All Forum Posts by: Ashley Wilson

@Henry Clark @Jay Hinrichs This post was never meant to be about me as a Coach...notice my original post. It was actually about my reluctance to join a program,the reason why I ultimately joined one, and the benefits it provided to me. Trying to hypothesize if I had a hidden agenda clearly shows you know nothing about me...which @Jay Hinrichs, you should know at this point as you have commented on my previous posts over the years. The only reason I brought up that I coach in a comment was because I disagree with Henry's approach based on significant experience. Further, I actually referred another coach in one of my comments, and never hyped my own program. If you want to know what I coach or my program, a simple Google search will provide the information. Further, you can ask any student I have individually or privately coached, and I am sure they will agree that I have done nothing but championed for their success.  

@Ryan Irwin thank you! I was actually just talking to a student who joined less than a week ago, but it just so happened to coincide with our goal setting/accountability call. I gave this student direction on finalizing their goals, but also some other steps they could take. Not only have they taken all of those steps, they have taken subsequent steps in less than a week. We have been talking back-and-forth and I am convinced that his action is going to lead to him achieving his annual goals in 3 months. Consistent action is the name of the game when it comes to achieving success. 

@Alecia Loveless I am sorry you had the first two experiences. Our program teaches people how to buy small to large apartments, but we don't pressure people to buy large apartments. I think the best way to safeguard yourself for situations like this is to ask for referrals of current students who joined for the same reason you are interested in learning. If the group doesn't have at least one person who matches the reason you want to join, it is likely that is not their focus. 

With respect to AJ, he is a good friend of mine and I highly recommend him too. I know his program has had a lot of success too.

@Henry Clark I respect your perspective, however in my experience (I have coached over 200 students) the majority of students don't know where to start to analyze a deal. Also, for people who wish to pursue larger real estate ventures, you don't personally need to be able to analyze a deal, and can possibly partner with someone who does or even hire an underwriter. In my experience, there are a range of starting-off experiences, but one's experience is not always indicative of someone's desire/drive/commitment to pursue and thrive in real estate.

@Maria McNally I looked at a few groups, but I think what was more important was analyzing what I wanted/needed and then seeking coaching groups that matched.

Joining a coaching program is a big decision for any real estate investor. Whether you’re just starting or looking to scale your portfolio, a coaching program can provide valuable guidance—but it’s not without its downsides. As someone who’s spent years building a real estate business from the ground up, I’ve seen both sides of the equation. Here’s an honest breakdown of the pros and cons to help you determine if investing in a coaching program aligns with your goals.

Pros of Joining a Coaching Program

The most obvious advantage of joining a coaching program is access to experienced mentors. These individuals have often walked the same path you’re on and can provide insights that save you time, money, and stress. Instead of learning through trial and error, you learn from someone else’s mistakes. This will hopefully allow you to leapfrog your way to success!

Another obvious and much-needed benefit of a coaching program is having someone hold you accountable. This can be the difference between setting goals and achieving them. A good coach will push you to take action, focus on the action that creates traction, stay consistent, and follow through on your commitments.

Real estate tends to attract people who have shiny object syndrome. It’s a blessing (the reason you found real estate in the first place) and a curse (you probably get distracted easily on what asset class to focus on). Since it is easy to feel overwhelmed a coaching program provides a clear, step-by-step framework that helps you focus on what matters most. Instead of piecing together information from random online sources, you get a cohesive learning experience.

When you have a coach in your corner, it can significantly boost your confidence. Knowing you have someone to turn to for advice and validation can make navigating challenges feel less intimidating.

The most underrated benefit of joining a coaching program is the networking. Many coaching programs include group sessions, masterminds, or events where you can connect with other like-minded investors. Building relationships with people in the sam

Cons of Joining a Coaching Program

Coaching programs can be expensive, ranging from a few thousand dollars to six figures. While the right program can provide a strong ROI, it's crucial to evaluate whether the cost fits within your budget and aligns with your current investment goals.

Not all coaching programs are created equal. Some are led by seasoned investors with a wealth of knowledge, while others may be run by people with minimal experience. Do your homework before committing to ensure you’re getting real value.

Joining a coaching program requires both time and effort. If you’re not prepared to put in the work, even the best coach in the world won’t be able to help you. Be honest with yourself about whether you’re ready to prioritize your education and growth.

While guidance is valuable, it’s important to maintain your independence as an investor. Over-relying on a coach for every decision can hinder your ability to develop critical thinking skills and confidence in your own judgment.

A coaching program is not a magic pill. Success still depends on your effort, discipline, and ability to execute. If you’re expecting a coach to do the work for you, you may end up disappointed.

How to Decide if a Coaching Program is Right for You

Before investing in a coaching program, ask yourself these questions:

• What are my goals? Be specific about what you want to achieve and whether a coach can help you get there.
• Can I afford it? Consider both the financial cost and the time commitment.
• Have I researched the program? Look for reviews, testimonials, and case studies to gauge the program’s effectiveness.
• Am I ready to put in the work? A coaching program is a partnership, and your success depends on your willingness to take action.

Final Thoughts

A coaching program can be a powerful tool for accelerating your real estate investing journey. But it’s not for everyone. Personally, I started investing in both single-family and multifamily without joining any coaching programs. To be honest, in the beginning, I was so against coaching programs when I first started in real estate. Why? I was convinced if all of these Coaches were able to grow their real estate businesses without joining coaching programs, I could too.

A year into my multifamily journey everything changed. I came across a program that convinced me that the program’s tools alone were worth the cost of joining. So, I joined. In just a few months, I connected with several partners that I still partner with today. These partners and opportunities helped me grow my wealth by seven figures.

I recognize this is not everyone’s experience. In fact, I think being skeptical about coaching programs allowed me to be very critical on each program that was presented to me. I think this perspective is what ultimately led to the right program for me that aligned with my personal and professional goals. Remember, no matter what path you choose, consistent action and a commitment to learning will always be the foundation of your success.

@Dominic Mazzarella agree. You don't always have to incentivize a tenant with a discount to get the tenant to stay, nor keep rents stagnant, but it is good to be aware of the business impact with respect to cost too.

Whenever I hear anyone talk about managing occupancy, there is always a heavy focus on leasing. Marketing, virtual leasing, ai bots, and screening are just a few popular topics. While leasing is the front door to maintaining a property’s occupancy, renewing tenants is the back door. In other words, you may be great at leasing, but if you can’t keep your tenants your occupancy will forever be a revolving door.

It may surprise you, but we have always operated under the premise that renewals make us more money than new leases. Why? Simply put the risk of a non-renewal costs more. Don’t believe me? Let’s look at the math.

Pre-Covid, the National Apartment Association (NAA) released data showing that the average renewal costs between $5,000-$10,000 per unit. If you are like me, you are shocked and in disbelief that figure is accurate. However, it adds up quickly if you analyze the cost of turning the unit, marketing, vacancy loss, and your team's time to find a new tenant. And remember, this is Pre-Covid dollars too!

Looking at this mathematically, if you assume a 50% non-renewal rate (industry standard) and use the low end of the range of $5,000 per non-renewal, there is a loss of $50,000 per year on a 20 unit property. Further, assuming a 5 cap market, that would be a loss in evaluation of $1,000,000 ($5,000 x 10 non-renewing units for the year / .05 (cap rate)). Alternatively, you would need to drop your rents by $500 or more to have the same impact on your cashflow and your value.

Now that you know this little secret (that most don’t), you can make informed decisions when it comes to increasing rents for new leases and renewals. As raising rents often comes with an increased vacancy exposure risk with renewals, it may not always be the best strategy. We can all agree rising operating costs dictate revenue needs to offset expenses. However, if you minimize your vacancy exposure, you may find (just like I have witnessed for years) that it is a much easier and more beneficial strategy. Note, this is not a longterm strategy. We typically alter our strategy seasonally, as demand shifts with the seasons. This allows us to participate in both pushing rents while also limiting vacancy exposure.

In the spirit of Goal Setting, here are my top 5 Tips for ensuring you set goals with the highest probability of success.

1. Problem: So what? - At a high level often people set goals that don’t align with their overall life goals. For example when someone wants to have financial freedom and spend more time with family, but then sets a goal by creating a heavy active income stream that involves their personal involvement daily. In essence, they created another job for themselves. Even if they were to achieve this goal, they get demotivated with burnout and the eventual realization they aren’t working towards their goals, but away from them.

Solution: First define your life goal. A little trick I like to do when helping people with figuring out this question is to think about what their perfect day looks like. Then build a life and set goals around increasing the number of perfect days you have each year, instead of decreasing them.

2. Problem: Alignment - this is hands down the most common mistake that I see. People set goals with one metric and milestones with another. Having milestones (or checkpoints) is needed when having larger goals to ensure you are on track and keep you motivated. The problem comes into play when those milestones are not good indicators of one’s progress towards a goal. For example, let’s say someone sets an annual goal of cash-flowing $120k ($10k/month) a year in passive income, and then sets a quarterly milestone of acquiring 20 units. In this example, the person could acquire 20 units a quarter and not hit their annual goal. Solution: Use metrics that are consistent between your annual goals and quarterly milestones. Taking the earlier example, if you want to cashflow $120k a year, one way you could break it down is by setting a monthly target of acquiring one asset a month that cashflows $10,000. This allows you to focus on finding properties that align with your overall goal.

3. Problem: Too many goals - personally, I feel that the ideal number of annual goals is three. Often people set too many goals which always reminds me of the Chinese proverb, “If you chase two rabbits, you will not catch either one.”

Solution: In the hundreds of people I have coached and mentored, having a smaller set of annual goals has not only correlated with a greater success rate but also a faster timeline of achieving those goals.

4. Problem: Set & Forget - Most people know the importance of an accountability partner when it comes to goal setting. Often people meet at the beginning of the year and report on achievements to date. Very few analyze the ROI of their efforts and adjust their strategy of achieving their goals at each meeting. And even fewer people seek to improve their ROI on BOTH the things they are not achieving and the things they are achieving. This often leads to complacency which is seen by the trail off of attendance at these meetings.

Solution: You are not going to like what I am going to say here, but it really comes down to your self-discipline, which is why this is probably the hardest aspect of achieving your goals. If you struggle with this, it is even more reason why making sure you follow all of the other tips I have provided is critical to increasing your chances of hitting your goals.

5. Problem: Not having a mentor - piggybacking on the concept of an accountability partner, most people underestimate the value of a mentor. Whether an individual consultant or a mentor through a program, mentors provide the foresight and support you eventually need because of their experience. This contrasts greatly with most accountability partnerships, as a mentor is typically more respected as an authoritative figure. This is why mentorship can be so powerful in helping people achieve their goals.

Solution: Get yourself a mentor. You can opt for an informal or formal (paid) mentor. While not every mentor is a guaranteed path to success, proper vetting through referrals, review of a mentor’s track record, and alignment between the mentee and the mentor can shine some light on whether or not this relationship is a good fit. At the end of the day, mentors matter…especially if you pick the right one!

Every year 70-79% of adults set goals, with only 36% pursuing them past January and a depressing 6.5% past June. With only 6% of people achieving their goals, why even set them in the first place? Could I change your mind if I told you that 80% of people who work with mentors achieve their goals? But, I didn’t write this to tell you that you can’t achieve your goals without a mentor, because you absolutely can. While your chances are higher if you have a mentor, your chances will also increase if you execute tips 1-4. Like anything, everyone is different. Some people are so motivated to achieve their goals and will stop at nothing to achieve them. Others have goals that they would like to achieve but don’t have dire consequences if they don’t. Pick a strategy that works for you, and If you are truly motivated to achieve your goals, then following these tips could have 2025 be your best year yet!

Two Disclaimers: 1. Before everyone comments there is more to underwriting than projecting exit cap rate and it varies by market, know that I already know that, and this post is regarding a general concept and a question posed get your thoughts. 2. I originally posted this a year ago and I am happy to share the results in a comment on this post, but before I sway anyone's opinion I would love to hear your thoughts...

So with that said, historically the industry accepted standard for underwriting a projected exit cap rate is the market stabilized cap rate plus a 10 bps for every year held. The reason for this is because there is a possibility for interest rates to expand and/or market conditions to soften. For example if you are buying a value-add property at a 4 cap, but the market stabilized cap is a 5, and you are holding for 5 years, you would expand the cap rate to a 5.5 exit cap. (I am not saying that is how everyone does it, but that is a general industry accepted standard). This industry standard has been adopted over the past several years, and during that same tenure cap rates have compressed mainly due to a decrease in interest rates. In other words, using that same example above, when people have recently exited they were able to exit at 4.75 or lower in some cases! I have continually preached (since 2018) that cap rate compression (and interest rates) is what landed the historic 20+IRR returns, not operations, which is why so many people have been, and are still, in hot water right now with being forced to perform via strong operations.

Today, we find ourselves in a much different situation. As interest rates continue to hold steady at an inflated rate, cap rates continue to as well. The question is whether or not the interest rates will continue to rise, stabilize or (dare I say) fall. I don't have a crystal ball so I don't know the answer, but I would suspect at some point over the next 3-5 years the interest rates will come down again. That period of time also just happens to be the industry standard hold period for a value-add. So the question I have for all of you, is if you believe the same to be true how do you underwrite the exit cap? I think we could all agree there are basically three answers:

A) Stay the course - keep adding 10 bps for each year held based on stabilized market cap rate

B) Take a little risk - use the current market stabilized cap as the exit cap too

C) Throw caution to the wind - use a cap rate that is less than the current market cap (*If you pick this answer what method are you using to predict a cap rate)

Which answer would you pick and why? Can't wait to hear your thoughts!!