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Bridging the Gender Wealth Gap through Passive Real Estate Investing with the Founder of HYLEE Capital
63 Plays1 year ago
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Interested in real estate investment? Then today's episode is for you as we welcome Sarah Miskelly, Founder of HYLEE Capital, to the show.
Sarah's introduction to the world of real estate began at a young age, working alongside her father in acquiring and managing small multifamily properties. Despite facing the tragic loss of her father at age 16, Sarah's resilience propelled her to take charge of his multifamily portfolio, igniting a passion for real estate investment that would shape her future endeavors.
With HYLEE Capital, Sarah wants to bridge the gender wealth gap, empowering women to navigate the intricacies of real estate investment with confidence.
Dispelling misconceptions about real estate investment, Sarah highlights the myriad opportunities available beyond traditional property management, from passive syndications to multifamily investments, and shares advice on how to get started.
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Transcript
Societal Pressures on Women
00:00:00
Speaker
Knowing the experience of many women I speak to who really feel pressured to get back to work and produce and make money and hustle and the stress of all of that, while also trying to be a good mom, a good wife, a good citizen, it really sets women back when we're constantly chasing money.
Reclaiming Economic Power
00:00:18
Speaker
And I just really think that having that time to learn and grow and maybe find a way to design a life
00:00:26
Speaker
that fits in more with the ability to have balance. I'm Tamina and I'm extending a heartfelt invitation to you as we join forces in reclaiming economic power for women in a world that is often structured against us.
00:00:45
Speaker
We'll dive into the minds of accomplished female leaders, investors, and entrepreneurs to equip you with the confidence and knowledge to build wealth for yourself and other women. So buckle up, get ready to learn, and be inspired to take action. Welcome back,
Sarah's Real Estate Journey
00:01:01
Speaker
everyone. I am so excited to introduce you all to Sarah Miss Kelly.
00:01:07
Speaker
founder of Hyli Angel. Sarah grew up with her single mom in Toronto. After meeting her dad at the age of three, she started to get immersed in the world of real estate, helping him with his second job buying, renovating, and managing small multi-family properties.
00:01:25
Speaker
At age 16, her dad unfortunately passed away, forcing her to manage his multifamily portfolio. Determined to succeed, Sarah became well-versed in real estate investing.
00:01:37
Speaker
strategies like private lending and syndications, building up a multi-million dollar portfolio. She then entered real estate sales at age 24, winning top agent under 30 for three consecutive years and selling 55 million dollars in real estate.
00:01:58
Speaker
During COVID, Sarah made a bold move and left her $400,000 income to prioritize family and focus on investing full
Empowering Women in Real Estate
00:02:07
Speaker
-time. Now, Sarah's mission is to close the wealth gap between men and women we love, empower women to confidently invest in real estate and create multiple income streams.
00:02:19
Speaker
to build long-term wealth. Love that so, so much, Sarah. Welcome to the show. I'm so excited to have you. I'm so happy to be here. I was so happy when you reached out. Amazing. Well, look, I always like to start out with the same question for each of my guests, and I always come up with a new question for each season. So this season's question that I like to ask all of my guests is, as we grow older and we evolve in our own personal growth,
00:02:48
Speaker
we oftentimes unlearn beliefs or perceptions. And I'm just curious, is there something significant that you yourself have unlearned in your journey towards advocating for gender equity? Yes, I would say when I was growing up, as I was helping my dad manage property, I wasn't really treated like a little girl as a child. I was just a kid doing regular things, cleaning, renovating. I didn't have this kind of
00:03:14
Speaker
gender identity in a sense, you know, as a tomboy. And as I got older, there were two significant life events. First, it was the death of my father. When I started to experience that I was this young woman, I was 16, and I had to deal with older contractors, men, and I would go talk to financial advisors, and I felt this massive disconnect in
00:03:34
Speaker
the older white male who was kind of, it wasn't meeting me where I was in the terminology or just the experience of it. And as well, becoming a mom, I think that had a massive impact on me really getting connected to what women
00:03:49
Speaker
deal with and deal with not in a disempowering way, but like our experience and life. And it really made me identify the uniqueness of how a woman has to deal with money, her concerns, the way she gives up her work to have children, the psychological, the physical, all those impacts.
Gender Disparities in Finance
00:04:05
Speaker
of having kids. And then I started to really dive into the data itself and some of it 50% of marriages end in divorce and 41% of women have a negative or a lower financial household income following a divorce or 99% of investment management firms are owned by white men.
00:04:24
Speaker
So there's just like a lot of data that I started to explore. And these two things really made me passionate about getting wealth into women's hands, especially through real estate, because I've had the firsthand experience of the freedom that creates. I love that. And your upbringing, being a little bit of a tomboy very much resonates with me as well. Growing up, I love
00:04:46
Speaker
doing sports and like watching sports and watching action movies. And I never really enjoyed playing with Barbies, but I had a big and very long pirate face. So I can totally, totally relate to that. And I'm so glad that your unique story got you to where you are today and is allowing us to have this wonderful conversation today, because in all honesty,
00:05:11
Speaker
And we'll talk more about that, obviously, throughout this conversation. I know very, very little about real estate, aside from we're just talking about it offline. I'm a sucker for all things like selling Sunset and HGTV and looking at all the beautiful multimillion dollar mansions on the beach. But there's so much more to real estate than that. And just looking forward to having that conversation with you. But before we dive
00:05:39
Speaker
in Sarah, just wanted to point out that I love your website, very beautiful, but particularly that one quote that says, because nothing bad happens when women have more money. It's one of my old time favorite quotes by the incredible Sally Krawcheck, who's the founder of Elvis. So just wanted to plug that out. But again, want to hear all about how you got into real estate investing.
Real Estate for Financial Freedom
00:06:05
Speaker
We just heard it in the intro.
00:06:07
Speaker
You had a modest upbringing, being raised by a single mom, but then everything kind of changed when you ended up meeting your dad who was very present in real estate. Could you share a little bit more about your origin story with us? How did you start educating yourself about the space to eventually becoming top real estate sales agent and then shifting
00:06:30
Speaker
to running your own business in this space. A lot of credit does go to my father. He was from Croatia. He was your classic immigrant story, came from nothing, built a life in Canada, and worked extremely hard. I have so much respect for him. And just in my upbringing, I was always hands-on with him. So I think
00:06:51
Speaker
Sometimes in life we're blessed with experiences that we kind of don't realize how much we know about a certain thing simply because it's kind of our world, right? So in my world, having tenants and managing issues with tenants and
00:07:07
Speaker
dealing with the books expenses and buying supplies for a property and painting and fixing things. That was just my reality growing up. So I think I had this really great foundation of real estate as this powerful thing that you do a lot of hard work, but then we would go to Croatia for two months in the summer and go to the beach and
00:07:30
Speaker
play and have a beautiful life experience. And I know that isn't always possible in a traditional nine to five role. So I could already see that hard work plus the joys and benefit of real estate simply from my upbringing. And as I kind of grew, I went to university as a normal millennial. I wanted to do something that made a difference. Couldn't find a role that was actually high paying enough.
00:07:52
Speaker
in my mind, we all I think want to make a difference, especially as women, but unfortunately, a lot of those roles are not quite a knock to live in a major city or really do something with. So I ended up getting into real estate sales, but I think I've always had a curiosity and a hunger for elevation and growth, whether that's personal development or just reading. And I just took on
00:08:11
Speaker
a lot of self-education, whether that was books or mentorships or joining investment groups. So I just always, in my spare time, like I wasn't insane. I was obviously younger, partying, having a good time, but I really took personal initiative, which is even easier now with the internet.
00:08:28
Speaker
Being as prolific as it is with so much information to grow my knowledge base and also actually taking action because I think there's a huge difference between just reading a book or actually putting money into something and going through that process and failing and failing forward and all of that. So that was kind of my real estate experience and I kind of brought that into real estate sales and it accelerated because that's also a business building.
00:08:53
Speaker
Cool. When you get into the sales world, you're building an actual business. So I have lots of different experiences with real estate, but it was self-education. I love that. So a couple of things that I'm hearing here. Sounds like as if from an early age on you had this natural gravitation towards learning and curiosity, which is probably something that is also part of your parents' story. You're mentioning your dad.
00:09:16
Speaker
moved over from Croatia, built a completely new life for himself from scratch as a pending US immigrant who is also dating a first generation American. He moved to the US when he was five. I can so relate to your story and your dad's story. And I think it's beautiful. And I think something that a lot of immigrants and first gen people have
00:09:42
Speaker
in common is like having that abundance mindset where you're so used to proactively educating yourself, asking questions, being curious and not acting out of fear, but out of that sense of, Hey, I think there's actually so much more out there. And if I work hard, if I focus on personal development, I can really
00:10:10
Speaker
make something out of that. And it's a true gift that I think that your dad has passed on to you in that sense. So it's really, really beautiful. So thank you so much for sharing that, Sarah. Let's talk a little bit about the nitty-gritty.
00:10:26
Speaker
details because as I was mentioning earlier, I don't have a lot of or no experience at all with real estate. I have a couple of friends who are in the game but have mainly been focusing on investing in the stock market. And over the past one to two years, I've been diving deep into the world of angel investing and venture capitalism.
Demystifying Real Estate Investing
00:10:46
Speaker
But I love
00:10:48
Speaker
about real estate that it can be a vehicle towards building several passive income streams. It's something that I always recommend to the many young women that I mentor and coach to start building.
00:11:03
Speaker
multiple income streams as early as possible. That being said, real estate investing is often a little more hands-on, which can be a little intimidating for a lot of people, including myself, especially for women who are socialized into being perfect at all times. So often women
00:11:23
Speaker
would not necessarily consider an investment unless they know everything there is to know about a certain financial asset class, which can be a double-edged sword. But I know that you and your company, Highly Capital, you're working on making
00:11:39
Speaker
real estate investing a lot more accessible to women, which is fantastic. Could you talk a little bit more about what some of the biggest misconceptions are that women have or really anyone maybe have about real estate investing and how your company is addressing those misconceptions?
00:11:58
Speaker
Yes. I mean, the biggest misconception of a real estate investing is that it has to be hands-on. This would be more retail or publicly available information on real estate investing. So this is more like you're sharing the HGTV selling sunset, what we're really seeing.
00:12:13
Speaker
Once you get more into the world of real estate, there are incredible amount of opportunities where someone can invest in real estate. So they have that security and equity appreciation of a hard asset, like a building or a duplex, like a house. However, they're only receiving returns from the asset hands off. There's a great book by Brian Burke called The Hands Offs
00:12:35
Speaker
investor and insider's guide to investing in passive real estate syndication. And that's really just the tip of the iceberg. There is an abundance of ways to be invested without actively managing tenants or maintenance. However, most are private deals. Essentially, you need to have a personal relationship to whoever you are investing with. So this private world of real estate, it's not some shady background dealings, which is actually something that comes up a lot when I'm talking to investors. They're like, is this a scam?
00:13:02
Speaker
Like, is this just awkward because it's not publicly available information? But no, we are regulated by the Securities Exchange Commission. So it's legal documents are assigned. There's a lot of red tape, but it's just not going to be on MLS or on the multiple listing service. You're not going to see these deals available out there.
00:13:21
Speaker
So basically once you have a personal relationship, you're going to be able to get into these deals. And what really happens is people don't usually pursue real estate investing essentially because of the time commitment or they don't want to be an expert. They don't want to go get financing. Do they do diligence and stuff? But when you get into passive real estate investing, the most time you're going to take is finding the right people to work with. And it's really this way of
00:13:48
Speaker
kind of democratizing real estate investing because now with the way the world's changing, even though the syndication model, which is what I'm involved in, has been around for over 50 years, it hasn't been as popular as it is now simply because real estate from an ownership perspective is becoming more challenging and then a lot of people don't.
00:14:08
Speaker
want to become an expert or manage property. They're more focused on their career. That's their main priority. So at Highly Capital, we do have access to deals. We're very education focused. There's something in me that is a teacher. I don't know what it is, but I love when people can really understand. And I think it's that my thirst for knowledge has made me want to share with other people. And it's really in this model, finding women
00:14:32
Speaker
They're in alignment with our investment thesis to partner with on these deals as passive equity partners. So there is opportunity to profit and have that security without being a landlord, essentially. I love that. And I do agree with anything investing related education.
00:14:49
Speaker
front is so so important because again like most of us growing up we're not as fortunate as someone like you for example who was kind of like born into this industry and passed down a lot of that really critical knowledge most of us don't even learn how to set up a retirement account until you're in your like mid-late 20s sometimes so
00:15:13
Speaker
I do love that you focus a lot on education there. As a follow up question, do you talk a little bit more about the types of investments that you make or facilitate through your company? Because I know you're focusing also on multifamily homes, is that correct?
00:15:29
Speaker
Yeah, so we focus on multifamily properties. So this is essentially apartment buildings. So multifamily can be a building that's five units. It can be a two unit duplex. Those would all be considered small multifamily, but our focus is on large assets. So generally 100 plus units.
00:15:48
Speaker
And a few reasons for this is A, economies of scale. So we're able to then, if one tenant moves out, that's not wiping out all of the income. As well, when you get into larger assets, the value of that property is based on the income versus
00:16:06
Speaker
being based on a comparable sale down the street. So there's just this really great way to bring up the income, which then gives more money into the hands of the investors. So it's really just about taking advantage of deals that were traditionally only available to really institutional type investors. But through this syndication model, we're able to bring everyday investors into these deals so they can take advantage of the more lucrative returns that are available in commercial real estate.
00:16:33
Speaker
Yup. And too quickly for those audience members who are completely new to all of this, indication basically means you just pool money from various different investors. So you have one big pool and then you make that investment in two on property.
00:16:51
Speaker
Exactly. Thank you for clarifying because it's left thing again, right? We kind of the things we know, we know, but even that word, a lot of actually a lot of people in real estate don't even know what a syndication is. So if any of your listeners are thinking, oh, I don't know, like this is ridiculous. Trust me. Not a lot of people know the syndication model.
00:17:09
Speaker
Yeah, no, totally. I totally get that because I think no matter what industry you're in, sometimes you're just so wrapped up in your bubble and you use certain words that you just like throw around every single day. But then sometimes you're like, wait a minute, other people are not part of this industry or not like industry adjacent might not know what we're talking about. I sometimes.
00:17:33
Speaker
have that in my world of tech sales where I use acronyms or certain words and then clients are like, hey, can you clarify what this word means for me? Like, yeah, sorry, this is totally on me. I just made assumptions. So the only, the only reason why I am familiar with the term syndication is because you have something very similar in the world of angel investing and metric capital where you can form a syndicate where you
00:17:57
Speaker
cool angel investors money together to invest in one company. So I was just making an assumption that that was the exact same approach in real estate investing. Okay let's talk a little bit more about the process because I want this to be very tangible for our listeners. So on your website you outline all the different steps of how partnering with you and your company works. So first you find
00:18:21
Speaker
deals and strong growth areas using a specific set of criteria. Then you negotiate favorable terms, you secure the financing, then there's obviously all the legal stuff, signing documents with your investors and so on. And then after the deal closes, your team is responsible for ensuring that the property value increases.
00:18:44
Speaker
increases by improving the asset and operations. And then lastly, investors typically receive cash flow quarterly. And ideally in five to seven years, the intention is for the investors to get their original investment back.
00:18:59
Speaker
plus ideally a share of the profit. Now, my question, Sarah, how do you identify good deals? What are those criteria that you apply to find good investment properties?
Identifying Promising Investments
00:19:12
Speaker
Yes, this is a very clear set of criteria. So first is location. We focus on population and growth. So the house would be good population, good job growth.
00:19:21
Speaker
And this is to make sure there's a stable tenant base, particularly where there isn't one corporation dictating all the jobs in that region like we saw in Detroit with the auto industry. For example, we had an ED unit apartment complex in Atlanta earlier this year. And it has a very diversified job market. I mean, it's third in the nation for Fortune 500 companies, second most traveled airport in the world, number one tech growth hub. So we're looking for criteria like this.
00:19:46
Speaker
And there are people coming in and jobs to keep them and this takes a lot of market research. And then we'll look at historical and projected rent growth and occupancy rates. So this is where we have to get super micro, but this can be like to the county neighborhood, even a streets, because it can change significantly.
00:20:03
Speaker
So essentially when we're purchasing properties, there's terminology and I'll clarify because of what you mentioned before. We have Class A properties, which is your shiny new product. Then you have Class B, which needs improvement and needs renovated. Those Class B properties will compare the rent of upgraded units in the area.
00:20:23
Speaker
in similar buildings nearby to see how much room we have to boost rent at this property. And then next, we're going to look at the condition of the property. So usually we look for assets which are made after 1980 and beyond. And this is essentially because there's less problems with these properties. So that would then equate to less expenses, less money putting towards capital improvements.
00:20:49
Speaker
So there's this kind of sweet spot property that we're always looking for. And that's where we can spend the least and make the most. And the easiest way for me to describe this entire process is apartment flipping. That is simply we're apartment flipping. And then the most critical component aside from looking for a good market is the underwriting of the deal. And what that means is the owners of the property that you're buying it from, they're going to give you all their information. So they have to give you their expenses, their rent roll,
00:21:19
Speaker
their service contractors and our team has to go through everything with a fine tooth comb to assure that A, it's legit. They're not lying, which does happen because they're looking to sell. They're trying to boost rents and find creative ways to make more money on the sale. And B, we're looking for
00:21:35
Speaker
holes or areas of improvement that we can capitalize on. For example, if you look at energy bills and know there are tech systems like Nest that you can install, there's an opportunity to then auto-regulate the heating cooling system, which would then save money moving forward and increase profitability. So there's other things that we usually go in and add. We'll add in pet bees or reserved
00:21:58
Speaker
parking. So you're kind of going in and because it's a rinse and repeat process for us at this point, when we go in and make those improvements, we know what to do to boost the rents because we've done it before in other assets and there's so many ways that we can kind of pull things together.
00:22:14
Speaker
And then what we really need to make sure is the numbers are then correct and we can reflect that with the purchase price of the property that we will be paying. So we really want to know what the profit potential is when we're doing this for ourselves and then as well for our investors. And then another important factor is tenant quality. And I think this is where even if you're in multifamily or you're a potential real estate investor, one of the biggest concerns is
00:22:38
Speaker
bad tenants because you're always going to hear the horror stories like that's the only thing you're going to hear. And that's the thing that scares most people off from real estate investing is they're scared. They're going to get a bad tenant and it's going to essentially screw them over. So when we're looking for these larger assets, we don't touch markets.
00:22:55
Speaker
where there's rent control, for example, California, you wouldn't want to go to places where there's a lot of red tape where it's extremely challenging to a big non-pig tenant. So the location is really, really important once again. And so then if a property checks out all these boxes and my team can go through
00:23:13
Speaker
hundreds, hundreds of deals before we find one that actually matches our criteria. Then we'll sign a letter of intent. We'll obtain financing for that deal. And it's start bringing investment partners into the deal. And the biggest question I always get asked is what is the risk? What is the biggest thing that can happen to my money? Could I lose all my money? And like we've seen over the last few years with the interest rates going up and all that is in the media right now,
00:23:41
Speaker
The biggest risk is market fluctuations, economic downturns, the government. As much as we want freedom from using real estate investing, we still are regulated by the government at some level, right? So we really need to make sure that there's a lot of conservative underwriting done on a deal so we can kind of mitigate for that risk. And that's why when you get into larger deals as a passive investor, so hands off, who you're working with is honestly the most critical component of it.
00:24:08
Speaker
I feel like I've learned so much. There's so many different moving pieces. But love that you brought up Atlanta, for example. It's actually one of the handful of places that my partner and I are considering moving to after New York. He's lived there before and we really love it there, but we've also been following
00:24:27
Speaker
the local real estate market a little bit over the past couple of years and it's really been blowing up and it's not as you were mentioning on a lot of people's radars when you think about major US cities that people would move to but like you said more and more companies are moving there especially more and more tech companies startups are setting up shop there and it also has a very high quality of life I would argue and even for
00:24:55
Speaker
families, oftentimes there is still opportunity for you to buy property from comparison in New York. It's obviously very, very challenging to get a lot of space here for, for little money. So I really love that. Thank you for sharing. You already talked a little bit about where you can move the needle in order to increase savings, increase efficiency. You talked about head fees, parking.
00:25:22
Speaker
any tax efficiencies you can create, which is obviously something we always want to take advantage of in any sort of investment class and tax efficient. But what else do you do to ensure that the property value increases? Is it upgrading facilities? Is it some sort of like gentrification lobbying within those local communities, a combination of both? Talk a little bit more about that, please.
00:25:47
Speaker
Yeah, I touched on it before and I will go into it more debt because this is a great question.
Impact Investing in Real Estate
00:25:52
Speaker
So the number one benefit and why a lot of real estate investors move into multifamily is it's considered commercial real estate. So these are larger assets and the value of the property is based on the net operating income or NOI for short. So that's the money coming in, which means the more profit we can generate at the property, the higher the value. And this is,
00:26:16
Speaker
in contrast to residential real estate, so your single-family homes, where the value is based on comparable sales in the market. So you can't just say, oh, my home is worth more because I'm renting it on an Airbnb, so I'm making more income. The value would be based on what the neighbor's house sold for, if it's similar. For example, this multifamily, it's based on how much can we boost how much we're making, and then that's going to dictate what we can sell it for. So it's a very different dynamic, and that's why we do all that stuff that I already mentioned.
00:26:46
Speaker
And with properties like this, we don't do any gentrification lobbying in the community. We strictly focus on upgrading a property to match the rental rates that are being obtained in the area by similarly upgraded assets. So that's why we're doing so much research. So we'll upgrade on some more things. We'll upgrade landscaping. We'll upgrade gym lighting. So for example, if there's not enough lighting at night,
00:27:10
Speaker
A lot of families really appreciate when we come in and we add lighting in the parking lot or in dark corners and we just make it actually safer for them. We approve the signage, we renovate units, add washing machines. So this is a buzz term and I know you would appraise, but impact investing. I would say that multifamily investing is impact investing at its finest.
00:27:30
Speaker
Because when you invest in multifamily real estate, for example, you can really see dollar for dollar where your money is invested and how it is improving, essentially, people's living conditions, which we know Maslow's hierarchy of needs, where we live, that is a human need. And we're able to make that impact for people and their families. I love that beautiful whole summary there.
00:27:53
Speaker
So interesting, a lot of these improvements that you're talking about, like for example, that's something that is so unconscious oftentimes, but makes such a big difference. And oftentimes people are not even aware of it or cannot even like.
00:28:10
Speaker
point to specific improvement. They just know by the way they feel, for example, they feel safer. They feel it's safer for their children based on the improvements that you have made. So that's super, super interesting. Thank you for sharing that. As I was mentioning to you before we started recording, most of our listeners are women in their 20s.
Starting in Real Estate Investments
00:28:32
Speaker
Some of them are in their early 30s. And for our generation, like younger millennials, gens,
00:28:40
Speaker
We know it's becoming increasingly challenging. If our audience members want to start getting their feet a little wet with estate investing without going all in on a massive investment like a 2030 plus year mortgage, where do you recommend that they start and how much should they save up for their first meaningful investment? For example, how much money would I need to save up in order to join a deal of yours?
00:29:07
Speaker
I'm going to really give an answer that's not only based on what I actually offer, but just simply based on my love of real estate in my background, because I think it's important for people to know their options inside of real estate. So I'm going to give an example if you want to be an active investor, so kind of owning and managing your own property, and then really giving you more clarity on if you want to invest passively in a deal. So I mean, I hear you with the costs and stuff. I'm from Toronto originally and a one bedroom downtown condo is $800,000.
00:29:36
Speaker
right? Like that's prohibitive for many people. And it's also to me ridiculous knowing what's available in other areas like I do now. So I feel for buyers in New York, LA, Chicago, even tertiary markets are increasing a lot of value to the point of being prohibitive. And that being said, when you get out of your backyard, there are a ton of markets in the US. I mean, you mentioned Atlanta.
00:29:57
Speaker
where prices are still relatively affordable and you can still get cashflow if you're looking at it from an investment perspective. So first, my recommendation would be is if you want to own your own property and kind of become an expert. So if you want to get your hands dirty, find property management, find contractors, start exploring out of state investing options.
00:30:17
Speaker
There are a lot of governmental programs like FHA loans that do support first-time homebuyers to get into properties with lower down payments and closing costs. I was speaking to a well-respected woman in the commercial real estate space the other day, and her daughter just purchased a duplex I think with around like $10,000 down payment.
00:30:35
Speaker
So the opportunities are there. It just takes time and effort to find them and save up the cash to renovate. If you need to pay for property management, if you go down that route, then there's a cost of finding tenants if you use a realtor and things like that. But I do want to encourage people that there's more opportunities if you're willing to do the work. And I think that's most things in life. It's what we put in is what we get out at times.
00:30:59
Speaker
But if on the other hand, you're like, no, that's not for me. I do not want to do that. I'm busy. I have a career. I don't want to manage tenants and maintenance and get financing and high interest rates and renovate and all the things. The other option is to invest in passive deals. So the Atlanta deal that I mentioned, for example, that was a 75K minimum, which once again, if you're in a major city and if you need to put 20% down on a property, that's still likely less. And with these deals, the most work you're going to do is
00:31:29
Speaker
talking at the beginning to your CPA to figure out the tax stuff for financial advisor, consult with the lawyer, then really finding a good team to invest alongside and that's it. You'll then receive quarterly distributions, which means that's the cash flow that you would get in your bank account.
00:31:49
Speaker
quarterly from the property, kind of like if you own a property and you're getting rent, you get that in your bank account directly. And then how the business model works in majority of syndication multifamily deals is because it's like, permanent flipping will acquire the property, will make all the improvements. And then you as an investor, once that business plan is fulfilled after let's say three to five or seven years, you will get a share of the profits.
00:32:17
Speaker
on the sale of that property. So very easy example is if you put in $100,000 into a passive deal, a multifamily deal, after five years, let's say you'd get about 90,000 back and that 90,000 would be mixed as a
00:32:33
Speaker
cashflow that you made over the years of being involved in that investment, plus that share of the profits when the property sells. And then of course, you get your initial investment back. So a lot of people, they'll go into one deal, they'll like it, then they'll just kind of cycle their funds through into other deals. And honestly, it's
00:32:53
Speaker
a really great and profitable way to be invested in real estate but not have to grind it out, essentially, and be hands-on. And I would say definitely not without risk, like any type of investing. I'm not here to sell what I sell snake oil. There is risk with any type of investing, like I mentioned before, who you're investing with, the due diligence, the track record of the team, many things I'm happy to discuss with somebody in detail down the line. But if you work with good operators,
00:33:20
Speaker
chances are you will keep investing because it is just a very clear cut investment strategy. One of the reasons we love real estate is it's an asset. You can see it and you can go visit it. There isn't some airy fairy idea to it. It's very simple and straightforward.
00:33:37
Speaker
This is also enlightening for me and I feel like I definitely want to go and do some more research after we conclude our conversation today. And I'm sure this also applies to a lot of audience members who get to listen to this in a couple of months from now. But thank you so much for all your candidness. I really, really appreciate it. I feel like this was way overdue for this podcast. As I was mentioning, we've been focusing a lot on
00:34:04
Speaker
Founders, venture capital, angel investing, some stock market, but this is the very first real estate conversation I've ever had for this podcast specifically. So yeah, tough act to follow for anyone that I'll be interviewing on this topic potentially in the future.
00:34:22
Speaker
So thank you for that, Sarah. One final question for you, because I don't always like to start out with the same question. I also like to close with the same question for all of my guests. So going back to the whole idea of promoting gender equality, gender equity, because
00:34:39
Speaker
And I know that we still have a long way to go, unfortunately. Sarah, imagine you had the power to enact a single universally binding law that every organization must obey, designed to significantly uplift women's economic status. What law would that be?
00:34:58
Speaker
That is an incredible question. Honestly, I can't say if this is going to be exactly in line with this, but I feel like women in America need a year paid maternity leave. As someone who's just coming off three years, I have two kids under three right now. I have a one year old, a three year old.
00:35:17
Speaker
And just that experience of being a mom and creating life and the thought of having to come back to work after 12 weeks, I can't immediately correlate how this significantly would uplift women's economic status in totality with just knowing the experience of many women I speak to who really feel pressured.
00:35:36
Speaker
get back to work and produce and make money and hustle and the stress of all of that while also trying to be a good mom, a good wife, a good citizen, it really sets women back when we're constantly chasing money. And I just really think that having that time to learn and grow and maybe find a way to design a life
00:35:58
Speaker
that fits in more with the ability to have balance, which I know some people say doesn't really exist, but just being able to create a more sustainable lifestyle for yourself. I think that is something that is sorely lacking, especially in first world countries to just not even give a mom that privilege. So that to me is very important.
00:36:21
Speaker
I love that you brought that up, Sarah, because it's something that is not applicable to me personally yet. But as someone who was born and raised in Europe with rather generous parental leave laws, when I moved to the U.S., that was something that was really mind blowing to me. I branded my working in tech, where we usually have pretty great employee benefits, at least for my company. Birthing parents get at least six months off.
00:36:51
Speaker
which is fantastic for United States. And that's why as cheesy as it might sound, and I know we're kind of closing out soon, but when a woman has control of her finances, for me, I was able to take off however long I wanted to take off because I had cash-flowing assets.
00:37:08
Speaker
And that is life-changing for a woman. So there's a lot of things that can be done. It's just the education of it. Plus, obviously, if it was a law, something like this, there's ways I think things could change for women in a positive way.
00:37:23
Speaker
I'm so so glad you reiterated that because this is like something I always emphasize in all of my conversations because oftentimes when you're like oh like the money is not the most important thing in the world. No it is not but especially for women in the capitalist society that we live in money means freedom and like you said that's why I'm so glad you brought this up
00:37:48
Speaker
When women have access to financial resources, we can, for example, we can make a decision to take unpaid maternity leave need be it's really all about the freedom that money oftentimes
00:38:03
Speaker
passive income streams bring to women. So that's why it's also important to normalize women having conversations about wealth creation, about building generational wealth, because again, money is a tool at the end of the day. And yeah, I'm so glad you brought that up again. So thank you for that, Sarah. This was so, so wonderful. Again, thank you for your transparency, your candor, I think,
00:38:31
Speaker
This was really, really eye-opening for your opening, I guess, to a lot of our audience members. Thank you for all the incredible work that you do, and we'll make sure to link to your website in the show notes so people can take a look and maybe get in contact with you if this sounds appealing to them. Awesome. Thank you so much for having me. It was a great conversation.
00:38:55
Speaker
Likewise. Hey there, not so fast. If you enjoyed this episode, please consider leaving a five-star review on Apple Podcasts, Spotify, or wherever you've listened in from today. Reviews are a podcaster's most important currency. It helps me create visibility for the incredible women who join me on this show. And if you've made it this far, I'd like to believe that supporting women is one of your favorite pastimes.
00:39:22
Speaker
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