Ed Hermsen's guest appearances

Ed Hermsen

Financial Freedom with Real Estate Investing

Pat Flynn

Todd Dexheimer

Paul Moore

Rod Khleif

Vinney Chopra

J Scott

Tim Bratz

Tom Wheelwright

Ken McElroy

Kira Golden

Hal Elrod

John Cohen

Ellie Perlman

Victor Menasce

Corey Peterson

OwlTail

Multifamily Goals

According to the Law of the First Deal, a multifamily investor who buys their first apartment building will do their second and third deals in rapid succession, achieving financial freedom in just a year or two. But there is an exception to every rule, and Ed Hermsen is the ONE investor I know who did his first deal—and then life got in the way. So, what can he teach us about keeping momentum and staying committed to our multifamily goals? Ed grew a portfolio of single-family rentals while working as a mortgage loan officer in Fort Collins, Colorado. Five years ago, he started studying multifamily and eventually partnered with a close friend on a 22-unit deal in Pensacola, Florida. After revisiting his goal to retire by 50, Ed realized he needed to recommit to multifamily, and in the last two years, he has leveraged the partnership model to build a portfolio of 210 units and quit his job with real estate! On this episode of Apartment Building Investing, Ed joins me to describe how a 9-to-5 in mortgage banking inspired his real estate investing career and share his secrets to successful multifamily investing with partners. He discusses what made him the sole exception to the Law of the First Deal, explaining why there’s a four-year gap between his first and second deal and what finally inspired him to get back in the game. Listen in for Ed’s insight on the value of accountability and learn what YOU can do to stay committed to your multifamily goals. Key Takeaways How Ed got into real estate  Work in mortgage banking exposed to wealth-building potential Bought SFH rental every year to build portfolio of 10  What inspired Ed to pursue financial freedom with multifamily  Never off clock, have to take calls (even on vacation) Rely on real estate agents + economy for livelihood  Ed’s first multifamily deal  Friend found 22-unit in Pensacola, FL in 2015 Bought for $740K, valued at $1.5M now No distributions first year (units in bad shape) Challenge to manage vendors from afar  Ed’s second multifamily deal  Purchased 88-unit in Wyoming with 3 partners Lead from attorney handling family dispute Great loan from local bank, refinancing now  How Ed found his partners  Kids go to school together Clients from mortgage business  Ed’s insight on building successful partnerships  Accountability and clear division of labor Invest in attorney to do operating agreement  What made Ed the exception to the Law of the First Deal  Went back to buying fourplexes Fell back into 9-to-5 routine  Ed’s advice around staying committed to your multifamily goals  Write down goals and revisit every morning Build in accountability with mentor or coach  Ed’s latest multifamily deal  Bought 100-unit deal in Tulsa, OK with 2 partners Establish relationships with local bank and realtor Must follow housing authority rules  What’s next for Ed  Put 22-unit on market Look for deals in Oklahoma Learn more about syndications  Ed’s advice for aspiring multifamily investors  Build good team Get educated on markets Get first deal done  Connect with Ed Hermsen Email edhermsen14114@gmail.com Resources Purchase the Replay of Deal Maker Live Learn More About Michael’s Mentoring Program Fellowship of Christian Athletes Hal Elrod The Miracle Morning: The Not-So-Obvious Secret Guaranteed to Transform Your Life (Before 8AM) by Hal Elrod The Ultimate Guide to Buying Apartment Buildings with Private Money Syndicated Deal Analyzer BiggerPockets The Miracle Equation: The Two Decisions That Move Your Biggest Goals from Possible, to Probably, to Inevitable by Hal Elrod LoopNet CREXi Podcast Show Notes Michael’s Website Michael on Facebook Michael on Instagram Michael on YouTube Apartment Investor Network Facebook Group

According to the Law of the First Deal, a multifamily investor who buys their first apartment building will do their second and third deals in rapid succession, achieving financial freedom in just a year or two. But there is an exception to every rule, and Ed Hermsen is the ONE investor I know who did his first deal—and then life got in the way. So, what can he teach us about keeping momentum and staying committed to our multifamily goals? Ed grew a portfolio of single-family rentals while working as a mortgage loan officer in Fort Collins, Colorado. Five years ago, he started studying multifamily and eventually partnered with a close friend on a 22-unit deal in Pensacola, Florida. After revisiting his goal to retire by 50, Ed realized he needed to recommit to multifamily, and in the last two years, he has leveraged the partnership model to build a portfolio of 210 units and quit his job with real estate! On this episode of Apartment Building Investing, Ed joins me to describe how a 9-to-5 in mortgage banking inspired his real estate investing career and share his secrets to successful multifamily investing with partners. He discusses what made him the sole exception to the Law of the First Deal, explaining why there’s a four-year gap between his first and second deal and what finally inspired him to get back in the game. Listen in for Ed’s insight on the value of accountability and learn what YOU can do to stay committed to your multifamily goals. Key Takeaways How Ed got into real estate <ul> <li>Work in mortgage banking exposed to wealth-building potential</li> <li>Bought SFH rental every year to build portfolio of 10</li> </ul> What inspired Ed to pursue financial freedom with multifamily <ul> <li>Never off clock, have to take calls (even on vacation)</li> <li>Rely on real estate agents + economy for livelihood</li> </ul> Ed’s first multifamily deal <ul> <li>Friend found 22-unit in Pensacola, FL in 2015</li> <li>Bought for $740K, valued at $1.5M now</li> <li>No distributions first year (units in bad shape)</li> <li>Challenge to manage vendors from afar</li> </ul> Ed’s second multifamily deal <ul> <li>Purchased 88-unit in Wyoming with 3 partners</li> <li>Lead from attorney handling family dispute</li> <li>Great loan from local bank, refinancing now</li> </ul> How Ed found his partners <ul> <li>Kids go to school together</li> <li>Clients from mortgage business</li> </ul> Ed’s insight on building successful partnerships <ul> <li>Accountability and clear division of labor</li> <li>Invest in attorney to do operating agreement</li> </ul> What made Ed the exception to the Law of the First Deal <ul> <li>Went back to buying fourplexes</li> <li>Fell back into 9-to-5 routine</li> </ul> Ed’s advice around staying committed to your multifamily goals <ul> <li>Write down goals and revisit every morning</li> <li>Build in accountability with mentor or coach</li> </ul> Ed’s latest multifamily deal <ul> <li>Bought 100-unit deal in Tulsa, OK with 2 partners</li> <li>Establish relationships with local bank and realtor</li> <li>Must follow housing authority rules</li> </ul> What’s next for Ed <ul> <li>Put 22-unit on market</li> <li>Look for deals in Oklahoma</li> <li>Learn more about syndications</li> </ul> Ed’s advice for aspiring multifamily investors <ul> <li>Build good team</li> <li>Get educated on markets</li> <li>Get first deal done</li> </ul> Connect with Ed Hermsen Email <a href="mailto:edhermsen14114@gmail.com" rel="noopener">edhermsen14114@gmail.com</a> Resources <a href="https://dealmakerliveevent.com/" rel="noopener nofollow" target="_blank">Purchase the Replay of Deal Maker Live</a> <a href="https://themichaelblank.com/mentor/" rel="noopener nofollow" target="_blank">Learn More About Michael’s Mentoring Program</a> <a href="https://www.fca.org/" rel="noopener nofollow" target="_blank">Fellowship of Christian Athletes</a> <a href="https://halelrod.com/" rel="noopener nofollow" target="_blank">Hal Elrod</a> <a href="https://www.amazon.com/Miracle-Morning-Not-So-Obvious-Guaranteed-Transform/dp/0979019710" rel="noopener nofollow" target="_blank">The Miracle Morning: The Not-So-Obvious Secret Guaranteed to Transform Your Life (Before 8AM) by Hal Elrod</a> <a href="https://themichaelblank.com/the-ultimate-apartment-investing-guide" rel="noopener nofollow" target="_blank">The Ultimate Guide to Buying Apartment Buildings with Private Money</a> <a href="https://themichaelblank.com/syndicated-deal-analyzer/" rel="noopener nofollow" target="_blank">Syndicated Deal Analyzer</a> <a href="https://www.biggerpockets.com/" rel="noopener nofollow" target="_blank">BiggerPockets</a> <a href="https://www.amazon.com/Miracle-Equation-Decisions-Possible-Inevitable/dp/1984823701" rel="noopener nofollow" target="_blank">The Miracle Equation: The Two Decisions That Move Your Biggest Goals from Possible, to Probably, to Inevitable by Hal Elrod</a> <a href="https://www.loopnet.com/" rel="noopener nofollow" target="_blank">LoopNet</a> <a href="https://www.crexi.com/" rel="noopener nofollow" target="_blank">CREXi</a> <a href="http://www.themichaelblank.com/session225/" rel="noopener nofollow" target="_blank">Podcast Show Notes</a> <a href="http://www.themichaelblank.com/" rel="noopener nofollow" target="_blank">Michael’s Website</a> <a href="https://www.facebook.com/themichaelblank/" rel="noopener noreferrer nofollow" target="_blank">Michael on Facebook</a> <a href="https://www.instagram.com/themichaelblank/" rel="noopener noreferrer nofollow" target="_blank">Michael on Instagram</a> <a href="https://www.youtube.com/user/ApartmentInvesting" rel="noopener noreferrer nofollow" target="_blank">Michael on YouTube</a> <a href="https://www.facebook.com/groups/apartmentinvestor/" rel="noopener noreferrer nofollow" target="_blank">Apartment Investor Network Facebook Group</a>

MB 225: How to Stay Committed to Your Multifamily Goals – With Ed Hermsen