The Journey From Flipping Houses to Owning 1,470 Units with Andrew Cushman | BP Podcast 170

TL;DR

Andrew Cushman shares his journey from house flipping to owning 1470 units.

Transcript

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Key Insights

• Andrew Cushman transitioned from being a chemical engineer to a real estate investor, starting with house flipping before moving to large apartment complexes.
• Persistence is crucial in real estate, as demonstrated by Andrew's 4,576 cold calls before securing his first deal.
• Andrew emphasizes the importance of having a mentor and learning from successful investors to replicate their success.
• He discusses the benefits of syndication, allowing multiple investors to pool resources for larger real estate deals.
• Andrew shares his strategy of buying distressed properties, rehabbing them, and refinancing to return capital to investors while retaining ownership.
• Goal setting and having a clear 'why' are critical for success, as they help in planning and executing business strategies effectively.
• Andrew highlights the importance of building a reliable team, including contractors and property managers, to manage large-scale operations.
• He advises new investors to start with education, save reserves, and focus on building a strong network for successful real estate investing.

Questions & Answers

Q: How did Andrew Cushman transition from chemical engineering to real estate?

Andrew always aspired to be an entrepreneur. While working as a chemical engineer, he and his wife explored various small business ideas. In 2006, they discovered real estate investing, specifically pre-foreclosures, and decided to pursue it full-time after their first successful flip.

Q: What was Andrew's first real estate deal like?

Andrew's first real estate deal was a pre-foreclosure flip. After making 4,576 cold calls, he secured the deal and made as much as his annual salary from his engineering job. This success motivated him to quit his job and pursue real estate full-time.

Q: How does Andrew find and manage large apartment deals?

Andrew finds large apartment deals primarily through broker relationships, focusing on off-market and post-market opportunities. He manages these properties by building a reliable team of contractors and property managers, ensuring efficient rehab and operation processes.

Q: What is real estate syndication, and how does Andrew use it?

Real estate syndication involves pooling resources from multiple investors to purchase larger properties. Andrew uses syndication to acquire large apartment complexes, allowing investors to share in the profits while he manages the operations and strategy.

Q: Why is goal setting important in real estate investing?

Goal setting provides direction and helps in planning and executing strategies effectively. Andrew emphasizes having a clear 'why' to guide investment decisions and break down long-term goals into actionable steps, which has been crucial in his success.

Q: What advice does Andrew give to new real estate investors?

Andrew advises new investors to focus on education, build a strong network, and save reserves for financial stability. He emphasizes the importance of having a mentor, persistence, and starting with smaller deals to gain experience before scaling up.

Q: How does Andrew handle the rehabbing of large apartment complexes?

Andrew approaches large-scale rehabs with detailed planning and scheduling. He often starts with vacant units, gradually working through the property while maintaining cash flow. Having a trusted team and contractors is vital to manage the complexity of large rehabs.

Q: What role does persistence play in Andrew's success?

Persistence has been a cornerstone of Andrew's success. His determination to keep pushing forward, even after thousands of cold calls without success, demonstrates the importance of staying committed to one's goals and continuously improving strategies.

Summary & Key Takeaways

• Andrew Cushman started his career as a chemical engineer but always aspired to be an entrepreneur. He transitioned to real estate investing, beginning with house flipping. Over time, he shifted focus to acquiring large apartment complexes, amassing over 1470 units.

• Persistence played a key role in Andrew's success. He made 4,576 cold calls before securing his first real estate deal. Through mentorship and continuous learning, he developed a successful strategy for real estate investing, focusing on syndication to pool resources for larger deals.

• Goal setting and having a clear purpose have been instrumental in Andrew's journey. He stresses the importance of building a reliable team and leveraging broker relationships to find off-market deals. Andrew's story highlights the potential of real estate investing when approached with dedication and strategic planning.