GI194: From Teacher to Apartment Investor with Todd Dexheimer

GI194 From Teacher to Apartment Investor with Todd Dexheimer

Todd Dexheimer began investing in Real Estate in 2008. Today, his companies own $500 million worth of Multifamily, senior housing and commercial real estate. Todd has completed over 150 flips, including a 20-unit mobile home park and a ski resort.

Watch The Episode Here:

Listen To The Podcast Here:

Transcript:

Announcer:
Welcome to the Global Investor Podcast, a show that focuses on helping foreign investors enter the lucrative US real estate market. Host Charles Carillo combines decades of real estate investing experience with a professional background in international banking to interview experts in all areas of US real estate investing. Now, here’s your host, Charles Carillo.

Charles:
Do you have money sitting in the stock market? And you’re worried about it or worse. You have money sitting at the bank, not keeping up with inflation. My name is Charles Carillo, founder and managing partner of Harborside Partners. And since 2006, I’ve been investing my money and my family’s money into income producing properties. These are real assets, real properties with real addresses that produce real cash flow. At Harborside Partners, we provide passive investors who love real estate with a turnkey investing solution. If you want to put your money to work in real estate, but can’t find deals, don’t have the time to get funding in. The last thing that productive people want to do is manage real estate. We find the deals. We fund the deals and we manage the tenants, the termites and the properties. Partner with us at investwithharborside.com. That’s investwithharborside.com. Go to investwithharborside.com. If you love real estate, you like the idea of passive income and believe that income producing properties will appreciate over time. Go to investwithharborside.com. That’s investwithharborside.com.

Charles:
Welcome to another episode of the Global Investors Podcast; I’m your host Charles Carillo. Today we have Todd Dexheimer. He began investing in Real Estate in 2008. Today, his companies own $500 million worth of Multifamily, senior housing and commercial real estate. Todd has completed over 150 flips, including a 20-unit mobile home park and a ski resort. So thanks so much for coming on today’s, Todd.

Todd:
Absolutely appreciate you having me on.

Charles:
So give us a little background on yourself before you got involved with real estate investing. I know you had a actual full-time w2, and then how you made the transition to real estate.

Todd:
Well, before I got started in a real estate, I was a, was a high school and middle school teacher. I was teaching technology education or industrial tech and teaching wood shop you know, metals, welding, automotive all architecture, engineering, all kinds of stuff like that. So it was a lot of, lot of fun at times, <laugh>. But also just some things I didn’t like. Mostly the, really the politics within the school. You know, you gotta do certain, you had to do certain things that just were a waste of time and energy and effort. And then they would switch it up the next year or the next, like six months later. No, you gotta, nevermind. You have to do this process. And it’s like, all right, you guys are ridiculous <laugh>. So, so anyways, I, I did that for five years and the last, the last year was a part-time year.

Todd:
Worked out really well. I was able to go part-time teaching and then really focusing on real estate. And, and it all started really with reading. Just some books like I, I was just I was just kind of bored at night. And so I’m reading some real estate books and I, I’m not a big TV watcher so, you know pounding a bunch of real estate and entrepreneurial books and I’m like, this is, this is what I could do <laugh>, I could definitely do this real estate thing. So that’s, that’s how it began.

Charles:
Nice. So when you were starting it was when you were starting out, was there anything other than you start reading books? Was there anything that kind of had you choose real estate over another, I guess you’d say? Investment vehicle?

Todd:
I would say familiarity with uncomfortable, right. So I was, I worked construction through the summers for really what I got the first year I got outta outta high school, I was working for remodeling company. And then did, you know, every, every summer worked for remodeling company or the same remodeling company. And even when I was teaching in the summers, I’d work for that remodeling company and then I’m teaching about, you know, kind of construction and, and different things like that. So I would say maybe just that familiarity. It felt pretty natural to be able to run the numbers and analyze it and just, just feel good about it. But no, I didn’t, I didn’t like have family or really friends that were really doing it to that extent. So,

Charles:
Yeah. Did you start off flipping houses first before getting into the other asset classes that you guys focus on now?

Todd:
So I first started out doing all kinds of stuff and like literally my first transaction was really three purchases. I purchased a single family home that my wife and I lived in, and we were renovating while we, while we did, they call it a house hack or whatever they call right now. So we we’re, we are living in it, we were renovating it, it was a foreclosure. And, and, and we ended up, you know, I guess slow flipping that I bought a rental house with pretty much every last penny that we had in, in savings. And so we bought a rental house that we renovated and started renting. And then I bought another house with a partner who funded that deal. And that was a flip. Nice,

Charles:
Nice kinda,

Todd:
Wow. Kind of started all, and, and literally Charles, like, I don’t remember which one I bought first, cuz they were all within probably, probably a couple weeks of each other.

Charles:
What was what was your meaning for kind of switching from flipping houses into getting into more rentals, whether they’re single families or multi-families?

Todd:
Yeah, I never wanted to flip. Yeah, I, I, I flipped a lot of of houses. I flipped like, oh, 150 or so. But that was never my intention. My intention was always to buy rental properties. My intention was very early on to buy apartment buildings. I just didn’t know how. And so I had not, not only I had limited beliefs, but I also had limited experience, limited capital, limited connections. And so flipping was the natural and made sense and, and quite frankly, it was a great time to flip. I was, I was good at it. And so, you know, I had the construction background and all that kinda stuff, so it made a lot of sense. So flipping just became something I did, I did, and I, I enjoyed and I was good at. And eventually I was just like, okay, now I, I’m burned out and let’s transition and, and start doing different things.

Todd:
But by, by the way, at the same time I was, I was flipping, I was also growing in rental portfolio, but it was mostly like one to four family properties. Mm-Hmm. <Affirmative>, a couple small apartment buildings. But but then that transition to, to multi-family happened at really because I was just kinda like, eh, I’m do, I’m done. Like, I’m, I’m kind of burnt out the market. The market had also shifted differently. You could still make a lot of money in it. This was about 2000 14, 2015, 2015. But the market had shifted quite a bit. Foreclosures really weren’t raging. And, and so you had to, you had to approach it differently. And I just didn’t wanna switch, you know, in Lear l and I guess the new strategy.

Charles:
So tell us about your first multi-family real estate investment when you were kind of going into larger properties. I mean, how did that turn out and what did you learn during that process?

Todd:
Man, I mean, I, I could tell you about several different ones, but I think I’m, I’ll tell you about my first kind of bigger one, biggest one. Mm-Hmm. <Affirmative>. And then, and so, and I actually bought two properties pretty close to each other, a fairly close timeframe there. And they, they really worked well with each other. But, so the, the first really one that I bought that was a syndication that was an 84 unit building. And man, what did I learn from, I learned so much from it. So I’ve went full cycle on this asset completely, which, and it ended wor working out pretty well. We made it a decent amount for the investors. I made a decent amount. Everybody ended up in the end pretty happy. But there was a lot of learning lessons along the way. First, first lesson is that, well, first thing I I took out of it is I no longer will buy a c class asset Yeah.

Todd:
C class locations or C minus probably locations. It just, to me, there’s too much risk mm-hmm. <Affirmative> involved. When a recession happens, it’s the first to go down. It’s the farthest to go down. It’s the last to go up. I don’t care what people tell you that c class is gonna be great during a recession. It’s, it never is. Mm-Hmm. <Affirmative> it never has been historically. And so I don’t know why that would all of a sudden change, magically, overnight. It just won’t happen. And so, so anyways, so that was something I took from it. Also just wasn’t, just didn’t do the best due diligence. We weren’t, I wasn’t really, I didn’t hire the right professionals. So for instance, we didn’t do full sewer scopes. We didn’t really truly inspect the plumbing lines as well as what we should have. I didn’t hire a professional inspector plumber or, or, or plumber to look carefully at those and determine the life expectancy of the plumbing.

Todd:
Same thing with the, the, the roofs. I hired a roofing company that was actually a long story, but was hired by the property management company I was going to use who was actually the current property management company on, on the property. So that’s, oh yeah. So the, so they lied completely about the roofs. So, so a couple things went wrong. You know, we had to replace all the roofs, day one. Now the good thing is we budgeted for most of the roofs mm-hmm. <Affirmative> so, so that was okay, but I didn’t plan on doing it like right away. And the, there was a damage, like literally day one we closed and it’s raining out I think by day two. And we’ve got leaks. I mean, units being flooded by water. Wow. That’s, that’s how bad it was.

Todd:
And they covered that all up during the due diligence walks. And, and so things like that, like that, that’s another mistake. And unless you know the property management company that’s currently managing the property and they’ve got a great reputation and they’ve been managing your current assets, or you have a good reason to use them, don’t use the current property management company mm-hmm. <Affirmative> or be very careful with that. And so that, that I would next or, or I, I have not done that again. And I would just be cautious about doing it if I were, so this management company was owed money by the, the previous owners. And they covered a bunch of things up. They, they hid a ton of things. And so we were, you know, kind of caught with our pants down for lack of better terms. They also frd the books all kinds of, wow. Now we caught them for some of that stuff. We decided not to use them. Hired different management company. We had some, some seller credits that we were able to put in place because of the fraud. But Wow. But it was just a, it was just a, a kind of a mess. So, lots of lessons learned. I got so many more Charles, I don’t know how many

Charles:
You want me to go

Todd:
Through <laugh>. But I’d say the, the most important lessons is, is just thorough, thorough due diligence and just really pay attention to what you’re getting into. Cuz some of these things that happened to us along the way, probably just were unavoidable. And that’s just what happens. Like, you couldn’t have predicted for instance, we had a plumbing pipe you know, under the ground, you know? Yeah. Eight, eight feet underground that ended up bursting and flooded four units like that. Wow. I don’t think we could have predicted. We also had a gas line rupture underground, you know. Wow. That, again, we probably couldn’t have predicted, but some of the other stuff we definitely could have if we would’ve done better due diligence.

Charles:
When was this property built, approximately?

Todd:
Well, that’s the other thing too, is so if you’re gonna buy buildings built in the 1970s mm-hmm. <Affirmative> or, or earlier, and this was 1972, I believe. So if, if you’re in the 1970s or earlier, you wanna make sure that you really have a heavy plumbing budget. And, and a heavy H B A C budget. Those are two major things, like major items that go wrong in these buildings. And, and I don’t care like time after time after time, unless it’s been redone time, after time after time, the plumbing and the H V A C are a huge mess, and you have to budget for them. So now we, we still will buy a seventies built asset if it’s in the right location, but we are looking carefully at that plumbing and HVAC and everything else. But, but we are taking our budget and what we think it’ll cost him doubling it.

Charles:
Yeah. There’s also like a lot of other things too there that you get we just sold like all of our older properties within the last six months, and it was like, you know, stuff you have, and those properties are, you have the, you know, you have lead, possibly asbestos, aluminum wiring. I mean, there’s tons of stuff when you start venturing older than 1980, let’s say. And it just, it just, like you said, you just have to budget for it. And a lot of people don’t, and a lot of people are buying, like you said, c class properties, which they haven’t been maintained. Like you’d be buying a b class property. They’re just not because it’s just it’s not feasible. And they’re, you know, everybody’s trying to sell their stuff the type top of the market or, you know, get money from stuff. And yeah.

Todd:
Well, Charles, I mean, what, what happens right, is, is you buy an asset, you go, okay, what can I do to, to increase the value? Well, it’s everything surface level. Yeah. It’s what my residents are seeing. You’re not replacing plumbing pipes because the residents don’t see that, so mm-hmm. <Affirmative>, you’re just patching, you’re just putting bag on, on an issue. And these plumbing pipes are, they’re, they’re older pipes that have a life expectancy of 40 to 50 years. And guess what? That’s over. Yeah. And so you are just sitting on a potential disaster, and hopefully you get out in time before that disaster ends up coming to, to roost because it, it’s gonna be somebody’s problems one of these days on, on all of these properties, it’s gonna be somebody’s problem.

Charles:
Yeah. It’s crazy. I, I had, like years back, I had this small commercial property mixed use, and we had this leak coming into the basement and one of my plumbers opened the wall and the person had collect connected two copper pipes with flexible, like you would use for an outside fountain pipe mm-hmm. <Affirmative> with like the little like screw pipe clamps or whatever, and you’re just like, what are people thinking? And yeah. Had to go in there. Well, it’s just like the amount of shoddy stuff that gets done in these properties is overwhelming, you know, it’s just, it’s, it’s crazy. So you really have to be diligent into that. And really, it’s a d different due diligence process for a seventies or older property versus maybe a newer property where your mechanicals in your roof aren’t, are, you know, more recent. And there’s, you know, you’re using newer electrical and stuff like this, so

Todd:
Yeah. And you got newer, you know, you got the newer systems, so it’s easier to, even when you do have to do repairs, it’s just easier. We don’t have to now, not always, I mean, there’s some things to look out for, like polybutylene piping Right. And, and things like that. But, but for the most part, if I’ve got you know, copper piping, I can either attach new copper piping back onto that to fix a leak, or I can put you know, a, a PAX type piping and it’s easy. It’s, it’s not a problem where if I’m dealing with cast and

Charles:
Yeah.

Todd:
Or lad and, or, you know, just, just a mess.

Charles:
Yeah, exactly. So tell us about, like you’ve done some like very creative financing over the years and I think one of ’em that really piqued my interest was 120 unit building you bought was 8% down. So tell us about like how you found the, how you found this property and you know, how you were able to get into such a great deal position on it.

Todd:
Yeah, so I told you about the 84 unit. This was 120 unit that was really close to the 84 unit. And I actually, how I found that property is I had the broker that sell sold me the 84 4 unit. I said, look, it’s not big enough. I need more units and I want something really close by. Why don’t you why, why don’t we just call all the neighboring owners and let’s see who wants to sell? And that’s exactly what they did. This guy wanted to sell or was re ready to sell. And so we negotiated the price with them. But at that time, I’m like, look, I don’t wanna do another, I don’t want to do a bridge loan and this needs, you know, renovation to it. And so my offer was, you know, paying his price mm-hmm. <Affirmative> or, or very close to it, but he’s gonna finance this property, sell our financing, and instead of paying him this big down payment, what we’re gonna do is we’re gonna take our renovation budget.

Todd:
Okay. So we’re, we’re setting up like a bridge loan. We’re setting up like a construction loan. So we’re taking our renovation budget, we’re putting it into an escrow account that we can access, but in a draw process. So as renovations get completed, then we can pay it out of that account. Now if we default, then he gets to take whatever money is left in that account that hasn’t been drawn upon. So he gets that money. So we set actually part of the reno, not the entire renovation budget actually but we set a big portion of the renovation in this escrow account. We gave him a small, a small down payment, and then we kept some working capital to, you know, pay contractors some, some money up front or get materials and stuff like that. And so that’s, that’s how we set that deal up.

Todd:
It was, it was all seller financing, no bank involved. We also did a an entity exchange and it worked out great because it was still seller financing. And so that the entity exchange worked out good. So does that, that allowed us to not have the, the change in taxes due to the purchase price. And that property worked out really well. I went full cycle with that as well. Again, it’s in the c c minus neighborhood. And, but so what full cycle and, and then ended up doing really well on that one.

Charles:
So before you go on the, the, you talked about the changing entities and that way you’re buying the entity that owns the property. Is that correct? Correct. Correct. How, how do you I’ve heard this, someone asked me this like last week and I was like, you have to talk to your lawyer about it. It’s a very complex strategy. Yeah, definitely. Talk

Todd:
To your

Charles:
Lawyer. How did you, how, how are you able to vet that this operating L L C is not gonna bite you on the back end with liabilities you have no idea about?

Todd:
Yeah, so our attorney attorney, you know, vetted, just like they’re, they’re looking at the property and the title and all that kinda stuff. They’re vetting that L L C. But then when you close, you actually close you, you purchase the L L C, but then you sell the L L C to anoth, a new L L C that, that you

Charles:
Opened up.

Todd:
Oh. And so that helps a little bit to potentially mitigate some, some of those, you know, past skeletons. Right. But yeah, it, it definitely has a little bit higher risk to it, you know, if, obviously if you’re buying in your own entity, it’s good, but man, it, it really can help with some cash flow if, if your taxes are gonna otherwise go up.

Charles:
Yeah.

Todd:
You

Charles:
Know, it’s a great strategy, but it’s definitely an advanced strategy for everyone listening. So

Todd:
Attorney, you have to have attorneys involved. Yeah. I mean, really anything we’ve talked about today, like you just of course wanna make sure you’re having attorneys involved in all your transactions and syndications and, and, and all that kind of stuff.

Charles:
So you’ve done a bunch of seller financing deals. What would you consider are the most important points that investors new to seller financing should focus on when looking for deals or speaking to owners and kind of getting them in, getting ’em ready for seller, you know, to, to do seller financing?

Todd:
Yeah. Yeah. You know, that’s a great question because I think really seller financing is gonna be coming back. Interest rates are, are skyrocketing. Sellers still want to sell, but they’re going, man, like, I got this locked in at 3%, or, or they’ve paid it completely off and like, oh, I really wanna sell this building. So there’s, there’s a lot of things you can do to get creative. One of the things actually we’re doing right now, and then I’ll answer your question. One of the things we’re doing right now is with our syndications, we’re actually, we, we say to the seller, like, look, what we’re, instead of seller financing, cuz seller financing, let’s just say we do a seller second, if I do full seller financing, no big deal. Right? Right. But a lot of times the seller doesn’t want that much. Like that’s a lot of risk on their end.

Todd:
So, or they have a loan and they, the, the lender, you know, that just gets complicated to do seller finance. So they say, look, I’ll do a seller carryback, I’ll do a seller second for a certain amount. But what that does is that affects the D S C R, the debt service coverage ratio. And the lender will look at the second and say, look, we were gonna lend you, let’s say 5 million, but because of the seller’s second, we’re only gonna lend you 4 million because of the D S C R, because of the loan to value that type of stuff. So here’s what we’re doing. Instead, we’re saying, Hey, Mr. Seller, we like this deal. We’ll pay you, you know, whatever, $5 million for it. But we want you to do a seller carryback, but instead of a seller carryback, we’re gonna actually offer you shares into our syndication mm-hmm. <Affirmative>,

Todd:
And we’re offering you an aha class at, let’s call it 5% interest. Okay? So it’s an aha equity, 5% interest. And, and we treat them as an actual investor and they show up on the cap tables of investors so it’s not a second mortgage. And so we then can get the full leverage that we wanted to on the property in the first place. So that’s really complicated method for those of you who don’t really understand what I’m talking about. Some people would be like, oh, that makes sense. When other people are like, what the heck is he talking about? Some happen, like, go in more detail or just talk to people sometime in the future. <Laugh>, you know, as they listen to this and they’re like, what the heck is this guy talking about? But it’s legal. Yeah. It’s ethical, it’s, you know, know it’s totally okay to do.

Todd:
Of course, again, with attorneys involved. But that’s the way, so seller financing look, I, the biggest thing why people don’t get seller financing is because they don’t, they don’t ask, they just don’t ask. They think they can’t get it done with seller finances, so they just don’t ask. We have e every offer Now, we stopped this for a little time period, just cuz the market got super hot and nobody wanted to do seller financing, but per almost, I thi I think we stopped it in like tw mid 2020. Okay. And, and, and then now we’ve started to back up with seller financing terms. And so every offer we make, we, we make two offers minimum. Okay? Mm-Hmm. <Affirmative>, the one offer is us buying it with cash, re r r you know, bank financing or whatever. Just, just giving the seller their money. The other offer is some sort of seller involvement, either the seller carryback, the seller equity, whatever it might be.

Todd:
And we show the seller what that financially will look like for them. Okay. That’s really important. So I don’t wanna just write an offer and the seller looks at it and goes, oh, that well I don’t want anymore to think about that. No, I wanna write an offer and I want to show the seller what they’re making every single month. And then I wanna write an explanation. Look, here are the advantages to doing this. The advantage is you’re not paying taxes up front. The advantage is, you know you’re getting X amount of dollars per month every single month here. You know, so we wanna lay that out for them and then present that to the seller. And now you’re usually dealing with brokers mm-hmm. <Affirmative>. So if you can get the broker to say the, the biggest, the thing we like to say is, look, here’s the, here’s our offer. We would like to set up a phone call between you, ourselves, and the seller to explain what we’re trying to offer here.

Charles:
Mm-Hmm. <Affirmative>. Yeah. Yeah. I’ve always found it when there’s a broker involved and agent involved, the seller financing gets, isn’t delivered properly, it’s just, it always dies. If I can go speak directly to the owner, that’s when I can peak their interest. Yep. So it’s, that’s a, that’s very, that’s a great it’s a great way of doing it. And I like having the two offers too. I’ve heard that before. The other thing too, you said about having the shares, I had a shares from the seller into a new syndication. I had a partner two years ago that did that and they were the, they were able to do it without any other money cuz they had the owner and they brought him on and it was kind of, it was a syndication really was just gps and this guy is an lp but they’re also sharing on the upside, which I feel is like the best you could do that thing. Best thing of everything. Yeah. Which is like, one of the best things too with it is like, like what a selling thing. Like, hey, you know, you’re not, you don’t have to doing this work, but you can like ride out the majority of the value of your property with us on our team. And now it’s, you know, if you have someone that’s, you know, not 85 years old that wants to retire, it’s like, you know, someone is, you know, we’ll take that little trip with you, then it’ll work. I think so,

Todd:
You know, everybody’s got a different motivation for selling. Everybody’s got a different financial need, so you don’t know that for the most part mm-hmm. <Affirmative> going into it. So if, if they are represented by a broker, it’s gonna be tough to ask those questions. You certainly can, but it’s gonna be tough to get the answers A broker usually it’s not gonna dive into the, the, the reasons. And it’s, it’s really hard to typically get to the seller, especially before you write your offer. So just don’t assume that they will reject a seller financing. If you can get to the seller and you can talk to ’em, then those are some of the questions you ask. You know, what are your motivations for selling? What are you gonna do with the capital? That type of stuff. And, you know, what are you gonna do to avoid taxes? All that kind of stuff. And if you can get the right answers, you might go, okay, hey look, we can formulate an offer that works for you and worked for us.

Charles:
Yeah. Interesting. Very interesting. So thank you for that. Just one thing here. I was, I was, when I was doing some research for this episode and you’ve been involved with so many different real estate classes and you said you would advise or never advise anybody new real estate investors or potential real estate investors to buy a duplex and become a landlord. Tell us, tell us why.

Todd:
Well, that is maybe me just trying to say that to most people, right? Mm-Hmm. <Affirmative>. Now some people I would say that’s go ahead, buy your duplex, buy your single family. That’s, that’s good. You know, but that is if you want to be a professional real estate entrepreneur, right? And, and so here’s what I think is most people get into real estate because they think it’s passive <laugh> because they think it’s a great way for me to have some passive income. I heard, you know, I know people that have had real estate, blah, blah, blah, and they think that that is going to be passive. And so they, what do they do? They buy a duplex or a single family house and they hate their life because here’s what happens. You buy a duplex or your single family house and, and, and all of a sudden, you know, six months in or six years in the, the roof has a leak and you gotta replace the roof.

Todd:
Okay? So that’s, you know, $8,000 and or $10,000 now. And, and you missed out on a bunch of cash flow for many years cuz you’re probably only making a couple hundred bucks a month, right? You’re making two, 300 bucks a month maybe sometimes you’re making less, right? So you’re making a few hundred bucks a month. And so $10,000 later, man, you’re talking years to just recoup that. Well, the roof springs a leak, that’s good, you got that replaced. But lo and behold, the furnace goes out the next year. Well, $4,000 later you got a new furnace and you missed out on cash flow for another year and a half or two years. That’s okay. You got that taken care of. But then all of a sudden the refrigerator and the stove go out and you’ve gotta do that. And by the way, you had to evict the tenant because they didn’t pay their rent.

Todd:
And so you gotta get rid of them, but you were like, just trying to be really nice because they’re just nice people. So you, you gave ’em some leeway. So it has been five months since they’ve paid you. And by the way, they’ve got kids and they’re not getting out. And so now you gotta file a R on them and you gotta get the sheriff to come and actually get them out. So now six months later they’re finally out, but you go into the property and find out if they destroyed it. And so you gotta renovate it and spend it $6,000 renovating and you can’t find a contractor to g jump on it right away. So they finally get there 10 months later. Now you’ve got a new tenant in there and it’s really, really working out well, you know, so by the way, like that’s, that’s the true story.

Todd:
Yeah. Because that’s happened to me. Yeah. And, and it’s so, it’s not passive and it oftentimes looks great on paper, but oftentimes ends up not being, and you’re like, this sucks. I hate tenants toilets and trash and I get a badmouth rental properties because I thought I was getting in passively. If you look, most people that are getting it have a good job, doctor, lawyer turn, you know accountant who whatever engineer what you name it or, or a decent job, right? They get on it, they have a decent job full-time, they got kids, they got, they, they like their free time and then they hate freaking real estate because they thought it was gonna be passive. And it’s just not passive. It’s just not, it’s just not passive. Oh, I’m gonna hire a property manager. Well, guess what? You still have to manage that property manager.

Todd:
Yeah, yeah. You still have work to do. And so it just, if you’re going to buy real estate and you wanna be active, you wanna be the entrepreneur, go ahead and buy the duplex, but otherwise buy a bigger building with a group, with people that are doing this professionally. Whether it’s a joint venture, whether it’s a syndication, whether you’re just gonna invest in a reit, whatever it might be. I think that to me that is for the vast majority of the population, the 99% should be doing that. It’s, it’s, it’s running and operating a business if you’re gonna do it, if you’re gonna do it right.

Charles:
Yeah, no, that’s, it’s exactly true in the othering too, going back to that duplex example is that person’s trying to save money so they’re managing themself. So they’re at that property twice a week, not getting paid for it for those five years. So yeah, it’s an exactly correct example.

Todd:
So, so, so many people think, look, that the return, oh, my returns bill are so much better on my duplex or my single family house, are they? Yeah, because you forgot to take, you forgot to pay yourself. Mm-Hmm. <affirmative>, you forgot to pay yourself for the maintenance, for the showings that you had to do for the late night calls from your, from your tenant, from, from, by the way, taking some time off, some ptl from, from your work. You took time off that you could have done it as had had as a vacation or take some sick time that you could have used otherwise to go to the property during the day because you’ve got a full-time job and you forgot to take all that into consideration. So let’s pay yourself and then figure out what your returns really are.

Charles:
Yeah. Your return on time. I mean, all these type of things, when you actually work it out, you’re gonna see, you’re like, wow, I do make like $65 an hour at my regular job and somehow I make $25 here, you know, when I’m here, you know, all this kind of stuff. So. Yep. But so Todd, what are the, what would you say are the main factors that have contributed to your success over the years?

Todd:
You know, I, I think I think there’s several things. I I would say just taking action, like, it, it’s so easy to to dream about stuff and so easy to think about doing it, but taking action is, is only that, that’s the only thing that’s gonna re lead to results. I think too many people fear failure. I, I’m definitely conservative, I’m definitely not out there writing a ton of offers on a, on on every single property and being aggressive. But look, you can’t fear failure. You have to just, you have to get beyond that belief of well, what could happen if, what could happen if what can happen if, I mean, it’s important to think about some of those things, but then come up with a plan and again, if if you, if you can get over your fear, then you’re willing and then you’re able to take action. So I think probably those two big things taking action and just, just pushing beyond your fear. I mean, there’s, so, there’s, there’s lots of other little things, you know, we could talk about. But, but those are two big things, I think.

Charles:
Awesome. Well, thank you so much, Todd. So how can our listeners learn more about you and your business?

Todd:
Yeah, so couple different ways. I’m, I’m, I’m on mostly on, on LinkedIn and Facebook, so go ahead and connect with me there. Endura capital.com is our website, E N D U r u s capital.com. My email’s todd endura capital.com. The last thing is I have a podcast also, it’s called Pillars of Wealth Creation. And so would love to have our list, your listeners. Of course after they’re done listening with this listen to my podcast as well.

Charles:
Awesome, Todd. Well thank you so much for coming on today and looking forward to connecting with you here in the near future.

Todd:
Absolutely. Thank you, Charles. Talk to you soon.

Charles:
Hi guys! It’s Charles from the Global Investors Podcast. I hope you enjoyed the show. If you’re interested in get involved with real estate, but you don’t know where to begin, set up a free 30 minute strategy call with me at schedulecharles.com. That’s schedulecharles.com. Thank you.

Announcer:
Thank you for listening to the Global Investors Podcast. If you’d like to show, be sure to subscribe on iTunes or Google play to get new weekly episodes. For more resources and to receive our newsletter, please visit global investor podcast.com and don’t forget to join us next week for another episode.

Announcer:
Nothing in this episode should be considered specific, personal or professional advice. Any investment opportunities mentioned on this podcast are limited to accredited investors. Any investments will only be made with proper disclosure, subscription documentation, and are subject to all applicable laws. Please consult an appropriate tax legal, real estate, financial or business professional for individualized advice. Opinions of guests are their own information is not guaranteed. All investment strategies have the potential for profit or loss. The host is operating on behalf of Syndication Superstar, LLC, exclusively.

Links and Contact Information Mentioned In The Episode:

About Todd Dexheimer

Todd Dexheimer, Principal of Endurus Capital and VitaCare Living started investing in Real Estate in 2008. Today his companies own $500 million of Multifamily, senior housing and commercial real estate. Todd has completed over 150 flips, including a 20-unit mobile home park and a ski resort, while using those profits to build his rental portfolio. Today his focus is on syndicating value-add commercial real estate in emerging markets.

Todd is also the host of the podcast Pillars of Wealth Creation and is passionate about teaching others how to create a business and how to take control of their finances. Todd was a high school industrial tech teacher prior to investing.

Are You a Fan? Subscribe, Rate, Review & Share – Click Here To Learn How

What question do you always wish I would ask but I never do?

Connect with the Global Investors Show, Charles Carillo and Harborside Partners:

Scroll to top
error: Alert: Content selection is disabled!!