 20 people. Because you're starting in that right, you're not starting the first step, like, okay, if I want to start a business, like what business? What concept? Where right? Like who's my customer right? These things that start to give you positive momentum. And when I started to build really the track from from where I was to where I want to be, it started to build and bolster my confidence now, now it wasn't like okay, I know how to do everything.
Speaker 1:No, I didn't.
Speaker 2:Like I still today. We're always learning Right. But that gets back to the first thing you said right, I didn't know what I didn't know so the steps I took right. It led me to learn questions, because usually we're looking for an answer, but we don't know the question to ask. So, how are you going to get an answer if you don't know what the question ask?
Speaker 2:So the actionable steps, the little steps, right For whatever. You're on, right. So anybody listening today, whatever path you're on, you're going to go and you can either sit there and do nothing then you'll probably get nothing back and not learn nothing, or you can take a step and you're probably going to get three results. One is the wrong steps. You're like okay, I learned, don't do that again, right. Two, it's kind of in the right track. It's not a hundred percent Right, so what do I need to do to be right? Or three, you're on the right track, so keep going, right, go to the next step.
Speaker 1:Yeah, so if someone's in that position and they're trying to, you know, hash that out, figuring all that out, um, and just kind of, they, they have some, they know which direction they need to take, let's say, but they have something holding them back in their mindset, those barriers. Is there something you?
Speaker 2:lead people to or you guide people to, to help them overcome those like strong fear barriers, to help them take you know calculated risks. Write them down. That's the first piece is get them down on paper, right. The fears down. That's the first piece is get them down on paper, right? Because many times, yeah, you write down your fears and write down what you think is stopping you, because we have it all circling in our mind and when it does?
Speaker 2:it starts manifesting into all these bigger things right Like, oh if I start this business, then I'll hire people and then all of a sudden, no one will come to buy stuff and then I'll go bankrupt. And then all these people, they'll be homeless because that worked for me. And then now someone will come take my house. And now they're going to come, you know, they're going to rip my dog, right. And you're like, how do we even get here? Right, that's what your mind does. And you're just like that was the craziest thing. Well, yes, because you let your mind run wild. But if you write down here like business, they're just really scared because whatever buys it, okay. So, yeah, I don't know product, right, okay, why would someone buy my product? Well, here's the reason I'm excited about this, because they can solve all these problems right now. You can start being analytical with your approach to it, and that conquers fear.
Speaker 1:right, the fear really comes from the inability to manage your thoughts.
Speaker 2:it's that's right, and so when you take your thoughts out of your head and put it down on paper, you can be rational in your decision making. We're usually our thoughts are irrational, so that's your first step out of the gate. Right there is put it down and then be rational in your thought process to why you have the opportunity to do it and that can carry you forward.
Speaker 1:Yeah, I like that, you know, because you hear all the times like, write down your goals, write down what you want to happen, but you know, very few times we we hear you know write down your fears and then kind of counteract that by writing down the benefits of whatever you're trying to get to, to try to almost like chop those down and make them not seem as big of big of issues. Um, or, you know, outweigh the the fears with what could happen in the good, and I like that a lot.
Speaker 2:Um, so when you're doing that more, pieces to that is that sometimes you don't know what you want. And when you don't know what you want, a good solution to that it's right down where you don't want it. Right Cause, cause so many times like, why don't? I can't really figure out the goal where I want to go. Well, write down what you don't want. Okay, you're tired of barely barely having any money in your account. You can't make rent right, or you're in a bad relationship or, um, you know, the business you're doing right has these issues right. Oh good, those, those are things you don't want. Write them down, right.
Speaker 1:And now it forces you to look proactively at, honestly, where you want to go yeah, yeah, I like it because that almost kind of like the reverse engineering kind of thing, sort of um, is huge and you know with that, you know with that, you know. So writing down, I think, is like just what you just mentioned is huge and a great, great starting point. So, as we're writing these down, how do we, how do we stop that inner voice, that inner voice of safety, from from taking control again? You?
Speaker 2:build back the goal into small actions. Usually we outpace our ability to get things done. Right, it's like we have a to-do list there's 700 things I'm going to do to this and you get six of them done and the next day you have 840. And you're just like, and when you look at that you say, okay, well, for what I want to do, what are the three most important on the list? Right, and you just got rid of everything else. Right, the three that matter for my business today right, there's going to be three. Right, there's going to be a couple that are going to carry you to the next day. They're so important to carry forward. Do those three first thing out of the gate and then give yourself a win for it. Right, it's that simple Cause. Then you get to the next day and the next day you say, okay, we're the three most important things, because now it becomes manageable, it becomes actionable.
Speaker 1:We usually we put so much on there because we think we have to do everything at once when really we probably are going to accomplish the stuff.
Speaker 2:That's easy and that's like the low-hanging fruit. It doesn't really move the business forward. It might make us fulfilled or we might be overwhelmed nothing. But if you put three things down, like all of us, anybody here you can find three things.
Speaker 1:You can get done within 15 minutes a day.
Speaker 2:Now you look at your day and say, okay, well, I had 800 things that I thought was going to take me two weeks and now I have three things that I could get done during lunch. So now you go to your nine to five at lunch, you go kick out these 15 minutes and now you've just crushed your day in 15 minutes. Jason Lowery, I know I can do that here Now, tomorrow, the same thing. It doesn't sound like a lot, but when you think about the evolution of growth, if you do 15 minutes.
Speaker 2:Just say five days a week and I've been on weekends right 15 minutes every day. You can commit to that right, compared to waiting for a month, two months, three months to get that four-hour block. It's never going to come. What's more beneficial to you and your business?
Speaker 1:It's going to be the consistent growth, consistent action. Yeah, and I find the things that we put off are usually the ones that are really going to move the business forward. So, whatever that looks like for you whether that be sending messages, cold calling, cold emails, having sales calls, whatever that looks like that's just the majority of what we see. A lot of times we put those off to do everything else that we think is important, but in our mind, it's just because those are easier and safer to do.
Speaker 2:Correct. Well, let me go pick up stamps. It's like no, come back here, let's do the hard work, because that's where you grow. You grow through what you go through, as they say. That part here is that the difficult parts that you haven't done are. We're keeping you where you are. So it's a hard thing, like, and guess what? Like it's not all going to go right, that's okay. Could you imagine a world where everyone perfect, right, right. What would we get from that?
Speaker 2:right, it's like I think of, like people are like well you know, san diego would be like so great, like imagine everywhere which is 75 sunny, right. We would never appreciate it because we'd be like, oh, it's just another day sunny, right. So we need these worlds of plus and minuses, light and dark, to show us, you know, really, the good right, the happiness that comes from the events, and just the negativity that comes from events. We can learn from it so we can build on it, right, yeah, and it pushes us forward to where we want to be yeah, it's like you know, here in indiana, when you're in a you know light, there's no light pollution around you.
Speaker 1:Look up in the sky, it's super dark and it could be kind of scary if you're scared of the dark or you don't know where you're at or whatever. But you look up and you can, you can see all the stars, uh, but you can't see all the stars if you're not in complete darkness, and so it like you have to be in those, like a lot of times. Those hard times, those hard moments, those growth moments, they suck or they're scary or they are uncomfortable, but those are the things that are going to really show, you know, the true benefit that you have, or the growth that you've had, um, or the good that can come from it.
Speaker 2:Yeah, you know, there's another thing, to do with, like your fears or things that you think are going to be hard is that I like to call it like a five-year decision, right? Like if I'm not going to remember this in five years, then just do it and get done right. Because most of the time, like you probably can't remind, you're like remember something five years ago that was really stressing you out, because you've grown so much, right, that you're ready and you've persevered. You're now a disciple of a new you. Right, they don't remember it. So if you're doing something right now you're not going to remember in five years, no matter how hard it is, just go get it done right. If it's something of a life-changing moment, okay, well, that's going to need thought, that's going to need you to put your full focus on it. But sometimes we give so much energy to these things that you're just never going to remember. So just get it done. Move on to the next stage of your business.
Speaker 1:Yeah, because in the moment they seem like the biggest things and the most crucial things and, like you said, five years down the road you probably won't remember them or have that much weight from them showing there's always a higher mountain to get right.
Speaker 2:That's why I love working with people is because we're up and the first thing we're tackling is Mount Everestest and we're like okay, we're working through it right, months later that's a speed bump. They don't remember it right but we're on tour.
Speaker 1:New mount everest right that's how.
Speaker 2:That's how the evolution of life is just a higher level, everest yeah, I heard it one time new levels, new devils.
Speaker 1:Like yeah, you think the thing you're at right now is the hardest thing you're ever gonna have to deal with and it sucks and it's all this. And then you get you a year down the road and you have a new problem and you're like, can I go back to the last problem?
Speaker 1:That was a lot easier than this one I'm at now. So, and I think with that too, like it helps you build that like that tough skin or that you know to kind of like whatever mindset, not really whatever, but like you know, this too shall pass, kind of thing You've heard that saying.
Speaker 1:I call it figure it out mode. Yeah, you're just gonna figure it out. Right, how are we gonna get through this? We're gonna figure it out just like we did before. Yep, one step at a time, keep moving forward, kind of thing. And, um, you know, where do you see people go wrong the most with trying to break barriers? Are they doing something that's actually a detriment?
Speaker 2:you know, it's literally lack of action. That's that's the hardest thing is lack of action because we we can't focus on the goal. We can focus on the actions. I can't tell you when I'm going to get to the goal, but I can tell you if I did the action today and so you can write down actionable, bite-sized actions that you can do daily. The goal we don't know when it's going to come, but it will be sooner. It will be sooner than later. We know that. That right, but it's that, it's the waiting that doesn't help you.
Speaker 2:If you're like, oh, you know, there's 45 days left in the month, right, or towards the end of the year, I mean, well, let me just wait for 2025. That's not going to benefit you at all. What's going to benefit you right now is that there's no reason to wait and then have to start cold in 2025. Think about it. Have to start cold in 2025. Think about it. You just start right now. We're seconding open. Start right now and do the next. You know, five weeks going into new year. Think about how much momentum you've built.
Speaker 1:So the waiting rarely, rarely, really adds value to what you're doing yeah, what about those people who are like I'm not very risk tolerant, like I I can't deal with risks like are they pretty much like don't start a business, like advice, or can they still? Can they still kind of do this and overcome and succeed?
Speaker 2:That's a message you're telling yourself. Everybody's risk, everybody's taking risks in every part of their life, right From getting in the car, from like having kids, to like starting that first job. It depends on what you call risk. You're surrounded by risk and walking're walking across the street with risk, right, eating a new food at some random restaurant. You know that might be spicy. Like risk, right, like there's risk everywhere in this world. So you're telling yourself a story of you that's not necessarily true.
Speaker 2:But how do you de-risk? Right? How you de-risk is you break it down into actual things that can be controlled. Right, risky would be. You know what? I'm going to start an ice cream shop. You just go find the first store and you put a sign out front and you have two things of ice cream inside and you say, okay, I'm open for business. Right, that might be risky to you. But if you did the work and you say, okay, let me look at the traffic patterns, let me break down where everybody's going. Let me break down where everybody's going. Let me look at how many ice cream shops oh, there's no frozen yogurt shops in this town. Let me look around why?
Speaker 1:Oh, there was one out here but the person retired, right.
Speaker 2:Okay. If you start to break it down to something that really can build the confidence within why this matters, it becomes a lot less risky. Risk is seen in many levels by people who just can't truly understand the concept. Right, and that becomes risky. So what you do not do is something you don't understand, right. But if you can break it down into something you can learn and understand, it becomes less risky, yeah.
Speaker 1:I like that and I like that. It's how you see it. And you put in that title of risk adverse on yourself when, like you said, everything's a risk, Just how you see it in the title. You see it and you put in that title of risk adverse on yourself when, like you said, everything's a risk, uh, just how you see it in the title, you give it and you know, I think it and it doesn't matter. You know, whatever political climate we're in, um, there's still risks, there's still ups and downs. You still have to navigate all of that. And uh, same with business, like, you're going to have ups and downs, it's going to, you know, fluctuate your portfolio, real estate portfolio. You know, I'm sure it fluctuates Um, when you choose cause I know you're multifamily, right, With your real estate Um, did you choose multifamily because you saw it as less of a risk or was there something else about it that you liked Um, which is why you chose multifamily?
Speaker 2:Well, I'll tell you something real quick. As a from you know, we went to get like Mexican food, like tacos, the other night. It was like takeout, right, and I went up there and told this girl the whole order. She went back there and just told everybody the whole order. I just said the whole thing, right. And then all of a sudden someone asked her for something and she forgot for a second and went back.
Speaker 2:She's like you know, I'm not good at remembering things. Right, she had just remembered like 37 things in an order, but someone had asked for something and she got busy with something and it's like oh, I'm not good with something. So her story was she's not good at remembering stuff, even though she just was able to remember 37 things herself. And so it looks at like how you see yourself is a story you're telling yourself that's not necessarily the truth. Beyond it. And then, from the real estate side, honestly, we started looking at things that were doing good, but they weren't doing great and we couldn't go and scale. So I came upon multifamily and multifamily stood out because I had businesses before and I had seen small and big and many parts.
Speaker 2:You're doing the same work and big seems riskier when in fact it actually gives you more leverage points right and more kind of scale. So if I have a four unit building or a hundred unit building, right, everybody would say the four unit is less risky. Well, if I'm, you know, four units and two are occupied I'm 50 occupied right, I'm 100 units and I'm too too vacant right, I'm 98 occupied right the four units I have to run the whole show. I can't go hire a full-time person to do anything because I can't afford it. The 100 unit full-time staff that's on site, full-time leasing person, full-time maintenance person, they are there dedicated to property. My costs come down when a bank sees it.
Speaker 2:The four units are much more risky. My loan term is going to be not as great. It's going to be much more aligned to me and my finances. Well, the 100 unit I have 100 tenants right that potentially in that part you know, say, the average market is 92% occupied. That means on average, 92% of those units are going to be occupied and they're going to pay revenue Once they pay down expenses. I'm going to have all that money that's going to help to pay the mortgage every month, right? So from a bank perspective, right, it looks safer. If I have four units, I can only market to four, right A hundred. I have a much more wider market plan so more money can go to market. So when we looked at that, we started looking at the way that the four unit or smaller properties we couldn't build a business out of it. We could build a business out of buying apartment communities and then being the ones who are the general partners, who work together to process the program and really plan to make this a better property.
Speaker 1:Yeah, and I've always been curious with that like cause it is. I mean that's a big barrier to entry. You know there's more investment to get the property. Do you to do that? If you're starting from nothing, most likely you have to have other investors in it. Correct To partner with you? Yep, and I, most likely you have to have a lot of their investors in it.
Speaker 2:Correct To partner with you? Yep, okay, and I'll give you a proof of concept of how we went back. So I, you know they usually say like if you find a great deal, the money will come. Well, that's true to an account, because when you find a great deal and you need the money, you now need the money. So I need from you, and you never want to be in a position of need because it doesn't put either party in a good spot.
Speaker 2:So what I did is I said, okay, what is my focus? What is my avatar property? So I was looking for a 75 to 125 unit building. We'll call it a B or C neighborhood, right, that was built between 1970 and 2000. That was going to be in the south side of Louisville and the total price of it was going to be somewhere between three and 7 million. Now I knew what I was looking for, right. So now my ticket activator was working, right, I was able to get all these other people aligned. But in that fact, I also then made a one-page document, right. So, because right now you know, the documents that investors sign can be sometimes 150 pages, right In totality, so we made a one page thing that the investor was looking for.
Speaker 2:It was like you could have done. I think it could have been in Cran, probably would have been better, right, but what I did is I started to go to my friends, my family, and just started talking to them why I'm excited about multifamily real estate. Well, you have the ability to get cashflow as an investor appreciation benefits, depreciation benefits it's going to pay down your debt, so you also get that built-in net worth increase in that property. And you also have, of course, the payoff at the end, I think, tax advantages right, all these different reasons why. And then this is the type of property we'll look at and look for and, when I find it, these are the type of returns that we're going to focus on to get for investors. And that one page.
Speaker 2:We just went from investor to investor and just get in their interest level. And when they were interested, we said, well, would you think about investing $25,000, $50,000? And, lo and behold, we had, say, we had 30, 40 investor talks. We had, on paper, had commitments of about a million dollars not money we've taken in, but it was basically like the commitments of people who would be interested in about a million dollars of investment. So when we went and found the property we wanted, we had the confidence that we could already raise that money. So when we put the, basically said, okay, here's our letter of intent, now we're going to contract.
Speaker 2:Well, we went back to those investors and said, hey, you know the project that we were going to find, we found out, here it is, and within the matter of a day, even though we spent weeks talking to investors, in a matter of a day we actually had the commitment come into the bank of you know, $700,000, $800,000. But that de-risked it for us too. So you think about it the opposite way. I find this great building, I get under contract and now I have to go to all my friends and family and say, okay, listen, here's this thing, I need you to decide today because I have to close by this date.
Speaker 1:You're going to make the decision.
Speaker 2:Go read these 150 pages and then sign everything that you probably have no idea what you're signing and then give me money, right, right, that's a worse position for them because it doesn't give them the truth, a time to understand the process or just understand how this can benefit them, and it puts the pressure on me, which puts the pressure on them, right, and so there's never a good feeling. So we de-risked it by putting it basically re-engineered the process of just saying who's going to be interested? Okay, there is a market for this. Now we can go find one.
Speaker 1:I like that, and so you kind of lowered all those barriers for entry for that investment. Now, with that, I'm curious and I don't know what you can tell me on this. But how does? How do you make money? How do you make a profit from investing in these? Because I feel like you have your investors, you have, you know, maintenance, you have all the fees and taxes, all this stuff coming that you have to pay in these properties. How do you actually make money with multifamily and I'm asking this from a place of curiosity because this is something I would love to do in the future and you know, I think it's again another risk barrier you have to get out of the way.
Speaker 2:As part we do. Majority of our projects are through something called syndication, where we'll find one property and that property will be the one to bring investors into. So those that I know that have identified the property to invest into they're going to come in as the limited partners and we're going to be the general partners, meaning I'm going to run the team, run the plan, run the process, sign all of those parts. For that I will make a fee, typically an acquisition fee, and then we'll get an asset management fee throughout. So the acquisition fee might be 2% of the purchase price and then we might get 2% of the revenue collected each month. Now, past that, we're going to invest ourselves into the deal, but we're also going to get a promote, meaning that the investors themselves they're going to have 70 or 80% of the deal, right, there are a ton of investors putting in there and then we're going to have 20 or 30% of the deal and that's going to be our promote of additional cash flow or revenues come out there. But to entice investors and to make sure that it's aligning right, they're putting in the line share of the money. We're going to give them a deferred return, which means it's not. There's no guarantee, right, there's no guarantee of anything but of the first revenues that come out each year. We're going to give them a certain percentage return before we get any part of the split, so at times it's like 8%. So if they put $100,000 in there each year, we're going to give them $8,000 returns as available before we see any split of the funds, and so that aligns on interest. And the way that we create those is that we hopefully buy it at a great basis, right, so it brings us into cashflow day one.
Speaker 2:We make strategic improvements on the property, right? So from moderating the expenses to everything, from going in there and looking at ways to sometimes even have marketing right. Sometimes there's a website, no time right, as simple as that. Right, and other times it could be exterior improvements, everything from roofs to landscaping, then to interior improvements would be unit renovations that will alter units to match the market. Right? So we'll look at those parts and over the course of the business plan sometimes six months, sometimes, you know, 18 months it takes us to do the renovation play that will allow us to hopefully lower our bottom line or increase our bottom line by reducing our expenses, at the same time driving up revenue.
Speaker 1:Okay, so you know, theoretically you have a, you know a hundred unit place. You know we talk about um one to 7 million or whatever. Uh, on average, you know what. What could someone think or bring in per month, you know, as their kind of profit or or things? Is there a rough estimate? You?
Speaker 2:could like for people to understand. Like, so you're typically going to get like, are you for, like, let's say, an LP investor? Right? So as an LP investor has $100,000, you're probably going to get somewhere between 40% to 50% of your entire return on the project from cash flow, from monthly cash flow, and then the other 50% to 60% is going to come from the profit of the sale at the end. Right, so you put $100,000, your aim is about $8,000 a year, so you're getting that path. That will come in there about $8,000 a year. So about $650 you're going to get per month on investment.
Speaker 2:But at the end, the course of that, if you hold it for five years, then you're going to get on the back end about another $50,000 to $60,000 in profit on top of your return to capital. $60,000 from profit on top of your return to capital. Okay, our goal is that we look for returns that over the course of five years, that, for simple math, that someone gave us $100,000, we would look to get about double their money back, or 1.72x multiple. So about $170,000, $200,000 in total, including their original investment return to them. That includes the profit from the sale and the cashflow year to year.
Speaker 1:Okay. So people listening to this they're like oh, you know, if I invest in real estate, I'm only making 600 bucks a month. Like, is it worth it? Like what's the bigger picture? Like, how does that help someone, um, build the wealth that you hear when people are like can a real estate do this? How does that help you actually build their wealth when you're only making 600 a month from this? Yeah, so you know, you look at you.
Speaker 2:Look at a fixed asset here and that's a real asset that you get that. So 600 a month doesn't sound great. But if you start to invest in multiple projects, right, you start to build that up, the same part. You get the profit back in. So you're, you have your money in a fixed asset. It's not going to go down based on the news in the stock market.
Speaker 2:You're not going to lose value because it's fixed, it's a real asset and over the course of this you put $100,000 in today, in five years the goal will be around $200,000 or $170,000, which is about 17, 16, 17% return. So it definitely outpaces the market. But for many there's other things there. Right, we'll do a cost segregation study, meaning that we'll drive forward the depreciation on the assets. So people will, even though they're getting the cash flow each month, they're going to get a K-1 that's going to show a paper loss, and so sometimes you'll invest $100,000, or maybe your K-1 for the first year might be negative $ 40,000, right.
Speaker 2:And so that's not because the building's losing value, it's because we've forced the depreciation forward into buckets that usually will get paid out between the first 15 years, right. So with that that gives people that have high tax consequences. It starts to lower their basis. So it now takes back some of the other taxes or tax obligations that they have from other things, right. So it now takes back some of the other taxes or tax obligations that they have from other things. So it helps with multiple capacities. So the money they're earning is now compiled or compounded because they also have these tax benefits from the cost segregation study.
Speaker 1:Gotcha, and if someone wanted to invest in something like this what's the lowest kind of in they could do as far as like a financial investment.
Speaker 2:So there's very different platforms out there. We do basically a, a, basically a offering of five or six uh C or five or six B. Um, we typically at first we did, we started out at 25,000 hour minimum and then uh we moved up to $50,000 or a hundred thousand dollars, depending on the project.
Speaker 2:But there's reggae offerings, there's other ones out there where people can get in for a hundred dollars, a hundred, a thousand dollars, right, so, but there's like a lot out there that are are, uh, of opportunity. Um, many times you will have to be accredited, uh, but if you know the person, um, and you have a preexisting relationship with the person, you can also um invest into, uh, we'll say, a five or six B. That allows for non-accredited investors too. So it just depends on the offering. So, with you, you know, with people that are looking to get some part of real estate or other parts out there, right, I typically say you know, don't put everything into it, right, so you use space. You know, there's a ton of different things that are great for wealth building, right, but having 10 to 20% in real estate is always a great place, as long as you're into good projects with good operators.
Speaker 1:Yeah. So where can people look for that? Like if I was looking for to get into it, you know, and have a small small part chunk of my investment in that, where'd be a good place to start, besides talking to you, obviously?
Speaker 2:Yeah, yeah. So I'll give you, I'll give you our website, but I'm gonna give you a couple others, right? So a couple others, right. So ours is yourrucyholdingscom. You come there, you can talk to our team, ask questions, right? No obligation, just you know, learn more. You can go to others. There's like Realty Mogul, there's CrowdStreet, there's Yieldstreet right, there's these other larger aggregator sites that you can go on to that you can start to look at different offerings that they'll have there, right, and a lot of them deal in these larger offerings that are bringing in a lot of the investors, or being one of the investors into the project right so you can look at that and that will give you a nice touch.
Speaker 2:Some of those I've seen them as low as like five to 15,000 are entry points on those sites but they give you a good understanding of what should be presented. Because when you do say you go to, you know invest of what should be presented. Because when you do say you go to, you know invest with Ard or someone like Kind2Me, you know you'll see the similar kind of documents. But you want to get ahead of it and just start learning some of the paperwork investment summary, some of the financial documents. Potentially you'll see.
Speaker 1:Gotcha. So would you guide people to do the invest side, just putting cash into the deal, or go the direction and kind of setting up the deal and owning it, which which is more, I guess?
Speaker 2:you know it honestly comes down to you and it gets back to that part of readiness, right. Um, so I, when I I grew up in new jersey and lived in new york city for I was back in new jersey I started to meet up. We, when we left, we had like 3 000 members right and I have people that would go out of the gate and just start. You know we were. We were like here's how you buy multifamily. We'd like go through stuff and just start doing it right and start doing our thing. But then I had others that would come and invest with us and when they invested with us it like pulled down, pulled back the curtain for them in their mind, just that much that they would come invest with us and do that and then they would be ready to go right and it was just that confidence level.
Speaker 2:So it just simply starts with you and your mentality is that you can do all the steps. You don't need to go and invest with someone else. It's like you don't need to go swim to learn how to ride a bike. The LP is an LP position. It's a limited partner, passive investor. You're not running the operations of that, but you can learn all the steps and if it's confident and this is the path you want to do, you can definitely get out of the gate without being a passive investor.
Speaker 1:But sometimes you can just take that step, because it starts to build confidence in you, and that's where I saw something. Okay, Because in my thought, like if I was the one finding the deals and doing that in my mind, I would have more of the profit from it than if I was just an LP.
Speaker 2:Yeah, it goes, you absolutely will Right. And it goes, you absolutely will right, and it just goes, making sure you have the team around you and the support system. So you know how to really just capitalize on that project.
Speaker 1:Cool, that's interesting. Yeah, again part of what I want to do in the future. But no man, this, jason, has been a great conversation about you know, breaking barriers, about the real estate kind of getting started in multifamily and things like that. So I appreciate you sharing everything you have. You mentioned your website Is there anywhere else people can connect with you, ask questions or just follow you?
Speaker 2:Yeah, so you can go to Live 100 Podcast. Live 100 with Jason Yerusi. And also Jason Yerusi at Instagram.
Speaker 1:Awesome. So, yeah, aaron, make sure you get connected with Jason, check out what he's doing, continue to learn from him, especially to shatter those barriers, those beliefs that are in your mind that might be false, and then, if you have any real estate questions, for sure check out him and his team. And again, jason, thanks so much for being on the Elevate Media podcast today.
Speaker 2:Yeah, thank you for having me, Chris.
Speaker 1:Absolutely and everybody. Make sure you share this with anyone who might have some barriers that need shattered to help them get to the next level in business and life, because we can help more people when you do that. But until next time, continue to go out there, continue to elevate your life, elevate your brand and we'll talk to you again soon. Thank you.
