Financial Freedom in 8 Years by Investing for Equity (NOT Cash Flow)

Dave:
Maybe you’re not getting into real estate because you want to quit your job today, but you want to quit in a year or in a decade. Today’s guest is going to explain how he used real estate to create a safety net in case the stress of 24 hour emergency room shifts ever became too much to handle. Hey everyone, it’s Dave, and today we have an incredible investor story with Benjamin Aaker, an emergency room physician in Sioux Falls, South Dakota. Benjamin became an accidental landlord, then realized that real estate could be the exact solution he was looking for and has since scaled up into some seriously impressive properties, even if he had to jackhammer at least one sewage line himself to get there. Let’s bring on Benjamin. Benjamin, thanks for joining me today. It’s good to have you.

Benjamin:
Yeah, thanks so much for having me. It’s really exciting to be here today.

Dave:
Yeah. Let’s jump into this thing. Tell me a little bit about how you first got started investing and what else you were doing at that time.

Benjamin:
Sure. So I’m a physician, an emergency medicine physician, and got started doing that, not wanting to do any kind of real estate at all, just never even thought of it, but kind of realized early on that burnout was a thing and it’s very high in medicine and it’s even higher in emergency medicine. And so I was wanting to do other things, but that was stock market. That was anything else other than real estate at the time, and I was an accidental landlord. That’s how I really got into real estate investing.

Dave:
And how old were you at the time?

Benjamin:
Let’s see, it would’ve been nine years ago, so that would’ve put me at 35 years old.

Dave:
And I would imagine that being an emergency room physician is extremely time intensive. So what was it like becoming an accidental landlord?

Benjamin:
Well, yeah, you’re right. It is time intensive. The nice thing about emergency medicine is it’s a shift work so you can kind of schedule your day and pack it all in, and once you get that schedule out, then you have other time to be able to do other things. So I was able to make that work with that time constraint and real estate investing, at least for me starting out, was very much do the things and then hopefully let it run, be ready to answer the phone tenants, toilets and telephones as everybody says. And that was my experience as well. Starting out. The only problem was if I was on a shift in the emergency department, I wasn’t able a lot of times to answer those telephone calls.

Dave:
I’m interested, Benjamin, to learn more about your accidental landlord experience. If you haven’t heard this term, everyone, it’s basically a lot of people get into real estate out of some unforeseen circumstances where you inherit a property or someone asks you to take over management of a property, and for some people that’s a nightmare and they want to sell it and get rid of it. But it sounds like for you, Benjamin, there’s something clicked about real estate that you liked. What was it?

Benjamin:
This thing was just a house that we bought my wife and I in order to live in while we were building our primary residence, I had promised her that I would build her a beautiful house once we paid off the one that we had and we just, you need a place to live while you’re building. And that was my situation. So then our real estate agent said we were going to just sell it. It was kind of like a flip, but we didn’t really know what a flip was at the time. And the real estate agent said, Hey, I’ve got two people who want to buy a house. They’re my clients. But they found lots of houses that they, they just can’t look, their credit’s not quite there and the bank has denied them. And he said, do you think you might want to rent to these guys? And then you don’t have to go through the whole thing about selling it. And I thought, that sounds really nice not to have to go through that. And we didn’t do any kind of background checks, nothing just relied on what he said and what the bank had. And so it could have been a bad experience, but it actually worked out really well.

Dave:
You mentioned that you didn’t have a specific goal when you first started out, and I think it’s a tough spot to be in with real estate because there’s so many different ways that you can go. You could flip houses, like you said, you could buy rental properties. So after that first one, where did you decide to go next with your investing career?

Benjamin:
What happened was then I heard about the freedom number. I heard about you need to make a plan, you need to have a five-year goal and a 10 year goal. And so then I kind of started formulating something around that time and it was all about wanting to be able to hedge for burnout way back in residency, which is what you do after medical school for a couple of years. The burnout was kind of like, I’m feeling a little bit and I need to have something that at some point I can leave. And luckily throughout that time I have not felt like I had to leave emergency medicine. I love taking care of patients, so I have continued to do that. And so I grew, but from listening to the podcast, I learned that the economies of scale of multifamily were there. So I started looking for multifamilies at that time.

Dave:
I want to touch on something you just said before we talk about multifamilies is just about liking your job and wanting to stay in it. Because I think for a lot of people, especially guests who come on the show, people, their whole goal is to quit their job or they want to go full time into real estate investing. But it sounds like for you, you want to hedge that, which makes sense to me. But it sounds like you’ve never just thought, Hey, I’m going to get into real estate so I can quit being a doctor. Right.

Benjamin:
I was never at that point where I just have to get out of it. And I know some physicians and even other careers where people just, they’re just burnout and they’re done. They won’t need to get out and oh man, I’d hate to be in that position. Some people are and they have to deal with it, and you can get into real estate from that, but if you can keep your W2 for as long as you can, as many people have talked about on the show, that gives you a great way to get the bank loans. There’s just so many more doors are open for you if you can keep that. So that’s what I did and have done and that really has helped me with having that income to be able to go to the bank and get loans. So that’s kind of my advantage that I have over a lot of people is that I have that big income that I still continue to be able to report to the bank.

Dave:
That is a huge advantage of maintaining your W2 is that you are more lendable. I don’t know if that’s actually a word, but we’re going to make it one. But I think the other thing that’s really interesting about and super relatable to people about staying in your W2 is that it allows you to be a little bit more patient I find, and maybe take on a little bit less risk because if you just think about what you would need to do, the type of deals, how intensive they would need to be to replace your income or to go full-time in real estate in two or three years, it’s very different than if you’re approaching it the way Benjamin might’ve been and saying, Hey, I’m going to buy deals opportunistically. That sort of puts you in a different mindset to the types of deals that you look for and ultimately end up buying.

Benjamin:
Totally agree. Yeah. For me was I call it a 50 year plan, which is kind of a silly name. It was when I turned 50.

Dave:
Oh, okay. Yes. Yeah. 50-year-old plan, not 50 years from

Benjamin:
Now. Not when I’m a hundred years old, but yeah, when I turned 50 that was, and I wrote a thing down, I was just like, when I turned 50, I don’t want to have to work in the emergency department anymore. So
People that listen to this, if they take home that one thing, if they can think about when in the future do you want to be able to leave what you’re doing, not necessarily that you’re going to leave because hopefully you still like what you’re doing. Maybe you love what you’re doing and you’re just looking for something on the side to prepare for the future. And to me, that’s what real estate investing is all about. That’s the goal, is setting that time and being prepared for it. And once you get to that, I’m there now. I mean, I’m not 50 yet, I’m 46 and I am there and it’s such a great feeling. Thank you. So now I can just do whatever I want and work when I want to. And I think a lot of people can have that as well if they set their goal, not that I want to be a millionaire and sit on the beach, wouldn’t that be great? But that wouldn’t be fun for a lot of us, I think.

Dave:
Yeah, I’m in the exact same boat and in a fortunate position where I sort of set a goal for myself to be what I would call work optional at 40, I’m there 37. Nice. Congratulations. Congratulations. I intend to keep working. I like working. I have a great job, as you can tell. So I get to do this every day. So now I’ve sort of readjusted and I was planning to sort of deleverage my portfolio and lower risk around 40 years old, but now I’m pushing that back out a little bit and I’m willing to take on some bigger projects because I want to keep working. But I think what you said a few minutes ago about time horizon is just spot on and just 15 years, if you look at that time horizon, you can accomplish so much in real estate in 15 years. And I know if you hate your job, that sounds like a really long time, but if you’re someone who can manage it and can stick with it for a while thinking, I think that 15 years is a totally realistic goal to be able to replace your income really whatever income level you are.
And so it sounds like it only took you, what, seven or eight years though?

Benjamin:
Yeah, right around there.

Dave:
Do you attribute that to going into multifamily because of those economies of scale?

Benjamin:
Yes. I mean that and just real estate in general because I think people can do it with single family if they wanted just the house, they can get a massive group of houses. But exactly like you said, the economy of scale, I learned from this show. And then I went ahead and bought a six unit in a small town outside of Sioux Falls, South Dakota, and just kind of a small community. Had eight people in there, and it’s just like you only have one bill for snow. Now maybe you don’t have any bills with the single families, but you have or snowmobiles for single family maybe where you live. You don’t. Lucky you if

Dave:
You’re Yeah, I was going to say, I don’t think everyone knows about snowmobiles. I have one where I have a short term rental in a ski town and it is pricey to have them come plow. It’s insane. I should just drive a plow. It’s a great business. You should. It’s time for a break, but we’ll be back with more of this week’s investor story in a few moments. Welcome back to the BiggerPockets Real Estate podcast with our guest Benjamin Aker. So that six unit, was that your first one after the accidental landlord or did you do something in between?

Benjamin:
So I started in that thinking, well, single families is the way to go. So I ended up buying three, well, it’d be four total, so three more after that first one because that’s all I knew. Buy a single family and rent it out and go on to the next one. It wasn’t the Burr method, just I never thought about refinancing, but I had ’em all set up so that they would be about cashflow neutral. And for me, that was another thing that I learned from this podcast is just to set up how you want those mortgages to be. A lot of people are going for cashflow and when they’re starting out, especially if they are quitting their job, they got to have cashflow to stay eating.

Dave:
That’s right.

Benjamin:
And so I totally get that. And I’m not discounting cashflow as being important, but for me and for I think a lot of people that maybe don’t realize it, equity is the way to go. And you want that. So I’ve got an income right now from my W2 job. I pay ordinary income tax on that. And when I do real estate investing, unfortunately it does not help me offset that. And if I’m taking income from that, it’s going to be just more income that I’m paying that tax on. It’s not capital gains tax, it’s ordinary income tax that I have to pay. And I’m at a high tax bracket, and it doesn’t even matter if you’re in a high tax bracket, whatever tax bracket you’re are, if you increase that income, then you’re going to go potentially to a higher one. You’re paying more money on that than otherwise. So I’d rather have that money coming into me when I don’t have the W2 income. So I want to be building that equity right now. So I set all of those loans up to be about cashflow neutral, knowing that I could float something, loan to the project if the AC unit went out or whatever, I could do that. Another benefit that I had with my W2 job,

Dave:
Well, it’s exactly what you said, benefit of having a W2 job, but you were able to craft this strategy because you had that time horizon. You knew this plan to be retired by 50. The 50 year plan allows you to make those decisions. You could say, Hey, when you were just started, it sounds like you’re in your late thirties. You were saying, Hey, I don’t need the cashflow right now. And so the deals that I select and the deals that I designed, you didn’t just select these deals, you created the mortgage in a very specific way to support that long-term goal rather than just doing what a lot of people on social media or in the forums or on this podcast of saying that you should pursue cashflow. And like Benjamin said, there’s nothing wrong with cashflow, but it’s ideal for people who have a short time horizon and time horizon is just how long till you want to live off your investments. So if you have a short time horizon of two or three years, yeah, go for cashflow, that’s super important. But if you’re like Benjamin and you’ve thought far enough ahead to know that I’m not going to need this cashflow for 10 years or 15 years, you can make totally different decisions. And I think I am sort of on the same page as you Benjamin, that when you have that longer time horizon, pursuing equity is a more efficient way to build overall wealth if you have your expenses covered from your normal income.

Benjamin:
I totally agree with that. The equity for many of us is the way to go and long-term really what I want and what I think a lot of people should be wanting and going after as well.

Dave:
For sure. And I should also just mention that that could change over time. My first deal, I was waiting tables and I really wanted the 300 bucks a month of cashflow that made a meaningful difference to me in my life at that point. Fast forward, I got a higher paying job and I didn’t need the income anymore. And so then I could start pursuing equity more in my deals. And so I just encourage people to sort of think about where you are in your life and your own personal needs and not just listen to whoever’s saying, oh, you need cashflow, or it’s just about equity. There’s no right or wrong answer. It is about your own individual preferences and your own financial circumstances. So this is super cool. So you went from accidental landlord, three more single families, then you went to a six unit,

Benjamin:
Eight unit?

Dave:
Eight unit.

Benjamin:
I think I said six. Yes.

Dave:
Eight plex. Okay. And then where’d you go from there?

Benjamin:
So after the eight unit, I dunno if it was after or before, but I got into my mastermind.

Dave:
Oh, okay.

Benjamin:
I got to say that’s another huge benefit from bp. Thank you to everyone at BP who came up with this idea with Brandon Turner’s 90 day intention journal. That was in 2019 when that first came out. And I bought that and it’s a great journal. I went through it, but what BP did at the time was they would hook you up with four other investors that were kind of in a like-minded area and got with a group. And three of us are still around. We’re still meeting every

Dave:
Wednesday. Really?

Benjamin:
That’s so cool. Yeah, I know.

Dave:
So

Benjamin:
Shout out to Pete and Rob. I mean these guys are great. And they were kind of, they’re in single family, multi-family kind of starting and we just able to bounce things off of each other. And I remember talking about multifamily with them and I don’t know if it was whose idea, I mean that’s part of the mastermind is just this one group mind thinking together. That’s so cool. So cool. And so we’ve just really, and all three of us have just really taken off with what we’re doing. And for me it was multifamily and I credit them a lot and BP for getting us hooked up. We’re still doing it after all these meeting,

Dave:
Man, I got to say, I guess before 2020, I never really made content for pickpocket. I’ve been working there for nights since 2016, but I was more in the operations part of the business and I was involved in creating those mastermind groups. I love hearing that this was so impactful for you. It makes my day. If anyone else listening to that is still doing their mastermind, please shoot me a note on BiggerPockets. I would love to know that. That’s super cool information and I’m so glad to hear that other people, your guys are still meeting because just getting around like-minded people, it really makes just a huge difference in your investing career. It sort of just normalizes some tough decisions. I can imagine if you are working full-time, you bought one single family, a couple single families without encouragement from other people, it might be really daunting to go into multifamily.

Benjamin:
Yeah, totally. And these guys have their own perspective and all their knowledge that they’ve built up and you say, Hey, I want to do this. And they say, well, have you thought about this? Have, it’s just so many times they have helped me in coming up with new ideas or new strategies I might say, about the bad week that you had when the tenant needed a new toilet or something like that. I said, oh, sorry, you really should get someone to do that for you. Oh yeah, I didn’t think about that. Get a property manager, any kind of these ideas, it’s just been wonderful.

Dave:
Oh, that’s great. And so that was 2019 when you started the mastermind during the pandemic era, were you buying multifamily?

Benjamin:
Yes, I was in multifamily and started selling off the single family just because it was hard to do two different things at once. And even though they were profitable, there was the profitability of the multifamily. It was so much more after that eight plex, then it just really took off then ended up buying a 16 plex and I did that as a syndication and that went really well. And so then I just have continued doing that since then.

Dave:
And for anyone listening who doesn’t know, syndication is just an industry term for raising money from a bunch of investors, pooling your money together to buy larger assets like multifamily. And it can be super beneficial, as I’m sure you can imagine, if you want to buy a 50 unit, that’s a lot of money and usually individuals don’t have it. And so you have different classes of investors. You have what’s known as a gp, a general partner or a sponsor who organizes the deal and sort of takes the lead on decision-making, finding deals, doing all the operations. And then you have people called LPs or limited partners who mostly just invest passively by contributing capital money to the deal. And so Benjamin, had you ever been a part of a syndication passively or did you just go straight for being a general partner and running deals for yourself?

Benjamin:
I was involved in, it was more of a joint venture JV deal that one of the guys was the leader of it. So kind of now looking back feels like A-G-P-L-P thing even though I’m considered a general partner in that. But that wasn’t a syndication. So to answer your question, no, but I did have that experience where this one guy put together the deal and found the investors and brought everybody on and just seemed like such a great thing for me being able to just invest passively on that. So I thought, well, wouldn’t it be great to be able to bring people together? You do get to a point if you keep on getting bigger and bigger where you just don’t have that money, especially if you’re not looking for cashflow and to start out with, you don’t have a huge pile of cash to get the down payment, so you need to put other people together. I did have a little bit of experience, but this was the first one and it was definitely a learning curve.

Dave:
Yeah. How’d it go?

Benjamin:
You want to know before the end? Before the end, it did not go great. The end was good. I’d love to tell you about that. But was there was a 16 unit and it was owned by a nonprofit organization that helps people who are like a halfway house kind of a thing. So people who are down on their luck had some trouble and they can’t get maybe either the money or they don’t qualify to rent in other places. So they would help those people out, they would get grants and then they owned this place themselves and they subsidized it. So I think at some point they kind of thought, you know what? We’re kind of taken from one hand and paying the other hand, maybe that’s not our mission. I don’t know that for a fact. But then they wanted to sell and it was a great deal, great price, and went in there and bought that from them. And my big mistake there was thinking that they would just continue to have all the tenants in place. Those look great. The whole place is full and they’re paying the monthly rent for ’em. So I just get this big check at the start of the month. It’s great. Kind of like what you’ve talked about in podcast section eight. This is not section eight, but it’s a similar sort of a deal.

Dave:
Is it state funded or something?

Benjamin:
Well, I looked up their funding afterward and 70% of it was federal grants that they were getting,
But it is a local organization. And so after I bought it just out of the blue, they started finding reasons that their at tenants didn’t qualify. So like one of them was, oh, you’re making too much money now, so we’re going to drop you off the plan. And so the people who were making some money, they had a certain percentage that they needed to pay and the group was paying. And so that group amount was gone and then they just didn’t have enough money for the rent. And so then I started to try to find other sources to help them, assistance sources. And in some cases I could, but some cases I couldn’t. And so they ended up many of those people leaving. But after that we were down to 25% occupancy.

Dave:
Oh my, whoa. And what were you when you bought?

Benjamin:
We were at nearly a hundred percent, I think it was a hundred percent, but

Dave:
Oh my gosh.

Benjamin:
Where you would expect it to be when you’re buying. So nothing alarms off, but I didn’t think about, I don’t even know if this is a thing, but it would’ve been nice to have some sort of guarantee in the contract that said, Hey, you’re going to keep on paying this for the next year as we destabilize or whatever. Just didn’t even occur.

Dave:
That’s a unique circumstance.

Benjamin:
Yeah, awesome.

Dave:
Huge mistake. Yeah. Interesting. So how did you rectify

Benjamin:
This? Well, luckily I had saved up an extra $40,000 to do a rehab of a garage. So there was a big garage that they had on this property. I was going to divide it into little garages and then rent those out. This is a great idea, right? Well, I guess in the end it was the best idea that I had. It didn’t turn into a garage, it just sat there as a big nothing but that money was paying the mortgage. So I notified the investors right away of the situation that you have to do communication. So important investors, by the way that I do, they’re people I know, they’re coworkers, they’re friends. I don’t advertise to do these deals because I want people that I know.

Dave:
Can I ask how many limited partners you had?

Benjamin:
Yeah. Well in this deal there were five LPs.

Dave:
Okay, so people you probably knew decently well, I would imagine. Yep. Know

Benjamin:
Them well. And because of that, I think I’m much more concerned about their money than I have about my own.

Dave:
So

Benjamin:
They will not be losing money on this deal if I have anything to say about it. And I’m in control, so I better not lose their money. And that boy that kept me up at night, I remember waking up at 3:00 AM with this 25% occupancy. What’s we going to have to do when we run out of that money? And I would be subsidizing myself. I had capital call. Those kinds of things, you just never want to have that. I luckily didn’t. So I ended up finding a contractor who was looking, just calling around, looking for short-term rental for his workers as they come in to build these big barns for hogs in South Dakota here. So he’d bring ’em in, they’d stay there for a few months and then they would go and he wanted 10 units. And I thought, oh, this is going to save me. But the one thing that stopped me, and I’m glad I did it was I thought, what is going to happen in six months when he moves out those 10 units right back here?
Desperation leads you to do some dumb things. But luckily I didn’t do 10. I said, we’re going to do four units so that four units would bring us up to 50%. That was enough to keep us just above water. And so we got them in there. And I remember this, the last real big thing was that the sewer had backed up in one of those four units that I wanted to get these guys in. And he needed to move in on Monday because they were going to start working. And this was Friday sewers backing up and I could not get a plumber out there the weekend there’s nobody. And this was the pandemic was kind of in around, I can’t remember exactly the dates, but it was just hard to get contractors. And so I had to go in there and that basement unit and rent a jackhammer and jackhammer out the floor, oh my god, to the sewer line. And I was digging around in the sand that’s underneath the cement with my screwdriver, just kind of trying to see. And I hit that pipe and this hole just filled up with black ooze from that. And I thought it’s going to go everywhere. So I started bailing this out into the bathtub was right there. So I was bailing it out in the bathtub and finally it stopped. And then I got some fern co fittings, which are these rubber fittings that you connect pipes together. And I replaced that pipe. This was Saturday.

Dave:
Oh my gosh.

Benjamin:
And then I poured cement that evening and the next day I put sticky tile floor on and reinstalled all of the fixtures and had them in there on Monday when I had to go back to work in the emergency department.

Dave:
Oh my God. So you triaged the situation and that was an emergency? That it was an emergency. Oh my. But it sounds like eventually you made this all work. You made everyone whole. Do you still own that property?

Benjamin:
No, we sold it. So I wasn’t even, so when you do a syndication, you oftentimes will have a horizon, which is telling the investors, Hey, we’re going to sell it. They want their money back. At some point, money goes in there, becomes very illiquid, and then you want to tell them, Hey, I’m the one who’s making the ultimate decision when I think the time is right, I’m going to sell it or refinance it or do whatever. Some people refinance and keep it forever, but this, we are going to sell it. And the horizon on this was five years. However, as the GP of the deal, the operator of it, if you will, I can choose or it was set up so I could choose when. And there was a group out of Nebraska I think that was looking to do a 10 31 and another broker in town called me up and said, you’re interested in selling? And I said, no, we’re not interested in selling. It’s only been two years, but if you really want to buy it, here’s a price. And slipped on that price. And he went to his guy and they said, yep, we like that price, I love it, we want to buy it. So we went under contract.

Dave:
Excellent. So you were very aggressive with the price, I assume

Benjamin:
I was. Yep. Okay. And because I held all the cards at that point or all the chips, I could do anything I wanted. I don’t really want to sell. And then when you have a 10 31, those are great, but they encourage you strongly to do things that you might not other do otherwise do buy something,

Dave:
You can buy a thinner deal for sure. Oftentimes it’s still pencils for the 10 31 to buy a bit of a thinner deal.

Benjamin:
So I’m hopeful it worked for him. So we ended up selling two years. The ROI to the investors was 80% on that. So 40% every year, if you can look at it that way,

Dave:
Man.

Benjamin:
So just huge. I was just so good for

Dave:
You.

Benjamin:
Pleased. Thank you.

Dave:
Go from 25% occupancy to an 80% return in two years is that’s a great turnaround. Congrats. We have to take a final break, but stick around to hear more of Benjamin’s journey all the way from single family deals to syndication sponsor. Let’s jump back in to this week’s investor story. So what’s happening with you now, Benjamin? Obviously the investing climate has changed. What are you doing with your portfolio these days?

Benjamin:
Still doing syndications, just had that great experience and doing more. So a partner that I had found on BiggerPockets and met, by the way, vet your partners, he’s a local partner and we met a bunch of times kind of talking and over wanted to work together. So he’s kind of the operations side of things. And so he found a couple other deals actually. So a 32 unit and then a 56 unit local. And so we’ve done those now.

Dave:
So can I ask you how you met on BiggerPockets?

Benjamin:
So he found me just on the forums. So I am active on the forums. I like answering questions. I think even starting out, just if that’s something that you want to do, just get in there and ask a question or maybe you have an answer to a question. Just get yourself out there as just being helpful. I think that’s all you got to do. Don’t say I want to do a syndication. I mean I guess you can say that, but people don’t normally have a lot of advice for that. But they do have advice. If you have that issue and some problem and solve it and it’s just a great community for being able to do that

Dave:
And it’s free, just go do it. Yeah, if you’re waiting to find a partner to answer a question, just go do that for free. Okay. I’m curious though. I talk to a lot of people and I hear about really interesting deals and partnership opportunities. How did you vet this person? Who approached you to partner with?

Benjamin:
Yeah, that’s a really good question because you have got to do that because you’re making million dollar decisions, multimillion dollar decisions and you don’t want to have the wrong person. So looked at his track record. And so both of us had a little bit of a track record at the time and I said, you got to open the books and show me. And I did the same for him. So look at the books now. I don’t know that there’s anything you can do to be a hundred percent certain, but one of the biggest ways to do it is just meeting multiple times and looking at the numbers. And if the person that you’re meeting with can explain those numbers, you have questions about, well, where did this money go here, whatever. Then that’s a good thing. That doesn’t mean they’re great, it just means that they’re not terrible because of that. But if they can explain that or there’s some other issue that you have that just they don’t give you a satisfactory answer, then that’s you’ve got to be, what do they say? Slow to hire, quick to fire. Exactly. Yeah. So kind of the same way with a

Dave:
Partnership. Be patient. Yeah, for sure.
I love that advice about opening the books. I think that’s super important to just dig in. How profitable, how have you operated your business? Especially with these large syndication deals where these are more complex deals, the operations are more complex, the financing’s more complex, the lack of liquidity, the additional investors, like you got to see if the people can do it at that point. I think if you’re partnering with someone on your first single family, it’s a little bit different, but I think that’s excellent advice there. So what are the syndications, are you in South Dakota still and how are deals looking there? Multifamily is all over the place these days.

Benjamin:
Yeah, totally. Everything’s in South Dakota except we just closed on one in North Dakota, up in Bismarck. But yeah, it’s slowed down because well deals are in any market, so you can find it whether the interest rates are up or interest rates are down. But when the interest rates go up at the start of that curve, I think it becomes harder. And we notice that because sellers have this vision of what it was like a year ago or two years ago, how great it was. And people are paying all these top dollar and they want that top dollar, and so they’re going to go on the market for that. And they just haven’t realized that those aren’t selling. So it takes a while for that mentality to kind of change. And I think it has to a large degree now. So we had a dry couple of years where we didn’t do anything. But that’s another thing about a syndicator is that you really don’t want ones that are just all the time going all the time going. You want to know ones that are really taking the time to find the right one, and sometimes it’s going to be a dry time and that’s okay. Totally

Dave:
Agree.

Benjamin:
And so now I think that it’s starting to come back. We bought this last one was Bismarck was 226 units now. So we really went big. You went big, okay. Closed in August and we’re stabilizing it right now.

Dave:
Awesome. Good for you. So tell me, was this deal on the market a long time or how’d you find it?

Benjamin:
It was an off market deal. Another one found by my partner Austin and his group. So he’s just great at, I’m not so good about finding deals. I’m much better with the investor side of things. So that’s another great synergy. Don’t find somebody that does the exact same that you do because why would you need anybody to help there with that? So he found this, so he was just looking up in the area, knew some property management companies that were in the area, knew some brokers, and just talking to people, just networking. And he’s fantastic with that.

Dave:
No, that’s awesome. Good for you. Alright, well Benjamin, thank you so much for sharing your story with us. This was a lot of fun and congratulations on your success. If anyone wants to connect with Benjamin, we’ll put his contact information below, but it sounds like we can find you on the BiggerPockets forms at the very least.

Benjamin:
Sure

Dave:
Can.

Benjamin:
Yeah. Thank you for inviting me onto the show. It’s been an absolute pleasure and a dream of mine for many years.

Dave:
Oh, that’s great. Well, thanks again, Benjamin. This was a great, fun conversation. And thank you all so much for listening. We’ll see you soon for another episode of the BiggerPockets Real Estate Podcast.