Former tech entrepreneur from Silicon Valley, J Scott, and his wife, moved to Atlanta in 2008 to start a new chapter. In the past ten years, they have bought, built, rehabbed, sold, lent-on, and held over $60 million in property all around the country. But, in 2016, they transitioned into multifamily and they have never looked back. J is today’s guest on the show. He is an entrepreneur, investor, advisor, and the co-host of the BiggerPockets Business Podcast. He is also the author of four books on real estate investing, which have sold over 200,000 copies and have helped investors from around the world get started in real estate. In this episode, J talks about his transition from single-family to multifamily and shares some lessons from his first multifamily syndication, including the importance of building a relationship with your team and understanding that multifamily is not simply single family at a larger scale. It’s a completely different beast! To J, being the team lead is just a word, and he is much more focused on sharing the risk and reward with his team. During our conversation, J also gives us a glimpse into his predictions for the next three to six years. Finally, J has some advice for those getting into multifamily at this time, with a special focus on COVID and employment diversity. Tune in today to hear more!
Key Points From This Episode:
- J tells listeners a little bit more about who he is and what he does.
- Why J decided to transition into multifamily after he finally had the opportunity to do so.
- The reason why J has no regrets about starting out in single-family first.
- J’s first multifamily syndication – what the deal was, who he went into it with, and why.
- The importance of getting over the hump and doing the first deal, but not rushing into it.
- Joining a team versus going it alone – J felt he should be working with experienced partners to lend the deal experience and credibility.
- Being part of a team is like a marriage – J was cautious about finding and vetting his team.
- J learned from his first syndication that multifamily isn’t just single family on a larger scale.
- Why being the team lead is just a word – what’s important is sharing risk, equity, and reward.
- What J foresees for the next 5 to 10 years, like lower interest rates and increasing cap rates.
- J’s advice for those getting started in the multifamily space now: be cognizant of location.
- The three focus areas in multifamily – population growth, employment growth, and wage growth, and J adds a fourth: employment diversity.
- The tool J can’t do without? As a numbers guy with a passion for spreadsheets, it’s Excel.
- J’s biggest mistake in real estate investing was being too transactional when he started.
- To grow his life to the next level, J needs to figure out his work-life balance.
Links Mentioned in Today’s Episode:
