Welcome to this episode of The Darin Batchelder Real Estate Investing Show where we discuss resilience in real estate investing. Our guest, Mike Morawski, shares valuable lessons on networking, dealing with challenges, and sustainable business growth. From losing everything to rebounding stronger, Mike demonstrates how resilience can define your journey. Listen as we explore smart business practices. The growth potential of Tulsa's real estate market, and how one-on-one coaching can fuel your success.
This power-packed episode isn't just about resilient investing and coaching. It’s a masterclass of an individual’s journey from setbacks to success. Demonstrating that your past doesn’t define your future. Tune in now to leverage Mike Morawski's insights for your own real estate endeavor.
- 00:05:54 Regret over financial mistakes and long-lasting consequences
- 00:09:42 Timing doesn't matter, fundamentals and operators do.
- 00:12:56 Tulsa becoming Midwest tech hub, attracting workers.
- 00:16:39 Prison, divorce, loss. Find strength within.
- 00:19:35 College graduate turns life around, starts business.
- 00:23:47 Persistence in the face of doubters and comparison to Michael Milken's redemption.
- 00:25:56 Mistakes to avoid in business growth.
- 00:29:41 Two warning signs ignored: listen, pay attention.
- 00:33:02 Book teaches how to find, maximize profits.
- 00:39:13 Build network by telling people what you do.
- 00:42:24 Helping people succeed in real estate.
- 00:45:01 Mike, inspire change by letting go.
Episode Table of Contents
- Resilience in Networking and Sharing What You Do with Others
- Group Coaching Program and Resilience with One-on-One Coaching
- Building a Business Through Resilience and Paying Attention to Details
- Investment Opportunities in Tulsa
- Importance of Resilience, Exit Planning, and Monitoring KPIs
- Market Opportunities and Preparedness
- Where To Find Mike Morawski
Resilience in Networking and Sharing What You Do with Others
Importance of Networking
Networking is a vital aspect of building and growing your business or career. It involves actively engaging with others in your industry or field to exchange information. Build connections, and establish mutually beneficial relationships. As highlighted in the podcast episode, networking plays a significant role in the success of real estate professionals like Mike Morawski. By attending events, connecting with brokers, lenders, contractors, and potential investors, professionals can expand their network and gain valuable insights and opportunities.
The key takeaway here is the importance of networking. It is not enough to rely solely on technical skills or expertise in isolation. Actively seeking out networking opportunities and participating in industry events allows you to meet like-minded individuals. Learn from their experiences, and identify potential collaborators or mentors. Building a strong network can provide access to valuable resources, insights, and opportunities that can propel your career or business forward.
Resilience in Sharing Your Work
Another crucial aspect emphasized in the podcast episode is the importance of actively sharing what you do. Proactively communicating your work, experience, and expertise can significantly impact your networking efforts. By sharing your work, whether through social media, webinars, podcasts, or other platforms, you open doors for connection and collaboration.
Actively telling people what you do helps to enhance your personal brand. This establishes you as an authority in your field. It allows you to showcase your knowledge, skills, and achievements. Making it easier for others to understand your value and potential contribution. Additionally, sharing information about your work helps to attract like-minded individuals who may resonate with your goals and interests.
In summary, networking and actively sharing your work are essential strategies for professionals looking to build their network and advance their careers. By engaging with others, participating in industry events, and actively communicating your work, you can expand your connections, gain valuable insights, and open doors to new opportunities.
Group Coaching Program and Resilience with One-on-One Coaching
Group Coaching Program
Mike Morawski offers a group coaching program to individuals interested in learning the fundamentals of multifamily investing. The program consists of regular sessions where participants can join in for an hour to delve into various topics related to multifamily investing. During these sessions, Mike covers essential concepts and strategies. He provides valuable insights to help members navigate the complexities of the industry. The group coaching program also includes dedicated Q&A sessions. Allowing participants to seek clarification and guidance on specific areas of interest. It serves as a platform for building connections and learning from others in the multifamily community.
Lifetime Offer and Complete Syndication Package
As part of the group coaching program, Mike presents a lifetime offer that includes a comprehensive syndication package and blueprint. This package serves as a valuable resource for individuals looking to gain a thorough understanding of the syndication process. It encompasses over 20 hours of video content covering every aspect of multifamily syndication. Ensuring that participants have access to a wealth of knowledge to guide them through their journey. By providing this comprehensive package, Mike aims to equip his coaching clients with the tools and expertise necessary to navigate the multifamily industry successfully.
In addition to the group coaching program, Mike also offers one-on-one coaching to a select few individuals. Through this personalized approach, he dedicates his time and expertise to fully understanding the goals and aspirations of his coaching clients. By working closely with them, Mike helps identify their strengths and weaknesses, tailoring the coaching experience to their specific needs. The one-on-one coaching sessions focus on providing in-depth guidance and support, aiming to accelerate the individual's progress in multifamily investing. Mike's goal is to not only educate but also partner with his coaching clients. Fostering a collaborative environment that allows them to achieve their real estate goals together.
The Importance of Selective Coaching: "Because my expectations, Darin, are that if you're coming into business and you want this as bad as I do, that I'm going to help you get it."— Mike Morawski
Building a Business Through Resilience and Paying Attention to Details
Take Your Time and Avoid Growing Too Fast
When it comes to building a successful business, it's important not to rush the process. Building a business takes time and effort, so it's essential to avoid growing too fast. Instead, focus on steady and sustainable growth. Rushing into expansion can lead to a variety of problems. Including overwhelmed resources, financial strain, and a lack of adequate systems and processes in place to support the growth. By taking the time to establish a solid foundation for your business and allowing it to grow organically, you can set yourself up for long-term success.
Be Smart About Acquisitions and Display Resilience About Stabilization
When making acquisitions, it's crucial to approach them with careful consideration and due diligence. Rushing into acquisitions without thorough research can lead to costly mistakes down the line. Take the time to thoroughly analyze the potential investment, including market conditions, property performance, and potential risks. Additionally, it's vital to have a well-defined stabilization plan in place. Stabilizing a property involves addressing any operational challenges, optimizing rental income, and implementing effective property management strategies. By being diligent about stabilization, you can ensure that you maximize the value of your investment.
Mistakes to Avoid in Business: "You don't have to grow too fast. Take your time. This business is going to be here. You're not going anywhere. Build systematically. Be smart about your acquisitions, especially today, and be really diligent about stabilization."— Mike Morawski
Pay Attention to Details and Key Performance Indicators (KPIs)
Paying attention to details is a crucial aspect of building and maintaining a successful business. This includes understanding and monitoring key performance indicators (KPIs) that provide valuable insights into the performance and health of your business or investment. Tracking KPIs related to occupancy rates, rental income, operating expenses, and overall financial performance can help you identify areas that may need improvement or adjustments. Regularly reviewing and analyzing these details allows you to make informed decisions. Plus, take proactive steps to optimize your business operations and investment outcomes.
By emphasizing attention to detail and monitoring key performance indicators, you can ensure that you have the necessary insights and information to make informed decisions that align with your business goals and objectives. These practices contribute to the overall success and growth of your business over the long term.
Investment Opportunities in Tulsa
Recent Population Growth and Incentives for Tech Workers to Relocate to Tulsa
Tulsa has experienced a recent surge in population growth, with a half-percent increase per year for the past seven years. This growth has now jumped to 0.75 percent, and it is projected to continue growing. The city has actively encouraged tech workers to relocate by offering incentives such as the Tulsa Remote program, where tech workers receive $10,000 to move to the city and work remotely. Despite the program running out of funding within nine months, it still attracted 1,500 people to move to Tulsa. This influx of talent has positioned Tulsa as a potential tech hub of the Midwest, with a growing workforce and a thriving tech community.
Tulsa Positioning Itself as the Next Tech Hub
Tulsa is making significant strides in positioning itself as a hub for technology companies. Several major players have already set their sights on the city. For instance, Canoo, an electric car manufacturer, has chosen Tulsa as the location for its corporate headquarters. Additionally, Amazon has established a third distribution center in Tulsa, and Google has also purchased space within the city. These investments from renowned tech companies signify Tulsa's potential for future growth and prosperity in the tech sector. Furthermore, the city has been focusing on various industries, including aerospace, energy, and healthcare. Making it a diverse and attractive business environment.
Increasing Average Household Income and Infrastructure Development Through Resilience
Tulsa boasts an average household income of $72,000, which is higher than many people might expect. This steady increase in household income further opens up investment opportunities in the city's multifamily sector. Alongside this economic growth, Tulsa has allocated a significant budget of $1 billion for infrastructure development in the area, including transportation upgrades. These infrastructure investments create a favorable environment for real estate development. As improved connectivity and accessibility can spur further economic growth and attract more residents and businesses to the city.
Tulsa's combination of population growth, incentives for tech workers, increasing average household income, and infrastructure development make it an attractive destination for investment. The city's positioning as a potential tech hub and its diverse business environment offer unique opportunities for investors in various sectors, including multifamily real estate.
Importance of Resilience, Exit Planning, and Monitoring KPIs
Exit planning is a crucial aspect of real estate investing that should not be overlooked. It goes beyond simply finding great deals and involves having a well-thought-out strategy for exiting the investment and maximizing profits. A solid exit plan takes into account various factors such as market conditions, timing, investor expectations, and potential risks. By having a clear exit plan in place, investors can make informed decisions throughout the investment period. Ensuring that their goals are met and potential challenges are addressed.
Monitoring key performance indicators (KPIs) is an essential component of effective real estate asset management. KPIs allow investors to track the performance of their properties and identify areas for improvement. By regularly monitoring KPIs, investors can gain valuable insights into the financial health of their investments, as well as the effectiveness of their property management strategies. Some common KPIs to monitor in real estate include occupancy rates, rent growth, operating expenses, net operating income (NOI), and cash flow. By staying on top of these metrics, investors can make informed decisions and take proactive measures to optimize property performance and maximize returns.
Facing Adversity: "They can take your business, they can take your money. They can destroy your family. But what they can't take is who you are and what you're made of."— Mike Morawski
Market Opportunities and Preparedness
Unfixed Issues in Today’s Environment Will Lead to Opportunities and Resilience for Prepared Individuals
In today's multifamily market, there are several unfixed issues that can create opportunities for those who are prepared and knowledgeable. One of these issues is the gap between buyers and sellers, resulting in fewer transactions and a decrease in competition. Many potential investors are on the sidelines. Waiting for the dust to settle and unsure about the current state of the market. For individuals who have done their due diligence and are prepared to take advantage of these opportunities, there is a chance to find great deals with less competition.
Another issue that creates opportunities is the current state of certain properties, such as those with floating-rate cap structures or upcoming bridge loan maturities. These properties may have financial challenges that make them unattractive to some investors. However, for those who are well-prepared and have a solid understanding of operations and financial management, there is an opportunity to identify value-add potential and turn these properties around. By addressing these unfixed issues head-on, prepared individuals can capitalize on market opportunities and create value for themselves and their investors.
Ignoring Warning Signs: "I didn't have anything under control but two warning signs back to back within a week, and I ignored both of them. So don't ignore the warning signs is the fifth thing that I try people to tell people, listen to people around you."— Mike Morawski
Be Knowledgeable in Operations and Coaching
In order to successfully navigate and take advantage of market opportunities, it is crucial to have a deep understanding of operations and coaching in the multifamily industry. With operations, it is important to have a comprehensive grasp of key performance indicators (KPIs) and constantly monitor them. By examining these metrics regularly, investors and operators can quickly identify any issues or inefficiencies and take corrective action. This level of operational knowledge and attention to detail is essential for optimizing the performance of multifamily properties and ensuring that they remain profitable.
Additionally, coaching plays a significant role in helping individuals succeed in the multifamily industry. A knowledgeable coach can provide guidance, support, and insights that can help investors overcome challenges and make informed decisions. By working with an experienced coach, individuals can benefit from their mentor's expertise, learn from their mistakes, and develop the necessary skills to thrive in the multifamily market. The combination of operational knowledge and coaching can provide a strong foundation for success in this competitive industry.