Kent is a former start-up owner and corporate executive turned real estate investor and multifamily operator. Kent is on a […]

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Kent is a former start-up owner and corporate executive turned real estate investor and multifamily operator. Kent is on a mission to empower others to take control of their financial future, while making a positive social impact, by providing modern, affordable housing to America’s workforce.

Kent believes that good investing starts with education so he hosts a successful podcast, called Ritter on Real Estate, where he interviews the pros to teach you how to invest like a pro! Additionally, Kent hosts a monthly multifamily investing meeting in his hometown of Indianapolis.

 

Watch the episode here:

 

Listen to the podcast here:

 

Passively Investing in Multifamily Real Estate with Kent Ritter

 

Brett:

I’m excited to have our next guest, and by the way, I’m Brett, and I’m the host of all this and I’m hoping you’re gonna gain a lot of value in our conversation today. I’m excited about our next guest, he’s a former management consultant startup owner, and corporate executive, in turn, he turned into a full-time real estate investor and operator he’s achieved financial freedom is now on a mission to empower others to do the same through multi-family investing. He’s out of the great state of Indiana, and please welcome to show with me, Kent Ritter. Kent, how are you doing?

Kent:

I’m doing great. Thanks for asking.

Brett:

Absolutely excited to get to know you a little bit more on the podcast here and share some expertise about multifamily syndication and how to essentially be passive and invest like a pro with someone who is a pro and can’t renter. But before we get into that, Kent. Would you give us a little bit more about your story and your current focus?

Kent:

I mean, you hit on the highlights, I was a management consultant out of college, I spent 12 years doing that, and really what management consultants do is, we fly around the country, and we help companies solve problems that they can’t solve themselves.it was a really good kind of masterclass in just seeing hundreds of different businesses and how they operate and what works and more of what doesn’t work. But it really gave me a solid understanding, of those themes that that drive businesses to be successful or to fail, and I think as I moved into starting my own business, and then moved into real estate investing, that has really served me well understanding those levers that you can pull to really drive property, profitability and drive the success of a business. You mentioned starting my own business. A few years into my consulting career, a few of my colleagues and I left to start our own boutique consulting firm really just niching down into some specific technologies that we felt were going to be the next generation, we caught the wave at a great time, we grew that from five guys around literally around a kitchen table to 95 employees and about 30 million in annual revenue in five years, and we sold that at the end of 2015.

That’s what really started my real estate career, I started it really just looking to deploy capital, looking to diversify my investments, and wanting to not have all my eggs in one basket in the stock market, and so I started looking at alternatives and it started out as something that was very personal to me of just trying to build wealth for my family. But as I got into it more, I really fell in love with real estate and fell in love with finding properties and, and the process of going through a transaction and really being able to identify undervalued properties and create something new, create some something fresh, improve the property, improve the neighborhood, really just really love and enjoy that process, and I had a fair amount of success in doing that, and to the point where I felt like I could, the entrepreneur and I felt like I could go out and start a business and doing that and, and not just improve my own financial situation, but start to, to add value to others and create investments that others could invest in which most people don’t have access to or don’t even know about. I mean, I really didn’t until I started kind of diving into this world in about 2015.

Now I run Hudson investing, which is really it’s a private investment firm where we invest in multifamily real estate and we bring in investors to invest alongside us to do that, and we’re doing that it’s we’re fixing up properties, we’re renovating so it’s like I tell people it’s like what you see on HGTV we’re just doing it 100 units at a time and we’re holding them for about three to five years and we’re paying out the cash flow on those deals back to our investors and then when we sell we all share in the appreciation and there are some huge gains typically that occur and that if you do it right and so coming on and figuring out how to keep most of those gains and shelter those capital gains I think is very relevant to me and all of my investors so happy to be here today.

Brett:

Absolutely can’t read it. That’s amazing. I love that background. By the way. You can learn more about Kent Ritter at KentRitter.com. By the way, it’s Ritter spelled R, I, T, T, E, R, if you’re not watching this on YouTube, it’s KentRitter.com Amazing. We’re gonna dive into that journey and some of the top secrets to investing passively in multifamily. The world with you can’t. But before we go there, I want to take one other step back, and I want you to go back and picture yourself in high school or college. The earlier days. You see, I believe we’ve all been given certain gifts in this life. Some people call them superpowers, some people call them strengths. I believe their God-given gifts, and they’ve been given to us to be a blessing and help to others. I’m curious, what are those one or two gifts that you maybe you believe you were given? How does that help how you help and bless people today?

Kent:

Sure, so my gifts, I think one of which one of my gifts that is kind of proven valuable over again, in my career, especially, launching businesses is just the ability to, I was actually told about this, I didn’t recognize it. But the ability to take complicated ideas and distill them down into something very simple, and I think that’s extremely important when you’re running complex projects, or have complex investments and the ability to make it something that’s easy to understand, that people can get excited about and get on board with, and get everybody moving in the right direction.

Brett:

That’s a great gift, especially in today’s world, right with a lot of competing ideas and different things that are coming at us, to be able to still what’s important, and even a little bit complex and making it simple, and so now you’ve been able to take that and do it with multifamily investing. I imagine that’s also a part of your, your training and how you were mentored and coached in the project management. Having that extensive knowledge and built up. I think that’s really cool. Is that a fair summary so far?

Kent:

That sounds right.

Brett:

Now let’s dive right into the topic, which is all things multifamily investing. What’s the biggest kept secret when it comes to passively investing in multifamily deals can’t that you’d like to share with the audience?

Kent:

The biggest secret is probably just that you can do it, and almost anybody can do it, and there are, these deals out there through a syndication format, which is essential, what syndication is, is when a group of people pool their resources together for kind of a larger common goal, so in this case, it’s the purchase a bigger, better property than any of us could do individually. Right, and that, that these investments are out there, and these investments commonly returned, two, three, even higher than that acts. What you would typically see in the stock market traditionally, and it was eye-opening to me, who fancied myself a pretty savvy investor, and I’ve invested actively in the stock market for probably 15 years at that point, and other types of investments, startups, and things, but had never heard of this. This idea. When I thought real estate, I thought, the only thing I’d ever been exposed to was you go out and buy a single-family and you become a landlord, and that never really appealed to me, when I learned you could actually invest with experts and invest right alongside them, as they’re putting their own money in and get these types of returns. I mean, a lot of my investors, the first conversation, they say, these returns are too good to be true. I just tell them, they’re not too good to be true, you’re just not used to it, you just haven’t, you’ve been, you’re just fed the marketing of, the 401k groups and kind of the traditional paths.

They’re just not exposed to and once you’re exposed to it, and you understand the power, I mean, for me, it’s been life-changing, I was able to create a business out of it, grow my wealth substantially in the past five years beyond what I could ever do in the stock market, and so that’s why I really am just trying to tell as many people about that this is not that this is an option, and that you should be diversifying. There’s if you look at the richest people in the world, I mean, their typical allocation for real estate is somewhere in like, the 20 to 40% range, and when you look at a lot of kind of just normal individuals, most of their allocation of real estate is zero, and so I just ask the question of, well, if it works for the richest people in the world, why wouldn’t it work for you? I think it does for everybody.

Brett:

I couldn’t agree with you more, and, growing up in the real estate industry, with my mom and my dad rentals and development, and in the Bay Area, I saw firsthand the ability to grow wealth and then being able to go to Marcus and Millichap and start studying how to underwrite properties, how to make sense out of properties, how to sell properties, how to broker deals, I fell in love with multifamily at a young age and, and once it clicks, it’s almost like, you can’t unsee what you’ve seen the ability to raise rents on and help provide housing for people, which is, to me, we’re in a housing crisis. We’re in a housing crisis. Be able to make make it as affordable as you can, especially if you’re finding value, add forced appreciation opportunities. I’m curious, what’s the best secret for you guys to be able to find those deals because it’s super competitive right now. Where are you looking? How are you uncovering those deals for your investors? Maybe you can talk a little bit about some of the average returns that you’ve been able to achieve?

Kent:

Happy to do that. I’d say that There’s no secret. There are two main channels in the ways that we find deals. One is, through our broker relationships, the through relationships that we’ve built over the last four or five years with individuals with brokers that we build up a trusted relationship show that we can, we can make a transaction, a smooth process, we can approach it very professionally, and that if we get a deal under contract, I mean, we’re going to close I mean, that’s the most important thing to a broker. I think once you prove that and you get a track record, then the deals start to come to you the good deals. The other one is which we’ve implemented more recently as a direct to seller strategy. We’ve had success going direct to sellers, and building relationships with them, and then when it’s the time to, for them to sell, we’re one of the first groups that they look at, that definitely a long term strategy, you want to build relationships over a long term. But I think all of this is really driven by relationships, and there’s no, like, the quick, easy secret to it. It’s just good networking, good relationship building, showing people that you’re going to do what you say you’re going to do, and over time, you build up a track record in that.

Brett:

Maybe we can talk a little bit about some of the deals, you’re seeing some of the cap rates, you’re looking at some of the potential returns, it seems like these, it’s tighter and tighter these days with, with quality opportunities, a lot of competition. What are you seeing what are you underwriting? And give us a little bit on the nuts and bolts of the numbers?

Kent:

It’s absolutely a seller’s market right now, I think. I think everybody has to recognize that and in that in that market, it is more competitive to buy, I think it has become harder to find good deals, and it really pencil out where the mouth works. But at the same time, we’re seeing you mentioned the how-to housing shortage earlier. I mean, it’s the same thing on the multifamily side, there’s just a shortage of places for people to live, and because of that, we’re seeing tremendous rent growth. To the tune have, in Atlanta, 20 26% rent growth, same things in Phoenix and other markets. I mean, even in Indianapolis, where I am, there are examples of that there are properties where rent has grown 30% This year, overall, as a market, we’re seeing about 10%, rent growth, which is unprecedented.

We’re seeing unprecedented rent growth across the country, which is driving, up to values as well. We’re seeing substantial appreciation, it’s great. If you’re a seller, it makes it a little tougher if you’re a buyer, but it’s just the part of the cycle that we’re in, and for us from an underwriting standpoint, I think the balance is, how much do we factor in kind of what’s happening currently, versus moving back to historic averages as we make our assumptions, and I think that’s the art in the process, and that’s where just the experience really plays in and the boots on the ground experience of owning properties in these markets and seeing what’s happening, get it, I think that makes us it’s just a much different perspective, and if you’re coming in and trying to buy in a market for the first time, and so, there’s, it’s really just kind of being driven, kind of just all of that coming together to be able to make good buying decisions, and for us, you can never, you really can’t look back and say, I would have paid this mount a year ago if I would have bought that and therefore not move forward.

I mean, you could always say that, but you didn’t buy it a year ago, you’re looking to buy it now, and do the numbers work now, and I think where a lot of people get stuck on is that historic mentality? I think for us, you got to look forward and say, do the numbers work now, where prices are now and when deals do we move forward very quickly, and can transact very cleanly, and I think that’s, that’s what’s been setting us apart. As far as cap rates have continued to compress across the entire country. You’re, if you’re in a market like Dallas, or if Phoenix or, Orlando, some of the hottest markets in the country, you’re gonna be buying things that are in a three cap range, if you’re in markets, like Indianapolis, which has seen its own growth in and of itself, but the Midwest has always kind of lag, you’re still going to be in the f4 cap range. I hear people oftentimes talk about, I would never invest. I would never buy a 4 cap I would even never buy a 5 cap, 6 caps like it depend on each year it moves, kind of down for people. But that’s not the right approach because cap rates are not good or bad. I think some people look at low cap rates as a negative thing. They’re not good or bad. They just are what they are.

You have to adjust your strategy based on the environment right just like anything else. In a low cap rate environment for every dollar, you put into the property and therefore increase in ally you’re increasing the value of the property by a higher multiple to five cap market. For each dollar of now, you increase the value of the property by 20 bucks in a four cap market is For every dollar, it’s 25 bucks. You’re really able to market in a market like this drives appreciation, and that’s really how you create wealth. If you’re really focused on creating wealth, you don’t create wealth through cash flow. Cash flow is great, and if that’s your goal, and you’re trying to supplement income, or your fixed income, maybe you’re retired and you want some additional cash to live on, then the cash flow is great, and these properties typically put off between seven to 10 12% Cash Flow annually. But appreciation is how you get rich. That’s how you build wealth, and so I think you just have to, again, match the strategy to the market and the market cycle, and if you can focus on good appreciation in a market like this, then you can come out on top as an investor.

Brett:

I was just in Florida last weekend, 200 property Class C property and like Orange Park, Florida, just kind of 20 minutes south of Jacksonville, and the year over your rent growth was over 17% in the Jacksonville area, people flooding from California from states like New York to Florida, Tennessee, Texas, Arizona, perhaps even Indiana, Alabama. What are you seeing as the top markets that you’re looking in, and perhaps even mentioned a word of some of the markets you own now?

Kent:

We focus primarily, currently on Indiana, Ohio, and Kentucky. we have properties in Indianapolis and Louisville, Kentucky, Lexington, Kentucky, and Dayton, Ohio, and, we like those markets, they’re very solid growth markets. They’re good cash-flowing markets, and they’re seeing their fair share of appreciation. I mean, we have a property in Louisville that we bought about a year ago for 80,000 a door and we’ve been getting offers on it unsolicited 410 to 115k a door. I mean, you don’t have to go to the Atlanta’s or the Phoenix’s of the world, the top markets that are hitting everybody’s radar to see that type of growth. I mean, we’re seeing it here in the Midwest as well, and I think we’re benefiting from many of the same factors and dynamics that you just outlined.

We’re seeing a move to remote work. We’re seeing a move away from the coasts, and Indiana has a surprising especially Indianapolis has a surprisingly large tech, especially when you talk biotech industry that’s based here. Whoa, and that on top of just being centralized in America and there’s a stat about Indianapolis where you can reach Southern 75% of the continental US within a day’s drive, and so from a logistics standpoint were us and Louisville especially and all through kind of the corridor, here a major logistics hubs for places like Indianapolis as the second-largest FedEx port in the world. Louisville is the North American headquarters there Worldport for UPS, and then you have Amazon and Walmart and everybody else that’s kind of, congregating here in this area because of the ease to get the other parts of the country so they were benefiting from all those factors and trends.

 

Passively Investing in Multifamily Real Estate with Kent Ritter

Passively Investing in Multifamily Real Estate: “Have complex investments and the ability to make it something that’s easy to understand, that people can get excited about and get on board with, and get everybody moving in the right direction.” – Kent Ritter

 

Brett:

I love the breakdown of that and I get some intimate knowledge of those areas. Indiana, Kentucky, Ohio, I can’t pass it up. I played hoops and basketball. It’s my passion man. If I could play every single day for the rest of my life, my knees didn’t fall apart. I would some curious Is it go Hoosiers? I mean, is that like default? Or where do you where do your loyalties lie?

Kent:

I went to IU so absolutely it’s going Hoosiers. But even before that, like just as a kid in Indiana, you grew up loving IU basketball. I mean, I grew up on that stuff on Bobby Knight, and all the stories I’ve been watching it sounds like a little kid so it was a pretty much-done deal that I was going to attend IU they just happen to have also a great business school. I was able to get a good education while I was there watching a ton of basketball.

Brett:

On the bucket list.  I want to be I want to go see an Indiana game. I want to see a Nebraska football game. I want to see the Alabama football game, that area in California we USC SoCal, and some of the Pack 12 teams, but it’s not like, let’s say the east, especially basketball like Indiana. But anyway, that being said, let’s shift a little bit, we’re gonna move into the section of Capital Gains Tax Deferral and maybe some challenges that you face as a multifamily syndicator or frustrations with a 1031 Exchange. The part of the show started this question, what’s been the biggest frustration that you’ve seen or you’ve experienced with yourself or your clients when it comes to 1031 exchanges? or lack thereof options for folks who are selling how they appreciated assets that maybe want to invest in multifamily deals with you and or when you’re exiting deals?

Kent:

Just speaking of 1031 exchanges, specifically, I think the hardest thing with a 1031 Exchange is the timing, and I get a lot of questions. I get a lot of questions about that. People come in and say, I got this today. Do you want Is there something I could invest in? My first piece of advice to folks is like, don’t let the tail wag the dog don’t get into a bad deal, just because you want to do avoid taxes, and especially, we’re probably in the lowest tax environment that we’ll be in for quite a long time. Sometimes it’s better just to pay those taxes and move on, than put yourself in a bad deal just because, your, your 45 days or whatever was running out. But I think that one is just the timing and trying to try to fit the pieces together. I think too. A lot of people ask, can you can I invest in syndication with my 1031? I think there’s a sometimes a misconception that you can, and you really you can’t dirt like 1031 is a light kind exchange. It’s like if you sell in real estate, you need to buy real estate, investing in syndication doesn’t quite get you there. You can with a tenant and common structure, but it’s just, it can be a little more difficult to set up, it’s absolutely doable, and my answer for folks is typical if it’s a larger dollar amount, and it’s a meaningful amount of equity for me and my deal, I’ll go jump through those extra hoops to make it work. But you can’t just easily get into syndication and go passive through 1031. In my experience.

Brett:

Do you have any like, like horror stories where like someone calls you it’s like, it’s day 46? Or maybe it’s on the other side, you’re like the seller, you’re like, they’ve got just four days. Identify. Well, in that case, my counteroffer is X, like, any other thoughts around that 1031, shotgun wedding, get to get engaged in 45 days, married in 180.

Kent:

As far as negotiation scale, I mean, just the more information you can understand about the sellers or the buyer’s position, then you can use that information to your advantage. I mean, that’s. Obviously, you would want to factor those things into account as you set your price. As far as I get asked all the time, by folks, or maybe folks through bigger pockets or other forums, saying, hey, I’ve got, I’ve got two weeks left to identify God, are you aware of any properties, and that’s what I give that advice, like, look, you’re probably not in a position. If you’re California, somewhere to come to Indiana, and invest and make that successful, and in this type of hurry, in that environment, it may just be good to just, pay that pay those taxes and move on. What I did tell people is, you can, you can effectively reduce a lot of those capital gains without 1031 by just buying or investing in another passive asset in the same calendar year that you’re selling.

In our syndications, we do what’s called cost segregation, where we’re breaking down the components of the property into their specific elements, for example, a multifamily property depreciates at 2727, a half-year schedule, just flatlined. That’s one way to approach it. If you do cost segregation, you actually break the components of the property down rights for so for example, the carpet in the apartment, how much is that worth? That carpet depreciates it, I don’t remember, it’s either a five or seven-year schedule. It’s a much more accelerated depreciation schedule, and because of bonus depreciation, you can actually accelerate all of that 50 Unless your depreciation up to your one, and so typically, in an investment, when we’re doing a cost segue, which is almost every investment, we’re able to offset anywhere. Like if you’re investing for round numbers, $100,000, we’re typically giving you about 60 to $70,000, in depreciation in that first year, that again, can offset other passive gains that you have, and so you can achieve the same goal of saving on taxes, sometimes with avoiding that whole 1031 roll around.

Brett:

I could agree with you more, having cost, say, and being able to get new depreciation schedules and invest in assets that have that is an advantage. A couple of thoughts on that. One, we call it the shotgun wedding. We couldn’t agree with you more, can’t, and that you don’t want to let the tax tail wag the investment dog. In fact, that’s part of why I started Capital Gains tax Solutions. I was at Marcus Miller chap in 2006. Things are going great. Everyone loves to be a 1031 exchange, a seller, but as soon as they’re a buyer, a lot of them are overpaying, and then all of a sudden the music stops. Someone had too much debt, not enough liquidity, not enough diversification, and I had one particular gentleman we were speaking with and we would tell him, sell everything at the peak. He didn’t sell he had $50 million in multifamily investments. He was leveraged pretty high. He lost everything. Within a three-year period. Everything was gone went bankrupt, and part of his business He was doing this 1031 just roll it, roll it, roll it, and he put himself in too much leverage, then he lost it all, and we said there’s got to be a better way, and then we figured out a better way, and it was called the Deferred Sales Trust, and it actually enables you to sell high and buy low whenever you want to not using a 1031 exchange, and we call the Netflix way of doing things that can save a failed 1031 Exchange. It works for cryptocurrency, it works for primary homes.

In fact, we partner with and work with other syndicators that are, that are having assets and opportunities to invest in, and it’s cool because it’s not IRC 453, you’re not tied to that 45 Day Sprint, and 100 at the close, it’s IRC. It’s IRC 453, which is an installment sale type of method, and so it’s now available by the way, if anyone wants to learn about that they can go to CapitalGainsTaxSolutions.com, we’re closing about a deal a week, and it’s transformational for people, especially if they want to get to the passive side, and they don’t want to be so active, and especially if they have cryptocurrency, and they’re wanting to get into a real estate investing we you can check it out CapitalGainsTaxSolutions.com. But that being said, Can’t as you’re doing deals, when you exit finally, and you’ve depreciated that asset, and you’ve done that cost segue, guess what all that recapture and all of that tax is going to be flooded in, you’re going to get hit. What is the exit plan when you go to exit your syndications to defer the tax?

Kent:

The best exit plan is to have something else to invest in. I mean, you give you continue to roll that money forward. I think that that’s kind of the simplest answer. I mean, I love to be able to exit a property. We just sold property here in June property down in Atlanta has a great return of about 25 IRR back to our investors, and, have another property ready to go for them to invest right back in

Brett:

God, but the tax is paid at that point, and that’s where most people find they find us and then they figure out how to do this, and that changes things. But right now, what you’re saying is you’re just selling and everyone’s just paying the tax. But then you’re trying to get another deal with a new depreciation schedule. Do that cost segue and maybe wipe it out. Is that is that the strategy right now?

Kent:

That is a strategy. You seem to have another option, please detail?

Brett:

That is the Deferred Sales Trust. I’ll give you just kind of two deal stories, and that deal story is a gentleman like you guys, there’s two guys named Dave and Jordan, a client of mine, a $20 million multifamily asset. They’re the two GPs and lots of LPs, and they’re selling it in Las Vegas, and they sold and we’re able to put their GP positions, the whole entity doesn’t have to move, it’s very flexible. They deferred all of their Capital gains Tax, if the other investors are smaller, they just pay their tax like they normally would. But the Deferred Sales Trust allows total flexibility for partnership separations, then they did another deal. $16 million, a multifamily property in Phoenix, same thing, rolled those funds into the trust, then they kind of have this I call it the war chest right, where the money is tax-deferred, it’s liquid, it’s available, then they can partner with the trust, and they can go they went and bought a multifamily property in Dallas, and so instead of paying that 30 to 50%, depreciation recapture and capital gains tax, you’re able to defer it but have no timing restrictions, have total flexibility have been able to get out of debt, no, like-kind debt replacement requirements.

We got to be careful with a mortgage over basis, which in that scenario, we’re doing a partial Delaware statutory trust to take care of that debt over basis issue, and sometimes we would have clients do partial 1030 ones. Because 1030 ones are great. If you can find a deal, that makes sense. But let’s say you’re selling 100 units for $10 million, and you find the perfect $6 million deal at 60 units just to keep it simple. Well, there’s 4 million a boot, why not do a partial 1031 Exchange and another partial Deferred Sales Trust. You can have a little bit of both. The key is defining what your tax liability is to figure out a good outcome of what you’re trying to achieve and then three executing on the plan. Right, but you got to do this all in advance, and so yeah, it’s called a Deferred Sales Trust. We think it’s the best-kept secret. A lot of people get confused with the Delaware statutory trust. But any thoughts on that?

Kent:

I don’t know much about it, but it sounds like it could be a good option. Definitely interested in learning more.

Brett:

Thanks. That being said, are you ready for the lightning round?

Kent:

Sure.

Brett:

All right, knowing what you know now can if you go back to your 25-year-old self, what’s the one golden nugget? It makes sure to oh, wait, a little blurb there. What’s the one golden nugget you make sure to tell yourself to do.

Kent:

To my 25-year-old self, I would have started investing in real estate a lot earlier. I started when I was like 31 If I would have started when I was 25. I wish I would have started when I was 19. I’d be a heck of a lot farther than I am today. But it’d be starting investing in real estate. Do it through a house hack. Buy a duplex, live in half of it, run out the other half, learn how to be a landlord, get so many to pay your mortgage for you.

 

Passively Investing in Multifamily Real Estate with Kent RitterBrett:

So Rich Dad Poor Dad is a big part of all the multifamily syndicators commercial real estate world. What’s the one thing that you tried to practice out of the Rich Dad Poor Dad strategy and your business investing and your multifamily investing?

 

 

 

 

Kent:

I guess just be an owner and be and be an investor. I mean, don’t be trying to put yourself in a position to be an employee, and put your assets to work for you.

Brett:

Beautiful. Next question, what’s the number one book you’ve recommended or given the most of the past year?

Kent:

Number one book I’ve recommended? Probably? That’s a good question. Because there are a few books probably in the past year. Definitely in the past year would have been Adam Grants, Think Again, and it’s really about just challenging your belief system, and being open to changing your beliefs based on new information. Just the idea that we’re constantly learning new things, why should we believe the same things we believed 10 years ago. When we’re constantly learning new things, we should be adjusting our ideas based on that, and there’s a really good quote that kind of sums it up. It’s Ray Dalio’s quote in the book, and it’s like, his quote was if you can’t look back each year and say, I was really stupid last year, then you really haven’t learned a whole heck of a whole lot.

 

Passively Investing in Multifamily Real Estate with Kent RitterBrett:

I love that. I read Ray’s book, by the way, and read to my kids. It’s called principles of success, Principles For Success. He has a big book that has the kids version, but I mean, it’s to me, it’s the adult version, too, because it breaks it down. I wish I were to introduce Ray a long time ago, but I absolutely love that quote. Next, second, the last question. What are you most curious about right now?

 

Kent:

That’s a good question. I’m curious about a lot of things. One thing that I’m most curious about, honestly, is what happens. I think there’s a pretty good, I’ve got a pretty good vision into the next 18 months to two years on, and what happens in, in multifamily what happens with housing supply? What happens with interest rates, and all the things that impact the world that I live in? Outside of that, I mean, it gets a little hazy, or you start thinking about, a new presidential election, you said about the Fed raising interest rates, the money out there that continues to be printed? What’s going to happen? I wish I had my crystal ball. I wish she was a little more clear.

Brett:

All the more reasons to invest in multifamily real estate, that’s a value add with good operators like yourself who can’t in areas that are pro-growth, pro-business. that’s big, I’m also curious about the same things. Last question, and then we’ll let you go. After all, your success, investing, coaching, helping others, helping investors? How do you stay centered in your values? How do you stay encouraged to charge forward to reach new heights?

Kent:

That is a good question. How do I stay centered? Well, I do a lot of things just on a personal level, to stay centered from, meditation and journaling and kind of, just make making sure there’s clarity of thought and, and just to focus on what’s important, I think quarterly goal setting is extremely important, and not over complicating things with like, 10 goals, but I try to have like, three goals, each quarter, if we accomplish these three things, it’s going to push our business forward. I think keeping things simple, and that way, and, and just getting back to your why on everything. I often remind myself, it’s very easy to remind myself, why I do what I do, because I’ve got in the basement, right now in my home office, and they’re just upstairs run around, I can hear their footprints. But everything that I’ve done really has been for my kids and for my family, and, and this journey really started with setting up, setting up a secure financial future, but also a financial future where I owned my time, and I could be the kind of dad that I wanted to be and spend that time with my kids and have that flexibility. Everything that I do kind of comes back to that and it’s on it’s gotten bigger than I ever expected. I told you about that journey from a very personal journey to now running a business where we’ve acquired eight properties and we have hundreds of investors, but still, the tenants remain the same now. It’s about giving others that financial freedom and that time freedom so that, the idealist in me is having the idea of if everybody has the choice to do what they want to do versus what they have to do and being shackled to a job maybe they don’t like or not having enough income or the savings or the wealth that they would like If we all had had more of all that and more freedom, then we could all do more of what we want to do, and in that way, we would all be a little bit happier and probably a better place to live. That’s kind of the ideal vision of why I do what I do.

Brett:

Absolutely amazing kindred or I want to thank you for being on the show. Thank you for sharing that. Thank you for sharing wisdom about the multifamily market, about leadership, about vision, and about growing, growing your company. I want to encourage you to keep using the ability to take what’s complicated and make it simple, and then help others to get freedom through multifamily investing. Kent, for our listeners who want to connect with you, can you remind them one last time what’s the best place for them to find you?

Kent:

You can go to KentRitter.com. That’s my home base, you can access my podcast, my blog, it’s really set up to be a resource for passive investors. If you’re thinking about making your first investment, it’s a great resource with FAQs and definitions and things just to make it a little, a little easier to take that first step. Outside of that, you check out my podcast, it’s called retire on real estate, and again, it’s set up to really be a resource for folks that want to invest in real estate. A lot of them are busy folks that don’t have time to do it themselves. But they still want that diversification.

Brett:

Kent Ritter, thanks for being on the show. Thanks for being here, and I want to thank our listeners also for listening to the episode of the Capital Gains Tax Solutions Podcast. As always, we believe most high net worth individuals and those who helped them they struggled clarifying their Capital Gains Tax Deferral Options. Now having a clear plan is the enemy and using a proven tax deferral strategy, such as the Deferred Sales Trust is the best way for you to defer capital gains tax on the sale of highly appreciated businesses real estate sale 1031 Exchange, cryptocurrency also you can create and preserve more wealth and have some more of this freedom that Ken’s talking about to do more what you want to be doing and you should be doing with the gifts and talents you’ve been given for your family for the community, and so we want to encourage you to go to CapitalGainsTaxSolutions.com. And to learn more all about the Deferred Sales Trust. Thanks so much for listening to this. You also might be listening to some eXpertCRESecrets.com. I want to encourage you as a real estate professional investor broker to continue to dig in and increase your value proposition. You can check us out at eXpertCRESecrets.com. If you wanna learn more about that. Thanks, everyone for listening please rate, review, and subscribe. Please share this with somebody who can encourage today and go make it good.

 

 

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About Kent Ritter

 

Passively Investing in Multifamily Real Estate with Kent RitterKent is a former start-up owner and corporate executive turned real estate investor and multifamily operator. Kent is on a mission to empower others to take control of their financial future, while making a positive social impact, by providing modern, affordable housing to America’s workforce.

Kent believes that good investing starts with education so he hosts a successful podcast, called Ritter on Real Estate, where he interviews the pros to teach you how to invest like a pro! Additionally, Kent hosts a monthly multifamily investing meeting in his hometown of Indianapolis.

 

 

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