MB482: How I’d Raise Capital Today Without a Track Record: What Actually Works (and What Doesn’t)

If you’re serious about building wealth through real estate, you can’t afford to ignore the tax side. In this episode, CPA and active investor Sean Graham breaks down how cost segregation and bonus depreciation can save you (and your investors) tens or even hundreds of thousands in taxes—without changing your investment strategy. We cover how to use cost seg the right way, why most CPAs are doing it wrong, and what high earners need to know about the latest tax bill that could bring back 100% bonus depreciation. Whether you're a GP looking to raise smarter or an LP trying to boost after-tax returns, this episode is non-negotiable.Key TakeawaysWhat Cost Segregation Actually Does for YouReclassifies components of a property to accelerate depreciation over 5–15 years instead of 27.5 or 39.Allows investors to take massive deductions in year one—sometimes more than the cash they put into the deal.Creates phantom losses on K-1s that can offset other passive income or gains.Bonus Depreciation: What It Is, and Why It Matters100% bonus depreciation (introduced in 2017) allows investors to deduct qualifying property in year one.It's phased down since 2023 but may return under new legislation.Huge benefit for both LPs and GPs—particularly when paired with proper tax strategy.Using Cost Seg to Raise Capital More EffectivelySmart GPs use depreciation estimates during the raise to attract savvy investors.Many LPs care more about the tax benefits than the projected cash flow.For deals over $1M, cost seg should be factored into your underwriting and pitch.The “Look-Back” Strategy for Missed DepreciationAllows owners to retroactively apply cost segregation—even years after purchase.No need to amend prior tax returns; benefits can be taken in the current year.Especially powerful when strategic timing aligns with real estate professional status.Avoiding Common CPA MistakesMany CPAs aren’t familiar with real estate—leading to missed deductions and bad advice.Make sure your tax pro understands real estate-specific strategies like bonus depreciation, short-term rental loopholes, and REPS.Ask the right questions: Do they know how to handle depreciation recapture? Real estate professional status? IRA investing?How to Work with a Cost Segregation Firm the Right WayInvolve a cost seg firm early—before closing—so you can plan ahead and market benefits to investors.Studies typically cost $5K–$10K, but often result in six-figure tax savings.Smaller properties can use a “condensed engineering study” for reduced fees without sacrificing IRS compliance.Connect with SeanMavenCostSeg.com/Blank&nbsp;Connect with MichaelFacebookInstagramYouTubeTikTokResourcesTheFreedomPodcast.com&nbsp;Access the #1 FREE Apartment Investing Course (Apartments 101)<a href="https://call.themichaelblank.com/clarity" rel="noopener noreferrer"...

Don’t forget to grab your free book! www.TheMichaelBlank.com/QRPMost people don’t know this—but you can invest your IRA or 401(k) in real estate instead of leaving it trapped in mutual funds. In this episode, I’m joined by Damion Lupo, founder of eQRP, to explain exactly how to unlock your retirement savings and use them to invest in apartments, storage, and more. We walk through the process step-by-step, dispel common myths, and show you how to avoid one of the biggest tax traps most investors don’t even see coming: UBIT. Whether you’re a passive investor or a GP raising capital, this is a must-listen.Key TakeawaysWhy Most Investors Don’t Know About ThisFinancial advisors don’t promote these options because they lose fees when you take control.Most investors have old 401(k)s or IRAs they’ve forgotten about—but those funds are eligible for self-direction.Online platforms like Schwab and Fidelity won’t show you the option to invest in real estate—you have to know to ask.How Self-Directed Accounts Actually WorkSelf-directed IRAs and solo 401(k)s give you full control—you can invest in real estate, crypto, gold, and more.The right setup gives you checkbook control and removes delays caused by custodians.Solo 401(k)s (like EQRPs) offer faster transactions, better flexibility, and fewer limitations than traditional IRAs.The UBIT Tax Trap—and How to Avoid ItUsing leverage in real estate deals inside a self-directed IRA can trigger UBIT—up to 40% in surprise taxes.Solo 401(k)s are exempt from UBIT, even in leveraged deals.You can convert from an IRA to a solo 401(k) before the deal sells to avoid the tax completely.Smart Strategies for Passive and Active InvestorsPassive investors can use these accounts to invest in syndications—earning tax-free or tax-deferred returns.Active investors (GPs) can raise more capital by educating others on how to invest through their retirement accounts.Damion’s team offers tools like books, webinars, and white-glove onboarding to help GPs guide investors through the process.Rules, Limits, and Legacy PlanningYou can’t use these accounts to buy personal assets, rehab your own property, or benefit directly from the investment.You can borrow up to $50K from your solo 401(k) for any reason and pay yourself back—with interest you choose.Setting up retirement accounts for parents or family members can create powerful tax-free legacy wealth.Roth solo 401(k)s allow real estate investing with leverage and no taxes on gains—making them the most powerful tool in the tax code.Connect with Damion LupoGET A FREE BOOK www.TheMichaelBlank.com/QRP&nbsp;&nbsp;Connect with MichaelFacebookInstagramYouTubeTikTokResourcesTheFreedomPodcast.com&nbsp;Access the #1 FREE Apartment Investing Course (Apartments 101)<a...

In just a few years, Chad Schieler went from zero to over 700 units, ditching his high-paying W2 job to build a real syndication business from scratch. And he did it the hard way - solo, self-funded, and battle-tested.In this episode, Michael Blank sits down with Chad to unpack the gritty, unfiltered truth behind the rise of Focus Capital. They dive deep into the growing pains of scaling fast - partnership failures, capital raising fears, management misfires, and what it really takes to build a machine that lasts.If you think you’re ready to go full-time, this episode will either snap you out of it - or show you the way forward.Head over to https://thefreedompodcast.com/500 to submit for a chance to win free merch and be highlighted in episode 500!!!Key TakeawaysFrom W2 to 700+ Units: Why Chad Walked AwayBuilt a career in credit card processing—but hit a wall with taxes and purpose.Real estate started as a tax strategy and turned into a full-blown mission.Why chasing a deeper “why” made walking away from comfort worth it.The Truth About PartnershipsChad’s first syndicated deal looked perfect—until it nearly fell apart.Why being $4K short led him to take control of the entire business model.How too many “chiefs” in asset management created chaos—and the fix.Raising Capital When It Doesn’t Come NaturallyChad self-funded his first four deals—then hit a ceiling.The mental shift that helped him want to raise capital.How his best capital raiser came straight from his LP base.Scaling a Real Business (Without Burning Out)The struggle of hiring when revenue is lumpy—and what worked for Focus Capital.Why Chad hires 12 months ahead of revenue (and how it paid off).The non-negotiables that protect his time and family life.When Bigger is Actually EasierWhy 100+ unit properties are less stressful than small ones.The mistake most investors make with property management on smaller deals.How Chad’s early inspection and financing mistakes shaped his future deals.Connect with ChadVisit Focus [email protected]&nbsp;Connect with MichaelFacebookInstagramYouTubeTikTokResourcesTheFreedomPodcast.com&nbsp;Access the #1 FREE Apartment Investing Course (Apartments 101)Schedule a Free Strategy Session with Michael's Team of AdvisorsExplore Michael’s Mentoring ProgramJoin the Nighthawk Equity Investor Club<a...

This is one of the most tactical, eye-opening conversations we’ve had on market selection.&nbsp;Market selection can make or break your deal before you ever sign a contract. And right now, it’s not just about job growth or population trends anymore. In this episode, Michael Blank is joined by Andrew Meyers, Director of Acquisitions at Nighthawk Equity, to reveal what actually matters when choosing a market—and why most investors are looking at the wrong data.They break down the real drivers of rent growth, how to avoid buying in overheated metros, and what most people overlook that leads to underperforming deals. Plus, Andrew shares where Nighthawk is actively investing right now—and why.Key TakeawaysWhy Absorption Is the New KPIIt’s not just about growth—it’s about who’s filling those units.Learn why absorption is the single most overlooked factor in market due diligence.Discover how overbuilt markets tank B-class rents—and how to spot it before you buy.The Hidden Danger in “Hot Markets”Everyone loved Phoenix, Austin, and Atlanta—until rent drops hit hard.Understand why too much supply—even in fast-growing cities—kills performance.Learn how to read between the lines of growth headlines to spot real risk.How to Vet a Submarket Like a ProWhy Carroll County in Georgia is outperforming—but other Atlanta submarkets are crashing.Learn how zoning moratoriums, new construction trends, and crime rates quietly impact your bottom line.The exact reports and relationships you need to dig deeper than “market averages.”Where Nighthawk Is Buying Right NowAtlanta remains the #1 market due to scale, broker relationships, and submarket knowledge.Huntsville, AL is rising fast thanks to job growth and lower institutional competition.Hear what tertiary markets are on Nighthawk’s radar—and why most operators overlook them.Questions Every Passive Investor Should AskWho’s actually on the ground executing the business plan—and what relationships do they have?How well does the operator know this specific submarket (not just the metro)?Are their underwriting assumptions conservative—or fantasy spreadsheets?Learn the red flags that reveal when a sponsor is guessing instead of grounded.Connect with [email protected] the Nighthawk Equity Investor ClubConnect with MichaelFacebookInstagramYouTubeTikTokResourcesTheFreedomPodcast.com&nbsp;Access the #1 FREE Apartment Investing Course (Apartments 101)Schedule a Free Strategy Session with Michael's Team of AdvisorsExplore Michael’s Mentoring Program<a...

If you’re trying to scale your real estate business and still asking “How do I do this?”, you’re already falling behind. In this episode, Dr. Benjamin Hardy, author of 10X Is Easier Than 2X and The Science of Scaling, explains why success in multifamily hinges on shifting from "how" to "who." Michael and Ben dig into why most investors get stuck on the wrong path, and how committing to a bold vision — even without knowing the entire roadmap — is the real starting point. This episode is a must-listen for six-figure earners stuck in the single-family grind, trying to leap into commercial real estate and financial freedom.Key Takeaways1. Why Your 10-Year Plan Is Holding You BackMost investors set conservative goals based on their current capacity.A 10-year retirement plan with single-family homes isn't just slow — it’s likely broken.Reframe your goal: what would it take to become financially free in 12 months?When the timeframe compresses, the current strategy breaks — and that’s the point.2. The "Who Not How" Principle for Real Estate ScalingMultifamily investing isn’t about doing more — it’s about doing different.Instead of figuring out every step, ask “Who already knows how to do this?”The right team — mentors, capital partners, deal finders — collapses the learning curve.Syndication is the ultimate “who not how” structure: it’s a team sport.3. The Psychology of Commitment and BeliefYou won’t pursue what you don’t believe is possible.Small “micro-commitments” — like booking a strategy call or analyzing your first deal — build belief.Commit to the outcome (financial freedom), not the tactic (buying rentals).Reverse-engineering from your end goal leads to radically different decisions.4. Letting Go of the Path That Got You HereYour current strategy won’t get you to your next level.If you're clinging to rentals, flips, or even a high-paying job — you're on the wrong path.Letting go feels like quitting — but it's often the gateway to real progress.Ask: “What’s the opportunity cost of staying stuck?”5. Dr. Hardy’s Framework from The Science of ScalingIdentify your "floor" — the level where you're currently stuck — and why it's limiting.The most successful entrepreneurs redesign their systems, teams, and mindsets to scale.Scaling isn’t just a process — it’s a mindset of focusing on fewer things, done better.6. Multifamily as the Ideal Vehicle for ScalingSingle-family strategies are too slow, too small, and too dependent on your time.Multifamily offers higher leverage, scalable income, and team-based execution.The joint venture nature of syndication makes scaling practical, even if you’re starting out.The ability to raise money or partner with operators creates fast pathways to GP status.Connect with Dr. Benjamin HardyGet your free copy of the Science of Scaling audiobook&nbsp;https://scaling.com/&nbsp;Connect with MichaelFacebookInstagramYouTube<a href="https://www.tiktok.com/@themichaelblank" rel="noopener noreferrer"...

Small Bay Industrial (a.k.a. Flex Space) wasn’t on your radar—and for good reason.But what if the most overlooked asset class in commercial real estate turned out to be one of the most profitable? In this episode, Cody Payne, SVP at Colliers, breaks down why Small Bay Flex Industrial is quietly exploding—and why more active and passive investors are taking notice. Cody shares how he transitioned from leasing to owning, how syndication plays a role in the space, and why this niche might outperform retail and office over the next decade. Whether you’re looking to diversify your portfolio or find a less management-intensive asset, this is an episode you don’t want to miss.Key TakeawaysWhy Flex Industrial Is Heating UpThe asset class has evolved: from basic metal garages to glass-fronted multi-use spaces.Demand is surging as small businesses, gyms, e-commerce, and retail users flood in.Triple-net leases and low tenant improvement costs make this a capital-efficient play.How to Add Real Value with Small Bay AssetsSimple cosmetic upgrades (like storefront glass) can attract higher-paying tenants.Reconfiguring larger units into smaller ones can boost PSF rent.Strategic side yards and outdoor storage add ancillary income.Investor Returns: What to ExpectTypical stabilized deals offer 8–10% cash-on-cash returns with low capex.Value-add plays or development deals can push IRRs significantly higher.Cap rates range from 6–8%, depending on market and quality.Management Made SimpleTriple-net leases reduce headaches—tenants handle their own maintenance.Very few after-hours calls; most businesses operate during daytime hours.Easy to find third-party managers who understand this asset class.Syndication in Small Bay: A New FrontierCody’s early deals involved rolling his broker fee into equity—low-risk entry point.Syndication works well, especially for stabilized assets or light value-add.Investors like the stability, tenant diversity, and ease of management.Navigating the Market: Deal Flow and FinancingGood deal flow in most metros if your buy box is realistic (e.g., 7–8% cap).Financing is accessible: 25-year terms, 65% LTV, and ~6.25% interest.Banks used to avoid this asset class—now they’re chasing it.Connect with CodyWebsiteBook: Flex Space DominationLinkedInConnect with MichaelFacebookInstagramYouTubeTikTokResourcesTheFreedomPodcast.com&nbsp;Access the #1 FREE Apartment Investing Course (Apartments 101)Schedule a Free Strategy Session with Michael's Team of Advisors<a href="https://themichaelblank.com/mentor/" rel="noopener noreferrer"...

What does it take to scale from a 38-unit syndication to 33,000 units across six states—and still never lose investor capital? Jeff Gleiberman of MG Properties breaks it down. In this episode, Jeff shares the core principles that helped his family-run firm grow into one of the top 50 apartment owners in the U.S. You'll hear how they’ve weathered multiple market cycles, why they’re buying newer assets right now, and how disciplined underwriting, fixed-rate debt, and vertical integration have become their unfair advantages. Whether you're raising capital, comparing asset classes, or trying to read the market—this episode is required listening.Key TakeawaysFrom Family Syndication to Institutional ScaleStarted with a single 38-unit deal and scaled to 33,000 units over 30+ years.Built trust and momentum through word of mouth and disciplined execution.Added institutional capital partners while staying grounded in syndication fundamentals.Grew from a home office to over 1,000 employees with fully integrated operations.How MG Navigates Market CyclesSurvived and thrived through the S&amp;L crisis, dot-com bust, GFC, COVID, and today's rate shock.Adapted strategy for each cycle—moving from value-add to core-plus when needed.Buys below replacement cost today to minimize downside and maximize long-term upside.Maintains focus on fixed-rate, long-term debt and low leverage to protect investor capital.Why Vertical Integration is a Competitive AdvantageIn-house property management, asset management, and construction management from day one.Enables real-time decision-making, tighter expense control, and stronger performance in down markets.Allowed the firm to pivot quickly during COVID and deliver consistent returns.How to Attract Serious Capital (Without Chasing High IRRs)Always invests 10–20% of their own capital into each deal—creating strong alignment.Focuses on risk-adjusted returns, not marketing inflated projections.Educates investors on cycles, deal structure, and realistic expectations to build long-term trust.Current Strategy: Core-Plus Over Value-AddAcquiring newer, well-located properties at 30–40% discounts to replacement cost.Cash flow is lower today—but risk is also lower, and long-term upside is strong.Value-add deals don’t pencil right now due to rent compression and renovation risk—but they will again.The Discipline Behind $1.8B in Acquisitions (In a Down Market)Maintains a consistent buy box and underwriting discipline—despite competition and volatility.Relies on lender relationships, low-cost insurance, and scale advantages to stay competitive.Sticks to one asset class—multifamily—and executes at a high level, deal after deal.Connect with Jeffmgproperties.com&nbsp;Connect with MichaelFacebookInstagramYouTubeTikTokResourcesTheFreedomPodcast.com&nbsp;Access the #1 FREE Apartment Investing Course (Apartments 101)<a href="https://call.themichaelblank.com/clarity" rel="noopener...

If you think you need experience, deals, or wealthy connections to raise capital… think again. In this episode, Michael Blank walks through exactly how first-time investors are raising $500K to $1M in 60 days—even without a track record. You’ll learn how to shift your mindset, start conversations without being salesy, and build unstoppable momentum using the relationships you already have. This is the roadmap for raising money as a beginner.Key TakeawaysWhy You Don’t Need Experience to Raise CapitalStock market investors are actively looking for alternatives—you just don’t know it yet.You’re providing value by giving them access to real estate they can’t buy on their own.It’s not about your experience—it’s about your ability to build trust and communicate.How to Find People With Money (Hint: You Already Know Them)Start with your existing social circles—friends, coworkers, clubs, sports, and church.Use referrals to expand your network without ever running out of leads.Tap your old contacts with a simple, authentic re-engagement email.What to Say (and NOT Say) to Potential InvestorsDon’t “pitch” people—just have intentional conversations about investing.Use curiosity to guide the discussion naturally toward real estate.Frame yourself as someone offering value, not asking for a favor.Why One-on-One Works Better Than Social Media (at First)Most beginners fail online because they don’t know what their investor wants yet.You’ll build confidence, language, and momentum faster through real conversations.$1M+ raises are happening every day without a single post on social.What to Do If You’re Not a Natural Capital RaiserDeal finders and capital raisers need each other—build partnerships to fill the gaps.Learn the fundamentals, then specialize based on your strengths.Being in the right community makes these partnerships effortless.The Simple System That Helps Beginners Raise $500K–$1M FastOur students go from zero experience to full commitments in under 60 days.The key is shifting your mindset and mastering a few proven scripts.You don’t need everyone to say yes—you just need to start.Connect with GUESTConnect with MichaelFacebookInstagramYouTubeTikTokResourcesTheFreedomPodcast.com&nbsp;Access the #1 FREE Apartment Investing Course (Apartments 101)Schedule a Free Strategy Session with Michael's Team of AdvisorsExplore Michael’s Mentoring ProgramJoin the Nighthawk Equity Investor ClubReview the Podcast on Apple Podcasts<a...

What should you really ask before wiring $100K into a multifamily deal? In this special episode, Michael sits down with Nighthawk’s Garrett Lynch and Drew Kniffin to run through 50 of the most important questions every passive investor should be asking—and every active investor should know how to answer.From deal structure and cash flow mechanics to team accountability, tax strategy, and risk mitigation, this is your behind-the-scenes guide to how Nighthawk operates—and how to evaluate any syndicator with clarity and confidence. Whether you’re an LP looking to invest smarter or an aspiring operator trying to earn trust, this episode is required listening.Key Takeaways50 Questions Every Passive Investor Should Ask (And Every Active Investor Must Answer), including:&nbsp;Nighthawk’s Track Record and Operating PhilosophyHow Nighthawk got started, how many deals they’ve done, and what makes their model differentWhat happens when a deal doesn’t go to plan—and how the team respondsWho’s on the core team and how key decisions are made (especially in tough markets)Why vertical integration and boots-on-the-ground operations give them an edgeUnderstanding Returns, Distributions &amp; Deal StructureWhat kind of returns to expect—and how preferred vs. total returns actually workWhen investors get paid, what happens during a refinance, and how long deals are heldWhat happens if the property underperforms or market conditions shiftWhy Nighthawk doesn’t do capital calls—and how they plan for uncertaintySyndications vs. Other Investment ModelsThe difference between syndications, REITs, and fundsWhat LPs actually own, how deals are structured legally, and what kind of control (or not) they haveHow profit splits and operator compensation align with investor outcomesMinimum investment amounts and what the onboarding process looks likeThe Passive Investing MindsetThe key mindset shift every new LP needs to makeMultifamily vs. flips, STRs, and self-storage—what makes multifamily the superior playHow to think about diversification across deals and sponsorsWhat to do if you’re nervous—or your spouse isn’t on board yetTaxes, Depreciation &amp; IRAsHow multifamily syndications deliver major tax benefits (even on paper)What bonus depreciation is and how it offsets incomeWhen to expect your K-1 and how IRA investing works (including UBIT considerations)What happens tax-wise at refinance or sale—and how to defer gains via 1031sHow to Vet Deals and Sponsors Like a ProWhat to look for in underwriting: cap rates, expense ratios, rent growth assumptionsThe importance of fixed-rate debt, cash reserves, and risk-adjusted returnsHow to ask the right questions—even if you’re not an expertWhy the best investors don’t “return shop”—they evaluate the whole pictureConnect with Nighthawk EquityTake the Free Mini-Course at NighthawkEquity.comSchedule a Call &amp; Join Our Investor ClubConnect with MichaelFacebookInstagramYouTube<a href="https://www.tiktok.com/@themichaelblank" rel="noopener noreferrer"...

Eric Nelson thought buying one rental a year would lead to financial freedom. But after years of grinding, he realized he was just building another job. In this episode, Eric breaks down how he shifted from single-family rentals to a 1,000+ unit multifamily portfolio—and why mindset, mentorship, and the right partnerships made all the difference.We dig into the painful lessons, the strategic pivots, and the exact steps that helped Eric quit his W-2, move his family to Spain, and build a business that supports his life. If you’re trying to scale—or stuck doing it all yourself—this is the episode you’ve been waiting for.Key TakeawaysWhy “One Rental a Year” Doesn’t WorkEric’s early plan: 10 houses in 10 years = early retirementWhat actually happened: no scale, no freedom, no timeWhy single-family rentals didn’t deliver the cash flow he expectedThe Case for Multifamily Over RentalsHow one vacancy kills cash flow in SFR—but barely moves the needle in MFWhy multifamily is less emotional, more predictable, and built for scaleThe moment Eric realized apartments were actually less riskyHow Mentorship Accelerated His SuccessWhat changed when Eric hired a coach—and why he says it was essentialWhy every successful syndicator he knows did the sameThe critical role of KP partners and advisory teams in getting your first deal doneRaising Capital as a Service, Not a FavorHow Eric overcame his fear of asking friends and family to investWhy capital raising is about helping others—not begging for moneyWhat he tells high-income earners unsure where to place their capitalWhy Right Now Is a Great Time to Get InWhy fewer buyers and better pricing make today a rare opportunityHow Eric is buying deals in today’s market—and what’s changed since 2021What he tells LPs who are frozen by fear or waiting on the sidelinesFrom Hamster Wheel to Freedom in SpainHow Eric went from overworked engineer to living abroad with his familyWhat it actually looks like to build a business around your lifeWhy he’s focused on sustainable, strategic growth—not hyper-scalingConnect with EricInstagramWild Oak CapitalConnect with MichaelFacebookInstagramYouTubeTikTokResourcesTheFreedomPodcast.com&nbsp;Access the #1 FREE Apartment Investing Course (Apartments 101)Schedule a Free Strategy Session with Michael's Team of AdvisorsExplore Michael’s Mentoring ProgramJoin the Nighthawk Equity Investor Club<a href="https://podcasts.apple.com/us/podcast/financial-freedom-with-real-estate-investing/id848693430" rel="noopener...