012:  Our 2021 Investment Lessons 〰️ And Our Plan for 2022

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Quick question as we jump into this new year, at what point do we stop telling people “Happy New Year”? After a couple of days, or after one full week of onboarding into the new year? If the past two years have taught us anything, it’s that we all need an orientation on how to act.

One thing we can all agree on is that 2021 is done and over. For some of you, we can hear those sighs of relief, and for others, maybe 2021 was one of your best years yet‼️🤩

For us, there was no mistaking that 2021 was a big year for us. We definitely had major wins and there were moments of fear thrown in there as well. Ya know, to keep things interesting. We all know life isn’t completely smooth sailing! In today’s episode, we are recapping some of our best moments, letting you in on some behind the scenes, never before shared stories of this past year and what we’re implementing for the new year to make 2022 even better in the Kitti Kingdom! 👑

Since everyone loves a good highlight reel, here are some of our big wins from 2021. We had a record-breaking 2.85X equity multiple at one of our complexes, in 🌵Phoenix, Arizona. Our passive investors were pretty stoked about that one since the property itself held for only 27 months. We had 4 large apartment complexes acquisition in multiple states, with over $30M+ in tax savings for passive investors, and upped our net worth by 3x. ✨

So let’s take a deeper dive at all of the incredible wins from this year and you get hyped about our 2022 plans. After all, you’re a part of them!

2.85X Equity Multiple 

You know the saying: Under-promise and over-deliver. And that’s exactly what we did as one of our biggest highlights from 2021. We originally informed our passive investors of a 2.15X equity multiple in 60 months. 

Cue record scratch moment… 💽

And then we delivered on a 2.85X equity multiple in just 27 months. Making a promise, keeping a promise, and delivering on that promise is super important to us and that’s why when you invest with us, we keep you at the forefront of our minds. 

Honestly, even worth more than the return, is receiving all of the amazing emails, texts, DMs, and phone calls we get from our investors once that amount hits our investor’s accounts. There really isn’t a better feeling than knowing you exceeded people’s expectations and they couldn’t be happier. It’s seriously one heck of a serotonin boost for us! 

Not to jump to 2022, but we also just sold Regency Oaks – a-100-unit in Fort Worth, delivering 1.5x equity multiple in 20 months vs the projected 1.7x equity multiple in 60 months.  We’ll talk a little more about this in another episode.  How we acquired this apartment complex during the beginning of the lockdown/shutdown mode. During those dark time…

At the end of the day, no matter how many times we said a property is going to do well, or it’s under contract for sale, or it’s on the verge of closing, nothing says it better than when we actually sell the property and return our investors their principals plus interest. I mean we talk a lot, but money talks way more. And no one knows that better than our investors. 

We acquired 4 large multifamily apartment complexes in Texas and Georgia and raised over $36M from passive investors while simultaneously saving them over $30M in tax savings. And that’s just the beginning. Knowing we are able to support people’s dreams, get them closer to financial freedom and then see numbers like this, always brings us back to the heart of why we do what we do. 

4X Acquisition 

We walked in 2021 like we were walking on eggshells. I mean, who wasn’t? After the onslaught of unknowns that happened in 2020, it really got us to dig deeper and fine-tune our strategies for entering 2021.

If 2020 was going to beat us, then we were going to enter the ring of 2021 with more swiftness, power, and punch. This really was our training sequence scene that is necessary for any powerful return to fight. Ya know, just when you think the main character is down on their luck and then you watch them prepare for the inspiring and motivational come back? Think Elle Woods during her first semester at Harvard. 😝😝

So when Q1 of 2021 came by we were ready for the off-market deal under contract. And this opportunity rode in at just the right time.  The apartment complex is located in Fort Worth TX and standing tall at 192 units. This came to us a little unconventionally too. There was no competition, no 1031 exchange, and no pricing bidding war. It was just us and the seller. 

Is anyone else picturing a desert Western scene? Us on one side, the seller on the other? Nothing but a tumbleweed rolling by as our witness to this deal. And our weapon of choice is a fountain pen itching to sign.

But, this definitely isn’t a duel. You see, so much of apartment investing is based on relationships. 🧡🧡 For this deal, we personally knew the seller and had the immediate advantage. We were his first call and awarded us the deal even though he knew he could have gotten millions more going to someone else.

But you know what he wouldn’t have gotten with if he went with someone else? These record-breaking returns.

The seller originally wanted $17M+ and we snatched the deal under $17M. Of course, now he likes to joke that we ‘stole’ the complex from him and wants it back. What can we say? Everything we touch turns into gold. ✨

In Q3 of 2021, we acquired another 272 units located in Arlington TX.  This acquisition value has already gone up over multiple 7-figures before we even closed the deal. And we’ve been able to achieve market rent leases without upgrading the interior. More on the deal and less work on our end? Done and done.

Now enter Q4 of 2021 and we acquired 2 more large apartment complexes. That first property is our first foray into the super HOT Atlanta market, this property has 244 units and the second is another apartment complex in Atlanta, this one is 200 units. Expecting to close in Q1. 😗😗

Then, just last month in December of 2021 we sat down with the broker who sold a 244 unit in Atlanta Georgia to us. And this man spilled all the tea, informing us that the property had already gone up to you knew it multiple 7-figures as well in less than a month of ownership. We are still projected to exit in 5 years, but if possible, we’ll always exit sooner. 😉

Speaking of getting the heck out, we also had a couple of fears running through our minds last year as well when it came to the 200 unit apartment complex we got under contract in early Dec of 2021.  As we were entering the Holiday season, we started to ask a lot of questions ➡️ Should we host a webinar talking about this complex right before the holiday craze? How many people would actually show up when priorities are with their own families? Simply put: We were afraid our investors would be too busy to invest with us during the last quarter of the year.

It even got to a point where the two of us seriously contemplated pushing the investment opportunity until mid-January of 2022. Wait out this Holiday season and carry it on into next year.

Buuuuut we decided to push for it anyway, and we are so glad we did. Franklin D. Roosevelt once said long ago “Courage is not the absence of fear, but rather the assessment that something else is more important than fear.” 

Okay, yes this was also quoted by Julie Andrews in the iconic 2001 teen movie, the Princess Diaries but you get our point. And more than that, we weren’t giving our investors a chance to be a part of something that we knew was going to move them closer to their financial goals for themselves and their families. 

And you know what?  This 200 unit apartment complex is one of our biggest deals to date in terms of dollar value. Coming in at $40.2M and we got an overwhelming number of passive investors who wanted in and were willing to bet on us. So Holidays or not, savvy passive investors never shy away from a great deal.  🥳 It truly is the gift that keeps on giving!

$30M in Tax Savings 

This is a huge one for us.  Because it’s never about how much money we make, it’s about how much money we help you keep. This year we were able to help our passive investors cumulatively save over $30M in tax savings.  

Uh, should we say it again for the people in the back? $30M in tax savings! Taxes? Savings? Yes, the two can co-exist. And you can be the benefactor. 

You see, the more apartments you invest in, the more we’re able to help you save on taxes. Apartment investing has so many tax benefits unlike other asset classes, where you pay tax on the capital gain. 

3X Our Net Worth 

Here you were probably thinking net worth is only for the famous. Not necessarily. It can be for the everyday people who know how to make their money work for them. 

The cherry on top of this was that we actually implemented fewer workdays and tripled our net worth. We literally worked less and made more at the same time!

We are not just proud of our chart-topping year in terms of net worth, but more so how we really took back our time and created systems in order to do so. Remember, our training sequence scene? This is the fruit of all our labor.  

In 2021 we started to implement the 4-day work week so that we can dedicate Fridays to learning or just resting and it’s paid off (literally).

And we can’t wait to do the same in 2022.

In 2022 we will no longer be afraid of placing ourselves in certain roles, we are here to take up space!  We will be focusing our energy to go towards the bigger picture and the bigger game plans. We only have one direction, and that’s up. 

In Conclusion…This is Just the Beginning 

Honestly, we’ve been hitting some Beyonce-style numbers and breaking records like her too. Not that we could ever be her, all hail Queen 👑 Bey. But when it comes to the apartment syndication world, well, that’s where we like to reign.

Of course, this also means we have humility in heaps and that’s why we’re not walking out of 2021 without remembering our lessons and learning from them. One of the biggest ones– and this took us a little while– was in figuring out where and how we serve best. You know that we’re HUGE fans of delegation and systems, and we think that 2021 taught us that we can do even more of that if we learn to let go of always wanting to be in control. 

There go our fellow Type A’s, whimpering in the distance. We know it sounds scary, but ultimately it makes us so much better. We really want to focus on building our apartment investing empire–ahem–the Kitti Kingdom. We know we can make an even greater impact so we’re getting laser-focused on acquiring the best apartment complexes, working with the best team members, and implementing even better systems so we can scale without any compromise. 

2021 was one hell of a year. As we look ahead as to what 2022 will hold, we pray that we continue to follow our gut instinct, lean into our intuition, and chase our dreams. We’re so excited about the way we used 2021 to be a launchpad for our best years yet. 

In 2022 we are going to continue to make strategic partnerships with amazing people, to be a leading voice in apartment operations, and to focus on creating a trustworthy, lifelong relationship with the people who help make all of this possible– you‼️

We’re really looking forward to an intentional year that isn’t about going full steam ahead but in being rest-filled, present, and strategic. If that sounds like something you want to be a part of, welcome, you’ve already begun your journey.

Lastly, don’t be afraid of doing the work of evaluating your 2021 too. If we don’t take the time to evaluate the present, we’ll never know how to improve our future. No, no dead President said that, that was purely us. 

Don’t forget to check out the free resources we have for you, like this one! The Ultimate Guide to Passive Income.

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