JLM Blog |Episode 22: A Comprehensive & Current View Of Single Family & Multifamily InvestingReal Estate News, Updates, and Tips
Multifamily Real Estate Agency in San Diego
Podcast Episode by Jason Lee – Premiered December 2, 2021
What You’ll Learn in the Podcast:
- Information on Nancy’s background and how she got both into real estate and the law (hint: it all came from buying a single building in San Francisco).
- A look at the advantages that being an attorney and a CPA gave Nancy in her real estate career.
- Why Nancy is interested more so in investing in the Midwest and Texas as opposed to California.
- Why multifamily has proven to be the best asset class for Nancy in terms of her investing experience.
- The tactics that Nancy uses to source her deals that make sense for her investing criteria.
- The pros and cons of passive vs active management of properties. -How Nancy found her first real estate deal in San Francisco.
- A look into how Nancy structures her deals, and some tips along with that information.
- Nancy’s experience in the single family home market during the last 3 years and specifically during covid and some of the surprised that came along with that.
- What kind of investments you’re probably going to see the best return on in the next 5-10 years.
Summary and Highlights:
Why Listen To Nancy Chillag? And Who Is She?
Nancy Chillag founded 23rd Street Investors in 2019. For clarity, it is her syndication company, where she works with investors to find lucrative commercial ventures, multi-family housing, and self-storage. Here is what she told us when Jason Lee, a real estate agent San Diego, invited her on his YoutTube channel.
By selecting strategic partners that know local markets, she invested in several California as long as the laws were favorable. For example, she did not invest in California because of its landlord-tenant law, which stops owners from evicting tenants who cannot pay higher rents when the cost of living increases.
Looking at the laws where you want to invest is Nancy’s first insight. But then she goes on talking about how multi-family has been the best asset class for her in terms of investments. Having hundreds of units under one root is a real game-changer. As Nancy put it, multi-family gives you a sense of the economy of scale [https://www.investopedia.com/terms/e/economiesofscale.asp] , the ultimate goal for realtors.
What Small Investors Should Do, According To Nancy
Small investors who own a single-family home may lose 100% of their rent if they do not have a tenant. On the other hand, starting with a single-family home may not be a bad idea! After all, getting a loan for a single house is easier than asking one to buy lots of units at once. Plus, it is the ideal initial step for learning how to manage a single building.
In any case, small investors should first decide if they want to be active or passive investors. Why? Because being an active investor means having a lot of work to do on a regular basis. And if they have a full-time job, they may be choosing the wrong route. Instead, passive investors only look for a profitable return, sign documents, and wait for profits to show. So, if they deal with people who have a well-established track record, the risk is next to zero.
It Is A Matter Of Strategy!
The simplest strategy for real estate investors who start their journey is to buy a single-family home, fix it up, and sell it. In time, one can also refinance a house and get larger units. But buying a property is buying yourself a full-time job.
Active management is fun! You have full control over every detail: financing, what tenants go in, and when to sell it. But on the downside, it is a full-time job that may make you lose money. You have to study, prepare, and read the numbers.
The tools at your disposal are numerous. Nancy herself started out thanks to seller financing and a flier that the seller used to sell a 5-unit building! For those of you who don’t know, seller financing [https://www.investopedia.com/terms/s/seller-financing.asp] also allows you to maintain an active cash flow and better manage your tax situation by not reporting all your gains in one year. So, again, your strategy depends on how well you are prepared.
What About Flipping Homes During COVID-19?
House flipping has become more competitive, but the market has been going up. So, it still remains a profitable business. Of course, real estate investors should carefully calculate a precise return on sale when buying. The good news is that as the prices keep increasing, flipping homes still remains one of the best ways to make money.
Episode 22: A Comprehensive & Current View Of Single Family & Multifamily Investing
Watch the Podcast | Read the Transcript
[Intro] Welcome to the multi-family millionaire podcast. The show that interviews multi-millionaire real estate investors and top producers in the real estate industry. If you’re looking to create passive income and achieve financial freedom so that you can do what you want whenever you want, you’re in the right place. Our goal is to simplify and make real estate investing easy for you. For more information, you can find us at www.JLM.realestate.
Jason Lee: All right, welcome back to show today. We have Nancy Chillag on the show. How are you doing Nancy?
Nancy Chillag: I’m doing great Jason.
Jason Lee: Good. Good. Well, thank you so much for your time. I know you’re a very busy person and you got a lot going on. So thank for coming on.
Nancy Chillag: Thanks for having me glad to be here.
Jason Lee: Yeah. So the first question I wanted to ask you is could you just tell the audience about your track record and what you’re doing today?
Nancy Chillag: My track record goes back away. <Laugh> basically I’m a retired attorney and now I’m full time in real estate. I have a couple of companies, one that flips houses and one that does real estate syndication.
Jason Lee: Awesome. And how did you initially get into real estate?
Nancy Chillag: Well, back when I first became a lawyer, I was really interested in real estate. And so friend of mine and I started looking, we were in San Francisco at the time and we found a five unit Victorian, had no idea what we were doing. We bought it we got seller financing, we managed it ourselves, you know, put the tenants in, hired Contractors did all of that. We held it about four or five years and we five times our money, which was fabulous after that I was hooked on real estate and never looked back.
Jason Lee: Got it. Got it. That’s amazing. You five extra money in five years You said.
Nancy Chillag: Four years. Yeah.
Jason Lee: Got it. Got it. And how long ago was that?
Nancy Chillag: Longer ago than I cared to admit, but it was in the
Eighties. You could still by real estate in San Francisco for a reasonable price.
Jason Lee: Got it. So I read your bio. It said you were, like you said, you, you started out as an attorney. Did you see, you know, having that career background did it kind of help your real estate career and kind of give you like an advantage? Cause I feel like a lot of people don’t understand the legal aspect of real estate. So I feel like you coming out, you know, out of the gates, an attorney, you had a kind of an edge above everyone else I feel like.
Nancy Chillag: Well, you know, any knowledge is valuable. I do have a lot of certificates. I’m not only an attorney, I’m also a CPA and a real estate broker. And obviously all those things help in analyzing deals, running deals, negotiating, all of that, but you don’t need that to get involved in real estate because the reality is you can hire lawyers, you can hire accountants, you can hire brokers. And I have hired them when I’ve invest, you know, because I don’t know everything, but certainly my background helps me to analyze different things.
Jason Lee: Wow. It’s a lot of, you are a CPA, real estate broker and attorney. That’s fantastic.
Nancy Chillag: My primary career was as a lawyer though, I was an attorney for 30 years. I had my own practice in the San Francisco bay area.
Jason Lee: Got it, got it. And then transitioning to today for 23rd street investors what does your company do and what problems you guys solve in the real estate market?
Nancy Chillag: Well, 23rd street investors is a syndication company and what we do is we work with our investors to find good, lucrative, secure commercial, real estate ventures. Multifamily housing, self-storage, those types of things.
Jason Lee: Got it. What locations do you look in?
Nancy Chillag: It really depends. I’ve done things in Florida, Alabama, Texas, Arizona, you know, it really depends on where we’ve got partners that are successful, you know, cause we want somebody that is good in a certain area knows the market, boots on the grow around and where the numbers make sense. You know, we don’t invest in California because the numbers don’t make sense and the laws are not favorable. We Look anywhere that makes sense. What do they say live where you want invest, where it makes sense.
Jason Lee: Yeah. I mean, so I’m going to challenge you on that one cause I’m, I live in San Diego and I invest in San Diego. So why does, why do things not make sense for you in California compared to those states, like in the Midwest and Texas that you just mentioned?
Nancy Chillag: Well, I think one of the overriding things is landlord tenant law. If you’re investing in large multifamily buildings, then you could get a tenant in there that never goes away and that you can’t raise the rent on. Actually my very first building in San Francisco was a five unit and San Francisco had rent control that applied for anything over four units. And we had a tenant in there that had been in there for 30 years. And now mind you, this is back in the eighties, but he was like paying $230 a month and he had a view of downtown. My other tenants were paying close to a thousand. Yeah, and I couldn’t raise the rent and you can’t just evict. So, you know, you want to look at the laws where you’re going to invest to make sure that they’re favorable for you.
Jason Lee: Yeah. I mean that, I completely agree with you. I think the laws, the business laws in California are not favorable for real estate people. Me and my clients, obviously we have loopholes to get around those laws and do things to where we can execute the business plan. But I do agree with you that states like, you know, Texas and, you know, the red states basically it’s much more business friendly and easier to be a landlord. So it makes sense. Have you seen the same amount of appreciation though in the those markets? Obviously you get more cash in those markets, but have you seen good appreciation where you’ve invested in the last 10 years?
Nancy Chillag: Yeah. Some of those markets can be really good for appreciation. So if you are buying a million dollar building in California and then it goes up to 2 million, everybody says, wow, that’s really great. But if you buy a $200,000 building in Texas and it goes up to 400,000, you’ve got the same return, not as many dollars, but you know, buying it that level, you’ve got a whole lot less risk. You know, one of the things cause I used to be very heavy into single family I housing and one of the risks is trying to put a tenant in that will pay the mortgage. If you’re buying in California, you usually have to put in a lot more capital in order to get your mortgage down far enough where the rents are going to cover it. And that’s not necessarily the case in other states.
Jason Lee: Got it. Got it. And kind of switching gears a little bit what has been the best asset class for you in terms of the investments that you’ve made compared to multifamily or office retail, etc.?
Nancy Chillag: Well, I think multifamily just because of the scale, you know, you can you know, you’ve got a hundred units and you’ve only got one roof, you know, and one of a lot of things so that you get the economy of scale where, and also, you know, if you have a tenant move out, it’s very little impact on your res, where if you have a single family home, you base basically lose a hundred percent of your rents if you don’t have a tenant. So the nice thing about single family is, you know, if you’re a small investor and you want to do it on your own, it’s much easier to get into single family, much easier to get a loan. I’m sorry. Yeah, much easier to get into single family and to get a loan and to manage it on your own, you know? So in that respect, people that are starting out usually go that route if they want to be hands on, cause it’s just a bit easier.
Jason Lee: Yeah. I agree. I think it’s the barrier of entry for a one to four units, much lower, but kind of get your feet wet there and then you, you know, rehab it, stabilize the building, and maybe do a 1031 exchange into a bigger complex. So you have, like you said, a lot less risk because if one tenant moves out in a 10 unit building, it’s a lot better than your tenant moving out in home. It’s very well said. So for your current company, your business, a lot of people have been asking this question like on social media, how are you sourcing your deals? Like how are you finding the right deals that make sense for your investment criteria?
Nancy Chillag: Well, I network with a lot of people that are putting deals together and you know, we have to go through a hundred deals to find one that works. And so it’s really about relationships and finding people that you want to partner with that know what they’re doing, that have a good track record, you know, that’s basically how I’m finding things.
Jason Lee: Got it. And what are you doing to network? Are you just going to the locations that you want to buy and calling the brokers and talking to people or what’s kind of your strategy there when you’re, you know, trying to make new connections?
Nancy Chillag: Well, as I said, I belong to a lot of organizations that have people that are putting together deals. So I, over the last several years have gotten to know a lot of them. And so when they have a deal, they call me or when I have, you know, interest in putting together a deal, you know, I’ve got investors who want a deal, then I’ll call them and we’ll work together to find something.
Jason Lee: Got it. So those organizations kind of digging deeper here, if someone’s listening to this show and they want to get involved in organization like that, how would they go about that?
Nancy Chillag: It is a little difficult. Some organizations you can find online, you know, Facebook groups, that type of thing. But the ones that, you know, have people that are doing this full time are fairly expensive to get involved with. You can certainly find them, you know you can find people that are doing multifamily, you know, just by Googling or, you know, looking on Facebook and then seeing what they’re doing.
Jason Lee: Yeah, no, that’s great. I think just being around people who are finding and sourcing deals and putting deals together is where you want to be If you’re trying to find a deal of your own.
Nancy Chillag: You really have to ask yourself though, is, do you want to be an active investor or do you want to be a passive investor? Because a lot of people think they want to be active and then they get into it and they go this is a lot more work than they thought it was going to be. And they just don’t realize. And if they’ve got a full time job, they’re basically creating another job for themselves.
Jason Lee: Oh yeah.
Nancy Chillag: So, you know, when you were saying earlier, one way to start is to, you know, to get your feet wet by buying, you know, single family home, fix it up, stabilize it, refinance it, then maybe get, you know, a large your unit. But what people don’t realize is that to do all that, you need to know what you’re doing to do it right. You know, need to know how to buy it. So you need to, you know, work with a broker. Then you need to be able to run your numbers. You need to be able to hire a contractor, which is not always easy to do. And you know, then you’ve got to put a management company in place or if you’re going to manage it, you have to be ready to deal with a 2:00 AM call, you know, the toilet’s backed up. So people don’t realize the amount of work that goes into just getting a single family home.
Jason Lee: Yeah. I agree. I think people don’t realize that you are buying yourself a job when you buy a property and if you’re going to manage it yourself, I personally don’t, but I manage the rehab and the construction is a lot of work. I mean, you got to know what you’re doing. You got to know your numbers. And the most important thing is I think you’ve got to love it. I think if you don’t love managing real estate and being a part of it, I think being a passive investor is the much better route, because like you said, it takes up a lot of time. I’m a full-time real estate broker and you know, doing that and managing the rehabs, it’s a lot of work. So I definitely agree with you that passive investing is also a great way to get started, but okay, So in your bio you have about 800 units, whether it’s passive or active a little over that, right? So this is a question I definitely wanted to ask you is what are the pros and cons to active versus passive investing?
Nancy Chillag: Well, like you said, you have to love it if you’re going to make manage it. So the pros to active management is you have control. You get to call the shots. You get to decide when to refinance, you get to decide what tenants go in. You get to decide when to sell it. The downside is it’s a second job. And if you don’t do it right, you could lose money. That’s, you know, the active part, the passive part, you put your money in, you know, you’re looking for a good return. You don’t have to do anything other than, you know, review and sign documents at the beginning, but you don’t have any control. Once you put your money in, you’re there for the long call, usually about five, six years. And you know, if you’re okay with that and you don’t need control or want control, then that’s definitely a better way to go. And you’re dealing with people that are, you know, have a proven track record that know what they’re doing and are more capable of running a project than you probably are.
Jason Lee: Yeah. That’s a great point. I think to add onto that, I think for passive investing, it’s very important that you invest with someone that has a good track record and that’s the on it before, cause I’ve seen some horror stories of people, you know, losing some money from people who didn’t really understand the asset and their business planners didn’t work out. I think, you know, knowing someone like you or myself that’s experience in real estate and that knows how to take it from start to finish putting your money into people like that is extremely important.
Nancy Chillag: I agree. Well, I think it’s fascinating that you are investing in California. What kind of investments are you doing?
Jason Lee: Yeah, so I am investing in strictly multifamily. My portfolio ranges from, well, the biggest building I have is a 13 unit building and the rest are, are like four to eight units. So they’re smaller, you know, our portfolio is only like 45 units right now. So it’s not a big portfolio in San Diego, but you know, as a broker, I kind of see the best deals, the best off market deals. I’m seeing exactly what’s out there in the very early stages. So like anything see on the market, it’s been shot by all the commercial brokers in town. It’s been seen by everyone and passed by a lot of people. So I’ve been kind of been able to source those golden nuggets and make it work to where there’s a lot of upside day one in the property.
Nancy Chillag: How you buy it is how you make money.
Jason Lee: For sure. Yeah. And then how did you find your first investment in San Francisco?
Nancy Chillag: I found a flyer when they used to do real estate advertising in flyers and it just said five unit building for sale with seller financing. So we called the seller and worked out the deal. And that’s how I found that.
Jason Lee: That’s amazing, seller financing is very powerful. For someone who’s listening that doesn’t know what it is. Would you mind giving like a brief summary of what it is?
Nancy Chillag: Sure. So if you’ve got a building that you know you own and let’s say you own it free and clear, so you don’t have a mortgage on it and you want to sell it, but you want to get a really beneficial price. So what you might offer the buyer is that you would finance 80% of it. And the buyer comes in with 20% down in cash. So they’ve got skin in the game, but now you’ve set yourself up one for, you know, what could be a better tax situation, cause you’re not reporting all of your gain in year one when you sell and you’re creating a cash flow for yourself as a seller, because if you can get, you know, a good interest rate, you’ll do a lot better than if you put that money in the bank. And as a buyer, you might have problems qualifying for, you know, a loan or any number of reasons why you don’t want to get a loan, but by buying something with seller financing, it’s just much easier for you.
Jason Lee: Yeah, well said, I think it’s a great alternative strategy to buy a property without dealing with banks. So that’s cool how your first investment was a seller finance. I haven’t put together a deal yet. That’s seller finance, so good for you.
Nancy Chillag: I’ve done a number of them where I’ve been on the purchasing end.
Jason Lee: Got it. And the motivation you for the seller, how you play, it’s kind of like what you said is, you know, you don’t see all your gains in year one. You can still cash flow on the property and you’re selling it for a good price. So I don’t know why most people say no to it. I think it’s because a lot of people want their cash right away, but that’s cool. How have you structured your deals in the past in that sort of way?
Nancy Chillag: Well, normally I try to structure them so that if I then decide to sell the building, that the seller will extend the same loan to my buyer, which then makes it really beneficial to sell. Obviously if the price goes up tremendously, that might be an issue because the new buyer would have to come in with a lot of money. So sometimes it works, sometimes it doesn’t, but it’s nice to be able to have that as an option. Sometimes you can negotiate where the seller will go into second position behind another loan. So that’s beneficial. And the other nice thing about seller financing as a buyer is that if there’s an issue like COVID and you have a problem making the mortgage payment, it’s much easier to go to an individual seller and negotiate some sort of compromise than it would be if you’re dealing with the, you know, financial institution, well, having that flexibility is huge.
Jason Lee: Yeah. That’s a great point. And kind of, that leads me to my next question. How did you see real estate change because of COVID and how was your portfolio affected through those times?
Nancy Chillag: You know, the way portfolios were affected in some areas and I didn’t have this, but student housing, you know, took a nosedive because all of a sudden you didn’t have students in there for a year. So in that respect, being able to negotiate with a seller that has your financing would be very beneficial. Multifamily really didn’t take much of a hit, even though rents went down, you still had a large majority of the tenants paying rent. And so, you know, hit wasn’t as bad. Office buildings, again, took a major hit retail, you know, you could just drive by strip malls and see things boarded up. So you can imagine, you know, what money was going to those investors. So I think things are coming back, but it’s going to take a while in some of those asset classes.
Jason Lee: Yeah, I agree. In the worst of times, everyone still needs a place their head on a pillow and go to bed at night. So multifamily did really well and I feel like a lot of groups now are getting into multifamily and the space is getting just more and more crowded with people trying to get in. Are you kind of seeing the same thing?
Nancy Chillag: Very, very crowded. Very, very difficult to buy, but it’s really not a lot different than single family houses right now. Those are sort of [21:58 inaudible].
Jason Lee: Yeah. You also said in the beginning you have a track record of, or you still do flip homes. How is that business gone for you in the last, you know, three years?
Nancy Chillag: Actually quite well. It’s more competitive right now, so it’s more difficult to buy houses, but when you buy them, you know, market has been going up and so, you know, I might calculate a certain return on, in sale, but over the last several years I have found that that has gone up tremendously. So I’ve actually sold for more than what I thought I was going to be able to do. And I was shocked during COVID that, that was really the case.
Jason Lee: I feel like no one really expected that. I mean, home sales shooting through the roof in all parts of the country. So it’s pretty crazy.
Nancy Chillag: What happened during COVID was people took their houses off the market. You know because they didn’t want people coming through, you know, that potentially had COVID. So all of a sudden you had a much smaller inventory, but there were still people that needed to move. So you had a huge migration from San Francisco bay area because people were working at home, didn’t need to pay those high rents. So, you know, they were moving out and possibly purchasing houses in the suburbs. Well they need to go somewhere and there’s only so much on the market, so that just drove prices up tremendously. And now it’s softening a little bit, but I think part of that is just because it always does at this time of year.
Jason Lee: Yeah, definitely. That’s a really, really good point. It’s just simple supply and demand. A lot of people take their house off the market because they don’t want to get COVID and there’s a ton of people, a ton of millennials starting families looking to move into a house and that’s what happens.
Nancy Chillag: The other thing is, is the price lumber is so high, makes it difficult for builders to build new housing. And so the current, you know, home stock has to go up in price.
Jason Lee: Yeah. My business partner and I were reading an article how it said in California, there are about 5 million homes behind in to catch up with the population’s demand here, which is crazy. Are you investing in homes in California or are you looking out of state for that business?
Nancy Chillag: No, I’ve actually liquidated all the single family homes I had in California.
Jason Lee: Got it. So where are you looking for Flips nowadays?
Nancy Chillag: Well what do you mean by invest. I meant long term hold. I’m flipping in California.
Jason Lee: Got it. Yeah. That’s what I meant. So you’re flipping in California.
Nancy Chillag: I am flipping, you know, the greater Sacramento and San Francisco areas.
Jason Lee: Got it. Well then I’m sure your business is gone great then, cause those markets have blown up.
Nancy Chillag: Yeah. As I say, you know it’s difficult buying houses, but when you do it’s quite lucrative.
Jason Lee: Yeah. And do you source those deals the same way? You’re very well connected with people who are finding and sourcing deals.
Nancy Chillag: It’s usually direct marketing to the seller.
Jason Lee: Got it. Like postcard campaigns or Facebook ads, which strategies work best for you?
Nancy Chillag: Well, online advertising works, you know, postcards are good have been, but again, the return is, you know, the competition is a lot stronger, so you’ve got to send out lot more postcards to get a house than you used to have to.
Jason Lee: Yeah, definitely true.
Nancy Chillag: But my primary focus is on the multifamily, you know, so I’m doing flips, but not that many right now because of the multifamily.
Jason Lee: Yeah. So for the next five years where do you see the multifamily market or the commercial real estate market in general
Nancy Chillag: Well in multifamily, I think there’s just a huge demand and you know, there isn’t enough construction to keep up with the demand. So I think it’s going to be a very, very strong market for the next, you know, know 5 to 10 years. I can’t say the same about office buildings and retail. I just don’t know enough about those asset classes. You know, I know retail suffers as a result of Amazon and I just don’t invest in retail or office buildings.
Jason Lee: Got it. So your bread and butter is multifamily.
Nancy Chillag: Multifamily. Yep, we’re looking into self-storage, which is very related to multifamily or housing.
Jason Lee: Yeah. So if you were to give the listener any advice, if they were looking to, you know, passively or actively buy their first investment property, what is one piece of advice you would give them?
Nancy Chillag: Well, a lot of people feel that if they’re going to buy their first property, they need to do it in a single family home. You know? And I think that that is a misconception because a lot of people will go from a single family home to a duplex, to a fourplex and then into multifamily. And I think that they can avoid all of the headaches that come with those first few steps and they could actually go into multifamily as a passive investor. And again, it depends if they want to be active, then you know, they can go out and start looking for a single family home where the rents would give them some cash flow and they have an upside at the back end. But if they’re not looking for that second job, then they should think about coming in as a passive investor because you know, there are some deals you can get into for 25 or $50,000. And when you look at what you’re going to spend for a down pay payment rehab, closing costs, all of that for a single family, you might not be that far off. And then you can just sit back and collect cash flow.
Jason Lee: Can you kind of tell a story of a, of like a, a success story with your investors where you, you know, bought this deal and it gave your investors an X amount of return on their money or something like that. Just so someone can kind of picture what they would look at, If I were to invest with Nancy, you know, what would happen? Like how much would I get on my $100,000 or my $50,000?
Nancy Chillag: Well, I hate to say that, you know, because every single deal is different, you know, and it depends on, are you going in for cashflow? Are you going in for appreciation? You know, it really depends on what they’re looking at as to what would be a success story. You know, I had a project where we sold did well, the one I told you about where we sold it for five times, what we put in, or that was our, our cash benefit. I’ve had other projects where, you know, I’ve doubled my money in, you know, two to three years. So again, depends what you’re looking for. If your bank is giving you less than a 1% return on your money and you can start getting anywhere from, you know, seven to 10% cash flow on your money, then that’s a success story. And I would percent that normally what we’re looking for when we do multifamily projects is we look for value add so that we have upside, but at the same time I want my investors to have a decent cashflow. You know, that could be anywhere from six to 10%, depending on how much money they put into the venture.
Jason Lee: Yeah. I think if someone who’s just looking to get started, if they partner with someone who’s connected like you or me I think they also have access to deals. They wouldn’t see if they were to kind of start on their own and try to buy their first, you know, duplex Plex or single family, whatever. So I think it kind of gives them that, that edge as well. Yes, You don’t have control of the, the asset, but you have that deal that you might have never seen if you wouldn’t have, you know, connected with a, a general P partner like yourself.
Nancy Chillag: Well, and also multifamily investing is a team sport. I mean, definitely if you are an individual and looking to buy, you know, a hundred unit building, you’re going to have a very, very difficult time. Because everything’s different, you know? How you buy it, where you get a loan, you probably wouldn’t be able to qualify for a loan on yourself, by yourself, you know, running it, you know, being able to find the appropriate property manager for that size building, you know, you just need so many more people on the team. So if you’re going to go into a hundred unit building as your first investment, I would definitely think you as a passive investor. If you’re looking at active, because you really want control and you love real estate, then you know, either find a team to work with and get a big building, or start out with a single family rental to get your feet wet.
Jason Lee: Yeah. Or even, you know, with two or three partners to buy a smaller multifamily building can work too. But I definitely agree with you. I mean, all the points you said I completely agree with and it’s very well said. I think multifamily is definitely a team sport. I couldn’t imagine buying a hundred in a building by myself and managing all the logistics, the debt equity construction. Oh my gosh. Sounds like a nightmare, but Nancy it’s been a great podcast. I’ve had a lot of fun interviewing you.
Nancy Chillag: It’s great being here.
Jason Lee: Yeah. Kind of closing out here. If someone wants to learn more about you and get in contact with you, how can they do so?
Nancy Chillag: My website is www.23rdstreetinvestors.com and tells all about our company. It’ll show our portfolio and there you could sign up to become one of our investors. And then, you know, when we have opportunities, then you know, we present them to you. And if they’re of interest, you jump on board and if not wait for the next one.
Jason Lee: That sounds great, Nancy. Well, Hey, thank you so much for your time again, and I hope you have a rest of your day.
Nancy Chillag: Thanks, Jason. Really appreciate it.
Thank you for joining us on the multifamily millionaire podcast. The show that interviews multimillionaire real estate investors and top producers in the real estate industry. We’re here to help you create passive income and achieve financial freedom so that you can do what you want whenever you want. We’ll catch you next time on the multifamily millionaire.
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