EP252: The Upside-Down Secret to Real Estate Investing Success

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You’re missing out on tons of wealth in this topsy-turvy real estate market! 

Have you ever wondered how some real estate investors strike gold while others grab only dust?

Does it seem far too risky to jump into investing waters that seem to go from smooth to stormy without warning?

Well, we’re here to share some investing secrets that are about to flip your world upside down! 

You see, there are amazing opportunities in real estate right now, and making the most of them is best explained using cake…

Yep! We said cake. Specifically, a pineapple upside-down cake – delicious 🍍🍰, quirky, and a total anomaly to the world of desserts!

Today we’re explaining how the Pineapple Upside-Down Cake Method for real estate investing is about to flip what you thought you knew on its head, and guide you to the sweet success and wealth that’s waiting for you in real estate. 

Think about a pineapple upside-down cake for a second.

What comes to mind about it, besides its obvious yummy goodness that might be making your mouth water? 

Well, the pineapple upside-down cake entered the dessert scene with bold elegance in the roaring ‘20s, daring to be different and completely disrupting the basically boring status quo of sweets.

Pineapple and cherries 🍒 starting at the bottom and ending up on top, nestled into warm brown sugar and butter without turning into a soggy or crumbly mess?

Its fresh take boldly went where no desserts had gone before. 

And you know what? That bold, brash approach is exactly what will lead to success in a topsy-turvy real estate market today. 

We’ve seen this same thing happen with top-tier businesses and real estate moguls alike.

👉 Take Tesla, for example. 

Elon Musk changed the entire car sales model by taking out the middle-men and selling directly to customers out of sleek showrooms.

Then there’s Apple, of course, which uncovered a multi-billion dollar revenue stream by allowing third-party apps to join the Iphone ecosystem. 

The bottom line is that taking the bold approach pays off… literally, and the world of real estate is no exception to the Pineapple Upside-Down Cake Method. 

What you have to remember is this: there are tons of things that are outside of our control – market cycles, natural disasters, changes in the economy – that will always be true.

But how we react is absolutely ours to decide, and those who adjust their strategies and seek out the gold where others spot danger?

Those are our favorite kind of people, and the ones who will find the most success in any endeavor. 

The real winners learn to play the game differently than everyone else, which brings us to our very own upside-down cake of real estate investing – multifamily apartments! 

Multifamily apartments are what have us saying, “perfect!” and “yes, please!” when we’re told that it’s a bad time to invest or when the market has bottomed out again.

It seems like upside down thinking, doesn’t it – to go against the grain and run towards the market when others are running away? 

It’s counterintuitive, yes, but it’s also the main reason why some make it big in real estate investing while others don’t. 

It’s like how our family’s cashew nut plantation thrives the most during times when droughts or disasters make it very difficult for the entire cashew crop market.

Other plantation owners might pack it all up, while our family adapts their strategy and makes a killing! 

If the normal response to real estate market fluctuations is to pull back and head for the hills, our response is to find a different approach, and go full steam ahead to big financial returns.  

Now, turning our attention back to the current real estate market, you might’ve heard that interest rates are still sky-high, and they aren’t coming down anytime soon.

That’s pretty scary, right? Other 🏢 multifamily apartment investors may see this as a sign to run in the other direction of interest rates that are pushing 7%, but that means they’ve definitely not done their homework! 

You see, multifamily investing isn’t a game of properties, like you might think.

It’s actually a game of microeconomics, meaning that some multifamily markets can thrive while others hit trouble.

It’s not a fully uniform market, which is actually great news for investors! 

At the core of multifamily investing, supply and demand is what matters the most.

And right now, we’re seeing a huge demand for multifamily housing properties, and not even close to enough supply to meet the need for millions of units. If you forget everything else you’ve heard about real estate investing, remember this: that gap between low supply and high demand is your opportunity for wealth. 

Ready to flip over the cake and enjoy the beauty of this upside-down approach?

Interest rates have current owners in a bind, meaning now is the time to act.

Scooping up multifamily apartments at hugely discounted rates so owners can avoid foreclosure is how we snagged properties that are doing very, very well for us. 

Consider this market downturn as a dip before the surge.

It’s a moment to grab multifamily properties for 30-40% less than their 2021 peak, and strategically position them to bounce back stronger than ever in a matter of a few short years. 

Keep in mind that multifamily apartments aren’t necessarily successful based on how many units you fill, but on your Net Operating Income – your revenue after expenses.

Our properties’ NOIs are currently booming, and blowing projections far out of the park.

The whole interest rate situation does have an impact, in that properties with adjustable-rate loans did take a hit with the rate hikes, but these properties are still fundamentally strong. ✨

Where other investors saw only danger signs in the market, we saw dollar signs, adjusted our strategy to adapt to market changes, and now get to enjoy the benefits. 

Now, it’s important to remember that this isn’t just opportunism.

When we purchase multifamily properties headed for doom, we’re also helping to save their owners and safeguard the properties for those who will need them in the future – because people will continue to need the basic necessity of shelter. 

By scooping up these properties at discounted rates, we’re doing our part to help stabilize the market and lay the groundwork for future growth. 

We’re not saying this is the easy way to wealth.

After all, there’s a reason owners are trying to dump their properties and investors are steering clear.

It takes the right knowledge and preparation to save these multifamily apartments from impending doom, and actually turn them into the 👑💍 treasure chests they can be.

But this isn’t our first rodeo!

It’s sort of like the time we tried to hike Machu Picchu with no preparation and none of the right supplies.

As you can imagine, that wasn’t the best experience.

But fast forward a few years to our Everest Base Camp hike, which turned out completely different. Sure, it was crazy challenging, but we were actually prepared and knew what to expect with the right gear, supplies, and mindset for a successful hike. 😌😌

The way we approach multifamily apartment investing is how we took on the second hike – equipped with knowledge and tools to come out on top. When we buy properties, we’re not naive to what’s going on in the market.

We factor in those 6.5-7% interest rates when running the numbers, and make offers that make sense now, not back in 2021.

Sometimes that’s about 80% of previous values. 

Current investors might be bummed to take a loss, but remember, we’re offering a chance to get most of their capital, as opposed to losing everything. In the end, it benefits everyone involved, and plays into the long-term goal of helping the economy recover and making more housing available to meet the demand for it. 

On top of all of that, we get to turn a profit and live the lifestyle of our dreams.

The Pineapple Upside Down Method is working for us, and it can work for you too. 

Playing the game differently will get you far in multifamily investing.

But we want you to step into multifamily investing the way we took on the Everest Base Camp hike – ready, excited, and prepped for what’s to come – not like we attempted the Machu Picchu hike.  🤓🤓

So, we’re here to help guide and inspire you through this unique, potentially life-changing investment approach. 

Now that you learn the Pineapple upside method, watch 🎥 this episode on how we blew up our apartment business fast (in 5 years)!