November 21, 2025 • 32 mins
What if a spare guest house could rewrite your relationship with time and money? That’s where Neil Henderson began—snapping a few photos, posting an Airbnb listing, and discovering how a small experiment could turn into a playbook for financial independence. From that first booking, Neil followed the signal: systemize, delegate, and scale. The journey led him through FIRE fundamentals, house hacking with a newborn at home, and ultimately to a business model designed to compress risk and simplify operations—self storage.
We explore how FIRE becomes tangible when you track net worth, reduce your biggest expenses, and anchor to a clear target. Neil breaks down why housing and cars matter far more than lattes, and how his Carolina Beach setup covers about 80% of living costs by renting the ground-floor unit while his family lives upstairs. He lays out a practical mindset path: start with Ramsey to gain control, then leverage Kiyosaki to reframe assets and debt. Along the way, he shares the moment BiggerPockets pulled him into the investing rabbit hole and gave structure to the math of freedom.
Then we zoom into self storage as a maturing asset class. Instead of 12-month leases and constant maintenance, storage operates on month-to-month terms with leaner expense ratios and stronger predictability. Neil explains why converting empty big box stores into clean, climate-controlled facilities creates value, especially as new construction slows and institutional capital searches for inventory. We talk transparency in capital raising, how to match investors to the right deal, and the counterintuitive trust you build by turning away misaligned money. For newcomers, Neil offers a simple filter: don’t shop IRR, shop operators—track records, references, and background checks beat glossy decks every time.
If you care about buying back your time, this conversation gives you a grounded path: house hack creatively, spend less on the biggest line items, and choose assets where the systems—not your weekends—do the heavy lifting. If you found this helpful, follow the show, leave a quick review, and share it with a friend who’s ready to trade hours for ownership.
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
SPEAKER_01 (00:39):
Welcome everybody to the Professionalist Real Estate
Investing Podcast.
I'm with with Neil Henderson.
How are you doing, Neil?
I'm good.
How are you?
I'm doing great.
Well, Mr.
Neil Henderson, he's a realestate investor, a co-host of
the Truly Passive IncomePodcast, and general partner uh
at Nomad Capital.
(01:01):
You got a pretty long rap sheet.
I like that.
So, Neil, your background isreally unique and from nearly
two decades of defensecontractor to acting and then
real estate.
What was the awe moment thatpushed you toward financial
independence?
SPEAKER_00 (01:21):
I say it's twofold.
One, I was we had bought ourfirst, my wife and I bought a
house together, had a guesthouse at the front of it in Las
Vegas, and it had for about 30seconds it was gonna be my
ultimate man cave.
And my wife said, Oh no, no,that's gonna be the place where
our guests come and stay.
I I lost that argument veryfast, one of many that I've lost
(01:44):
since then.
And we owned the house for aboutsix months, and I remember
Christmas Day on in 2013.
My mom came to me, she hands methis article about this company
called Airbnb.
And she said, Hey, I think thiswould maybe be something you
guys could do with your guesthouse when people aren't staying
there.
And I was like, Yeah, whatever,mom.
(02:06):
But I thought about it for acouple of days, and then shortly
after New Year's Day in 2014, Iwent out there, took some photos
of it.
I'm a photographer, and I listedit on Airbnb.
Having no idea how to do it, Idid a lot wrong, but within 48
hours, we had our first booking.
And we were 65% booked from thatdate until COVID shut us down in
(02:32):
March of 2020.
And that was my first aha momentwith real estate, where I was
like, wow, this is this is easymoney for the most part.
I mean, once we got our systemsdown, once we weren't the ones
doing the turnover, my wife andI were doing the cleaning early
on.
I was like, this is really easy.
Started looking for some ways toscale that, to scale my
(02:55):
short-term rental business.
Las Vegas, by the time I startedlooking into that, Las Vegas was
already becoming pretty hostileto short-term rentals.
And but I found this article ona website called Afford Anything
by a woman by the name of PaulaPant.
She's a pretty well-known realestate influencer now.
And the article was about howshe she had converted one of her
(03:17):
long-term rentals in Atlanta,Georgia to a short-term rental.
And she was comparing the ROI onthe on the return on time.
Now, I don't remember much aboutthe article, but I do remember
there was this little link overon the right-hand side for a
website called Bigger Pockets.
And I clicked on that link and Iwent down the real estate
(03:38):
investing rabbit hole.
And that was really my first, Iwould say, the moment that kind
of changed my mindset aroundfinancial freedom, around real
estate, and everything.
SPEAKER_01 (03:50):
Bigger Pockets definitely is a great resource
for anybody who's starting inreal estate investing or is in
real estate investing becausethey have so many gyms to help
you out into getting into realestate if you're uh if you're a
rookie or a seasoned vet.
It's it's a great avenue to gothrough.
Well, you mentioned that youyou're you've been inspired by
(04:11):
the fire movement.
What does financial independenceretire early?
What does that personally meanto you?
SPEAKER_00 (04:19):
Well, it means that you don't have to sacrifice the
healthiest best years of yourlife, trading your time for
money in the hopes that one dayyou'll be able to stop working
and do the things that you wantto do with the people you love
when you want to do them, at atime where your body starts to
(04:42):
break down, and and a lot oftimes you can't do those things
anymore.
That's really what clicked forme.
And it was the first time when Idiscovered the fire movement
that I really kind of had themath in front of me where I
finally kind of broke the codeon, oh, this is what it means.
SPEAKER_01 (05:01):
Okay, nice.
Great.
And then I wanted to get intolike, because I I know you do a
lot of house hacking with youstarted with house hacking also.
This is a no, I know a questionthat someone asked me before, so
I'm directly definitely askingthis question of you.
What's one of the biggestmisconceptions people have about
house hacking, especially today?
SPEAKER_00 (05:24):
Well, I would say that only, you know, one is that
only single people can do it.
People with families can't doit.
And that it has to cover ahundred percent of your
mortgage, or it's not not alegitimate house hack.
And let me dispel both those.
I have my wife and I have beenmarried since 2011.
(05:46):
We just we're having our 14thanniversary today, as a matter
of fact.
Happy anniversary, my love.
SPEAKER_01 (05:51):
Happy anniversary.
SPEAKER_00 (05:52):
Thank you, Tony.
And we started we started doingAirbnb when my wife was pregnant
with my with our son.
And right out of the gate, wehad a uh, you know, we had a
newborn in our house when wewere still figuring out Airbnb.
And I I just want to encouragepeople to like look there.
(06:15):
There's a lot of different kindsof house hacks, and it can work
for in almost anyone.
You can do it from you know,buying a duplex and living in
one side and renting out theother.
You can do it with uh an ADUthat's become a lot more popular
now.
There's a lot of communitiesthat are allowing people and
changing the regulations onauxiliary dwelling units where
(06:36):
you can build on your property.
And then the second is that ithas to cover 100% of your
mortgage.
We when we were in Las Vegas,our mortgage was low enough that
we were covering 100% of ourmortgage plus, and we were
actually putting money away.
We were paying down our mortgagefaster at an accelerated rate,
(06:58):
which I probably wouldn't donow, given what I know about
interest rate arbitrage and allthat.
But now we and we turn that homeinto a house hack here in
Carolina Beach, North Carolina,where we live.
We're across the street from thebeach.
And we live in a it's athree-story town home, and the
(07:19):
bottom floor is a separateapartment that we rent out as a
short-term rental, and we liveon those top two floors.
Now, it does not cover 100% ofour mortgage, but it covers 80%
of our living expenses, and thatincludes our mortgage, our
taxes, and our insurance, uh,and some of our you know, our
utility bills as well.
So, you know, so many people Ithink nowadays are so focused on
(07:46):
trimming their expenses aroundthe edges.
They, oh, you know, if you stopspending money on eating out, if
you stop eating avocado toast,if you stop, you know, getting,
you know, lattes from Starbucks,that you know, you'll be in a
better financial position.
And I think that's that's allgood and you should do that, but
(08:06):
I think you you really start tomake moves when you're able to
eliminate two of your biggestexpenses that most people have,
which is your housing and yourcar.
Now, I don't all my cars arepaid off.
I don't have I don't do carloans anymore.
I've done it in the past.
I learned my lesson.
I buy I buy for cash.
(08:28):
I I prefer to buy used.
I haven't bought a new car in along time.
And uh and I have eliminated 80%of my housing through house
hacking.
Now I'm I'm 90% ahead ahead ofmost Americans just by that,
just because of that.
SPEAKER_01 (08:49):
Yes, that's true.
Yeah, because the biggest, yes,always the biggest expense is
where you live, where you restyour head at and drive like
automobile prices now, they'reoutrageous right now.
And I I tell people this too,just like what you said, I
(09:40):
always buy used cars too.
You buy a brand new car withzero miles, you as soon as you
drive it off the lot, itdepreciates 20% right off right
off of it.
As soon as you drive it off thelot.
So why buy something brand new?
And everything I tell everybody,everything you basically can get
a warranty for.
So why not buy used?
It doesn't that structure of Ibought something brand new to
(10:03):
buying something used is thatconcept is you might as well
just throw that out the window.
I said, as long as it's got fourwheels and it can take you there
and it's dependable, that's allyou need basically.
unknown (10:13):
Yeah.
SPEAKER_00 (10:14):
And that's a hard con and it's a hard concept for
people.
You know, you don't have money,you finally get money at some
point in your life, and and youwant to have some nice things.
Well, what you're doing isyou're buying an anchor that is
gonna keep you that you're gonnaor a ball and chain that you're
gonna be carrying around for aslong as you're paying as long as
(10:36):
you have a payment on that car.
And eventually, I mean it'sgonna depreciate down to nothing
by the time you've got it paidoff in most cases.
And I think a lot of people justdon't make that mental shift,
and I think that's a shame.
SPEAKER_01 (10:51):
No, I'm glad you said mental shift.
So how do you go about havingthat mental shift?
Because mental shift definitely,that's more like one of my
number one things is themindset, because a lot of people
don't have that mindset to toshift their gear into okay, how
do I go about starting outgetting financial freedom?
(11:14):
Everybody wants, not everybody,but a lot of people do a nine to
five.
So, how do I get out toward thatnine to five into something that
okay, I can use this to free uptime with my family?
Because I tell people that's onething we can't buy, we can't buy
time because time is limited.
And then us enjoying ourselveswith our family, like that's to
me, that's what life's about.
(11:36):
Enjoying time with our family,using all the time, not working
nine to five and not workingtremendously tremendously
amounts of overtime.
So, mind shift-wise, how wouldhow did you how did your mind
shift change from where it wasat working until where it is
now?
SPEAKER_00 (11:53):
It was a couple of different ways.
One was Dave Ramsey.
I read I read Dave Ramsey'sbook.
I think Dave Ramsey is a greatstarting position for someone
who's just trying to get ahandle on their finances.
His whole whole idea of the babysteps of, you know, uh of one,
just living within your means,which is hard.
(12:15):
I get it, but like you're nevergonna get ahead if you can't
live within your means.
You know, saving a thousanddollar emergency fund, even if
you've got credit card debt,paying down that credit card
debt, paying attention to youknow the interest rates, any
interest rate that's above sixpercent, pay it off.
Like if it's below that, youcan, you know, you can figure
(12:37):
that out.
I I'm not I don't agree withDave Ramsey that you should not
use debt at all, because I'm areal estate investor.
But when you're getting started,you really, you know, if you
aren't used to using leverageand using debt, just start with
Dave Ramsey, man.
Just like get your get controlof your finances, build an
emergency fund.
(12:58):
And the second one was uh RobertKiyosaki, I mean the purple
Bible.
You know, and and I, you know,God, you know, and it's it's not
a how-to book, it's just amindset, mindset shift book, but
it really kind of opens youreyes to all right, what am I
what am I really trying to dohere?
(13:18):
And once I started, once I hadmy finances under control and I
wasn't, I didn't have a bunch ofcredit card debt, I'd learned
how to sort of use leverage, Istarted tracking my net worth.
You know, every month I wouldsit down, I I would figure out
how much my house was worth,what my mortgage was, what kind
(13:39):
of debts I had, how much cash Ihad in the bank, how much, you
know, what my money I hadinvested was worth.
And you start to see that networth grow and you start to
understand what it is you'rebuilding towards.
Now, the the fire movement willtalk a lot about investing in
(14:00):
low-cost index funds, buildingup a portfolio, a cash, a nest
egg of 25 times whatever youthink you need to live on in
retirement.
So if you think you need to liveuh on$100,000 a year in
retirement, then you're gonnahave to save 25 times that in
order to live on that$2.5million.
(14:20):
And the less you can live on,the less you're gonna need for
that nest egg.
And that was a mindset, mindsetshift for me as well, because
that was the first time anyonehad ever really spelled out the
financial freedom math for me.
SPEAKER_01 (14:37):
That's that's great.
And I I'll go back to the beingwhere you were talking about,
because I've been in so manydebates with people about Dave
Ramsey, he is a great startingpoint.
And yes, he he he teaches aboutpaying off all debt.
But like when it comes to realestate, even in business, I tell
people there's there's adistinction between good debt
(14:57):
and bad debt.
But both of them, they're twodifferent things.
You you want the good debtbecause that good debt actually
opens you up to opportunitiesthing, opportunities where bad
debt doesn't open you to noopportunities.
So definitely with uh realestate investing in
business-wise, that good debt isalways good.
So I'll get into a little bitabout the go ahead.
(15:19):
Go ahead.
SPEAKER_00 (15:19):
No, I was gonna say, yeah, I mean, I'd just say those
two books, you know, Dave Ramseyand and Kiyosaki, Rich Dad, Poor
Dad, they're both great startingpoints.
I would say start with DaveRamsey if you've like if you're
still just strugglingfinancially, start with Dave
Ramsey.
And once you've got control andonce you, you know, feel like
you're you're no longer justliving paycheck to paycheck,
(15:41):
then read Kiyosaki's book.
But then once you kind of get ataste of Kiyosaki, go beyond
that because you really kiyosakireally doesn't get into the nuts
and bolts of of how to be a realestate investor, but he just
sort of opens your eyes to thepossibilities.
SPEAKER_01 (15:56):
Yes, yes, indeed.
And I want to get a little bitinto because you got your hands
into self-storage.
And I know self-storage wasdefinitely huge around like the
the pandemic time andeverything.
So what how did this shift youfrom most people they wanted to
either get apartments or asingle-family home?
(16:18):
What drew you to theself-storage investment?
SPEAKER_00 (16:22):
Yeah, I I first learned about self-storage
investing at the best everconference in 2017.
Uh, it was the first time I'dI'd really been exposed to
commercial real estate andsyndications.
I was learning about raisingcapital for multifamily
syndications.
I was doing a little bit of itat that time.
Uh, and I saw a man named ScottMyers get up on stage and he
(16:45):
spoke about self-storage and hetalked about how it's a great,
it's a commercial real estateasset class that is a lot
simpler than multifamily.
Uh, there's no tenants, notrash, and no toilets.
It's you're really really justrenting people a box of air on a
month-to-month basis.
You don't have 12-month leases.
And on top of that, your expenseratio tends to be a lot lower
(17:06):
than multifamily.
You know, whereas multifamily,you're typically going to have
50% of your gross income isgoing to be taken up by
expenses, not including yourdebt service.
Self-storage, a lot of times, islower.
It's more like 35%, andsometimes even lower if you've
had a facility for a long timeand you're operating it
efficiently.
So it just clicked for me.
(17:28):
It was a very simple businessmodel, but it was still
commercial real estate.
And I love commercial realestate because of how how
predictable it is versusresidential real estate.
And that was really what sort ofopened my eyes to it.
Uh, and then I literally at thatsame conference, I met my now
business partner at a lunchbuffet table.
(17:49):
And he was he was a self-storageowner operator then.
We clicked, started hanging out.
I started coming out to visithim.
He was based here in Wilmington,North Carolina, and we stayed in
touch for years trying to find away to partner, partner up on
something, and had a lot offalse starts, but that finally
came together in late 2021.
SPEAKER_01 (18:10):
That's great.
Uh, the reason why I wanted todeal with talk about the
self-storage is I I told people,especially with that in that
commercial side, you don't youdon't deal with tenants, you
don't have to deal withplumbing, no toilet.
They said everything's basicallythe when those self-storage
they're they're literallystructured almost fireproof.
Because they have everything'sbasically metal.
(18:31):
You don't have to deal withthat.
And like you said, it's not ait's not you don't have a year
lease on it, it's month tomonth.
So I think self-storage is oneof those, it used to be one of
those hidden gyms, but now a lotof people, especially in my area
here in California, they're justif anything comes available
store still self-storage-wise,they're on top of it because it
(18:51):
is a great asset.
And the the the overhead cost,it doesn't cost that much
because you're you're just gonnabe generating so much from it.
Because right now I know a lotof people or need self-storage.
And I've actually talked to one,because I even have I even have
a self-storage.
And the people that I that I'veI've been with, like they're
(19:13):
always full.
They're always full.
And I know that it's clean, it'sa very uh they have cameras,
security, everything is takencare of where you don't really
have to worry about anything.
So it's it's just a win-win withthe with the people who who rent
it out and the ownership.
Yeah, so go ahead.
Sorry.
No, no, go ahead.
I I got I want to listen to youdo more of your wisdom.
SPEAKER_00 (19:36):
Yeah.
So uh storage, storage is amaturing asset class, is how I
would describe it.
A lot of people picture the oldself-storage facilities, all
drive up, not climatecontrolled, a lot of times off
in the sort of industrial areaof town, not particularly clean.
But now a lot of people you'restarting to see those much more,
(19:56):
you know, I call them storagepalaces, you know, the extra
space, three, three, fourstories, climate-controlled, you
know, really clean office space,you know, waiting rooms, uh, and
a lot more technology involvedin it.
You're sometimes some of themare getting, you know, Wi-Fi
locks, you don't even have yourown locks and things like that.
(20:16):
So it's really a maturing assetclass.
And a lot of the institutionalplayers have discovered it.
And it's one of the thingsthat's you know going on right
now is that there's billions ofdollars in institutional capital
coming together to buyself-storage or build
self-storage.
And you know, construction onself-storage has has slowed a
(20:38):
lot over the last three years,primarily because of the
interest rate environment, thecost of construction, things
like that.
But but the capital is stillthere and it's still coming
together to buy it.
So we really, you know, we wedon't buy self-storage, we build
it.
We take old vacant big boxretail stores, old warehouses,
(21:00):
uh, you know, bottlingfacilities, things like that,
and we convert them toclimate-controlled self-storage.
So we're really we're continuingto build because we're seeing an
environment where there's goingto be a drop in new supply
coming online, but there's stillall these interest institutional
players that are looking to buyit.
SPEAKER_01 (21:20):
That's that's great.
And that's I'm glad you saidthat.
Yeah, because the oldself-storage is actually
changed.
Yes, I've seen a lot of themwith climate control of the the
electric locks, like uh it'sit's changed tremendously right
now.
And I know a lot of them too,they're having more space for
people who have bigger boats,bigger mobile homes.
(21:42):
They they have those areas forthem to park if they don't want
to park at their house.
Okay, so you've raised over$17million in investor equity.
What's your formula for earningtrust and confidence from for
investors?
SPEAKER_00 (21:58):
Yeah, so it all starts, you know, we often talk
about you need in order to getsomeone to invest with you, you
need them to know you, to likeyou, and to trust you.
And oftentimes that's going tostart with your friends, your
closest friends and family.
Those are the people who knowyou, like you, and trust you.
And that was a lot of our earlyinvestors were friends of the
(22:21):
friends and family of mine,friends and families and
colleagues of my capital raisingpartner, Clint Harris.
A lot of people from the whitecoat professional community.
He was a medical devicesalesman, so he had a lot of
friends and family who werewhite coat professionals.
A lot of our early investorswere those people.
Well, eventually, you're gonnarun out of that.
(22:41):
And you need to sort of gobeyond that.
You need to, you know, get outthere and get people to not only
know you, but now they have toget to like you.
And that's why, you know, we goout and I do podcasts.
I have I have my own podcast.
We've got truly passive income.
We're not usually on therepitching things, it's only an
educational platform, but it'salso a chance for people to get
(23:02):
to know us and hear us speak.
Oftentimes when I'm talking toinvestors, they will mention
that, oh yeah, I've heard you,I've heard you on your podcast a
bunch of times.
And so we're already startingfrom a we're not starting from
scratch.
And then finally, you need toget them to trust you.
And that's uh and that reallyjust comes down to saying what
(23:24):
you're gonna do and doing it.
You know, we're you know, we'reoperating, we're we're fairly
new syndication.
We've been doing self-storagefor almost 20 years, but we're
kind of new to syndication.
We syndicated our first deal in2021.
We've only exited one of thosedeals, did pretty well, and so
that's sort of where a lot ofthe trust comes from.
(23:46):
But what you what it looks likeis uh like a bunch of circles.
You've got the people who knowyou, and the your conversion
rate's gonna be very high withthose people.
I think early on when we came topeople and said, hey, you want
to invest in this?
We're converting a Kmart to aself-storage facility.
Who wants to invest?
And probably 50% of the peoplewe talked to wanted to invest,
(24:07):
and then you got it into anotherlayer, and maybe it's the people
who know them.
They don't know you directly,but they know the people who
know you.
And well, now your conversionrate goes down to maybe 20%.
And then you get a littlefurther from that and you start
getting to people who don't knowyou, where you're advertising on
meta, and now your yourconversion rate really starts to
drop.
And now you start getting into anumbers game, and just you know,
(24:30):
you're essentially having to dopaid marketing and and having to
just not cold calls, but warmcalls with people who have seen
your ads, they've maybe heardyou on a podcast, and you start
a conversation with them.
And normally what I will do, Ivery rarely will come at someone
trying to pitch them about whatwe're trying to do.
(24:51):
I will first try and understandwhat that person is, what that
investor is looking for.
Because if we have somebody whocomes at us and they're looking
for immediate cash flow or theywant to do a 1031 exchange,
we're not a good fit for that.
We're doing essentiallydevelopment deals.
It takes us almost about a yearto build out our facility.
It takes another 24 months orlonger to lease it up to
(25:15):
stabilization where we can startpaying distributions.
And so we always tell peoplelisten, if that's what you're
looking for, we can point you inthe direction of some other
operators that are that webelieve in, they're doing some
great stuff, but we're not foryou.
And that usually you'd besurprised how much trust that
builds when you tell somebody,hey, listen, I'd love to take
your money, but we're not a goodfit for you.
SPEAKER_01 (25:36):
Great.
I like that because my my lastpodcast, I was talking to a gent
a gentleman about this too, andit's about the trust, the trust
that you you develop with eachone another, uh, trustworthy and
doing what you say you're goingto do.
That is huge.
Like it's kind of like you, youknow, you practice what you
preach.
You you have to do that, andthat's how you gain trust.
(25:59):
And then just like the platformwith I have and platform you
have, that's gaining trustbecause you're good out there,
you're giving information thatthe average person doesn't know
about it, but it helps them outto gain where they need to go to
gain financial freedom.
And then I wanted to ask withthe with newcomers, because I
deal with a lot of newcomers whowant to get in real estate
(26:20):
investing.
What are the keys to you knowthe do's and don'ts when
especially approaching potentialpartners?
Because I know some that I'vetalked to, they're like, well, I
don't know who to go to.
I want to do a I would I mightdo a syndication deal, but I
don't know anything about asyndication deal.
They've heard of it, but theydon't know how to go about it.
(26:42):
They don't know the red flags ormaybe like what the numbers, if
the numbers, or as I could say,the numbers are not mathing up.
Yeah.
SPEAKER_00 (26:52):
So in order to be successful in real estate, I
think you need three things.
You need a combination of one orall of these things: time,
experience, and money.
And most people don't have allthree.
They they may have time, butthey don't have experience or
money.
They may have experience, butthey've got no time and money.
(27:14):
Or they may have money, butthey've got no time.
And without the time, they can'tget the experience.
And that's really wheresyndication comes in, when
you've got people who've got themoney, but they don't have the
time and they don't have theexperience.
And what you so then what you'redoing is you're leveraging
someone else's time andexperience.
We don't, I don't do selfstorage as a hobby.
(27:35):
Not I I'm in a building rightnow with roughly 16 people who
are doing this full time.
That's this is all we do.
And there's a lot of experienceand a lot of bumps and bruises
that can came along with that.
And so the best advice I havefor people who are maybe getting
(27:55):
into syndication for the firsttime, as a as an LP, I could go
into you know, somebody whowants to get on the jet get on
the GP side, but right now I'mtalking about getting as an LP
is don't focus on the deal.
So many people come in andthey're they're shopping IRR,
internal rate of return.
(28:16):
They're shopping the returns.
Oh, hey, look on thismultifamily deal, I can get a
16% return.
Oh, but on this, on this retaildeal, I can get 21%.
Oh, but on this industrial,light industrial, I can get 25%.
Don't do that.
Find an operator who hasexperience and a track record
(28:36):
and has been doing what they saythey're gonna do for a number of
years.
Like I don't I don't recommendthat you sign up with an
operator who's just trying out anew asset class.
I don't recommend that you getin with an operator who's never
done that asset class withouttheir own money.
(28:58):
And I recommend lastly, Irecommend that if you get to a
point where you're gonna putsome money in with somebody, do
a background check.
Talk to some of their previousinvestors.
And yeah, I mean, that's thatthat would be where I would
start.
SPEAKER_01 (29:14):
I'm glad you said that because you yeah, you want
to know their track record, youwant to know how many
syndications, how manytransactions have they been
dealt with, because that's gonnathat speaks volumes in itself,
because someone can just say,Yeah, I I've done this and I've
done that, like where's theproof?
You need the proof to know howto go about, hey, should I be
with this person or should Inot?
(29:36):
Because you're putting you'reputting your capital up.
So you're not trying to loseyour capital, you're trying to
gain that capital up.
That's what you're trying to doto go about furthering your your
income with uh real estateinvesting.
So, so Neil, how can theaudience connect with you with
you know, because I know you'rewith the Nomad Capital and you
(29:56):
you have the the podcast of thetruly possessive income podcast.
How do people get in touch withyou?
SPEAKER_00 (30:02):
Yeah, well, check out our podcast, Truly Passive
Income.
It would it'll be wherever,wherever you listen to podcasts.
If you search for it, it comesright up.
But the easiest way to get intouch with me is just shoot me
an email.
I'm Neil N-E-I-L.
I don't I don't spell it thesociopath way at
nomadcapital.us.
SPEAKER_01 (30:21):
Okay, great.
I'll put that all in the shownotes and everything, and I will
be subscribing to your podcastand listening to it also.
Appreciate every everybody outthere, thank you for watching
and listening to theprofessional real estate
investing podcast.
Like, subscribe, put anycomments you need to on there
because I'm just trying tobetter uh people's education
when it comes to real estateinvesting.
(30:42):
And thank you, Neil, so much forthe the opportunity to interview
you and may you have a blessedday.
SPEAKER_00 (30:48):
Thanks, you too, Tony.
I appreciate it.
Thank you.
Welcome everybody to the Professionalist Real Estate
Investing Podcast.
I'm with with Neil Henderson.
How are you doing, Neil?
I'm good.
How are you?
I'm doing great.
Well, Mr.
Neil Henderson, he's a realestate investor, a co-host of
the Truly Passive IncomePodcast, and general partner uh
at Nomad Capital.
(01:01):
You got a pretty long rap sheet.
I like that.
So, Neil, your background isreally unique and from nearly
two decades of defensecontractor to acting and then
real estate.
What was the awe moment thatpushed you toward financial
independence?
SPEAKER_00 (01:21):
I say it's twofold.
One, I was we had bought ourfirst, my wife and I bought a
house together, had a guesthouse at the front of it in Las
Vegas, and it had for about 30seconds it was gonna be my
ultimate man cave.
And my wife said, Oh no, no,that's gonna be the place where
our guests come and stay.
I I lost that argument veryfast, one of many that I've lost
(01:44):
since then.
And we owned the house for aboutsix months, and I remember
Christmas Day on in 2013.
My mom came to me, she hands methis article about this company
called Airbnb.
And she said, Hey, I think thiswould maybe be something you
guys could do with your guesthouse when people aren't staying
there.
And I was like, Yeah, whatever,mom.
(02:06):
But I thought about it for acouple of days, and then shortly
after New Year's Day in 2014, Iwent out there, took some photos
of it.
I'm a photographer, and I listedit on Airbnb.
Having no idea how to do it, Idid a lot wrong, but within 48
hours, we had our first booking.
And we were 65% booked from thatdate until COVID shut us down in
(02:32):
March of 2020.
And that was my first aha momentwith real estate, where I was
like, wow, this is this is easymoney for the most part.
I mean, once we got our systemsdown, once we weren't the ones
doing the turnover, my wife andI were doing the cleaning early
on.
I was like, this is really easy.
Started looking for some ways toscale that, to scale my
(02:55):
short-term rental business.
Las Vegas, by the time I startedlooking into that, Las Vegas was
already becoming pretty hostileto short-term rentals.
And but I found this article ona website called Afford Anything
by a woman by the name of PaulaPant.
She's a pretty well-known realestate influencer now.
And the article was about howshe she had converted one of her
(03:17):
long-term rentals in Atlanta,Georgia to a short-term rental.
And she was comparing the ROI onthe on the return on time.
Now, I don't remember much aboutthe article, but I do remember
there was this little link overon the right-hand side for a
website called Bigger Pockets.
And I clicked on that link and Iwent down the real estate
(03:38):
investing rabbit hole.
And that was really my first, Iwould say, the moment that kind
of changed my mindset aroundfinancial freedom, around real
estate, and everything.
SPEAKER_01 (03:50):
Bigger Pockets definitely is a great resource
for anybody who's starting inreal estate investing or is in
real estate investing becausethey have so many gyms to help
you out into getting into realestate if you're uh if you're a
rookie or a seasoned vet.
It's it's a great avenue to gothrough.
Well, you mentioned that youyou're you've been inspired by
(04:11):
the fire movement.
What does financial independenceretire early?
What does that personally meanto you?
SPEAKER_00 (04:19):
Well, it means that you don't have to sacrifice the
healthiest best years of yourlife, trading your time for
money in the hopes that one dayyou'll be able to stop working
and do the things that you wantto do with the people you love
when you want to do them, at atime where your body starts to
(04:42):
break down, and and a lot oftimes you can't do those things
anymore.
That's really what clicked forme.
And it was the first time when Idiscovered the fire movement
that I really kind of had themath in front of me where I
finally kind of broke the codeon, oh, this is what it means.
SPEAKER_01 (05:01):
Okay, nice.
Great.
And then I wanted to get intolike, because I I know you do a
lot of house hacking with youstarted with house hacking also.
This is a no, I know a questionthat someone asked me before, so
I'm directly definitely askingthis question of you.
What's one of the biggestmisconceptions people have about
house hacking, especially today?
SPEAKER_00 (05:24):
Well, I would say that only, you know, one is that
only single people can do it.
People with families can't doit.
And that it has to cover ahundred percent of your
mortgage, or it's not not alegitimate house hack.
And let me dispel both those.
I have my wife and I have beenmarried since 2011.
(05:46):
We just we're having our 14thanniversary today, as a matter
of fact.
Happy anniversary, my love.
SPEAKER_01 (05:51):
Happy anniversary.
SPEAKER_00 (05:52):
Thank you, Tony.
And we started we started doingAirbnb when my wife was pregnant
with my with our son.
And right out of the gate, wehad a uh, you know, we had a
newborn in our house when wewere still figuring out Airbnb.
And I I just want to encouragepeople to like look there.
(06:15):
There's a lot of different kindsof house hacks, and it can work
for in almost anyone.
You can do it from you know,buying a duplex and living in
one side and renting out theother.
You can do it with uh an ADUthat's become a lot more popular
now.
There's a lot of communitiesthat are allowing people and
changing the regulations onauxiliary dwelling units where
(06:36):
you can build on your property.
And then the second is that ithas to cover 100% of your
mortgage.
We when we were in Las Vegas,our mortgage was low enough that
we were covering 100% of ourmortgage plus, and we were
actually putting money away.
We were paying down our mortgagefaster at an accelerated rate,
(06:58):
which I probably wouldn't donow, given what I know about
interest rate arbitrage and allthat.
But now we and we turn that homeinto a house hack here in
Carolina Beach, North Carolina,where we live.
We're across the street from thebeach.
And we live in a it's athree-story town home, and the
(07:19):
bottom floor is a separateapartment that we rent out as a
short-term rental, and we liveon those top two floors.
Now, it does not cover 100% ofour mortgage, but it covers 80%
of our living expenses, and thatincludes our mortgage, our
taxes, and our insurance, uh,and some of our you know, our
utility bills as well.
So, you know, so many people Ithink nowadays are so focused on
(07:46):
trimming their expenses aroundthe edges.
They, oh, you know, if you stopspending money on eating out, if
you stop eating avocado toast,if you stop, you know, getting,
you know, lattes from Starbucks,that you know, you'll be in a
better financial position.
And I think that's that's allgood and you should do that, but
(08:06):
I think you you really start tomake moves when you're able to
eliminate two of your biggestexpenses that most people have,
which is your housing and yourcar.
Now, I don't all my cars arepaid off.
I don't have I don't do carloans anymore.
I've done it in the past.
I learned my lesson.
I buy I buy for cash.
(08:28):
I I prefer to buy used.
I haven't bought a new car in along time.
And uh and I have eliminated 80%of my housing through house
hacking.
Now I'm I'm 90% ahead ahead ofmost Americans just by that,
just because of that.
SPEAKER_01 (08:49):
Yes, that's true.
Yeah, because the biggest, yes,always the biggest expense is
where you live, where you restyour head at and drive like
automobile prices now, they'reoutrageous right now.
And I I tell people this too,just like what you said, I
(09:40):
always buy used cars too.
You buy a brand new car withzero miles, you as soon as you
drive it off the lot, itdepreciates 20% right off right
off of it.
As soon as you drive it off thelot.
So why buy something brand new?
And everything I tell everybody,everything you basically can get
a warranty for.
So why not buy used?
It doesn't that structure of Ibought something brand new to
(10:03):
buying something used is thatconcept is you might as well
just throw that out the window.
I said, as long as it's got fourwheels and it can take you there
and it's dependable, that's allyou need basically.
unknown (10:13):
Yeah.
SPEAKER_00 (10:14):
And that's a hard con and it's a hard concept for
people.
You know, you don't have money,you finally get money at some
point in your life, and and youwant to have some nice things.
Well, what you're doing isyou're buying an anchor that is
gonna keep you that you're gonnaor a ball and chain that you're
gonna be carrying around for aslong as you're paying as long as
(10:36):
you have a payment on that car.
And eventually, I mean it'sgonna depreciate down to nothing
by the time you've got it paidoff in most cases.
And I think a lot of people justdon't make that mental shift,
and I think that's a shame.
SPEAKER_01 (10:51):
No, I'm glad you said mental shift.
So how do you go about havingthat mental shift?
Because mental shift definitely,that's more like one of my
number one things is themindset, because a lot of people
don't have that mindset to toshift their gear into okay, how
do I go about starting outgetting financial freedom?
(11:14):
Everybody wants, not everybody,but a lot of people do a nine to
five.
So, how do I get out toward thatnine to five into something that
okay, I can use this to free uptime with my family?
Because I tell people that's onething we can't buy, we can't buy
time because time is limited.
And then us enjoying ourselveswith our family, like that's to
me, that's what life's about.
(11:36):
Enjoying time with our family,using all the time, not working
nine to five and not workingtremendously tremendously
amounts of overtime.
So, mind shift-wise, how wouldhow did you how did your mind
shift change from where it wasat working until where it is
now?
SPEAKER_00 (11:53):
It was a couple of different ways.
One was Dave Ramsey.
I read I read Dave Ramsey'sbook.
I think Dave Ramsey is a greatstarting position for someone
who's just trying to get ahandle on their finances.
His whole whole idea of the babysteps of, you know, uh of one,
just living within your means,which is hard.
(12:15):
I get it, but like you're nevergonna get ahead if you can't
live within your means.
You know, saving a thousanddollar emergency fund, even if
you've got credit card debt,paying down that credit card
debt, paying attention to youknow the interest rates, any
interest rate that's above sixpercent, pay it off.
Like if it's below that, youcan, you know, you can figure
(12:37):
that out.
I I'm not I don't agree withDave Ramsey that you should not
use debt at all, because I'm areal estate investor.
But when you're getting started,you really, you know, if you
aren't used to using leverageand using debt, just start with
Dave Ramsey, man.
Just like get your get controlof your finances, build an
emergency fund.
(12:58):
And the second one was uh RobertKiyosaki, I mean the purple
Bible.
You know, and and I, you know,God, you know, and it's it's not
a how-to book, it's just amindset, mindset shift book, but
it really kind of opens youreyes to all right, what am I
what am I really trying to dohere?
(13:18):
And once I started, once I hadmy finances under control and I
wasn't, I didn't have a bunch ofcredit card debt, I'd learned
how to sort of use leverage, Istarted tracking my net worth.
You know, every month I wouldsit down, I I would figure out
how much my house was worth,what my mortgage was, what kind
(13:39):
of debts I had, how much cash Ihad in the bank, how much, you
know, what my money I hadinvested was worth.
And you start to see that networth grow and you start to
understand what it is you'rebuilding towards.
Now, the the fire movement willtalk a lot about investing in
(14:00):
low-cost index funds, buildingup a portfolio, a cash, a nest
egg of 25 times whatever youthink you need to live on in
retirement.
So if you think you need to liveuh on$100,000 a year in
retirement, then you're gonnahave to save 25 times that in
order to live on that$2.5million.
(14:20):
And the less you can live on,the less you're gonna need for
that nest egg.
And that was a mindset, mindsetshift for me as well, because
that was the first time anyonehad ever really spelled out the
financial freedom math for me.
SPEAKER_01 (14:37):
That's that's great.
And I I'll go back to the beingwhere you were talking about,
because I've been in so manydebates with people about Dave
Ramsey, he is a great startingpoint.
And yes, he he he teaches aboutpaying off all debt.
But like when it comes to realestate, even in business, I tell
people there's there's adistinction between good debt
(14:57):
and bad debt.
But both of them, they're twodifferent things.
You you want the good debtbecause that good debt actually
opens you up to opportunitiesthing, opportunities where bad
debt doesn't open you to noopportunities.
So definitely with uh realestate investing in
business-wise, that good debt isalways good.
So I'll get into a little bitabout the go ahead.
(15:19):
Go ahead.
SPEAKER_00 (15:19):
No, I was gonna say, yeah, I mean, I'd just say those
two books, you know, Dave Ramseyand and Kiyosaki, Rich Dad, Poor
Dad, they're both great startingpoints.
I would say start with DaveRamsey if you've like if you're
still just strugglingfinancially, start with Dave
Ramsey.
And once you've got control andonce you, you know, feel like
you're you're no longer justliving paycheck to paycheck,
(15:41):
then read Kiyosaki's book.
But then once you kind of get ataste of Kiyosaki, go beyond
that because you really kiyosakireally doesn't get into the nuts
and bolts of of how to be a realestate investor, but he just
sort of opens your eyes to thepossibilities.
SPEAKER_01 (15:56):
Yes, yes, indeed.
And I want to get a little bitinto because you got your hands
into self-storage.
And I know self-storage wasdefinitely huge around like the
the pandemic time andeverything.
So what how did this shift youfrom most people they wanted to
either get apartments or asingle-family home?
(16:18):
What drew you to theself-storage investment?
SPEAKER_00 (16:22):
Yeah, I I first learned about self-storage
investing at the best everconference in 2017.
Uh, it was the first time I'dI'd really been exposed to
commercial real estate andsyndications.
I was learning about raisingcapital for multifamily
syndications.
I was doing a little bit of itat that time.
Uh, and I saw a man named ScottMyers get up on stage and he
(16:45):
spoke about self-storage and hetalked about how it's a great,
it's a commercial real estateasset class that is a lot
simpler than multifamily.
Uh, there's no tenants, notrash, and no toilets.
It's you're really really justrenting people a box of air on a
month-to-month basis.
You don't have 12-month leases.
And on top of that, your expenseratio tends to be a lot lower
(17:06):
than multifamily.
You know, whereas multifamily,you're typically going to have
50% of your gross income isgoing to be taken up by
expenses, not including yourdebt service.
Self-storage, a lot of times, islower.
It's more like 35%, andsometimes even lower if you've
had a facility for a long timeand you're operating it
efficiently.
So it just clicked for me.
(17:28):
It was a very simple businessmodel, but it was still
commercial real estate.
And I love commercial realestate because of how how
predictable it is versusresidential real estate.
And that was really what sort ofopened my eyes to it.
Uh, and then I literally at thatsame conference, I met my now
business partner at a lunchbuffet table.
(17:49):
And he was he was a self-storageowner operator then.
We clicked, started hanging out.
I started coming out to visithim.
He was based here in Wilmington,North Carolina, and we stayed in
touch for years trying to find away to partner, partner up on
something, and had a lot offalse starts, but that finally
came together in late 2021.
SPEAKER_01 (18:10):
That's great.
Uh, the reason why I wanted todeal with talk about the
self-storage is I I told people,especially with that in that
commercial side, you don't youdon't deal with tenants, you
don't have to deal withplumbing, no toilet.
They said everything's basicallythe when those self-storage
they're they're literallystructured almost fireproof.
Because they have everything'sbasically metal.
(18:31):
You don't have to deal withthat.
And like you said, it's not ait's not you don't have a year
lease on it, it's month tomonth.
So I think self-storage is oneof those, it used to be one of
those hidden gyms, but now a lotof people, especially in my area
here in California, they're justif anything comes available
store still self-storage-wise,they're on top of it because it
(18:51):
is a great asset.
And the the the overhead cost,it doesn't cost that much
because you're you're just gonnabe generating so much from it.
Because right now I know a lotof people or need self-storage.
And I've actually talked to one,because I even have I even have
a self-storage.
And the people that I that I'veI've been with, like they're
(19:13):
always full.
They're always full.
And I know that it's clean, it'sa very uh they have cameras,
security, everything is takencare of where you don't really
have to worry about anything.
So it's it's just a win-win withthe with the people who who rent
it out and the ownership.
Yeah, so go ahead.
Sorry.
No, no, go ahead.
I I got I want to listen to youdo more of your wisdom.
SPEAKER_00 (19:36):
Yeah.
So uh storage, storage is amaturing asset class, is how I
would describe it.
A lot of people picture the oldself-storage facilities, all
drive up, not climatecontrolled, a lot of times off
in the sort of industrial areaof town, not particularly clean.
But now a lot of people you'restarting to see those much more,
(19:56):
you know, I call them storagepalaces, you know, the extra
space, three, three, fourstories, climate-controlled, you
know, really clean office space,you know, waiting rooms, uh, and
a lot more technology involvedin it.
You're sometimes some of themare getting, you know, Wi-Fi
locks, you don't even have yourown locks and things like that.
(20:16):
So it's really a maturing assetclass.
And a lot of the institutionalplayers have discovered it.
And it's one of the thingsthat's you know going on right
now is that there's billions ofdollars in institutional capital
coming together to buyself-storage or build
self-storage.
And you know, construction onself-storage has has slowed a
(20:38):
lot over the last three years,primarily because of the
interest rate environment, thecost of construction, things
like that.
But but the capital is stillthere and it's still coming
together to buy it.
So we really, you know, we wedon't buy self-storage, we build
it.
We take old vacant big boxretail stores, old warehouses,
(21:00):
uh, you know, bottlingfacilities, things like that,
and we convert them toclimate-controlled self-storage.
So we're really we're continuingto build because we're seeing an
environment where there's goingto be a drop in new supply
coming online, but there's stillall these interest institutional
players that are looking to buyit.
SPEAKER_01 (21:20):
That's that's great.
And that's I'm glad you saidthat.
Yeah, because the oldself-storage is actually
changed.
Yes, I've seen a lot of themwith climate control of the the
electric locks, like uh it'sit's changed tremendously right
now.
And I know a lot of them too,they're having more space for
people who have bigger boats,bigger mobile homes.
(21:42):
They they have those areas forthem to park if they don't want
to park at their house.
Okay, so you've raised over$17million in investor equity.
What's your formula for earningtrust and confidence from for
investors?
SPEAKER_00 (21:58):
Yeah, so it all starts, you know, we often talk
about you need in order to getsomeone to invest with you, you
need them to know you, to likeyou, and to trust you.
And oftentimes that's going tostart with your friends, your
closest friends and family.
Those are the people who knowyou, like you, and trust you.
And that was a lot of our earlyinvestors were friends of the
(22:21):
friends and family of mine,friends and families and
colleagues of my capital raisingpartner, Clint Harris.
A lot of people from the whitecoat professional community.
He was a medical devicesalesman, so he had a lot of
friends and family who werewhite coat professionals.
A lot of our early investorswere those people.
Well, eventually, you're gonnarun out of that.
(22:41):
And you need to sort of gobeyond that.
You need to, you know, get outthere and get people to not only
know you, but now they have toget to like you.
And that's why, you know, we goout and I do podcasts.
I have I have my own podcast.
We've got truly passive income.
We're not usually on therepitching things, it's only an
educational platform, but it'salso a chance for people to get
(23:02):
to know us and hear us speak.
Oftentimes when I'm talking toinvestors, they will mention
that, oh yeah, I've heard you,I've heard you on your podcast a
bunch of times.
And so we're already startingfrom a we're not starting from
scratch.
And then finally, you need toget them to trust you.
And that's uh and that reallyjust comes down to saying what
(23:24):
you're gonna do and doing it.
You know, we're you know, we'reoperating, we're we're fairly
new syndication.
We've been doing self-storagefor almost 20 years, but we're
kind of new to syndication.
We syndicated our first deal in2021.
We've only exited one of thosedeals, did pretty well, and so
that's sort of where a lot ofthe trust comes from.
(23:46):
But what you what it looks likeis uh like a bunch of circles.
You've got the people who knowyou, and the your conversion
rate's gonna be very high withthose people.
I think early on when we came topeople and said, hey, you want
to invest in this?
We're converting a Kmart to aself-storage facility.
Who wants to invest?
And probably 50% of the peoplewe talked to wanted to invest,
(24:07):
and then you got it into anotherlayer, and maybe it's the people
who know them.
They don't know you directly,but they know the people who
know you.
And well, now your conversionrate goes down to maybe 20%.
And then you get a littlefurther from that and you start
getting to people who don't knowyou, where you're advertising on
meta, and now your yourconversion rate really starts to
drop.
And now you start getting into anumbers game, and just you know,
(24:30):
you're essentially having to dopaid marketing and and having to
just not cold calls, but warmcalls with people who have seen
your ads, they've maybe heardyou on a podcast, and you start
a conversation with them.
And normally what I will do, Ivery rarely will come at someone
trying to pitch them about whatwe're trying to do.
(24:51):
I will first try and understandwhat that person is, what that
investor is looking for.
Because if we have somebody whocomes at us and they're looking
for immediate cash flow or theywant to do a 1031 exchange,
we're not a good fit for that.
We're doing essentiallydevelopment deals.
It takes us almost about a yearto build out our facility.
It takes another 24 months orlonger to lease it up to
(25:15):
stabilization where we can startpaying distributions.
And so we always tell peoplelisten, if that's what you're
looking for, we can point you inthe direction of some other
operators that are that webelieve in, they're doing some
great stuff, but we're not foryou.
And that usually you'd besurprised how much trust that
builds when you tell somebody,hey, listen, I'd love to take
your money, but we're not a goodfit for you.
SPEAKER_01 (25:36):
Great.
I like that because my my lastpodcast, I was talking to a gent
a gentleman about this too, andit's about the trust, the trust
that you you develop with eachone another, uh, trustworthy and
doing what you say you're goingto do.
That is huge.
Like it's kind of like you, youknow, you practice what you
preach.
You you have to do that, andthat's how you gain trust.
(25:59):
And then just like the platformwith I have and platform you
have, that's gaining trustbecause you're good out there,
you're giving information thatthe average person doesn't know
about it, but it helps them outto gain where they need to go to
gain financial freedom.
And then I wanted to ask withthe with newcomers, because I
deal with a lot of newcomers whowant to get in real estate
(26:20):
investing.
What are the keys to you knowthe do's and don'ts when
especially approaching potentialpartners?
Because I know some that I'vetalked to, they're like, well, I
don't know who to go to.
I want to do a I would I mightdo a syndication deal, but I
don't know anything about asyndication deal.
They've heard of it, but theydon't know how to go about it.
(26:42):
They don't know the red flags ormaybe like what the numbers, if
the numbers, or as I could say,the numbers are not mathing up.
Yeah.
SPEAKER_00 (26:52):
So in order to be successful in real estate, I
think you need three things.
You need a combination of one orall of these things: time,
experience, and money.
And most people don't have allthree.
They they may have time, butthey don't have experience or
money.
They may have experience, butthey've got no time and money.
(27:14):
Or they may have money, butthey've got no time.
And without the time, they can'tget the experience.
And that's really wheresyndication comes in, when
you've got people who've got themoney, but they don't have the
time and they don't have theexperience.
And what you so then what you'redoing is you're leveraging
someone else's time andexperience.
We don't, I don't do selfstorage as a hobby.
(27:35):
Not I I'm in a building rightnow with roughly 16 people who
are doing this full time.
That's this is all we do.
And there's a lot of experienceand a lot of bumps and bruises
that can came along with that.
And so the best advice I havefor people who are maybe getting
(27:55):
into syndication for the firsttime, as a as an LP, I could go
into you know, somebody whowants to get on the jet get on
the GP side, but right now I'mtalking about getting as an LP
is don't focus on the deal.
So many people come in andthey're they're shopping IRR,
internal rate of return.
(28:16):
They're shopping the returns.
Oh, hey, look on thismultifamily deal, I can get a
16% return.
Oh, but on this, on this retaildeal, I can get 21%.
Oh, but on this industrial,light industrial, I can get 25%.
Don't do that.
Find an operator who hasexperience and a track record
(28:36):
and has been doing what they saythey're gonna do for a number of
years.
Like I don't I don't recommendthat you sign up with an
operator who's just trying out anew asset class.
I don't recommend that you getin with an operator who's never
done that asset class withouttheir own money.
(28:58):
And I recommend lastly, Irecommend that if you get to a
point where you're gonna putsome money in with somebody, do
a background check.
Talk to some of their previousinvestors.
And yeah, I mean, that's thatthat would be where I would
start.
SPEAKER_01 (29:14):
I'm glad you said that because you yeah, you want
to know their track record, youwant to know how many
syndications, how manytransactions have they been
dealt with, because that's gonnathat speaks volumes in itself,
because someone can just say,Yeah, I I've done this and I've
done that, like where's theproof?
You need the proof to know howto go about, hey, should I be
with this person or should Inot?
(29:36):
Because you're putting you'reputting your capital up.
So you're not trying to loseyour capital, you're trying to
gain that capital up.
That's what you're trying to doto go about furthering your your
income with uh real estateinvesting.
So, so Neil, how can theaudience connect with you with
you know, because I know you'rewith the Nomad Capital and you
(29:56):
you have the the podcast of thetruly possessive income podcast.
How do people get in touch withyou?
SPEAKER_00 (30:02):
Yeah, well, check out our podcast, Truly Passive
Income.
It would it'll be wherever,wherever you listen to podcasts.
If you search for it, it comesright up.
But the easiest way to get intouch with me is just shoot me
an email.
I'm Neil N-E-I-L.
I don't I don't spell it thesociopath way at
nomadcapital.us.
SPEAKER_01 (30:21):
Okay, great.
I'll put that all in the shownotes and everything, and I will
be subscribing to your podcastand listening to it also.
Appreciate every everybody outthere, thank you for watching
and listening to theprofessional real estate
investing podcast.
Like, subscribe, put anycomments you need to on there
because I'm just trying tobetter uh people's education
when it comes to real estateinvesting.
(30:42):
And thank you, Neil, so much forthe the opportunity to interview
you and may you have a blessedday.
SPEAKER_00 (30:48):
Thanks, you too, Tony.
I appreciate it.
Thank you.
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