I Quit My Restaurant to Invest in Apartments Full-time!

[Gino Barbaro]

I have owned my restaurant for 23 years, and the passion for the business dissolved back in 2008. The economy tanked and I just had my fourth child. I wanted to have more family time and a more flexible work schedule.

I owned a few investment properties, but it seemed as if the investments weren’t going well. I had made some HUGE mistakes, but was determined to change the outcome.

The moment that changed everything for me was 1. Finding a real estate coach 2. Partnering with Jake. I had the same limiting beliefs as most investors do. Can’t invest outside your market. Stay small. Manage your own properties.

I was basically running my real estate business like my restaurant. I’ma do everything, and unfortunately I couldn’t do everything. I decided to enter Dave Lindahl’s coaching program and immerse myself in education. One of the best decisions ever. Find the right mentor, pay him or her, and act!

The turning point in my investing came when my partner moved to Knoxville, TN and we bought our first 25 unit property after 2 long years of constant rejection. We got owner financing and a ton of education. But we were hooked.

We bought a 36 unit property 6 months later, and 6 months after that we purchased a 136 unit property with a third partner. Here was our enlightening moment. Partnership allowed us to grow our business and buy bigger deals and bring unique skill sets to the deal.

In the past year, we have purchased 281 units with seller financing, 16 units and 156 units. It has allowed me to “quit” my restaurant and pursue real estate full-time.

Was I scared? You bet! I am a control freak who has six children to feed. Did I want a change? YES! I finally became sick of my situation and acted.

I think anyone who wants to achieve anything has the ability to. You need to know why you want it and then find someone who has done it. This is my formula for life:

Thought=Desire=Massive Action=Result.

Once I realized what I wanted, I kept it as a desire and went to work every to achieve it.

I know everyone on BP can attain any goal they set for themselves. Make it crystal clear to yourself what you want and don’t be afraid to make mistakes.

I would never have been able to buy 675 units in three years if I didn’t have that burning desire.

I now wake up looking forward to going to work. That’s what I was always looking for.

Hope this inspires you to dream big!

Gino

[Gino Barbaro]

@Stephen Moore

Hi Stephen

The first property cost 600,000, 10% owner financing, 10% down payment (85,000 between 3 partners) and 80% bank financing.

2 1/2 yrs after acquisition, we refinanced the property.  Value was 800,000, much better terms and we extracted 160,000 in equity split amongst 3 partners.  There was a lot of heavy lifting, tenant repositioning, fix up.. We are just wrapping up the outside work with some of the refi money.

The second deal was similar, we all put down about 40,000, and we refinanced this deal also one year after purchase.  We pulled out almost as much as we put in, an the loan payment stayed the same because of the better terms.

The 136 units, we scratched and clawed for every nickel.  The broker even held part of his commission for part of the down payment.  I knew this deal was a deal of the decade,so I had to do everything possible to get into it.

WE bought it for 4.075 million, 20% down.  18 months later, we refinanced with a 6.5 million value, pulling out 1.6 million dollars to be distributed amongst the partners.  We are using this equity to finish cap ex repairs and to fund further deals

the 281 unit property was unique.  11 million price, with 20% owner financing and 80% bank financing.  We solved a huge problem for the sellers.  They wanted to retire and not take back the property.  We had a track record and the great relationship with a bank who understood our business plan.

It's taken a while, but it all started with one small 25 unit investment

Gino