MB 218: The Most Direct Route to Financial Freedom – With Jacob Blackett

Those of us who enjoy success in the real estate business are typically introduced to a model, an investor operating at a scale we never considered, who gives us an idea for what’s possible and a vision for the future. And if we’re smart, we can learn from their mistakes and leverage their knowledge and experience as a springboard, affording us a more direct path to our own financial freedom. Jacob Blackett is the Founder and CEO of Holdfolio, a platform that connects investors with high-yield investments in the real estate industry, and Syndication Pro, a software company that helps syndicators raise capital and manage investors online. Jacob got his start doing fix-and-flips as a 19-year-old sophomore in college, and today, he has placed over $50M into income-producing real estate, building a portfolio of 600+ units (as the lead sponsor) and a network of 3K registered investors. On this episode of Apartment Building Investing, Jacob joins me to explain how an infomercial inspired his interest in real estate and share his journey from fix-and-flips to wholesaling to SFH rentals to multifamily. He walks us through the steps he took to scale his real estate business, describing why it’s beneficial to have an in-house property management team and how the technology he built to raise capital online became Syndication Pro. Listen in to understand how Jacob overcame losing $40K on his first deal and learn how to avoid his mistakes by joint venturing with an experienced team early on! Key Takeaways What attracted Jacob to the real estate space Free fix-and-flip seminar (sophomore in college) Up to $80K for single flip vs. CPA starting salary Jacob’s experience with his first fix-and-flip Picked up deal on MLS with grandma’s capital Didn’t go as planned, ended up losing $40K Why Jacob pivoted from flipping to SFH rentals Very transactional, no tax benefits Growing portfolio = monthly income stream Jacob’s first AHA moment around scaling his business Create partnerships with investors Build portfolio of 150 SFH rentals quickly What inspired Jacob’s transition to multifamily All rentals in one place with staff onsite Banks/lenders prefer multifamily Jacob’s first multifamily deal 46-unit with fire damage at 50% occupancy Leveraged investor network for capital What surprised Jacob most about multifamily Breath of fresh air (power of all in one place) Had to learn a lot about asset management Jacob’s background working in property management Met investor through wholesale deal Managed all his acquisitions within 2 years The benefits of using in-house property management Generates revenue once reach 500+ units Control and consistency in best practices Jacob’s first steps for scaling his real estate business Implement use of Propertyware software Hire talented leasing agent and COO How Jacob scaled his capital raising efforts Crowdfunding sites caught eye early on Built website to raise money online How Jacob bounced back from losing $40K Resolve to fix mistakes Determined to pay grandma back Jacob’s advice to his 19-year-old self JV on first flips to hedge risk Job at multifamily private equity company Jacob’s advice for aspiring multifamily investors Get on...