Why NOW Is the Best Time To Secure Your Financial Future

Why NOW Is the Best Time To Secure Your Financial Future | Kitti Sisters

039: Why NOW Is the Best Time To Secure Your Financial Future


Nancy:  Welcome to another episode of 🎙️ Cashflow Multipliers — the podcast dedicated to your financial freedom so you can start living the lifestyle you deserve. ❤️❤️

It’s Nancy Kitti here.  I’m so excited about today’s episode because we’re going to do something different.  And that’s… I’m going to interview someone who is no stranger to Team Cashflow Multipliers, she’s one of my favorite people in the world, my BFF, a smart savvy investor, and that’s no one other than your data cookie cruncher.  Without further ado, please help me welcome the infamous Palmy Kitti.  😎😎

Palmy:  Well, hello, hello there… this is so fun for us to do this.  To be on the other side, of the mic.  Seriously, I’m so excited for today, because today I’m going to get interviewed by you!  Thank you so much for having me.  

Nancy:  My pleasure.  Palm, our Cashflow Multipliers tribe is used to us just talking, sharing practical tips, tricks, and secrets to take baby steps in investing, and teaching them a thing or two about freedom, but nothing like this.  This episode is going to be one of my favorite episodes ever.

I can’t wait to ask you all these questions…

So, shall we dive in? 👀

Palmy:  Let’s do it.  

Nancy:  So I want to start with a big one because our past lives as fashion manufacturers and our current lives as apartment syndication experts are confusing to people.  What I mean by that is many people don’t understand how we made that transition.

Palmy:  You’re right.  🤟 We get asked that a lot, don’t we?  From textiles to taxes… it’s quite the leap! No doubt it was a big transition or major growth spurt in life.  But you know handling manufacturing aspects in some ways are very similar to dealing with property managers, vendors, contractors, tenants, etc. in both worlds we’re met with so much excitement and this beautiful, shimmering unfolding as we grow.

Nancy:  Another question we get asked often is “If you were to start from scratch, what would you wish to do differently?”

Palmy:  Heck, we have a podcast episode about this—EP026 What They Don’t Teach You About Apartment Syndication,  where we broke down the 3 things, we wish we did differently when starting our real estate journey.  

Nancy:  Palm, in that episode, we really didn’t hold back on anything as we look back from our early days in the apartment syndication world to today isn’t it?  

Palmy:  Yep, for sure… If we were to start from scratch, the first thing, we wish we would’ve started WAY earlier. You know what they say, you have to look at the past to better your present. And honestly? We were killing it as fashion manufacturers as our first career.

And while we were making a great income, we were also doing the thing we tell everyone who is within earshot not to do– trade your time for money.

Nancy:  Yes, yes, and on top of that, we were breaking another cardinal sin of ours, paying way too much in taxes.

Palmy:  For sure… and while friends who were living that W2 life had bosses to report to, we had clients to report to. And we would never compare who had it harder– managing clients in the fashion world is a different beast.

We were dealing with some in-real-life Miranda Priestly’s. Clients who would threaten us day in and day out to cancel their 6-figure order if you didn’t ship it on time. Meanwhile, the factory is on pause because of the Chinese New Year, not like they care. 

The second thing would be 〰️  buy more and more often. Did you know that wealthy people, when they sell their businesses, reinvest their profits into real estate? In fact, the wealthiest people have about 40% of their money in real estate.

🏢 Multifamily apartment sector!

Nancy:  Yep, the multifamily apartment sector is truly wealthy people’s number one strategy for building long-term wealth. 😵😵

Palmy:  So, even though you hear a lot of buzz around cryptocurrency or the never predictable stock market, those options may have the sizzle factors; however, we believe apartment investing can potentially yield higher returns, and that’s what the wealthy people love to invest in.

Another big lesson Nan was standing firm in our boundaries. The transition from no longer being available 24/7 all year round to working on our time was an adjustment. If you’re listening, thinking I can adjust pretty fast! Then we hear you.

There are so many ways to incorporate your own necessary boundaries that can keep you from overworking yourself and hitting burnout. Or worst of all, saying “yes” to a bad partnership that drains your energy rather than inspires you.

The truth is, when you start an apartment investing journey, you’re usually so passionate and on fire 🔥 that you find yourself becoming obsessed with winning deals and the feeling of progress. 

Or, maybe that was just us, but we doubt it. 

Take it from us, the feeling of success has got to be one of the most addicting feelings out there. When you’re balancing the pressure of doing your own thing on top of proving people wrong, the journey can become mind-blowing, but also hard. 🤯🤯

Nancy:  And, just to be clear, the ‘proving people wrong part’ was really just the cherry on top. It’s not like we sought out to break necks. 👅

Okay. now, I just want to geek out on all things underwriting, analyzing the deals because this is a conversation you and I talk about a lot throughout our days whether it’s via text message, voice text, face to face meeting, and all that good stuff, so now we’re just bringing it to the podcast 🎧 as well. 

And in the last year, there have been a lot of big changes in our underwriting strategy. So what do you think is important to know about those changes and how those changes affect the bottom-line for our passive investors if there’s any…?

Palmy:  Yeah. Before we jump into the underwriting updates we have implemented, I want to share the astonishing headlines about the multifamily sector…

Seriously, this is an exciting time for all of us. 

Nancy:  Absolutely. I totally agree with you.

Palmy:  So back to the geekier stuff that we love 🤓🤓, for sure the climate is different.  As we’re recording this, inflation is at a 40-year high. Russia has gone to war with Ukraine resulting in a massive humanitarian crisis, and the stock market has been volatile.  The 📝 underwriting needs to be pivoted to protect investor capital in this rising interest rate market.

The key to successful passive investing these days is to find a team who have the expertise and strategies in place that safeguard your investment. 

You’ve heard of disaster preparation, right?

Nancy:  Yes…

Palmy:  It’s the stockpiling of non-perishable goods, medicines, and other survival goods just in case that tornado blows 🌪️ through your town, or the big ‘quake comes.

Well, in turn, the same preparation and care for your finances and assets deserve just as much– if not more- prep and awareness.

Nancy:  So someone had recently just reached out to me, and they were like, “In a time like this we must invest in Class C asset class.” And the reason is that during a downturn, as markets contract, people are getting laid off and losing their jobs. As a result, people who have been living in Class A apartments started to move to Class B properties, from a Class B property to a Class C property, and so on. What’s your thought on it? 🙄🙄

Palmy:  Well, The Kitti Sisters would politely disagree with that way of thinking.  During this kind of climate, it’s even more important to invest in a newer asset class, with less deferred maintenance, and high rent growth area as the tenant profile is more affluent and can afford the rent increases.

New asset classes like Class A likely mean less vacancy, less delinquency, less deferred maintenance, and more items to write off for depreciation.  You know we are all about paying as little taxes as possible, right? 

Nancy:  Legally and ethically of course‼️ 

Palmy:  In newer asset classes, we experienced less push back from tenants to increase rents and higher renewal rates This means cost savings when preparing to get the units ready to move in. This simultaneously lowers your turnover and vacancy costs.

Nancy:  For those of you who are new here or just getting started, be sure to tune in to Episode 025:  Stay Classy: The Grading Scale of Apartments to understand what the grading scale means and how you know you’re investing in the right one?  We’ll link it in the show notes.

Okay, if someone’s just starting out, what kind of goals do you feel are realistic for them to invest in apartment syndication.

Palmy:  For sure they would need to know their financial goal and why you’re doing it.  At 🎙️ Cashflow Multipliers we talk a lot about what we called the Freedom Metric. 

A Freedom Metric is the monthly passive income that you want to hit. The amount that will allow you breathing room to not overthink before that next paycheck hits or wonder what expenses you need to cut in order to make sure the rent is paid. It’s the classic saying come to life: that you can have your cake 🍰 and eat it too.

Nancy:  Or, in our case, boba. 🧋

The freedom Metric is the number in which your passive income equals or exceeds your expenses. Once you identify what that number is, it will help guide your growth, goals, and income.

We know, this might be a foreign concept to many, because you’ve probably been taught all your life that you need a nest egg of millions of dollars in order to retire… right?

Palmy:  Yep!  So, if you tune in to Episode 035:  $50,000, 10 Years, and You: Your Long-Term Apartment Syndication Plan.  We talked about the 10-year plan of $50,000 every year and watching the investments do all the work while you, the passive investor, reap the funds– and saving big time in taxes at the same time. 💪

Nancy:  We’ll like Episode 35 to the show notes as well.

Another thing is apartment syndication is really for high-level entrepreneurs who are busy and you genius at what they already do.  They just want to don’t even break a sweat, lift a hammer 🔨, and deal with tenants, toilets 🚽, trash, termites 🐜.  Ever.  EVER.

Okay. So, taking a little bit of a turn, a lot of people look at you know today’s climate and think, “I’m getting into the game too late. It’s too late to start passive investment at this point.” What do you say to those people?

Palmy:  You’re crazy.

Nancy:  I agree.

Palmy:  One, it’s never too late. But two, there is always an opportunity.  😍😍 And I know those are things that we say all the time. But truly, even if there’s a recession tomorrow, if you got the knowledge, the team, and the strategy, you will be able to ride the wave, right?

When you go to the beach 🏖️ you see surfers 🏄 hanging around right?  Do they just wait for a big wave to surf?

Nancy:  No….

Palmy:  You’re right they don’t.  They just wait for any waves, not just a big one.  When opportunity meets preparation magic happens.

Tony Robbins said it best, “When things are going well, it’s human nature to think they’re going to continue going well forever!  But when there’s a meltdown, people run for the hills.  They’ll give away their homes, their stocks, their businesses for next to nothing.”

Palmy:  I agree!  It’s never too late for those who have the resources to THRIVE in any economic cycle.  And it’s important to get off the sidelines and get into the game because ultimately, we must all become investors if we want to be financially free.

Palmy:  It’s never too late.

Nancy:  You guys, if you’ve ever thought about investing in apartment syndication, finding a team with a proven track record, and starting your path to secure your financial future, this is exactly where you start. 

Totally free here.  The Kitti Freedom Club 👉 is for those who want to get an insider scoop on investment deals, tips, and resources. 

But here’s the catch.  You have to have a desire to make some serious passive income.  😙😙 Sound like you?  Take your investment knowledge to the next level by joining the Kitti Freedom Club.  Sign-up is super easy!

Palm, are you game for a rapid-fire five questions.

Palmy:  For sure!

Nancy:  When are you most productive?

Palmy:  When I’m inspired by ideas, and just want to get things done quickly!

Nancy:  Next, who is someone that’s inspiring you at the moment, and why?

Palmy:  You!

Nancy:  What!!

Palmy:  I love how we are just a great team.  How we all have different areas of specialty and expertise, how I learned so much from you… 

Nancy:  Okay.  What is something you are most excited about to come this year?

Palmy:  The Kitti Freedom Club!  Yep, it’s growing and we have an incredible group of people who are ready to secure their financial future while paying virtually $0 in taxes via apartment syndication.  😉😉

Nancy:  ☀️ Summer or ❄️ winter?

Palmy:  Summer for sure.  I love how the sunlight shines brightly and how we can create and do more things in the summer!  I do miss snowboarding in the winter though.  

Nancy:  What’s your favorite number and why?

Palmy:  #11 it’s my good luck number from my high school 🏀 basketball jersey!

Nancy:  So, to wrap up, if you’ve been thinking about securing your financial future with apartment syndication, here’s your sign. If you haven’t, but now you’re intrigued, follow that curiosity. Honestly, apartment syndication is the best thing since sliced red velvet cake.  😝😝

Thank you so much Cashflow Multipliers for tuning into today’s episode with Palm and me! If you’re loving what you’re hearing, don’t forget to leave us a quick little review whenever you’re streaming this podcast from.


The Kitti Freedom Club


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Invest with the Kitti Sisters

Fortified with years of experience, fierce passive investors (we ALWAYS in our own deals), and selected high qualities investment opportunities to help build your long term wealth no matter what stage in life you're on. We will show you the ropes, help you build out a powerful, personalizes strategy, and give you masterful, financial freedom focused on living your lifestyle dreams.

We're Palmy ➕ Nancy Kitti 〰️ The Kitti Sisters

A sister duo team obsessed with all things financial freedom, passive income, and apartment investing + apartment syndication, who turned a $2,000 bank account into a nine-figure empire.  Now, we're sharing with you the behind-the-scenes secrets of our wealth building strategy.

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