Nitzan Mosery is an expert in multifamily real estate. He’s been involved in real estate for the past 20 years and owned properties nationally and worldwide. He went many years to college but never graduated because he didn’t know what he wanted to do back then. His father used to tell him, the two types of people in this world, those that pay rent and those that collect. And that’s how he started on real estate because he always wanted to collect.
He is now focused on creating a passive income stream and multifamily investing.
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Secrets On How To Be A Successful Real Estate Investor with Nitzan Mosery
Brett:
Our next guest is out of the great state of Florida. He’s been involved in real estate for the past 20 years. And he’s owned properties nationally and worldwide. And he has a focus right now for mostly multifamily. And he’s a licensed real estate professional and mostly focused on the South Florida market. Please welcome to the show with me Nitzan Mosery. So how are you, Sir?
Nitzan:
I’m doing well. Thank you. How are you, Brett?
Brett:
Hey, better than I deserve. Glad to meet you here. And for our listeners, so good to know you for the first time, would you give us a little bit more about your story and your current focus?
Nitzan:
Sure. So I’m originally from New York City, I was born and raised into an immigrant family that spoke two languages at home English and bad English. I grew up and traveled the world for about seven years, then settled back down as you stated in the great state of Florida, and gotten into multifamily real estate about 11 years ago. I’ve been involved in real estate pretty much all my life. Thanks to my father. I remember when I was a little kid growing up used to tell myself, there are two types of people in this world, those that pay rent and those that collect, and son you always want to collect. So that kind of stuck in my head. And, I’ve always gone out and wanted to create a passive income stream for myself and my family, because I’m one of those lazy kinds of people. I don’t like to work too much. And I’d rather work 80 hours and 40 hours to generate that income stream.
Brett:
Beautiful very well said. And that is certainly what we’re about here, you know, creating passive income streams and multiple income streams so that we can spend more time doing the things that we enjoy doing, and or give the causes we believe in most. So that being said, though, I want to take a moment to step back in time, and I want to go back maybe to the earlier childhood days, you know, I believe we’ve all been given certain gifts in this life and these gifts that are given to us to be a blessing for others. Some people will call them strengths, some people call them superpowers. But I’m wondering, what are those one or two gifts that you believe you were given? And how do those help how you help people today?
Nitzan:
I was given the gift where my parents, they told me, they said, you know, it doesn’t matter what you do, always be the best. You know my father told me, he goes, you can be garbage, you know, you can pick up garbage on the streets, this would be est. And that, you know, put that into my head that, you know, I need to be proud of the outcomes and of the things that I do. And I pass that on to my children as well. You know, I always ask them, is this something that you could be proud of? Is this what you did? Are you proud of that, because that’s what’s important? And I would say the other superpower gift that I was given was the fact that there is this possibility of creating an income stream, a passive income stream, to go out and generate that so that I can live life on my terms and not have it dictated to me by somebody else. You know, my parents always believe that. You know, my parents, they came from Eastern Europe, and the Middle East and Israel, and so forth. And they didn’t have higher education. But they believe that if you’re building something for yourself, and you’re open, you’re honest, you’re trustworthy, you’re transparent. These are the qualities that will help you advance in life and this is what I strive for today. And I truly believe that we all can go out and live life on our terms, as long as we’re able to create that passive income stream.
Brett:
Beautiful, absolutely love that. So be the best. Whatever you’re doing, given your full effort, you’re gonna be doing you might as well lead the pack there and then believe in building something that is passive and that is can give you some freedom there, along with integrity, honesty, and transparency. Is that a fair summary?
Nitzan:
Yes, absolutely.
Brett:
That’s awesome. Love it. So now let’s dive right into our topic for today. And by the way, you can learn more about Nitzan Mosery at investwithcip.com. And we’re talking about becoming a successful multifamily investor. So Nitzan, what’s the number one secret that you found in today’s market to be a successful multifamily investor?
Nitzan:
It’s a great question. So what I found is that in multifamily, there are a lot of moving parts, there are a lot of different aspects that you have to understand. And, you know, I have to say that I never graduated college, I went many years to college and whatnot, but I just never graduated. I didn’t know what I wanted to do back then. And, and it wasn’t, you know, I didn’t have the behind to sit into study and whatnot, I’m more of a doer. But one of the things that I’ve learned, not being the sharpest tool in the toolbox, is that I have to surround myself with people who are smarter than me, people who know the industry, and what I want to do better than myself. I’ve learned the art of delegation. So to become a very successful multifamily syndicator investor, I’ve surrounded myself with people who are a lot smarter than me in analyzing properties, doing due diligence, and finances, and Excel spreadsheets, and all that and I’ve surrounded myself with people of that nature. And thanks to them, as a team, we’ve been able to move forward and move forward quite well of my business partner has a great saying she says this business is like running 12 marathons at the same time. And you have to cross the finish line with all 12 marathons at the same time to be successful. So you know, it’s hard enough to run one marathon, let alone 12. So building a team of people that can help you raise capital, analyze, manage, and, you know, do your books and Investor Relations really helps you and moves you along that much faster.
Brett:
Beautiful, so surround yourself with people who are smarter than you. The art of delegation building team staying in your lane sending your shrinks and running 12 marathons at the same time. But hopefully, you’re not running all 12 by yourself, right? You’re running one of them. And you got the 11 others running there. Is that a fair summary?
Nitzan:
Absolutely.
Brett:
So let’s talk about maintenance. Right? Because I’ve heard recently, and this is I think it’s harder and harder to find, you know, quality maintenance professionals, construction, plumbers, electricians, it’s such a highly sought out thing. So it’s no longer so much can you manage the properties? Can you find the maintenance professionals or have a team of maintenance professionals to be able to service your deals, what is your thought on maintenance versus management?
Nitzan:
Maintenance is huge, you know, as you mentioned, now, maintenance people to find, to take care of your properties to maintain your books. These are, you know, extremely important aspects of the business. Let’s take it to the property level when you’re looking for maintenance people, you know, your property manager that you have on-site before you’re hiring a property manager to manage them, you need to interview them and make sure they have a huge Rolodex of people that they’ve worked within the past that is credible, that is trustworthy, that can do the job. So you want to make sure that you have that so that you can maintain your asset, right, the one of the problems that I’ve seen a lot is that people will buy a property, they’ll put in a property manager, but they won’t maintain the asset. And what happens is, it’s a lot cheaper to maintain the asset on a day-to-day basis on a month-to-month basis than to let it get run down and then inject a lot of money to put it back and to bring it back to life. So it’s a lot easier to maintain that asset. And today maintenance people are, as you mentioned, are very hard to come by because they’re in such high demand. So you want to have again, it’s part of your team, you want to make sure that you have a good team of people that can a find you a good maintenance person. Have a good maintenance person on your team. That’s extremely crucial for your success. And then you have to be able to manage these people. Right. It’s all about management. It’s managing your money, managing the property, managing your residents, managing your service calls, all you know managing your investors. as well so that they’ll be repeat customers. So it’s kind of, you know, twofold, right? It goes hand in hand.
Brett:
Excellent. Very well said, What’s the biggest obstacle or challenge currently facing you, your team, or your clients as it pertains to being a multifamily investor?
Nitzan:
I would say right now, there is a lot of demand for multifamily. And we’re in a seller’s market and a lot of the cities and states that we’re buying. So there’s a huge demand. And a lot of people are spending money and they’re just buying assets. So for us, for my team and myself, we go out and we look for, you know, the diamond in the rough. And it’s getting more and more difficult to find these diamonds in the rough. And to acquire them because there’s so much competition out there, multifamily is an incredible asset to buy. If you’re buying it correctly, you can withstand any downturn, right, if you’re buying it very conservatively, and you’re not projecting, you know, distributions or returns to investors that are way too aggressive. You can outrun any downturn, so it’s a great asset class. And I always say it doesn’t matter in a good market or a bad market. People will always need a place to live. And if you know how to buy, you’re buying right and you’re managing the asset correctly, and you’re maintaining it correctly. You can outlast anyone. So, but it’s becoming more and more difficult to find those good quality products.
Brett:
Yeah, 100% couldn’t agree more. It’s like all-time highs, interest rates are so low, inventory so low, and it’s all chasing seems to be, you know, value add multifamily properties. Good luck to define that. It’s tough right now, that being said of all. I’ve often said that we and I say we as an IO multifamily properties with partners and also do multifamily brokerage and help people who are selling these things. I often say we’re not in the business of selling or even really buying those assets. We’re in the business of solving people’s problems, right? So the problem for the seller, what’s the number one problem facing a lot of these multifamily sellers?
Nitzan:
Well, now after we’ve come out of this pandemic, are still in the pandemic, right? A lot of the issues are one of the main issues is that a lot of us had to go into forbearance right, we’ve asked for forbearance on our mortgage and whatnot. So what we’re seeing and what we might see coming into the market shortly, is a lot of sellers now suddenly, or a lot of owners suddenly their mortgage payments are increasing, right because you’ve got your regular mortgage payment. And now you’ve got your three months, six months of forbearance mortgage payments that now are being tacked on to your monthly payment, which is increasing your mortgage payment, but the eviction moratoriums are continuing to expand into the move. So the income isn’t increasing, right? A lot of people are slowly getting back to work. However, your rental income is not increasing exponentially as suddenly your mortgage payment is. So we’re probably going to see a lot of these properties coming on the market where people have to sell, you know, finding good people to help you manage the property finding good quality maintenance people, you know, there’s, you know, we’re finding that a lot of people would rather stay home and get their stimulus check and get their unemployment check, which they’re making more money doing that than they would probably be getting paid to work. So this is causing a lot of issues in the marketplace right now. So you have to find someone who wants to work who’s willing to work and who’s doing a good job at it.
Brett:
Yeah, very well said. Talk to me about the importance of getting out of debt when you’re talking about forbearance, and getting out of debt, and having liquidity and diversification. What comes to mind there for multifamily sellers?
Nitzan:
When it comes to selling their property?
Brett:
Yes.
Nitzan:
Yeah, well, you know, they want to sell, they want to sell quickly, they want to be able to recoup their investors’ capital, right? A lot of times what I see is people will sell their property not worried about a profit, they just want to give back the funds to their investors so that their investors don’t lose their capital. Right. That’s an important thing that you have to remember right? You were playing with other people’s money. And of course, you know, we see our investors, they sign the ppm, the private placement memorandum, and fill out subscription agreements and so forth. And they know that it’s a risk and there’s an opportunity to lose their money. But we as syndicators, I, myself as a syndicator, I never want to go to my investors and say, Hey, we lost the property, we lost your money. So we want to find out, we want to sell the property as quickly as possible, at the highest possible price, so that we can at least, you know, maybe give back the capital that we raised from our investors while paying off our vendors and so forth. So, you know, there’s a lot of that going on around right now. You know, a lot of people are questioning, do we sell now, do we hold on to the property? Do we not pay distributions and continue to manage the property and work it? So there’s a lot of uncertainty still in the market right now. However, there’s, the market is still hot, you know, when we went into this pandemic, we thought, Oh, my God, prices are going to drop, cap rates are gonna go sky-high, you know, people are just gonna unload their properties. But we’re not seeing that. There’s still a huge demand for multifamily. It’s something that we’ve never seen before. I have never seen it before. And, you know, being involved in real estate for as long as I’ve been.
Secrets On How To Be A Successful Real Estate Investor: “Buying real estate is not only the best way, the quickest way, the safest way, but the only way to become wealthy.” – Marshall Field
Brett:
Yeah, no. Well said. That being said, let’s shift a little bit now to capital gains tax. And some of the challenges with these multifamily owners who are looking at these very high prices, very low inventory to potentially 1031 exchange into and not sure what to do if they do sell and have to have this huge tax. So what’s been the biggest frustration for your clients or partners, when it comes to capital gains tax deferral, and or the 1031 exchange?
Nitzan:
So you know, I was talking to one of my investor base, one of my investor groups, and I was mentioning to them, you know, would you like to do 1031? If we sell the property and so forth. And the majority of them said, Yes. Why not? Why? Why go into that capital gains, but then you have that one or two people that say, No, I want my money back. Right, I want that. So that kind of throws a little wrench into the entire, into the entire subject. And again, even if we have the entire group saying yes, let’s move that money into another property, the frustration then becomes, well, you know, I have 45 days to identify a property. Right, and then you have, I think it’s 180 days to close on it. But that’s not a lot of time to go out and to find an asset to put their money into because, again, the shortage of inventory on the market, the influx of all these investors now from all over the world, you know, we’re not just dealing with local investors, we’ve got people coming in, from Russia, from Canada, from Europe, from the Arabian Peninsula, they’re all they want to come to the US and buy multifamily. So it’s difficult when you’re, a syndicator, like me, and you’re going against, you know, the river rocks, and the stones and the pebbles and all these funds and, and reach that are coming in putting in 100 $200,000, hard day one, to buy a property. So it’s very frustrating for us to do that. And we want to save our investors on the taxes. But you know, it’s hard to go about doing that. So, you know, it’s, then the question comes, do we sell? Do we sell? Do we hold on to the property? And do we continue running the property, but then he got I’m getting all these offers? He’s not solicited offers? So it’s, you know, it’s a game, you know, it’s a juggling game? What do we do? What’s the best course of action? And I think that’s why our investors pay us to make those decisions for them.
Brett:
Absolutely. You know, I couldn’t agree with you more. We call it the shotgun wedding. You know, our parents taught us to sell high and buy low, they didn’t teach us to sell high, get engaged in 45 days, and get married at 180 and a low inventory market, right with rates and offers just driving prices. I’m in California and this is my story, I was at Marcus and Millichap helping people buy and sell multifamily properties. And this is ‘06 things are going great. I mean, the market was booming. And but a lot of people had, you know, we’re kind of cautious or kind of, you know, reluctantly had bought properties via the 1031 exchange, because they thought that was the only way they could defer the tax and make sense of it. But then the 2008 crash hit, and some folks lost half, some lost everything because they had too much debt, they had overpaid. And then they’re kicking themselves and I wish I would have just paid the tax. You know, I knew it was the sellers. I knew the seller to sell a couple of years ago. And then we learned about the deferred sales trust and this is what changed everything for me. You can now sell high pocket into a deferred sales trust. It’s not a Delaware. It’s not a TIC. It’s not 1031 at all. And the funds can sit there and you can put them into multiple assets pass are active in the stock market. But the key thing here is time is now on your side. There are no timing restrictions. There are no 45 days to identify, there are no 180 days to close. So one gentleman in ‘06 he sold, he put in the deferred sales trust. And five years later, he bought his property back from the bank at foreclosure at 60 cents on the dollar. So he’s sold high, bought low, all tax-deferred. And by the way, you can learn more about that at capitalgainstaxsolutions.com, it’s capitalgainstaxsolutions.com but we’re coaching and training more people how to do this. And most people don’t know about it. So I’m curious, have you ever heard of this before Nitzan?
Nitzan:
I have not. I have not. And I just wrote it down. I took a note and I’m gonna investigate that.
Brett:
Yeah, take a peek at it. Yeah, cuz I think you’ll find it very, very interesting. That being said, let’s move on to the lightning round. If you’re ready.
Nitzan:
Sure. Let’s do it.
Brett:
Alright, so knowing what you know. Now, if you go back to your 25-year-old self, what’s the one Golden Nugget you would make sure to tell yourself to do?
Nitzan:
I would tell myself to build relation people that can help you achieve your goals.
Brett:
I love it. Second question, what’s the number one book you’ve gifted or recommended the most in the past year?
Nitzan:
I would say Think and Grow Rich. Great book.
Brett:
Third question. What’s the number one leadership quote or theme that you strive to live by?
Nitzan:
Find someone who has what you want, do what they did, and you’ll get what they got?
Brett:
Who said that, by the way?
Nitzan:
Was one of my mentors a long time ago, he told me that.
Brett:
Okay, I like it. I like your mentor. Next question is, is this what are you curious about right now?
Nitzan:
I’m sorry.
Brett:
What are you curious about right now?
Nitzan:
It’s about, I’m curious about cryptocurrency, how that’s going to pull in real estate acquisitions?
Brett:
Excellent. Yeah, I just heard that same answer from guests I had on earlier. And we’re also working on I might as well plug this too. We’re working on a $9 million cryptocurrency sale. And this gentleman is going to be able to defer capital gains tax using the deferred sales trust. And then what he wants to do is reallocate that and go buy an investment, real estate. So you’re going from no cash flow to something that’s, you know, highly volatile, does have a huge gain, then you can capture that equity, defer the tax and then use the money or in partnership with the trust to go buy real estate. And so it’s like, you get the depreciation, all the fun stuff. So yeah, as soon as that deal closes, we’ll maybe have you back on and talk about that. The next question is the best real estate investment ever?
Nitzan:
Best real estate investment ever that I’ve done? Oh, that’s a good one. Ah, I would say it was. Oh, it’s a good question. Another best real estate investment. I’m trying to think of all the real estate.
Brett:
It could be a good one, it goes to be a client’s was something recent, that’s okay. This is something where you just say, this is what it was. This is kind of how they found it.
Nitzan:
So, it was a 240 unit property outside of the love airport in Dallas that was brought to me by a colleague of mine, we closed on it. And 21 we bought it I think for about five and a half million dollars, put them about a half a million to a million dollars of money into it. And then 21 months later, we got an unsolicited offer for about $11 million.
Brett:
That’s a phenomenal deal.
Nitzan:
We paid a million-dollar prepayment penalty, and we sold.
Brett:
So bought it for five and a half million. So let’s call it he put 1.5 into it. So to say that it’s because of the pre-pay, right? So you’re all in at about seven, right about seven. And then you sold it for 11. Just 21 months later, so about a $4 million gain. That’s amazing. By the way, did you turn 31? And did you pay the tax?
Nitzan:
Now we paid the tax.
Brett:
Oh, so I wish so yeah.
Nitzan:
We had a couple. So we have to pay.
Brett:
Right and so and your team, you have too much here. Okay, just so you know, we just did a $20 million deal in Vegas and another $16 million multifamily deal in Vegas, it was the same thing the entire entity didn’t want to move. So on a 1031 exchange for our listeners. It’s like a blockbuster because the whole entity must move. Right? It’s very restrictive. 45 days 180 for 1031. Where’s the thing called Netflix we call that deferred sales trust. It’s seamless, the whole entity doesn’t have to move. Those two deals just the two GP’s to their own deferred sales trust. Then the rest of the LPS just took back their money and just pay their tax. In other words, it’s a seamless partnership separation, the whole entity does not have to move because we’re not a 1031 exchange, which is super powerful and 99% of the syndicators like yourself need We meet before they meet us. That’s what they’re doing. They’re not accepting 1031 money, nor are they doing 1030 ones because the whole entity must move and it’s too complex. But the deferred sales trust is very seamless, in and out of passive or active deals. Because it’s a trust, it’s not 1031. And also very seamless on the way out, because you can do your individual. So anyway, you can learn more about that at capitalgainstaxsolutions.com. That being said, need some very last question. Is this, after all, your success as a broker as an investor, coaching and helping people with their investment, real estate, especially with multifamily? What’s the best secret to staying centered in your values, and encouraged to reach for new goals?
Nitzan:
That’s a great question. Well, I think you have to know yourself, you have to know what’s important for you. We can’t get lost in the pursuit of money. We have to get lost, if you will, in the pursuit of building a lifestyle. When I what a lot of times what I teach my clients and my mentors, my mentor clients is that, let’s figure out what kind of lifestyle you want to have. What do you want to do with your family? Who do you want to become, and let’s build your business around that lifestyle, rather than adjusting your lifestyle, to work your business, and knowing yourself and knowing what’s important for you, and knowing your passions and your desires, and your fears can help you stay focused, and having a clear map of where you want to go. And who’s going to help you get there, forget about how you’re going to get there. Who can help me get there can keep you balanced because a lot of times we lose focus. So you know, there’s a lot of things that are pulling us left and right. So having a clear, end game and picture, and knowing who can help us achieve that will help you stay centered and focused,
Brett:
So much wisdom. They’re excited for your book to come out if you want to talk about that. And, you know, I’ve heard it said this way too. I think Russell Brunson. He says it well says you know, hire, hire the who find the who don’t be the how, right. And that’s the key to building that dream team and in finding someone who’s already been there, that guide or that coach, they can help you get there, surround yourself with them. Pay for the coaching program, pay for the book, pay for the pot, you know, whatever it is to help you to, to be where they’re at. Right? And so I love that so much. And if our listeners want to get in touch with you, can you remind them one last time where they can connect with you?
Nitzan:
Sure, absolutely. You can check me out on my website, it’s investwithcip.com. You can also go to my mentoring website, traveling-investor.com. You can reach me by phone as well. It’s 561-212-7247
Brett:
Excellent Nitzan, I want to thank you for being on the show sharing a bit about your story. Just a whole ton of wisdom here. I want to encourage you to keep striving to be the best so you can help your students or clients and your partners and family be the best as well. And then to keep believing and building that passive income right? You know, through investment in real estate, so that we can have more freedom and do all the things that I guess your lifestyle, right your lifestyle that you’re trying to build. So I appreciate you being on the show. And I also want to thank our listeners for listening to another episode of the Capital Gains Tax Solutions Podcast. As always, we believe most high net worth individuals and those who help them they struggle with clarifying their capital gains tax deferral options, not having a clear plan is the enemy and using a proven tax deferral strategy, and or connecting with someone like Nitzan, mostly to invest in real estate syndication deals. Something like a Dallas deal that looks like a value add is the best way for you to grow your wealth. Hey, if you’re looking to defer capital gains tax on the sale of cryptocurrency, investment real estate, save a failed 1031 exchange we just saved one out of Georgia 128 unit complex. A primary home you can go to capitalgainstaxsolutions.com also public or private stock. Anything that is highly appreciated, go to capitalgainstaxsolutions.com and if you are a real estate syndicator operator multifamily broker, your luxury realtor you can also go to experttaxsecrets.com to learn how to be equipped with the deferred sales trust to offer it to your clients and partners. Thanks, everyone for listening, and please rate, review, subscribe to our channel. We appreciate it.
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About Nitzan Mosery
Mr. Mosery has been involved in real estate for the past 20 years and currently owns many properties nationally and worldwide.
Mr. Mosery is the also owner and C.E.O. of K.E.A.N Management Solutions, a hands-on boutique professional management company. Mr. Mosery has had the privilege of working with some of the real estate industry’s best on residential as well as commercial property. His background ranges from managing commercial assets, recognizing emerging markets, property management, syndication, mentoring, and advanced creative financing techniques.
He is also the founder of the South Florida Mastermind Society, one of South Florida’s first Commercial Real Estate Investment Group. Before Mr. Mosery studied business law and marketing at Pace University, which subsequently allowed him to secure a position at Lehmann Brothers, he was a member of the Israel Defense Force.
