Today’s Bad Beats episode of The Real Estate Nerds Podcast was cut live at FinCon 2018. So on top of the usual show notes, be sure to check out the Royal Legal Solutions YouTube Channel for some video extras from this and other bonus material from the conference.
Our host and attorney Scott Smith got the chance to sit down with Monick Halm, an apartment syndication investor who some of you may already know as The Real Estate Investor Goddess. Monick agreed to tell us about one of her worst deals and how she recovered from it. Tune in to Episode 39 of The Real Estate Nerds Podcast now to hear the full conversation.
Listen To Episode 39 of The Real Estate Nerds Podcast Now
Monick Halm’s Apartment Syndication Bad Beat
Monick joins Scott to tell us a bit about her investing career and an apartment syndication deal that didn’t go as planned.
- [1:55] Monick joins Scott to share about one of her first two apartment syndication deals. She bought two 77-unit buildings within a week of another, with high hopes for both. She planned to manage them together. The market, Albuquerque, NM, was new to her and her partner. But the numbers jived, and things looked bright enough in the beginning.
- [3:30] Monick quickly learned that many of her apartments had tenants who simply weren’t paying rent. “One thing we didn’t do well is look at the dates and see how long tenants had been there,” Monick explains. “We didn’t pay enough attention to delinquency.”
- [4:45] The property was managed by one of the state’s largest property management companies. Occupancy plummeted and the property management company was not pulling their own weight.
- [5:40] Monick speaks to an additional stress of underperforming in a syndication context: “It’s bad when your property’s not performing like you want and your own money’s on the line. But when it’s someone else’s, it’s so much worse.”
- [6:30] Did you know that Albuquerque, NM is the car-jacking capital of the country? We didn’t. And neither did Monick. But she found out when two of her tenants had vehicles stolen from the complex’s lot. Even then, she had to bid with five separate companies before one agreed to build a fence nine long months later.
- [8:30] Monick did eventually experience a share of good luck: “Cap rates went down and a seller approached us about buying the property at a good sale price.”
[Tweet “”It’s bad when your property’s not performing like you want and your own money’s on the line. But when it’s someone else’s, it’s so much worse.” – Monick Halm, Real Estate Nerds Podcast #39″]
Lessons Learned: Your Team Can Help You Recover From a Bad Beat
Monick and Scott wrap up the episode with the major lessons listeners Monick learned herself, as well as some take-aways listeners can learn from Monick’s story.
- [9:15] Scott points out that Monick must have learned many lessons from this property. She confirms: “We learned a lot about the importance of your team. Your team on the ground is everything.” She also now knows the importance of understanding your market, particularly if you’re an out-of-state investor.
- [10:30] “We leaned a lot on our network for advice” to both manage and get out of the situation, Monick explains. She has a wide professional network of experienced investors who are also syndicators. During this time, they provided an excellent sounding board and offered some problem-solving ideas that helped her spring back.
- [12:30] Scott points out that you can do almost everything right, have a team of trusted advisors with the experience to handle the problem helped Monick recover from this deal. He adds that one of the beautiful things about real estate is that time can correct many costs.
- [14:00] Monick shares about her space specifically for female investors, Real Estate Investor Goddesses. She has an upcoming 7-Day Challenge for anyone who joins to community. The challenge is an assessment to help determine whether you are ready to invest. If you are a woman interested in real estate, visit www.realestateinvestorgoddesses.com for the latest on that.
[Tweet ““We learned a lot about the importance of your team. Your team on the ground is everything.” – Monick Halm, Real Estate Nerds Podcast Episode #39”]
Connect With Monick Halm
Thank you for joining us on today’s episode of the Real Estate Nerds Podcast. For even more free educational resources on real estate investing and the law, check out the Royal Legal Solutions blog. You can also reach our host Scott Smith directly, connect with him on LinkedIn, subscribe to the Royal Legal Solutions YouTube channel, or join our investor community on Facebook.
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About Monick Halm
Monick Halm is a real estate investor, syndicator, and developer with over 12 years of real estate investing experience in multi-family, mobile home parks, RV parks, flipping, vacation rentals, syndication, and ground-up development. Together with her husband and her investors, she owns over 1100 rental units across 5 states.
She is the #1 bestselling author of The Real Estate Investor Goddess Handbook and the host of the Real Estate Investor Goddesses Podcast. She is also a Real Estate Strategy Mentor, a Huffington Post contributing author, keynote speaker, recovered attorney, yoga teacher, certified interior designer, Feng Shui expert, avid world traveler, wife and mother of three amazing kids.
She has made it her mission to empower women to thrive in their lives, families, and careers. She loves connecting with other real estate investing women. You can connect with her on The Real Estate Investor Goddesses Facebook Page or on twitter as @monickpaulhalm.