My First Million
#8 - Real Estate: How The Wassermans Do What They Do
· Summarized
Key takeaways
- The Wassermans started their real estate journey during the 2008 recession, turning small initial investments into a multi-billion dollar portfolio.
- Identifying and investing in undervalued properties is crucial for maximizing returns in real estate.
- Building investor relationships and ensuring alignment in business interests can enhance trust and business growth.
- Real estate investing is a long-term game, and resilience through challenges is vital for success.
- Giving back to the community and supporting local renters is an essential aspect of their business philosophy.
Summary
Real Estate Partnership and Beginnings
The episode starts with a discussion about the Wassermans' journey into real estate, beginning during the 2008 economic crisis. Keith shares how he and his cousin bought their first four-unit building in Bakersfield, California, leveraging a small down payment. Initially, they faced challenges such as lack of funds and experience, but their determination and entrepreneurial spirit led them to acquire over a billion dollars in real estate assets within a decade.
Understanding the Real Estate Game
Galena and Keith break down their respective roles in real estate, outlining their different approaches to property investment and management. While Galena focuses on development projects, including commercial spaces and apartments, Keith works as a syndicator, raising money from investors to buy and improve properties. They emphasize making strategic investments, finding value where others may not, and utilizing the cash flow from properties as a consistent revenue stream.
Challenges and Lessons in Real Estate
The couple highlights the hardships they faced in the early years, including financial difficulties and uncertainty about their career paths. They discuss the importance of learning from challenges and adapting their business model based on experience. Keith also shares their initial mistakes in managing investor funds and the changes they made to ensure greater alignment with investor interests.
Keys to Successful Investment and Future Goals
In this segment, the Wassermans explain vital strategies for successful real estate investing, including the importance of building relationships with investors, understanding market dynamics, and being adaptable. They discuss their future plans, including continual growth in the real estate sector while also exploring other investment opportunities such as angel investing in early-stage startups.
Building Community and Giving Back
The episode concludes with Galena discussing their philanthropic efforts, specifically the Resident Relief Foundation, which aims to assist renters facing eviction. They explain the importance of supporting the community and maintaining relationships with renters, emphasizing that a responsible and supportive approach yields greater long-term benefits for all.
Sponsors
- HubSpot · Angel City Football Club used HubSpot to unify their website, email marketing, and fan experience in one platform, resulting in significant growth in their database and signups.
- Monday.com · The segment encourages using Monday.com to facilitate honest feedback and communication to boost teamwork and productivity.
Show notes
We have on Gelena (@gelenasays) & Keith Wasserman (@Keith_Wasserman), a husband and wife Real Estate duo who borrowed $5k during the end of the 2008 recession and have turned it into a $1.3 billion dollar portfolio. Learn how they create monthly income streams and sometimes double, triple or quadruple their equity from multi-family real estate.
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