Mindset: Achieving Your Goals in Multifamily & Beyond

In this lesson, you will learn how our proven framework will prevent you from making the same mistakes that we did. You will also learn the fundamentals of creating a sustainable investment business. Our 3-Step Framework consists of: Buy Right, Manage Right, and Finance Right®. Follow our recipe to generate passive income and create wealth.

In this lesson, we dive into the benefits of multifamily. When Jake & I bought our first property, the only benefit we focused on was the cash flow. We were ignorant of all of the other benefits that multifamily has to offer.

Here are the multitude of benefits when investing in multifamily:

• High yield

• Forced appreciation

• Equity through leverage

• Massive tax advantages

• Hedge against inflation

• Wealth creation

• Refi and roll

• Improve local community

• Economies of scale

  
  

We originally looked at investing in multifamily strictly from the perspective of buying real estate. We came to the realization that you can implement systems and create a scalable business through multifamily.

At Jake & Gino, we like to say We Create Multifamily Entrepreneurs.

We are often asked the question Is now the right time to invest in real estate? My answer is always the same: Are you ready to invest in real estate? The quick answer to the question is YES, it’s time to invest in real estate!

Jake & I partnered up and started investing together in 2011. Looking back, that was a horrible time to invest due to several factors. The economy, the lack of capital, the business sentiment, and the risk in the economy, were just a few reasons why it was not the right time.

What we’ve learned since then is that it is always the right time to buy real estate, but not always the right time to sell real estate. As an investor, you need to learn the strategies to implement in the current market cycle, and you need to learn the Three Pillars of Real Estate®.

Don’t wait to jump into multifamily. If you are waiting for a market correction, and are sitting on the sidelines, you will not see the correction happening. You want to be ready when the correction comes. How do you prepare yourself?

By building out your team of professionals, such as realtors, investors, and partners. The time is now to start building your team and becoming familiar with the markets you decide to invest in.

As we head into the future, the country is moving more towards a renter nation. The days of realizing the American dream by owning a home are dwindling, and more people are opting to rent. That only provides more incentive to start now and begin your journey into apartment investing.

Let’s start out with you as the investor missing one of the biggest reasons why to invest in multifamily. It is a basic human need: Food, Clothing, and Apartments.

In this lesson, we highlight the risks associated with investing in multifamily, which include:

• Not having an exit strategy

• Selecting a stagnant market

• Not understanding the market cycles

• Debt coming due and not being able to sell or refinance

• Not hiring the right property management company

• Lack of systems to run your multifamily business

The Three Pillars of Real Estate® are a crucial component to mitigate your risk when investing in multifamily. These components have been out there, but we have been able to blend them together to teach our students how to incorporate all three legs to identify an opportunity and formulate a plan to buy the asset.

The Three Pillars of Real Estate® are:

1. Market Cycle

2. Debt

3. Exit Strategy

In this lesson, we discuss how to look at how to analyze the market cycle to determine your Buy Right (TM)  Criteria and what strategy to implement to buy your asset. You also need to take into consideration what your exit strategy is in order to purchase the correct debt.

Are you fixing and flipping the asset? Is it a long-term buy and hold? Are you going to refinance the asset? The answer to these questions will help you get the right debt for your asset.

As you will learn in the lesson, utilizing the three pillars will give you clarity on how to buy your asset correctly.

One of the biggest mistakes that new investors make is that they do not view investing in multifamily as a business. At Jake & Gino, We Create Multifamily Entrepreneurs™.

The Conveyor Belt Theory® will dive into how you can build a business by investing in multifamily. Most parents want to create generational wealth for their family, but why not create legacy skills and teach these skills to your children?

The goal is to begin stacking assets onto your conveyor belt and have these assets begin to matriculate so that you can repurpose the equity into the next deal.

It’s all about the Net Operating Income. As we’ve seen over the past decade, with cap rates compressing, people are willing to pay more for a future stream of revenue. In this lesson, we review how to value-ad by harvesting untapped revenue potential through renovation and operations (to name a few).

This is a crucial step in the Buy Right process. You will learn the fundamentals of a market that make it desirable to invest in. You will be introduced to terms such as job growth, number of households, and household income. As well, you will learn how to identify an emerging market and the paths of progress in a particular market.

The key is to identify what market works best for your personal situation, and this is what this lesson will focus on, along with the Three Perspectives On How To Choose A Market.

In this lesson, we introduce the student to the basics of underwriting, and the importance of underwriting every deal when beginning the program. Practice makes process!

We also discuss the difference between accrual and cash-based accounting, and the importance of maintaining cash books for your business.

The first question that I get asked from beginning investors is "How do I find deals?". The question they should be asking themselves is "What is a good deal for me?"

This is why you need to create your own personal Buy Right Criteria. What are your criteria?

These are just a few for you to focus on:

• Age

• Median Income

• Unit mix

• Population growth

• Amenities

Start to formulate your business plan and incorporate your buy right criteria.

It's time to become aware of our thoughts and the words we use. Are they mostly negative assuming things won’t work -always seeing the bad things that happen that day?

• The words we use.

  This can be a tough one for some. The words we use matter not only for us but everyone in our life! Children, spouses, parents, friends, and coworkers are affected by our words. A quick thought about what we’re about to say can change our relationships. Are we quick to criticize or are we encouraging? Ask - is this true, kind, or necessary, are they asking for advice, am I overreacting? These are good questions to ask as they help us to control our negative or controlling ways about us. If we say something and realize it after a quick apology or clarification conversation may be helpful.

• Our actions

  Let’s start noticing each choice we make. In everything. From who we say yes to, to the small little things we snack on. Just an awareness of time on the computer to time with family. Time wasted to time spent accomplished. Once we choose to pay attention to each action- we start making better, healthier choices.

• Our reaction to what is being done or heard around us.

  Do we have the “what about me -what’s in it for me” more often than not? Are we overreacting about most things?

• Are we ready to take 100% responsibility for yourself

  When we do- we start changing - our views, our thoughts, and our relationships, all for the better.

This is a crucial lesson for you to start creating your goals. Begin by downloading our list of values, and start to select the values that you live by.

What do you value (our deeply held beliefs )?

1. What’s important to you

2. Choose the top five values in order of importance

Are you living in accordance with your values? You need to find some evidence that you are actually living y the values that you selected.

Once you have your values, you can begin to consciously choose your decisions based upon YOUR values. We'll see you in the next lesson, Values-Based Decision Making.

This has been a revolutionary concept for me. When I felt as if my decision was wrong or didn't feel right, it was because it was going against my values. For example, when I entered into my first real estate partnership, it wasn't the deal that was the problem. It was that my partner's goals and values were totally different than mine.

Once I became conscious of my values, I began to make decisions based on my values. I decided to prepare myself to exit my restaurant because it was not in alignment with my values on family and entrepreneurship. I also realized that I became a 100% responsibility junkie, and all of my decisions became based upon longtermism, which led us to create The 100 Year Real Estate Investor.

When you choose to live by your values, you will become much happier and feel more in control of your life.

Reading the book Mindset, by Carol Dweck, was a pivotal moment in my understanding of why some people continue to persist in the face of defeat, while others quit when presented with a challenge.

People can have a fixed mindset in certain areas of their lives while having a growth mindset in other areas. As you listen to this listen, where are you fixed in your life, and where do you exhibit a growth mindset?

What is a fixed mindset?

• Fixed or Stuck

• Avoids challenge

• Gives up easily

• See efforts as fruitless

• Ignores useful criticism

• Feels threatened by other's success

What is a growth mindset?

• Grows during challenging times

• Persist in the face of setbacks

• Sees efforts as a path to success

• The belief that skills, intellect, and talent can be developed through practice and perseverance

• Learn from criticism

• Find lessons and inspiration in the success of others

In the lesson, we share examples of famous individuals who experienced both mindsets.

What or who do you identify as? Why would I ask that question? If you are trying to quit smoking ir adopt a habit, it is much easier to achieve if you can identify as a person who is already that which you seek.

Quit smoking = I am a non-smoker

Real Estate Investor = I purchase real estate

In the lesson, we share the story of a famous athlete whose entire life was focused on sports and excellence. When he decided to retire, he decided to reinvent himself and went back to school to get his doctorate. He began to identify as a college student who aspired to become a doctor of neuroscience.

Behaviors are belief-driven, and if you believe you can achieve them, then you can!

At Jake & Gino, every new employee is given a copy of The Go-Giver to read. The message in the book is the driving force behind our core values and our mission statement. We want to create multifamily entrepreneurs and create a mindset of abundance.

Here are the five laws in the book:

1. The First Law: Value

Your true worth is determined by how much more you give in value than you take in payment.

2. The Second Law: Compensation

Your income is determined by how many people you serve and how well you serve them.

3. The Third Law: Influence

Your influence is determined by how abundantly you place other people’s interests first.

4. The Fourth Law: Authenticity

The most valuable gift you have to offer is yourself.

5. The Fifth Law: Receptivity

The key to effective giving is to stay open to receiving

We utilize the questionnaires found in this section with our coaching clients as we progress through the coaching relationship. The questionnaires will give the client a picture of where they currently are in their lives, and as they continue the journey, they will be able to assess their progress and find out what areas of their life they need to work on.

We have included the questionnaires in the program for you to achieve more clarity in all aspects of your life.

It is difficult to know where you want to go if you don't know where you are. The questionnaires will give you that starting point!

Click on the links down below (External Resources) to access the questionnaires:

Here comes the fun part: Listening!!

Most of us think we are amazing listeners when in reality, we stink. In this lesson, we discuss the S.P.Y.® technique, and how it is such a vital skill when negotiating.

There are three types of listening:

1. Subjective

2. Active

3. Intuitive

It is so important to pay attention to a person's body language and tone of voice. You need to ask empowering questions and make sure you give the person a chance to answer uninterrupted. And make sure you are listening, and not thinking about your next question.

There are two types of people:

• Instructional

• Identity-based

Which one are you? Listen to the lesson to find out!

How are you reacting when you are listening to someone?:

• Do you seem interested?

• What is your body language?

• Are you engaged?

• What questions are you asking?

• Are you repeating what you heard to avoid miscommunication?

Being present, and fully engaged is key when trying to convey to your partner your sincere desire to listen to them.

Overview:

Keys to speaking:

• Know your audience. Are they visual or kinesthetic)?

• Get to the point.

• Is the person identity based or instructional?

• Paint the picture

Three steps on how to hold a conversation (we get into it more deeply in the lesson):

1. Runway

2. Flight

3. Landing

An empowering question is a thought-provoking, open-ended, challenging question that allows a person to look for answers and new opportunities.

Tony Robbins is famous for saying “Successful people ask better questions and as a result, they get better answers."

Empowering questions to ask others:

1. What does a better communicator/mom look like to you?

2. What’s on your mind?

3. What’s the real challenge for you?

4. What do you want?

5. How can I help?

6. If you say yes, what are you saying no to?

7. What was most useful to you?

8. What are you excited about?

Empowering questions are the key to taking your communication skills to the next level!

What did you think of this lesson (empowering question)?

In this lesson, we discuss empowering questions that you should be asking yourself while setting your goals.

You should be constantly asking yourself these questions:

1. What do you want? (We don't lack motivation, we lack clarity)

2. What is the one thing I am trying to achieve?

3. What have I tried/not tried?

4. What habits will I need to adopt or change to achieve my result?

5. What is it going to take to double my results?

The key is to be honest with yourself and to find a quiet place with no distractions while challenging yourself.

Once you begin to focus on your why, as Frederick Nietzsche says, "He who has a why to live for can bear almost any how". The power of your "why" will literally power you through the ups and downs of the pursuit of your goals. When you hit that proverbial wall, your "why" will inspire you to carry on and not quit.

There are a few things you can start doing today.

• Focus on what you do want.

• Find your Soul Purpose.

• People need to know the why behind it before they buy or go to work. Do you?

• What is your calling, your conviction?

  
  

This is one of my favorite quotes when trying to find your "why".

"Your true inner self knows that your life purpose is out of sync with your outer life."

An energy block is anything that holds you back or restricts you, whether it is internal or external.

At IPEC (Institute for Professional Excellence in Coaching), where I trained as a life coach, we were taught the four energy blocks:

• Limiting beliefs.

• Interpretations.

• Assumptions.

• Gremlins.

In this lesson, we dive into the four energy blocks and how you can combat them and begin to overcome them.

Being able to control your level of energy throughout the day is one of the crucial skills that successful people develop. Some are not even aware that they are managing their energy.

What do I mean? Even situation throughout the day creates an energetic response, such as your child begins to cry, someone cuts you off on the road, your boss yells at you, or you just made a boatload of money on an investment. How we manage our emotions and the awareness of our response is the key.

In the lesson, we describe the levels of energy, and how they fluctuate from a catabolic (negative, draining) level of energy to an anabolic (positive, uplifting). As we state in the lesson, the levels themselves are not good or bad. Understanding how they serve you is key.

I sometimes need to get angry to motivate and energize myself into action. Now, if I stay at this level of anger for too long, it will not serve me. I will not have the creativity and positivity I need to solve a problem or create a solution. The key is to understand how to use the levels of energy to your advantage.

At what level of energy are you resonating after this lesson? I hope you are excited and ready to tackle the next lesson!

Fear is an adaptive behavior that we have to help identify threats. It is an ability that has allowed us as humans to survive predators and natural disasters.

Do you ever overcome your fears? Julia & I discuss fears, and how we have been able to manage our fears and take action towards our goals. Fears are in our life to protect us from danger, but nowadays, we may be utilizing fears to stop us from taking actions that are not going to harm us physically. The question you shaped ask yourself is "Is this fear serving me"?

The irony is that we are born with only two fears. the fear of falling and loud noises. Every other fear is learned!

What are some ways to combat fear?

• Educate yourself.

• Familiarize.

• Practice.

• Find an accountability partner.

• Start small, and then begin to stack.

Facing your fears may give you the ability to confront them.

What is a BHAG®? John Collins, author of Good to Great, defined the BHAG® as a Big Hairy Audacious Goal. He showed that most companies that thrived were cognizant and strove to achieve their BHAGs® and their mission statement.

We recorded this lesson for you to contemplate and create your own BHAG® and mission statement.

If you want to hold yourself accountable, share it with us and others!

To those businesses that have yet to build an enduring or thriving business, the likely culprit is that they have not focused on their true core values and or are not living by their core values. How do I know? When I owned my restaurant for over twenty years, I was successful, yet I could not scale the business and I felt trapped.

Once Jake & I understood the power of core values, and hiring and firing employees, and leading the business with our core values, di our portfolio of properties expand.

Judge for yourself. I owned one restaurant for over twenty years, yet when I began investing with Jake, we were able to purchase over 1,500 apartment units in less than five years.

What was the difference? We created core values for our companies and we begin to live and breathe our core values.

I would love to hear what your core values are. And if you haven't created them, now is the time to start.

Every business, as well as family, thrives when we create a cadence of accountability and we hold ourselves "accountable" to them.

In this lesson, we share with you our cadence, which includes:

1. Yearly goals

2. Quarterly planning

3. Weekly huddle

4. Daily huddle

5. Journaling

These touchpoints, along with our core values, have helped propel our business and allowed us to attract amazing, talented people.

We had the privilege of interviewing the author of The Gap & The Gain, Dr. Benjamin Hardy. I highly recommend you listen to his podcast on The Jake & Gino Show ©: The Gap & The Gain

It is an amazing book that discusses how we can continue to hit our goals, yet feel unfulfilled. In this lesson, we define what the Gap is, and how living in the Gap will lead to unhappiness and frustration. Living in the Gap leads to a life of comparing yourself to others, always being unhappy with your situation, and not living a life of gratitude.

On the other hand, living in the Gain entails acknowledging the struggle ahead, yet appreciating the accomplishments you have and the growth you've experienced. You're still focused on your goals, and looking toward the end of the tunnel, but you still look back and appreciate where you've come from.

When was the last time you were living in the Gap and the Gain?

One of the most useful skills for adults is the ability to manage their time effectively. In reality, we are all allotted the same 168 hours per week. Why is it that Jeff Bezos can create Amazon, yet most of us complain that we don't have enough time to do basic chores?

Time blocking will allow you to track your daily activities and show you where you are wasting time. It challenges you to be real with yourself. Do you not have the time, or are you spending two hours per day watching Netflix? I'm not here to judge, only to make you adopt the skills for you to choose consciously where you want to spend your time.

Download our time-blocking sheet!

In this lesson, we share with you the six human needs:

1. Certainty.

2. Uncertainty.

3. Connection.

4. Significance.

5. Growth.

6. Contribution.

The first four needs are fundamental. Most of us fulfill these four basic needs. Those that strive for and achieve growth and contribution lead fulfilling and happy lives.

A habit is a routine that is performed over and over and becomes automatic. Habits are mental shortcuts. They are processed through the subconscious to do automatically. Small consistent habits lead to success. Habits free up the mental capacity for you to focus on other things. Habits can create freedom. They satisfy and relieve us.

How do you change your habits?

4 laws of behavior change:

1. Make it obvious.

2. Make it attractive.

3. Make it easy.

4. Make it satisfying.

Remove triggers or cues from your environment. Structure your life so you don’t need discipline. Spend less time in tempting situations by creating a more disciplined environment.

BE AWARE OF YOUR HABITS!! Make sure your habits are empowering and lead to positive results.

In this lesson, we discuss the Cue--> Routine --> Reward habit model, and how to create empowering habits.

Download our book notes on Atomic Habits under Resources/Materials

The reason why I included this lesson in the Masterclass is that Steven Covey's book has been one of the most impactful books on my personal development. I read it years ago and decided to read it two years ago. I did not realize how much I missed and misunderstood in the book.

My goal with this lesson is to share Covey's insights and to have you focus on habits that will help you personally and professionally and will definitely help you in setting your goals.

Here are the seven habits:

1. Be Proactive.

2. Begin with the end in mind.

3. Put first things first. Eisenhower's quote is powerful "I have two kinds of problems: the urgent and the important. The urgent are not important, and the important are never urgent."

4. Think Win/Win.

5. Seek first to understand then to be understood.

6. Synergize.

7. Sharpen the saw.

After watching the lesson, PLEASE perform the exercise. It can be challenging and daunting, but it will give you clarity on what you want to get out of life, and what you want to be remembered for.

I continue to think of what my legacy is, and it will change as you and I get older. Keep focusing on your legacy and how you want to impact the world.

When I started using vision boards, I started putting pictures of apartment buildings. The fancy cars came much later, and the only car I had was a Porsche.

Vision boards are a terrific way to focus on what you want to achieve, whether it is health, wealth, or family. When I came upon tough times early on, my vision board was there for me to see my dreams, and it helped my subconscious hold the picture in my mind.

Hang up your vision board where you will see it throughout the day. My vision board was in my office, and I have a picture of my wife in the visor of my car to remind me of how fortunate I am.

Fall in love with your actions, not your results

How to set goals:

1. Focus on a target.

2. Clarity on what to work on.

It all starts with asking yourself:

• WHAT DO YOU WANT TO DO!?

• WHAT IS YOUR WHY?

This will give you the strength to continue with trying to achieve your goal!

Goals= Objectives + Beliefs

Goals are the results to achieve. Systems are the processes that lead to results. Goals set the directions. Systems make the progress.

Fall in love with the process.

The purpose of the goal is to "Win the game".

The purpose of the process is to "Continue to Play"

Set proper goals:

1. Focus on why.

2. Write down your values and beliefs.

3. Seek out an Accountability Partner.

4. Reverse engineer.

Download my book notes on Atomic Habits under Resources.

We are honored that you have finished the course. My recommendation would be to go back and watch any lessons that you felt were unclear or challenging.