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Investor Spotlight with Antoine Martel: Financial Freedom at 23

Episode 032

John Larson and the Real Estate Cowboys talk passive income real estate investing.

Hear new episodes every Sunday morning at 8 a.m. The Cowboys welcome Antoine Martel of Martel Turnkey on the show. At 23, Antoine has already achieved financial freedom through real estate. Hear his story and keys to success.

Keep the #CowboyCoffee hot while listening to John, and the Cowboys talk about how to #BeACowboy and earn passive income in real estate.

Episode Transcript

Announcer: Have you thought about becoming financially free through real estate investing, but don’t have the time or knowledge to get started? Welcome to the Real Estate Cowboys podcast. Each week we discuss passive income investment opportunities in the red-hot Texas market. John Larson and the Real Estate Cowboys will show you how to leverage their team to build wealth in real estate through passive investment opportunities. And now here’s John. 

John Larson: Hello everyone and welcome to another episode of the Real Estate Cowboys. This is John Larson, your host. This week we have another investor spotlight or investor success story as I like to call it as well. We have a young man by the name of Antoine Martel coming on the show. Some of you may have heard of him. He’s coming up in the ranks out here in the a turnkey rental industry. I was really impressed by his story. He’s only 23 years old, this young man, and he’s been investing in real estate since he was 19 and so his amazing story is coming up here shortly. You know, we had a good conversation kind of offline before the interview and he was telling me about how he got into the business and he’s also going to talk about that in his interview here coming up. You know, you got a little bit help from his dad financially to get started, but he’s been taking advantage of the BRRR strategy. 

John Larson:So he’s buying properties, renovating them, renting them out, and then refinancing them. And now he’s even created a turnkey company called Martel Turnkey where he’s now selling investors his own properties that he’s been producing in four markets in America. He’s currently in Memphis, Cleveland, Birmingham, Alabama, and St. Louis. So solid cash flow markets. I, myself still actively invest in St. Louis so I can see why he’s in some of these cities. Affordable property prices, low property taxes, uh, so on and so forth, which, that makes the numbers look good. Especially in today’s market, which is tough as we talk about on the show quite often with the rising interest rates and rising prices. But we are starting to see the prices come down a little bit like I expected. I’ve been talking about this for months that we are headed into a market correction and I believe we are definitely in one right now. You’re already starting to see days on market increasing across the country and you are seeing price reductions daily. That’s even happening in some areas here in Dallas. An area where 400 people move a day to DFW. You’re still seeing pricing cooling in a lot of areas here in Dallas as well. It can only run hot like that for so long. This was the longest recovery that the US has ever experienced and you know now it’s getting to a point and it got to a point this past summer where the average person couldn’t afford to live in these middle-class neighborhoods because the prices have risen so high and now the interest rate’s going up. Last I heard investor loans if you’re putting 20 percent down there at about six percent now. You know, that’s still not high. I mean, we’ve talked about this before, I’ve had Graham Parham from Highlands Mortgage on the show a couple of times and historically anything below seven is still a good rate. And so, not saying it’s a bad time to buy. 

John Larson: And me and Antoine are gonna have a conversation about that as well on the show. But yes, rates have gone up which is compressing the cap rates. So the rate of return on cash flow is not as high as it once was. But there’s still other reasons to invest in real estate. And we’ll kind of go over those again today. But uh, Antoine lives in California, he’s actually from L.A. so he talks about, we talked about how obviously there’s really no good rental property opportunities in the major Metros of California. Prices are too high. California in general, this is not a very good landlord-friendly state. And so that’s why Antoine, like many other investors in California, have looked to other areas across the country to invest and to build rental portfolios. So, really impressed by what Antoine had to say when I spoke with him. 

John Larson: And another staggering thing that he told me is he’s done 40 flips out of state. You know hard it is to do flips out of state, to manage teams out of state where you’re not keeping your eyes on the properties, you know, every day. I mean when I do flips here in my own backyard, retail flips, I’m at the property at least three times a week. And so he’s done 40 flips out of state in four different markets at 23 years old. It’s just, that’s amazing. But you know, Antoine’s very passionate about educating investors on building rental portfolios to achieve financial freedom. And he says on a daily basis, that’s what he does. He helps investors grow rental portfolios and he’s now started to sell homes from his very own portfolio. Really impressed with what Antoine had to say. And so after this commercial break, we’re going to get into my interview with Antoine and I think that you’ll all really like what he has to say. And like I said, very impressed at such a young age to have been producing rental properties in four different U.S. Markets from California. So that is pretty impressive. So let’s take a quick commercial break. When we come back, I’m going to introduce you to Antoine Martel of Martel Turnkey. Stay tuned. 

John Larson: And welcome back from the commercial break. This is your host, John Larson. Welcome to the Real Estate Cowboys. So this week we have another investor spotlight. I have a gentleman by the name of Antoine Martel. He’s 23 years old. This guy has done 40 flips in the past year alone. He invests in four different markets in the U.S. Really impressed with this guy’s story. So let’s go ahead and bring him on. 

Antoine Martel: Thanks for having me. 

John Larson: So from time to time, I just like to do, you know, these investor spotlights or investor success stories. You’re only 23 years old and I’m just blown away at how much success you’ve already had in real estate. So number one, I’m sure that my listeners are going to want to know a little bit more about you and what made you get involved in real estate. What, what made you decide to take that path? So can you kind of elaborate on that a little bit? 

Antoine Martel: Sure. So 23 years old, I started learning about real estate investing. Four years ago, me and my dad and my brother actually took like a real estate seminar over a weekend. They taught us how to flip houses, how to place offers, how to analyze deals. We kind of took that confidence that we’d built up in that one weekend and started looking at deals in the Bay Area. That’s where we were at the time. Now I live in Los Angeles and we had originally wanted to just start flipping houses in the Bay Area or L.A. And we started placing all these offers and after about three months of placing, you know placing 60 offers, we realized that we didn’t have enough money in the bank and there was way too much competition for us with just. We had 40 grand in the bank and everybody else we were competing with had a million bucks or 2 million bucks. It just didn’t make much sense. So what we started to do is networking with a bunch of people and we started networking with people in L.A. and in the Bay Area and they were telling us that they were investing out of state and doing rental properties. Buy and holds and flips out of state. So that’s kind of where, where we started looking where we started looking out a state and I was at college at the time when I was kind of learning about real estate investing and stuff like that. So my last year at university I, uh, realized that I didn’t want to get a job. I wanted to run my own company and I wanted to do something in real estate. So I kind of dove into this out of state investing thing. And eventually my last semester at university down here in Los Angeles, I bought my first property out of state. 

Antoine Martel: I kind of pitched the deal to my dad and my dad funded it. We bought the property, rehabbed it, rented it out, did a cash-out refinance. And then after graduation, I went to my dad and I was like, Hey, I can keep doing this strategy and I can help you know, you and mom kind of retire with this BRRR strategy that I’m doing and help you guys grow a portfolio out a state. And then kinda one thing led to another. And, you know, a couple months after graduation I had five projects going on and was doing it full time. 

John Larson: Nice. Good story. It’s kind of like mine as well. My family helped me get started in real estate. My family has always been big in real estate. But you said, a lot of things that jumped out to me that I’m a big believer in, too. And number one, this is a networking business. Um, you know, so anybody listening to this show today that’s looking to get started, you know, building a network is number one. Or you know, finding a team that you can trust that can help you reach your goals, right? Maybe you have the capital, but you don’t have knowledge. Finding the right people that do have the knowledge and access to the deals. That’s like fitting the puzzle pieces together. Um, another thing that you brought up, so you’re in California and obviously, it made more sense to invest out of state because I know the prices in California have skyrocketed. And California, in general, isn’t the most landlord-friendly state. I think that you would agree with that. Correct? 

Antoine Martel: Yep. 

John Larson:And so, which is why many of my investors, many of my clients come from the Bay Area, from Los Angeles or San Diego because you know, the prices out there just, it just doesn’t make sense for a cash flowing property and then dealing with the tenant-friendly laws, being a landlord isn’t the most ideal position you want to be in either in California. And then one thing that I heard, so you mentioned the BRRR strategy. I’m familiar with that, but my listeners who are not familiar with that, can you just explain that really quick. 

Antoine Martel: Sure. So, BRRR strategy again is a strategy where you can, it stands for, Buy Rehab, Rent, Refinance, Repeat. And it pretty much is a strategy to grow your rental property portfolio without having much money in the bank and without leaving much money in each deal. So let’s say you buy a house for $30,000 all cash, rehab it for $20,000 and then you find a tenant, put a property management in place. And then once all of that’s said and done, the property’s worth 70 grand. Now you can go to a bank and get a loan on that $70,000. And they’re going to give you $48,000 or $50,000 in terms of the loan because they’re going to give you a loan at 80 percent loan to value, I hope. And then you can take all that cash out. So now you, when it’s all said and done, you have a loan on that property for 50 grand, you have your 50 grand back in your bank account and you can restart and just go, go at it again. And it’s a way to build a rental property portfolio without having much money in the bank. And it is a lot of work and there is some risk with the appraisal coming back at the price you want, you know, with property management and all the contractors. But if you can find the right people and do it the right way, it’s a great way to grow a rental property portfolio with very little money. 

John Larson: Absolutely. And one of the reasons I’m a big advocate of this when I talk about uh, you know, building rental portfolios with single family homes on my show. I mean, the main reason to do it is the finance that’s available to you, right? So a lot of people, you know, they’ll ask me, you know, John, is this still a good time to buy? My answer is, hey, as long as rates are below seven percent and banks are still willing to give you 80 percent of value, of course, it’s a great time to buy. 

Antoine Martel: Yeah. And for me, yeah. And so my, my answer is very similar to that. The other thing that I would add to that is that I invested a lot in a C class neighborhoods so you can look at the charts. I would go and look it up to all everybody listening. Look at the last 30 years, the average rental rates in America, and you’ll see that they start at $300, $400 bucks and they go all the way up to $900 and it’s just been a straight line upwards. Even at the times of recession or depression, the rental rates have either stayed the same or they’ve actually bumped up. And that’s why I choose C-class. Um, and why I kind of stay away from the B plus or the A class because you know, my rental rates are anywhere from $700, $800, $900 and if the economy does collapse and people lose their jobs, people are gonna lose, their jobs where, in the much higher market sense, so they’re gonna lose their B class jobs or A class jobs and they may have to go back down and get a blue collar job to support their lifestyle, but they’re going to move out of that $2,000 a month condo and come and rent out one of my houses for $700, $800 bucks while the economy picks itself back up again. 

John Larson: Yeah, that’s a good way of looking at things. Um, you know, I have a little bit of a different view just because of the markets that I’m in. I really like to go after the markets that have very diverse economies and growing population. So that’s why we’re here in Dallas. That’s why the show is Real Estate Cowboys. I really liked to pump up, you know, the Texas market, just because it is such a diverse economy. I am from Detroit though, so I’m used to, you know, C class properties, I’ve produced C class properties, I’ve had some good experiences, I’ve had some bad experiences, but all in all, I mean, hey, it really just comes down to your goals and if you’re looking for cash flow, and I say this a lot, we talk a lot about property management on the show, Antoine. And you know if you have C class homes, if you’ve got a good property manager, they should work pretty well for you. And I’m a, I’m a firm believer in what you’re saying with job loss and things like that and, and, uh, you know, having to move out of that B plus property and maybe downgrade for a period while the economy’s in recovery. But yeah, great points. And then like you said about the rental rates, hey, when interest rates go up like they are right now and if there is job loss and layoffs, you know, I’ve heard some news coming out of Michigan that, you know, Ford is looking to lay off some people, GM, um, you know, you, you see that just more and more people now need to rent, right? If they can’t get a loan to buy a home or if they lose their home due to foreclosure, what is their option? Their only option is to rent the property. So that is why you see the rental rates hold strong during a recession or actually go up. Right? 

Antoine Martel: Yeah, occupancy actually increases during the time of recession. 

John Larson: exactly, exactly. So, all good points there. So my next question would be what do you like best about real estate investing? I think you gave a couple points here that we could go off, but what would be your number one reason on why you like to invest in real estate? 

Antoine Martel: For me, it’s about the cash flow and the opportunity of the financial freedom aspect. There’s really no other investment that can provide that much cash flow and that much financial freedom out there. The other big thing would be the financial leverage. I mean, sure you can buy a bunch of stocks and you can receive dividends from those stocks and you know, you can call that cash flow if you want to. But then the aspect is, where the real estate beats out the stock market, in my opinion, is the financial leverage where I can buy a million dollar asset for $250,000, whereas the stock market if you have $250,000, you can only buy an asset of $250,000. There’s no leverage that you can use to create that equity that you can build over time. 

John Larson: Exactly. And there’s no way to hedge against inflation, either. 

Antoine Martel: Yep. 

John Larson: Historically the stock markets pay people 5% over, you know, each year and in a healthy economy like we’ve been in, obviously the buying power of the dollar diminishes over those years. So if inflation is at two percent, which I would say is conservative, and you made five percent, what are you actually making? Three percent, right? So there’s a lot of ways to look at it. Yeah, all the things that you just mentioned are all the same reasons why I prefer to invest in real estate as well. And the number one thing would be the power of the leverage. And um, so another thing I like to ask all investors that come on the show, we all know with real estate, things can go wrong, right? There’s a lot of variables that can factor into an investment looking like it was going to be great on paper, and then in all actuality, it ended up not working out. Rehab budgets can be more expensive than you thought, right? You start a rehab project and you discover some unforeseen things that pop up. It’s happened to me many times. Or you know, what I’m experiencing right now is there is a bit of a market correction going on. Interest rates have been going up. The Fed is trying to cool the buying pattern that we’ve been seeing here over the past eight years. This is the longest recovery that we’ve ever been in, in the history of America. And so, you know, you could just tell that property values in some of these neighborhoods across the U.S. were just getting too expensive to where the everyday person couldn’t afford to live there. And I know you’re experiencing that in California, specifically. What would you say, can you give us an example of a time that investment maybe didn’t go as planned and then maybe an example of how you were able to turn it around if you were able to turn around? 

Antoine Martel: Sure, so two things. The biggest thing for me is I’m an out of state investor again. So I live in Los Angeles. I invest across all different markets, so the biggest risk for me is my team. Because my team is a version of myself on the ground that I put all my trust in, right? So they have to, if I don’t have that team on the ground then I don’t have anything. So when I was starting to grow my business, I was built a team in Memphis, Tennessee. I started doing deals there. Then I was like, okay, I can, let me find another market similar to Memphis and I’ll do the same thing, and I can do double the amount of deals. I went to Cleveland, Ohio, built a team in Cleveland, Ohio. Everything was going well, you know, I was like, all right, I’m two for two. I can just keep going then. And triple my business. And then started researching more markets. I found Akron, Ohio and um, again I was pretty confident in myself and building a team at that point. And I started calling property management companies, realtors, contractors, you know, in a couple of matter of days I put a team together and we started, you know, we placed our first property, put our first property under contract. It was again going to be like the BRRR strategy. So we bought the property, we started rehabbing it and then that’s when the issues came up with that property management company. You know, this was again our first deal with that property management company, with that new contractor. And that was a, you know, it’s a big risk whenever you’re testing out a team for the first time. Everybody can say the right answers over the phone or over email. But when it comes down to get the deal done is you know who can perform the best. So we had a lot of issues come up with property management. They tried to change around the agreement. They started asking for fees to manage the rehab when I told them upfront that we wouldn’t be paying any fees or you know, let’s figure this out at the beginning before we get into the project. So, then there was overages in the rehab, like it was like a $20,000 bid and it was five grand in overages, so like 20, 25 percent in overages, which is ridiculous. And all these things just started coming up, um, with the project and it eventually came down to this team doesn’t know what they’re doing and, or they don’t have the bandwidth to actually handle what we need them to do. So, that was a very scary project and that was supposed to be three months. And it turned into six, seven, eight months. Um, but luckily I was able to still get the project done, was able to just rough it out and get it done. And actually sold the property for a profit. Ended up selling it as a turnkey investment to somebody who wanted to just hold it. Was able to still make money. And that’s the beauty with real estate. It’s like even when you get punched in the mouth for being too confident in setting up a team and maybe not asking, you know, doing as much due diligence as you should, you still end up making a profit at the end of the day. It was kind of, uh. So we were able to, we were able to save the deal, make some money. And then I actually, just after that I found a different property management company, different contractor to work with moving forward. 

John Larson: Yeah, I mean, that’s pretty much, the example you just gave, almost every situation I’ve ran into that was a negative situation was usually by me putting my faith in the wrong people. You know, the people that said the right stuff face to face or over the phone. But when it came to executing, they failed, right? So you know, you just get better with time and with repetition and doing more and more deals and dealing with more and more people. But I will say if you do find a team that has been honest and good to work with and delivered on what they say, you better hold onto them. 

Antoine Martel: Mmmhmm. And you better pay them right. And continue to pay them right and don’t cut corners once…you know, because we start with every team doing one deal. And I want one deal to be 100 percent complete before I do the next thing. And that’s very hard to do, first of all, because I’ve taught some people how to do what I do and they’re halfway through the first deal and they’re looking at deal three, four, five, six, seven. And I’m like, you gotta really, you don’t know what’s going to happen at the end of this deal. They may be putting on a good show the first couple of weeks, but you want to see them finish it out and get it done right. So, uh, I always say you want to get that first project 100 percent complete and 100 percent meaning either do the cash-out, refinance and get your money back out and then go and do it again or sell that property, you know if you’re doing a flip or something like that. But test that team, you know, all the way through the first project and then just double it. So now do two projects. Then once those two are done, then do four projects and slowly grow with the team and…Because there’s going to be growing pains. I mean we’re, I’m doing, you know, 10 deals a month in Memphis and we started off same way, just doing one deal and you know, now we’re starting to see the growing pains and things are starting to not move as fast and you know, that’s fine, I expect that to happen. But if you take it one step at a time, then you can put the right people in place. Those growing pains, you know, be a little bit easier to handle. And then also a lot of people when they do start doing 10 deals a month, they start doing a lot of deals a month with a certain team. They start asking for concessions or start asking to pay people less. And for me, I’ve, you know, I’ve paid my guys the same amount on a per deal basis, whether we’re doing 10 deals or one deal a month and it’s the same amount of work for them. They may be doing more work for you and spending less time on each project, but still, I mean you want to keep that…that team is your gold if you’re investing out of state, so you want to pay them right and continue to pay them right and not cut corners. 

John Larson: I one hundred percent agree with you there. And you actually brought up a pretty good point too, and what I’ve noticed with the majority of contractors I’ve worked with, especially on like the fix and flip side, not so much in my rental business, but it seems like these contractors do, they do such a great job at the beginning, but when it comes to the end, when you finish, you know, just the little stuff that needs to be tightened up, right? To sell the property retail to an everyday retail home buyer that wants to see everything completely done and move in ready. Um, you know, I’ve just ran into so many situations with contractors where they’re so good at the beginning, but then they just, they can’t finish the job and they want to move onto the next thing already. And it’s like, wait, you know, these things need to be tightened up first before we can move onto the next project. And I think a lot of investors, and new investors get caught up in that sometimes and they’re so excited to make money and get these properties flipped. And so they’ll let the contractor talk then into starting the next project before the first one’s done. That’s a. That can get you into trouble for sure. 

Antoine Martel: Oh yeah. Yeah. Because sometimes, I mean sometimes you’ve already paid 80 percent of the funds in the last 20 percent. The contractor’s like, oh, this is just little stuff. It’s just not fun for them to do the little nitty-gritty things. They want to do the big stuff and do the demo, do the drywall and all this kind of stuff. But when it comes down to like, hey, this trim needs to be painted down here and this trim needs to be fixed over here. So what I do to help with that too is I have the Realtor who going to list that house, go through the property while the contractors are still there in the last couple of days before you do the staging. And have the realtor talk to the contractor and tell them, you know, the little things that need to be done because they’re already there. So, it’s harder to complete a project and then have the contractor come back and pull them from another job. So while the contractor is there, you want to just get everything done with that one shot and try to not pull them back to your job once they’ve left and once they’ve received their final payment. 

John Larson: Yeah, that’s good advice I mean the Realtor needs to sell the house and if you can have the Realtor help you hold the contractor accountable. That’s a good way to do things. So you mentioned a few markets that you’re operating in. Can you list out all the markets that you’re currently investing in right now? 

Antoine Martel: Sure. Memphis, Cleveland, Akron, Birmingham, St Louis. 

John Larson: Yeah. I know those are all good cash flow markets, right? Low property tax, Still affordable property. Even in today’s market with the prices, you know, going back to all-time highs. You know, I feel like a lot of these markets that we’re in, especially Michigan. You know I’m still very familiar with that market having grown up there and my, my parents just bought a new house in Michigan this past summer and they told me the prices that they are getting on outbid on everything and the prices these things are selling for, it’s like wow, it’s just brought me back to 2006 before the last crash. But um, you know the markets that you just named are definitely those quote-unquote cash flow markets where you can get good cash flow opportunities. And uh, I’ve actually invested in some of those myself. St Louis being one of them. I still actually actively invest there. So yeah, those are good markets. Now I would. Next thing I would ask is, you know, I talk to a lot investors on a daily basis and you know, some investors who aren’t as sophisticated and you know, haven’t done as many deals, you know, they’re looking at the rising interest rates and they’re thinking to themselves, oh, Jesus is this, did I miss the boat, you know, and, and now they’re seeing some of the prices in some of the markets, not everywhere in America. But I think you’ve identified some good areas where property prices haven’t ran too high, but for California for example, and even Texas, a lot of these middle-class areas here in the Dallas market, the prices have ran pretty high over the past three to four or five years. What would you say to investors who are kind of sitting on the sidelines thinking, you know, is this a good time to buy still? What would your advice be? 

Antoine Martel: Yeah, but especially right now with, we’ve only gotten a taste of the interest rates going up. They’re going to keep going. They’re not going to come back down to what they are right now. So I’m telling everybody to buy as many rental properties as they can and to lock in this rate that we have, which is around five and a half, six percent depending on your credit score and lock in that rate, lock in that rate for the next 30 years because I don’t think we’re going to see this rate for a very long time. And the other thing that I would tell investors too, is to not worry about the price of the properties as well. A lot of people get hung up that, you know, they think the price of the properties has been inflated and they’re, they want to buy at the bottom of the market. And while they do have a good point, we don’t know when the bottom of the market is going to be. Um, and I’d rather have you buy a rental property now and hold it for two years and then the market crashes and then you can continue to buy more. But I would tell people to not be so hung up on the price, be hung up on the return that you want to make and make sure that the cash flow of that property is hitting your numbers. Um, I just don’t want to see you pass up on good deals now with this really good interest rate, um, that, you know, we’re not going to see for a very long time. 

John Larson: Yeah, exactly. And, you know, all my lender friends told me, and these are guys that have been in the business for a long time, they said John, anything under seven percent is still a good rate. You know, so I know we’re getting to the point where it’s six percent. But you know, I would just say to the listeners out there, I know it’s going to affect the numbers a little bit on paper in terms of the cash flow that you can make off the property, but when you leverage these homes, and Antoine, I talk about this a lot on my show, there’s up to six ways that properties can pay you. It’s not just from the cash flow. You know you leverage we just talked about inflation hedging, locking in a rate at 30 years fixed, right, now, what if rates go up to seven, eight, nine percent, and they hold there for a while? You’re going to be looking at it like, wow, I got a deal at my five and a half or six percent rate, right? So we don’t know if rates are going to go back down to where they were below four percent. You know what I mean? It’s just you don’t know if that’s going to happen. Anything under seven is still a good deal. And keep In mind. It’s not just the cash flow. I know the cash flow is great, but like you said too, you know, your property appreciates in value, you know, you’re all into a house for $50,000 and it goes up to $75,000. There’s $25,000 of equity sitting there, you refinance their property or if you do decide to sell it and make that equity tangible, look at what you’re, 50 percent return just on the appreciation of the property. And don’t forget that the tenant is paying down your principal balance, you know, they’re paying down your loan, not you. So there’s a lot of ways that real estate can pay you and I think sometimes investors get way too caught up on the price and way too caught up on the interest rate when in actuality, you know, like we said, there is no other investment options out there where they’re going to give you 80 percent of value. Banks are going to give you 80 percent of that. So you know, I would just caution everybody to, to not panic. Um, and so lastly, I would ask, you know, you’re only 23. It seems like you’ve been doing some great stuff so far. You’ve built an operation in multiple cities across America, so that’s really impressive. What are your plans for the future, Antoine? 

Antoine Martel: Sure, so. You know, keep the business going. I mean single families, duplexes, quads, what I’ve been doing in all these markets. They’re still amazing investments. They’re so easy to get into. There’s a plethora of these properties. Every single day there’s new deals in all these markets that are coming up. So It’s, it’s an easy point of entry to get into real estate investing and that’s why I’m still doing a ton of these deals. They provide an amazing return. You know, 10, 12 percent for B class. And then 15, 16, 17, 18, for C class properties and so it’s still an amazing return even with the interest rates being up a tiny bit and with prices being up a little bit. For me, for the long term, I’m moving into more of a apartment building, so I have my first apartment building under contract right now actually set to close at the end of the month. That’s a 20 unit apartment building. Hopefully, I can…That’s a value-add property, so we’re going to buy it. Same thing with the BRRR strategy, right? So I’m buying the property with bank financing, going to put 25 percent down, we’re going to go in, buy it, rehab it, rent it out at market rents and then do a cash-out refinance, pull all our money out in a year or two and do it all over again. So it’s the same exact strategy that we’ve been doing with the single families and duplexes just with a couple of zeros after the numbers. So that’s what I, I’m moving into and just, again, just taking the same strategy with my same teams and doing bigger deals. You know, I’m doing a 20 unit now, but next year I’d like to do a 50 unit or a 100 unit and maybe get into syndication and putting deals together that way. This deal, I’m actually funding with all my own cash. I like to, I like to do the first deal in a new space with my own money before I put other people’s money at risk. So this, this deal’s going to be all funded by myself and I want to test it out and I know there’s going to be issues and challenges along the way, so I want to bang those out with my own money and not put other people’s money at risk. And then later on when I do some bigger deals, I’m going to probably look into syndicating those and, because I’ll have the experience and knowledge of the multifamily side. 

John Larson: Yeah, you’re on the right path. You’re basically, I’m 32 now and I kind of went down that exact same path. Single-family homes are a great way to get your feet wet, to learn about the real estate industry, they’re easy to acquire, right?. You get great financing terms. Once you feel comfortable with those, multifamilies definitely the next step. And at that point, right now we’re, we’re offering syndication opportunities at, at my companies here in Dallas. And so it sounds to me like you’re on the right path, man. 

Antoine Martel: Thank you. 

John Larson: The last thing I’d say is, you know, I’m all about promoting other people’s business. This show is purely educational. So if some of my listeners wanted to reach out to you for any advice or any possible opportunities, investment opportunities, what’s the best way to get in touch with you? 

Antoine Martel: Absolutely, yeah. Thanks for doing the plug. So I post a lot of content on my Instagram so you can go follow me there. It’s @MartelAntoine, you can find me there. My email address is there. You can shoot me a DM. I reply to everybody. Um, and also the link to my website is there. So that’s probably the best place to go and find out everything you need to know about me. I also have a podcast, too. It’s called A Millennial’s Guide to Real Estate Investing. So I focus mostly on out of state and what I’m up to and how I started and all that kind of stuff. So there’s some good info for the people who may be just out of college or in their first job, first couple years of their job and want to get into real estate. 

John Larson: Right on. And for my older listeners out there, a DM is a direct message through Instagram. So yeah, that’s great stuff, Antoine and yeah, I’m going to check out your show as well. Comments to you man, it’s awesome. You’re doing a great job. You’re on the right path, only 23 years old. So this is our Investor Spotlight here on the Real Estate Cowboys. Antoine, thanks for being on the show. Let’s do it again soon. 

Antoine Martel: Thanks, John. 

John Larson: What a great interview with Antoine. Such an honor to have him on the show. I’m really, really proud of this young, young man for taking the initiative to start building towards financial freedom and it looks like he’s pretty much already got there. And uh, so that’s what we’re all about here at the Real Estate Cowboys, I mean this is actually a, I would consider a competitor of mine. He even invests in one of the same markets that I do, but I’m not worried about that. I like to see other investors, especially at such a young age, you know, building towards financial freedom. That’s what this is all about. The show. I know I talk about opportunities on the show, but the show is really supposed to be educational and, and motivating for investors to also follow the same path that I have and Antoine is taking and using real estate as a tool to build financial freedom for yourself. 

John Larson: And so, you know, we talk about this on the Real Estate Cowboys a lot. Uh, we have a lot of different options here. We also produce turnkey rental properties in four different U.S. markets. We also manage all those properties in-house through AmericanRealPM, my property management company. We, uh, are also about to start raising. We are actually currently raising for another private lending opportunity here in the Dallas area. It’s actually in a suburb called Carrollton, North Dallas suburb. It’s a office building that we’re basically, same kind of concept. Going to buy, renovate, and either flip back on the market to sell or refinance and hold. This office building is already cash flowing. It’s already about 80 to 85 percent occupied. So we’re just purchasing it, renovating it, bringing it up to today’s standards. Last time it was updated was in 2005, so there’s definitely room to modernize the building, the common areas, so on and so forth. Add in a cafe, I think cafe and deli, bring up the rent roll by sticking another tenant in there in a space that’s currently not being used and hasn’t been used. So we feel like we have a great, great opportunity here to get our investors double-digit returns for a year term by playing the bank, taking the role of the bank in a good solid market like Dallas. So if you’re interested in learning more about that opportunity, if you’re interested in investing in some turnkey rentals, or if you are interested possibly looking at what we have going on in Belize with our private islands and our vacation rental properties and vacation rental program. Go to Put in your information or go to American Real Estate Investments website, Put in your info and a member of our team will reach out to you with information on our current opportunities that we have to help build passive income for our investors. And we have quite a few. We have three different programs. So if you are interested, like I said, check out our websites or if you’re just someone that wants to learn more, you can download our starter packages on turnkey rentals, private money lending, vacation rental properties in Belize, check out my book that’s been out now for a couple months. The Passive Income Guide: What’s Your Return on Life, or we also have past episodes of the Real Estate Cowboys on the website where we talk a lot about property management. We talk a lot about how to achieve passive income through real estate, how to leverage other teams, how to pick the right market that’s going to, uh, you know, help you with your goals. So we’re in a volatile time right now. Like I said, I believe that you know, there is, we’re in a market correction right now and there’s some markets that are going to take a larger hit than others and so you gotta be very careful about the team and the market that you’re investing in. So we talked a lot about that on past episodes, a lot about that in our starter packages and welcome packages. And so if you’re interested in getting started, go to our websites, and Put your information in and like I said, a member of our team will reach out with these great opportunities that we have available right now. I want to thank Antoine once again for coming on the show. I’m going to have him on again in the future because I want to see where his career goes from here. It looks like he’s on the right track and I just want to stay in touch with this gentleman. So thank you for your time. Thank you for tuning in, my Real Estate Cowboys community and always remember what’s your return on life. This is John Larson signing off. See you next week. 

Announcer: All opinions expressed by the host of the show are the opinions of American Real Estate Investments LLC and do not reflect the opinions of guests or sponsors. No personal or professional advice on this program should be considered an endorsement to follow a real estate financing or investment strategy. Before acting on any information, seek advice from your financial tax, mortgage or real estate advisor, as the information is not guaranteed and investment strategies have the potential for profit or loss.