623: 10th Grade Dropout to 400-Unit Apartment Complexes (WITHOUT Raising Money) w/Sofia Castro

Episode • Jun 16, 2022 • 1h 8m

Multifamily real estate investors almost always raise money for their deals, right? Some would call it almost impossible to try and build a huge real estate portfolio without borrowing money or partnering up to take down bigger properties. Sofia Castro, along with her husband, not only built a multifamily portfolio using their own money, but did so starting with a severe disadvantage.

Both Sofia and her husband were high school dropouts, living without much money, and practically no experience. A local entrepreneur took Sofia and her husband under his wing, teaching them both how to become leasing brokers. From there, they started building their entrepreneurial endeavor, eventually selling their business a couple of decades later for a whopping billion dollars.

With cash in hand and real estate experience under their belt, they began buying apartment complexes to flip them as condos. Once the recession hit, Sofia knew this was the wrong business to be in, so she pivoted heavily towards multifamily rental investing, specifically investing in “core deals”. Now, she has a streamlined process for finding deals, buying deals, and screening tenants. She gives some out-of-the-box, but highly useful tips on tenant screening, property management, and why “value-add” real estate isn’t all it’s chopped up to be.

In This Episode We Cover:

“Core deals” explained and why they often beat value-add properties

What are cap rates and why understanding them is crucial when buying multifamily

Condo conversions and the risk of flipping during downtimes in the economy

Tenant screening tips that will get you the best tenants who pay on time, every month

The right way to do property management and why you shouldn’t immediately outsource

How to buy in the right real estate markets, plus the metrics Sofia looks for when investing

And So Much More!

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