From Three Rentals to a Sixplex: Chris Jordan's Jump to Multifamily

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0:00 Hello and welcome back to the Owner
0:01 Meeting Podcast. I'm Christian, your
0:02 channel host. Today I'm joined with a
0:04 friend, Chris Jordan. He started out in
0:06 single family. He just closed yet
0:08 another multif family deal. We're going
0:09 to hear about how he found it, how he
0:10 put it together, how it's going, but
0:12 super exciting to have you on the
0:14 podcast. Chris, how's it going, man?
0:16 Good, man. How about you? Very good.
0:17 Now, recently we had uh Phil on the
0:19 podcast. He just bought a property in
0:22 Pennsylvania, and I learned on that
0:23 podcast that while you guys both closed
0:26 deals in the same month, uh you guys
0:27 have both also met up. you guys
0:28 connected in California. How weird was
0:31 it seeing that Phil is like almost seven
0:33 feet tall? I was I was shocked. I met
0:35 him in the parking lot at the uh at the
0:37 yacht club and when
0:39 I was looking up at him and he was
0:41 massive. He was m like 6'7. I have a
0:45 picture of him and I next to each other
0:47 and it's like this. I'm pretty sure that
0:49 he towers above literally everyone but
0:52 maybe Shaq. Like he is a tall tall tall
0:54 tall dude. Well, it's super fun to have
0:56 you on a podcast. While uh neither of us
0:58 are Olympic sailors, I would love to
1:00 hear some of your background. I know you
1:01 started out in you started out in single
1:03 family, didn't you? I did. I did. I
1:05 started purchasing out in Oklahoma City.
1:06 I started going out there for work and
1:08 noticing that the the prices of homes
1:10 were were very affordable. This was pre-
1:12 crash. Prices were too high relative to
1:14 my income where I was living in San
1:16 Diego. So, I decided to not know what I
1:19 was doing. I just took a shot and I I
1:21 bought a house and it was cash flowing a
1:23 few bucks and that's how I got started.
1:25 Awesome. What what year was that that
1:27 you got started uh in the single family
1:28 out in OKC? That must have been uh 08 or
1:32 so. Okay. So, you've been in that market
1:34 a little while. How many house did you
1:35 end up buying that market? Was it just
1:36 that one rental or how how far did you
1:38 get in the single family game? I ended
1:41 up buying three out there. Excellent.
1:43 And when you were first buying single
1:44 family, what was the uh what was roughly
1:47 what was an average deal looking like at
1:48 the time for you? If you're buying
1:50 single family house, bed, bath count,
1:52 pricing, how much do they cash flow
1:54 going into that single family business?
1:56 What did that look like for the first
1:57 three transactions? Well, the first
1:58 transaction I I bought that for $99,000.
2:02 Um,
2:03 not bad at all. Uh, it was in a town of
2:06 Norman, just south of Oklahoma City by
2:08 the University of Oklahoma. Built in
2:10 1994, so it wasn't that old brick
2:12 facade. Like I said, I didn't know what
2:14 I was doing with that. It was my first
2:16 introduction into anything real estate.
2:18 They actually let me buy that thing with
2:19 no money down. Uh, pre- crash, pre-
2:22 DoddFrank, there wasn't a lot of strict
2:24 lending rules. So, I didn't put anything
2:25 in it and I was cash flowing maybe 50
2:28 bucks, but it was paying the bills and
2:30 just that alone was I was happy with
2:32 that and then I just moved forward from
2:33 there. So, you bought it at $0 down. It
2:35 wasn't a lot of cash flow, but you were
2:37 at least getting paid to own it. I'm
2:39 imagining today that that's worth more
2:40 than $99. Yes, it is. uh probably two
2:45 220 215 220. So investment of zero uh 0.
2:50 You're taking in uh about 100 you know
2:52 roughly it's $100,000 a debt. You bought
2:54 it for like $100,000. Uh it's worth more
2:57 than double that today. Uh do you still
2:59 hold that today? I do. I actually have
3:00 it listed right now. Really? And I do.
3:04 And because of my interactions with you
3:06 guys and the mentorship and the peers,
3:08 I'm going to be rolling that into a
3:10 another multif family hopefully soon.
3:13 Very exciting. You started in 2000,
3:16 right? You know, right around 2008 and
3:17 you took the opportunity there to invest
3:19 in OKC. That's proven to be a high
3:21 growth market all the way through since
3:23 then. Uh still a lot of business coming
3:25 in, very very strong. How's it like
3:27 being a landlord out there? Is is OKC or
3:30 do they are they fairly landlord
3:31 friendly like Texas is or what's it like
3:33 investing in Oklahoma? They are fairly
3:34 landlord friendly. They've kind of
3:36 chipped up way at that in recent years,
3:38 but compared to, you know, Washington,
3:40 Oregon, some of these other states, it
3:42 it is still super landlord friendly.
3:44 Evictions are easier. So, it's
3:46 definitely a good market for that.
3:47 Awesome. Now, when was the when was the
3:49 first multif family deal for you out
3:51 there? So, the first multif family deal
3:53 was just recently. We were trying to
3:56 close that back in December of last year
3:58 and we finally closed it in I believe
4:00 March of this year and that was that
4:02 sixlex my first multi family. So
4:04 December to March is when you were
4:06 originally trying to close it. So how
4:07 long were you under contract for that
4:09 thing? It was uh I think it was about
4:11 three and a half months or so. We hit
4:14 some setbacks with lending, some
4:16 different issues. So it took it took a
4:19 bit to to close it. I I want I want to
4:22 hear a little bit about this process.
4:23 First, I everyone always asks me to ask
4:24 more questions about this. I want to
4:26 make sure we cover this. You were
4:27 already investor in that market. You had
4:28 some single family. How did this deal
4:30 actually come up? How did you originally
4:32 find this opportunity in Oklahoma? So, I
4:35 was um I've been searching for multif
4:36 family and I was looking to start uh
4:38 between 5 and 10 units ideally. That's
4:40 where my comfort level was to make that
4:42 jump. And I saw this I saw several that
4:45 I had on my list on the market, but I
4:47 was also reaching out to various people
4:49 in Facebook groups and different
4:51 different groups online and I connected
4:53 with somebody out there that was looking
4:55 at the same property. In fact, he had
4:57 just put it under contract. So I was
4:58 like, "Oh, I was looking at that one as
5:00 well and he was looking for a partner."
5:02 I'm like, "Perfect. I'm interested." So
5:05 him and I got together and we we worked
5:07 it together from that point forward and
5:09 and uh eventually closed on it in March.
5:11 Oh, what a fun way to find a deal. How
5:13 was the uh what was the financing on
5:14 that? Was that conventionally financed?
5:16 Was that seller financed? What was the
5:18 uh what was the debt portion of this
5:19 deal? So, it was conventionally
5:20 financed. We we did a 75% LTV. It was uh
5:24 just a local bank out there. Is that
5:26 bank out of Tulsa, actually, is what we
5:28 went with. That's a good way to do it,
5:29 too. If if you can find a bank that's
5:31 fairly local, that you typically get the
5:33 easiest underwrite and oftentimes you
5:36 get the best terms or loan to values.
5:38 Now, you mentioned this was a really
5:39 long one to close. what uh what snags
5:41 did you experience through uh through
5:43 going through this transaction getting
5:44 that conventional financing? So, the big
5:46 one was the seller had some relationship
5:49 with the bank. I'm not sure exactly what
5:52 that relationship was, but he was very
5:54 interested in us using that particular
5:56 institution and we went down that route
5:58 and at the end it just didn't meet their
6:00 criteria. So, we kind of wasted that
6:02 whole time with that lender and then had
6:05 to start over to find another lender, do
6:07 another appraisal. Well, we had to go
6:09 through the whole process again and why
6:11 was the seller partial to that
6:13 particular bank? That's kind of odd that
6:14 the seller would care where the money's
6:16 coming from as far as the the lender.
6:19 I'm not exactly sure. My partner dealt
6:21 with more of that side. I I think maybe
6:23 he had some interest in that in some
6:25 way. Uh like a an interest in that bank
6:29 or some that lender. I'm not exactly
6:31 sure. Okay.
6:34 Now, when you're partnering on a deal,
6:36 what what did each partner bring to this
6:37 deal? That that's that's something I'm
6:39 always very curious on deal. So he was
6:41 dealing with a lot of the bank and
6:42 lending side. When you guys came
6:44 together, he has it under contract. What
6:46 did each of you guys put together in
6:48 your operating agreement for how this
6:50 partnership is going to be run? So very
6:51 very simple structure. I brought half
6:53 the capital and he brought half the
6:55 capital. I like that. Ownership. Does
6:57 that reflect that 50/50 partnership?
6:59 Yes. Awesome. Yes. So you guys bring
7:01 half the money. He's running the bank
7:03 side. What things do you bring outside?
7:04 So you guys both bring half the capital.
7:06 What else does everyone bring to the
7:08 table as far as roles and
7:09 responsibilities? So, he's going to be
7:11 managing the day-to-day because he's
7:12 boots on the ground in Oklahoma City.
7:14 Very valable. That made sense. Uh the
7:18 rest the rest of the roles are basically
7:20 high level decision- making, routine
7:22 meetings, just decisions on on projects,
7:24 voting on stuff, just uh basically
7:27 overall high level management, not the
7:29 day-to-day stuff. That would be more of
7:31 his responsibility. He's also managing
7:33 it as well at this point. So, at some
7:35 point it'll be a management fee that's
7:37 gonna be paid from the entity to to his
7:39 management company as well. Sort of what
7:41 like what you do. Perfect. And I was
7:43 gonna say that's a really good way to do
7:44 that. When I started in real estate, uh
7:46 I ended up doing most of the management
7:48 tasks, but we never worked out any sort
7:50 of management fee. So, I ended up doing
7:52 uh equal contributions to some of my
7:54 partners on deals where I put in money.
7:56 I I do an equal contribution, but I
7:58 would end up doing 90% of the work. And
7:59 what ended up happening is I didn't get
8:01 compensated for it. And anything anytime
8:04 anything didn't go to plan, everyone's
8:05 frustrated with me and I'm the one doing
8:07 all the work. So, I got the worst deal.
8:09 And when stuff goes right, everyone goes
8:10 like, "Good. We expected it to go
8:12 right." And anytime there's a snag or
8:14 something that gets renovated or a unit
8:16 has a more expensive turn, people got
8:18 frustrated with me. I'm like, "Wait a
8:20 second. I get all of the negative and I
8:22 have to do all the work. What a horrible
8:24 deal." It's good that you guys addressed
8:25 that early in the thing is is hey, if
8:28 you're going to be boots on the ground
8:29 and you're putting in more hours to this
8:31 project, you either can compensate that
8:33 with equity or with cash flow. And it
8:35 looks like you guys doing a a simple
8:36 management fee for the work done. That
8:38 is a great way to have a sustainable
8:40 partnership where everyone's happy and
8:42 the compensation matches the work done.
8:44 That that's awesome. I'm glad you guys
8:45 figured that out on the front end. Yeah,
8:47 definitely. Because it is more work on
8:49 his end. He's he's dealing with the
8:50 day-to-day. There's a lot of big
8:52 improvements we need to do before we get
8:54 to that point. You know, some foundation
8:55 repair, roof repair. So, we're well
8:57 underway on that. Hopefully, we get
8:59 closer to stabilization and and be able
9:01 to, you know, compensate him fully at
9:03 that point. Yeah. So, let's let's talk
9:04 about the uh let's talk about the
9:06 project itself. What price did you It
9:08 was six units, right? Six units. Six
9:11 units. What price did you guys pay for
9:12 that? 350K. That does not suck. Okay.
9:15 So, you got a great You got a great upr
9:17 price. How much Renault budget do you
9:19 guys have allocated for this? So, we
9:22 rebudgeted about 35, I believe it was.
9:25 We're quickly burning through that right
9:27 now. That That is easy to do. How much
9:29 is that roof going to cost you? You said
9:30 there's a roof repair. Is it a new roof?
9:32 Is it a patch? What What are you guys
9:33 doing? We're going to do We did a whole
9:35 new roof and I believe it was about 7K.
9:37 So, they we found a great deal on it.
9:39 God bless Oklahoma. That is not the cost
9:41 to replace a roof in Washington State.
9:43 I'll tell you that for sure. I replaced
9:45 the roof on my single family that I own
9:48 out there that I have listed. And I wish
9:49 I would have went with this other guy
9:51 cuz I paid 12K for that roof. So, well,
9:55 that's an incredibly Oh, is this a
9:57 specifically a roofer or is this a
9:58 general contractor? I believe this is
10:00 specifically a roofer. Okay. I was going
10:02 to say if he if he does other stuff and
10:03 he does a good job, use him for
10:05 everything. What amazing pricing that's
10:07 a Right. Right. Excellent. So, you're
10:09 getting the roof done. What other
10:10 projects are needed to get this thing up
10:12 to uh up to par. So, foundation, that's
10:14 the big one. I needed a lot of
10:15 foundation repair. Need joist
10:17 underneath. if we needed to jack up the
10:19 the the building is made the property is
10:21 made up of two separate structures. One
10:23 is a has four units and the other one
10:26 has two units. So the one with four
10:28 needed to be jacked up several inches.
10:30 So we had we had to jack that up,
10:32 replace the underside. Of course that
10:34 messed up some doors and some framing.
10:36 So we had we had to address that as well
10:38 and that ate up a bigger budget than we
10:41 had anticipated. So overall, do you guys
10:43 think that you're going to end up going
10:45 a little bit over budget and have to do
10:46 a contribution or do you think you're
10:47 going to be able to slide in with that
10:48 uh that 35k? Do you think you'll be able
10:50 to pull off?
10:53 I don't think we're going to be able to
10:54 pull it off. We're probably going to
10:55 have to get some kind of line of credit
10:57 against LLC to finish up some of these
10:59 projects and just pay it down out of
11:01 cash flow. But so that's kind of a
11:03 lessons learned there is to maybe raise
11:05 a little bit more upfront. So our our
11:07 plan was to just get all the exterior
11:09 stuff, the big stuff done and then fix
11:11 up the interiors as they turn because
11:14 they're in decent shape. There was a few
11:15 safety issues that, you know, we need to
11:18 address, but overall they were they were
11:19 fine. They were livable. So that was
11:21 that was the plan. The uh foundation
11:23 stuff definitely, you know, revealed
11:25 more of course than uh we anticipated.
11:28 So as you stabilize this, is the what is
11:31 the what is the exit plan? Is it is it
11:33 going to be a long-term partnership?
11:35 Does one person buy the other person
11:36 out? Is the goal to refinance this at
11:39 any point? I'm curious. So, we you got
11:41 into the deal. You have a few more
11:42 expenses than anticipated, but it sounds
11:44 like the projects are cruising along.
11:46 What is the uh what is the end goal for
11:48 this partnership in this property? So,
11:49 what we discussed was uh at year five,
11:52 we're just going to discuss what we're
11:53 going to do basically where we're going
11:55 to sell it, refi out, uh what are we
11:58 going to do with this thing. There's a
11:59 lot of unknowns at this point because
12:00 this is in an area called Stockyards
12:03 that is improving. It's uh it's in the
12:05 path of progress. So that might change
12:08 our outlook for this property at year 3,
12:10 year 4 depending on what's happening. If
12:12 new developments come nearby, we might
12:14 we might pivot from there. But we have
12:16 an agreement to just discuss it and what
12:17 we're going to do and we're both sort of
12:20 even killed and flexible. So I I feel
12:22 like our personalities jive in this
12:25 partnership. So definitely we're I'm
12:27 comfortable with it. That's a very
12:28 important piece knowing the personality
12:31 of who you're dealing with. I I don't
12:33 like partnerships that don't have a
12:34 defined end, but I do have a few of
12:35 partnerships that are structured just
12:37 like that where it's like, hey, we know
12:38 we love the deal. We know that this cash
12:40 flow is really strong right now. We're
12:41 flexible on whether we uh one wants to
12:44 buy, the other out, uh how long we want
12:46 to hold it. We really, no one has a
12:48 defined plan of how they need to exit,
12:50 but we have multiple possible exits. And
12:52 so, you did exactly what I would do,
12:53 too. You put a timeline of, hey, uh this
12:56 is our first partnership. I don't know
12:57 that we want to be married, so let's put
12:58 let's put a fiveyear review period on
13:00 this of we're going to hit this point.
13:01 and let's discuss what we like, what we
13:03 don't like, what needs to change. It's
13:05 really important to put those benchmarks
13:06 in the partnership relationship. You did
13:08 a good job doing that. Absolutely. And
13:10 part of my goal with this, too, is is
13:11 building relationships. It's a it's a
13:13 nice perfect project to start on. It's
13:15 not incredibly expensive. It's it's a
13:17 smaller multif family. Things go well
13:19 and, you know, we're working well
13:21 together, we start looking for other
13:22 stuff, which we're doing right now
13:24 actually. We're looking at other other
13:25 multifamilies that could potentially
13:27 purchase as well. And it's so nice to
13:29 just knock it out with two people. those
13:31 small LLC's in a joint venture that is I
13:33 I recommend everyone starts there. If
13:36 you're not buying them just by yourself,
13:38 having just a few key partners and
13:40 keeping those LLC's small on a vast
13:42 majority of your deals, there's going to
13:43 be an easy transaction. It's easy to
13:45 manage your partners. It is a really
13:48 leisurely way that you can pick up an
13:50 absolute ton of rentals. Yes. What is
13:52 your uh what is the game plan for the
13:54 different types of debt that you're
13:55 looking at to uh get through the
13:57 additional improvements? And um are you
13:58 looking at I have a tendency on smaller
14:00 renovations if we have a high enough
14:02 cash flow deal to take the zero interest
14:04 credit card. There's a lot of
14:05 promotional cards through AMX and Chase,
14:07 but depending on how much you're
14:08 bringing in, uh what debt products are
14:10 you looking at to find that additional
14:12 capital and how much more do you guys
14:13 think you're going to need to put into
14:14 this deal to get it to where you need
14:15 it? We actually we actually talked about
14:17 that the maybe look into a 0% u credit
14:20 card just to get us through the finish
14:21 line. That'll buy us, you know, 12
14:24 months. You know, even if it's 18%
14:26 credit card, takes two years. That
14:28 averages out to what, 9% across two
14:31 years. Yeah. So, not not totally
14:33 expensive. I think we're looking into a
14:35 um a line of credit with the bank that
14:37 that holds the loan already. We're
14:39 looking at I think about $18,000 just a
14:41 line of credit to help us get us to that
14:43 point. Okay. And that's right in the
14:44 sweet spot where it's usually easy to
14:46 get additional debt. It's usually a
14:47 simple loan mod or sometimes a bank will
14:50 do second, but it's always good to call
14:51 your existing lender and see if they
14:53 want to just add to the loan balance.
14:54 That's the easiest money you're ever
14:56 going to get. And I do that with private
14:58 lenders all the time, too. On seller
15:00 finance deals, you go back to the seller
15:01 and say, "Hey, I have this project. I'm
15:02 improving the collateral. Do you have
15:04 any interest in being the lender on
15:07 this?" Um, I recently got $150,000 to do
15:10 a project. I was going to go through the
15:11 bank. The lender, I have a loan at 4%
15:13 interest. They're like, "Yeah, we're not
15:15 doing anything else with the cash."
15:16 Funny enough, my down payment on the
15:18 deal was $160,000. So, they basically
15:21 just gave us back the down payment on
15:23 the loan uh to fix up the building.
15:26 Funny how things work, but yeah, going
15:28 to the bank or the lender, whoever holds
15:30 the note, is the most obvious lender cuz
15:32 they already lend on the property,
15:33 right? Another option, I think you're
15:35 right in that sweet spot. A lot of those
15:36 cards, it's common to get a line of
15:38 credit around $20,000. Typically going
15:40 to be looking at the Chase Business
15:42 Cashback card. I forget which one they
15:43 call that one specifically, but it has a
15:45 promotion on it. Chase Bank is fantastic
15:47 for that. And then the AMX Blue. Yeah.
15:51 And usually I'll apply to both and one
15:53 of them will give me like and is
15:55 variable, but one of them will offer me
15:56 like $2,000 and one of them will offer
15:58 me like 20. I'm like, well, I'll take
15:59 the 20. Uh that's what I'm looking for.
16:01 Thank you. And uh yeah, I last I looked
16:03 the promotion for uh AMX, I think
16:05 they're running a 15-month zero
16:06 interest. But you you nailed it on the
16:08 head. The other thing that you can do is
16:09 if you're like, hey, I can pay this back
16:10 in a 2-year period. It's a blended rate
16:13 of zero for the first year and then even
16:15 if it's higher interest, it's
16:17 effectively very cheap debt. You just
16:19 want to make sure, especially if you're
16:20 doing this with a partner, that you have
16:22 a partner who's also going to be equally
16:23 responsible. I have had uh two LLC's
16:26 where I had to eliminate my partner
16:27 because we did renovate with credit card
16:29 debt. They ended up going completely
16:31 broke and they could not fix their
16:33 spending problems. So, we had cards that
16:36 are pulling at like 22% interest that we
16:39 had no reason to be paying. And
16:41 eventually my options were I'll pay off
16:45 the card and you can pay your half to me
16:47 at 12%. Or I'm just going to buy you out
16:50 of the LLC because I'm not going to have
16:51 a partner who's just ripping debt
16:53 against every asset we have. So, right.
16:55 Yeah. Make sure you and your partner are
16:57 completely aligned with the business
16:58 plan and that you have an outlined at
17:00 the very least in a recorded meeting
17:02 with meeting minutes where you guys can
17:04 write down, hey, we at some point agreed
17:06 on a plan to do this. You can reference
17:08 the plan. But I do like the idea and
17:09 you're right in the sweet spot where
17:11 it's really easy to get around
17:13 15 to $30,000 of debt. That's the sweet
17:16 spot. If you need a little extra
17:17 capital, there's a lot of options. Yeah.
17:19 Yeah, that's a good idea. Well, good
17:21 lesson learned there. Um, and so was it
17:24 it really just came down to the bank
17:25 financing that had all the delays? Were
17:26 there any other major red flags to this
17:28 deal or something that took so long to
17:30 get the deal to close? Really? I mean,
17:32 it was a distressed property, I'd say. I
17:35 mean, there's I don't know distress,
17:36 that's bit of a strong word. It was a
17:38 lot of deferred maintenance, a lot, but
17:41 you know, we went through all that with
17:42 due diligence for the inspections. We
17:44 had uh we had different trades go out
17:46 there and look at stuff. So, we kind of
17:47 knew what we were getting into. It was
17:49 mainly the the the backend stuff of it,
17:52 the financing and everything. Well,
17:54 you're going to be all in on this. And
17:55 I've looked at the OKC market quite a
17:57 bit because that's a very easy drive
17:59 from Dallas. You're you're you're a
18:00 market that's within an easy striking
18:02 distance where I invest. It's a strong
18:04 market. That's an excellent price for
18:06 the amount that you're putting in for
18:07 rental, even if it's going to be closer
18:08 to 50,000 than your original 35. You're
18:11 coming in at an awesome basis in that
18:13 deal. Yeah, definitely. What does cash
18:15 flow look like today? And what is it
18:17 going to look like in a couple years?
18:18 So, cash flow was close to 8% on day one
18:22 is what we calculated.
18:24 Solid solid numbers. Yeah, the the area
18:26 is not the greatest. So, we're hoping to
18:29 bump rents up, but it's a very
18:31 conservative conservative bump in rents
18:33 over time. So, it's one of those deals
18:35 that we talk like I I like to consider
18:37 like, hey, that's a solid base hit,
18:39 solid double, you know, it's uh it gets
18:41 me and get to partner with somebody and
18:44 uh get to learn a lot along the way and
18:46 uh it was just a nice entry point for me
18:49 with good growth, good cash flow day
18:51 one. So, yeah, it was it was perfect for
18:53 me. It's fun to see and that happened to
18:55 be a month where a lot of people in
18:56 multif family strategy happen to buy
18:58 their first deals. Uh, so it was fun for
19:00 like you, Phil, are just a couple of
19:01 examples, but that was a month where
19:03 it's just like it felt like every other
19:05 day someone's like, "Hey, I closed the
19:06 building." I was like, "Geez, this is
19:07 the best month ever." Uh, when when you
19:09 keep the mentorship to 50 people and you
19:11 get like 13 people buying a deal, it's
19:13 like that's a really high percentage for
19:15 one month for everyone knocking it out
19:16 of the park. That was a fun a really fun
19:18 month to see all these go through. How
19:20 does it feel just momentum-wise in that
19:22 market now that you bought you've bought
19:23 a few single families, you've proven to
19:25 yourself you can partner, do multif
19:26 family. How do you feel confidence-wise
19:29 compared to when you started when you're
19:31 talking to brokers and owners and that?
19:32 I feel I feel a lot more confident now
19:36 with stuff just because this is
19:38 something I would not even considered a
19:40 couple years ago looking at multif
19:42 family buildings. My brain was just in
19:43 the the single family or maybe a two to
19:46 four unit space residential loans. I
19:49 just didn't know the process or how it
19:50 worked and it's not as scary as I
19:52 thought. So yeah, I'm I'm already
19:54 looking at other buildings. We're
19:55 looking at a 14 plex right now also in
19:58 Oklahoma City. In fact, we have the walk
20:00 walk through today and probably an offer
20:01 tonight or early tomorrow morning on
20:03 that property. So, oh, no way. If you
20:06 want to be super kind to Christian, take
20:08 a video of that walkthrough and I'll
20:09 plug that right into I'll plug that
20:10 right into this video. Take a look at
20:12 what you're uh what you're buying today.
20:14 Don't don't put the address on it. Of
20:16 course, you're you're working on going
20:17 under contract, but I would love to uh
20:19 would love to see footage of how that
20:20 walkthrough goes. If you if you think of
20:21 it, pull out your phone and and take a
20:24 take eight seconds or so of just, hey,
20:26 this is what we're looking at. That'd be
20:27 really fun to take a look at that
20:28 building and and what you're doing
20:29 today, but you're buying a 14 unit. In
20:31 your experience, you bought plenty of
20:33 single family in this market. Easier or
20:34 harder to close on a multi family deal
20:36 for your for your uh sample size of one.
20:39 How did this compare to buying single
20:40 family? You know, there wasn't that much
20:42 of a difference really? I didn't I
20:44 didn't think it was it was almost the
20:46 same. a few more other pieces, but in
20:49 all it was relatively the same. I would
20:51 say it wasn't like three times as hard
20:54 or anything like that. And you bought
20:56 twice as much as you'd bought in that
20:57 market over how many years did it take
20:58 you to acquire the three units, by the
21:00 way, in Oklahoma, the three single
21:01 families. So, uh, I have been sort of a
21:04 sporadic investor. I buy a family,
21:07 single family, and then I wouldn't do
21:09 anything for a few years. after the
21:11 market crashed, I 100% focused on buying
21:14 my primary residence here in San Diego.
21:17 So, that was all my energy there. And we
21:19 we bought a few other properties here
21:20 where I'm living in San Diego during
21:22 that time frame. And then I Very, very
21:25 wise, by the way, buying high
21:26 appreciation markets in a down market.
21:28 Scoop up what you can. Everything was
21:30 40% off. So, I was like, "Hey, I I got
21:32 bye bye bye bye bye." He did a good job.
21:34 Yeah. So, we bought a condo. It was, you
21:36 know, bought a house. We bought this
21:38 other property. Um, but I turned my
21:40 sights back to Oklahoma City in like
21:42 2018 or so and um bought some property a
21:46 single family. But we hear people talk
21:48 about this all the time. You're in
21:49 single family and something happens and
21:52 you just erase the whole year's worth of
21:55 cash flow on one maintenance like a
21:57 plumbing issue for instance. That
21:59 actually happened on one of my
22:00 properties. I had a a lateral line that
22:02 connected from the house to the street,
22:04 the sewer. It failed. that had to be dug
22:06 up, replaced, that pretty much wiped out
22:09 all my cash flow for the year. So, I'm
22:11 definitely looking and transitioning out
22:12 of those single families into into some
22:14 other stuff, multif family. What I found
22:16 I I built my whole career off of of
22:18 meeting owners. And that's the point of
22:19 this podcast, by the way, is meeting
22:21 with owners of real estate and the
22:23 businesses that you I want to do the
22:25 owner meeting for you guys. So, if
22:26 you're listening right now on this
22:27 podcast and you're like, "Wow, that I
22:29 can absolutely do this." That's the
22:30 goal. You don't have time to do the
22:32 owner meeting, you can you can listen to
22:33 my owner meeting while you're doing the
22:34 drive. Chris is someone who's actually
22:35 played the game. When you I meet with
22:37 people who have the 75 single family
22:39 units without fail. That meeting I'm
22:41 like, what's it like owning these? Like,
22:43 oh, I can't wait to get rid of them.
22:45 When you have a huge single family
22:46 portfolio, they're hard to manage.
22:48 Someone moves out, you wipe out the cash
22:50 flow. It's a lot harder to play the game
22:52 in my experience to manage one roof per
22:55 family. But if you can buy the sixplex,
22:57 the 14plex, the 20 unit building, it
22:59 becomes so much easier to scale. you can
23:02 afford property management on a 14 unit.
23:04 When you live in San Diego, it's worth
23:06 taking the flight out for 14 units. You
23:09 delete a bunch of your cash flow flying
23:11 to see the house on a single family
23:13 unit. It's like it's like you can't just
23:14 travel out twice a year cuz like, oh,
23:17 that's two months rent to go visit my
23:19 property. Yeah. And then that's, you
23:22 know, that's 14 different transactions
23:24 versus one transaction on one multif
23:27 family building. So, think about the the
23:29 the pain and the just the rate of a row
23:31 of going through a transaction 14 times
23:33 versus one time on one building. Most
23:36 deals I've ever done in a year is five.
23:38 And that's leisurely. I mean, that when
23:39 when your main job is buying real estate
23:41 and you're like, I I only have to do my
23:43 job five times a year. That's pretty
23:46 good. It is a it is a much simpler
23:48 business. My encouragement for everyone,
23:50 if you're following Chris's journey, it
23:52 went from ones to a six. Six was not six
23:54 times harder than a one. It wasn't even
23:56 twice as hard. Now you're looking at a
23:58 14. That's the type of stuff that I like
24:00 to see. Super excited that you're doing
24:01 all these walkthroughs and I I'm excited
24:03 to see the deal. If you happen to get
24:04 that footage, I I would love to add that
24:06 to this video. So hopefully see a quick
24:08 clip from you doing a walk through. I
24:10 I'll ask I have a couple of guys and a
24:11 friend doing a walkthrough for me. So
24:13 awesome. Take some video uh and send it
24:15 to me and then we get accepted and
24:17 further along in inspections. I'm
24:19 actually going to fly out there. I'll
24:20 I'll definitely take some footage at
24:22 that point. Oh, that's amazing. Well,
24:24 I'm super excited about that 14 unit.
24:26 exciting to see what you can do in one
24:28 market from out of state. So many people
24:30 in our group and they happen to be
24:31 people from San Diego almost every time.
24:33 Uh you're doing my favorite strategy.
24:35 You've bought some deals in your
24:37 backyard. You're not not buying in San
24:39 Diego, but you're focusing in a market
24:41 that is a little easier to scale in. And
24:43 so you have the best of both worlds.
24:44 You're in a competitive high
24:46 appreciation but difficult market. And
24:48 then you're really scaling your business
24:49 in a higher cash flow market at the same
24:51 time. Having that dualpronged approach
24:53 is awesome. I've also found capital
24:55 raising is easier because there's a lot
24:56 of people in San Diego who also want to
24:58 invest out of state. So as you meet more
25:00 and more people in that area, uh the
25:02 money all becomes easier as well.
25:04 Californians are famous for investing
25:07 literally everywhere else. So I I love
25:10 the strategy. My last question for you
25:12 here in your years of real estate
25:13 investing as you've been scaling up. I
25:15 love learning from the winds. We also
25:17 love talking about the stupid tax. What
25:18 is the most expensive mistake or lesson
25:21 that you have learned thus far in real
25:23 estate in your time? I've shared all the
25:26 time. Mine's jumping into hospitality
25:28 too early when it wasn't my business.
25:29 That was a that was a million-dollar
25:31 mistake for Christian. Uh yeah. What
25:33 What has been the highest uh what's been
25:35 the most expensive lesson you've learned
25:36 along the journey? So, I I would have to
25:39 say it is uh you know, I get caught up
25:41 sometimes in the emotional part of it.
25:44 I'm originally from Washington like you
25:45 are. Yeah. Kept County, Breton area.
25:48 Mhm. So, I I own land out there and my
25:51 parents live out there. I decided to
25:53 build a house on one of the lots that we
25:56 had close to my parents house and man, I
25:59 don't think I would develop again. I
26:01 cleared the land, graded it. I had to GC
26:05 basically everything up until the point
26:07 where the builder would take over and
26:08 actually build the structure. But
26:10 foundation dig out, plumbing,
26:12 electrical, septic, all that was me. And
26:16 it just it took up a lot of time, a lot
26:18 of capital was at play, no revenue
26:20 coming in that whole time. So it it's it
26:23 took probably it was a two-year journey
26:24 where I put everything on pause to focus
26:26 on this buildout. So I I I would say I
26:29 would probably would have reversed the
26:31 order a little bit. I would have focused
26:33 more on acquiring cash flowing
26:35 properties first and then tackle that
26:37 later when I had a little bit more
26:39 flexibility, more capital, more cash
26:41 flow, more more comfortable with my
26:43 financial position. So, I feel like I
26:44 did it too early. That That's exactly
26:46 how I felt about my mistake with with
26:47 hospitality. I have a luxury item that
26:50 does make money, but it's it was a ton
26:52 of work because I hadn't earned luxury
26:54 items yet. Figuring out a resort that
26:56 would have been cool to buy today and
26:58 start figuring out today. Buying it when
27:00 I did not have the wherewithal to own
27:03 that big of an asset with that much
27:05 variable income. Really painful. The
27:07 best developer I've ever seen, he waited
27:09 till he paid off his first 40 rentals.
27:11 He had a little 40-unit portfolio with
27:14 no debt on it. He's like, "You know
27:15 what? I can afford my holding costs now
27:17 and he started developing and he made
27:20 tens of millions of dollars developing,
27:22 but he set his base first in cash flow."
27:24 I I think that's a great lesson. Start
27:25 with cash flow. Start with income. That
27:28 buys you stability. And with that
27:30 stability, you can get into projects
27:31 that are more variable or have a
27:32 different risk profile. But I I've never
27:34 found anything more consistent than
27:36 entrylevel to middle market residential
27:39 multif family. People need housing.
27:41 People need entry- level housing. Find
27:43 areas where it makes sense. Pick up all
27:45 the buildings. Your income will be so
27:47 unbelievably predictable. I I love the
27:49 business model. That's a fantastic
27:50 lesson. Yeah, absolutely. To this day, I
27:53 think about the opportunity cost of that
27:55 time period of focusing on that buildout
27:58 versus acquiring assets. But, you know,
28:01 done is done. Lessons learned. Move on.
28:02 There we go. Well, ladies and gentlemen,
28:05 that is that is Chris Jordan. It's been
28:06 a privilege to get to work alongside of
28:08 you. It's been a privilege to get to see
28:09 some of these projects come together.
28:11 I'm hoping for some great news on that
28:13 14 units. Having 20 multif family units
28:15 in that market, that's that's a really
28:17 good number to hit. So, that's that's
28:19 going to feel good when you pick up a
28:20 little bigger building. I'm very much
28:22 hoping that this inspection goes or this
28:24 walkthrough goes the way that you hope
28:25 it does. By the way, uh this will be my
28:27 first time raising capital. So, if I get
28:28 accepted offer, I'm going to be looking
28:30 to raise 100K. So, it' be a first for me
28:32 to try to raise capital. I didn't raise
28:34 any capital for the sixplex. So, there
28:36 we go. See how that goes. What you're
28:38 about to find out is that you have you
28:39 have a deal that makes a lot of money.
28:41 You're not going to be the only person
28:42 who wants to make money in real estate.
28:44 So, if uh if people want to look into
28:46 the deals that you're doing and they
28:47 want to connect with you, perhaps even
28:49 want to work with you on a 14 unit that
28:51 may or may not be coming up, how would
28:52 someone get in contact with you? Uh I
28:54 guess email or uh I'm Chris Jordan 360
28:57 on Instagram. I don't post a lot of my
28:59 stuff. I need to get better about that.
29:00 Uh but yeah, that's my that's so you can
29:02 contact me. There we go. Chris Jordan
29:04 360 on IG. Drop a DM. figure out what's
29:07 up. If you want to get involved in OKC,
29:09 this is a guy who is actively doing
29:11 deals and knocking it out of the park.
29:12 Chris, happy to have you on. Everyone
29:14 else, I'll see you on the next