Table of Contents - Moving Half Way Across the Globe to Achieve Financial Freedom with Reed Goossens
Dave Debeau [00:00:08] Hey, everyone, this is Dave Debeau with another episode of the Property Profits Real Estate podcast. And today we're going to have a lot of fun because we've got a friend from Down Under who now lives up over in the US of A.. And it is Mr. Reid Goossens, originally from Australia. How are you doing, rate?
Reed Goossens [00:00:28] Good. I mean, how's it going?
Dave Debeau [00:00:29] It's going great. So Reid is a very interesting gentleman because in 2012 he quit his job and packed up and left Australia, moved to the United States, started from scratch with very little money, no credit in the states, no job, and jumped right into real estate investing, got into multifamily real estate investing and has just blown it right up. And I believe if memory serves me right, read that you are controlling about one hundred and twenty million dollars worth of properties. Is that.
Reed Goossens [00:01:00] That is correct. At last count and trying to trying to add more to the portfolio every single day.
Dave Debeau [00:01:05] Well, I'm looking forward to our conversation because a lot of our listeners are Canadians and everybody's always enticed by the idea of investing the states. And we see some of the the property prices in different areas of the states and compare that to what stuff's selling for in Canada. And it's just that it boggles our minds. So tell us a little bit about how did you make that transition? What what sparked that move from Australia to the states in
Reed Goossens [00:01:31] the first place? Yeah, very good question. So in 2009, this is before moving to the United States, picked up the book, Rich Dad pulled out, very influential. I studied civil engineering instruction. Engineering had spent two years abroad. And then halfway through 2009, 2010, I moved back to Australia after spending two awesome years gallivanting around the world. Throughout the trip, I met a beautiful girl, American girl, who subsequently moved to Australia, and then we moved back to the United States in 2012. But in this sort of interim, I got very hungry and itchy feet of like I didn't want to live and work in a cubicle for the rest of my life, have no structured engineering and simply doing a great job, very well paid. But I knew I needed to do more with my life and also really, really wanted to live in New York City. So the two things I fell in love with, with New York City, but also fell in love with a girl who she's now my wife, Miss Erica Ronno, you don't miss any more, but my wife Erica. And yes, we moved to the United States in early 2012. She finished a master's degree in Australia. She is American, but she came to me for a period of time. And then I just quit my job and said, hey, man, let's do it. Let's give this thing a go. And we moving across the globe.
Dave Debeau [00:02:39] Every single Aussie I know has that that itchy foot they got to travel. That's so good. So, yeah, yeah. That's a big leap from Rayden Rich dad to own and one hundred and twenty or controlling one hundred twenty million dollars worth of multifamily properties. Did you jump right into multifamily investing as soon as you got off the boat thing.
Reed Goossens [00:03:01] Yeah. So a little bit to what your point you're saying about earlier in the introduction of the show is when I first moved to the United States prior to moving to the US, I was going to do something in Australia. I was attending a lot of real estate investing courses. You know, it's really self education. It was going to flip or lease option. You know, the Australian market is very similar, probably to the Canadian market, very high prices, high barriers to entry, compressed, you know, very small metropolitans in the general scheme of things compared the United States. You know, I think we only got twenty five million people. I think Canada says that five minutes, maybe 10 million people more. So huge barriers to entry, cash flow, is not it? Not a thing. And then when I moved to the US, I moved to New York and just found that, like, these sort of what I call tier two and three markets, that penciler really, really well. And I got to learn and teach myself how big the American lingo, what's copywrite, what's an IRA, you know, what's credit and all that sort of stuff. So coming up, fresh off the boat, I had to start again in the United States and quickly realized I couldn't borrow money because I was fresh off the boat. So I bought my first property within six months of moving to the US. I was actually triplex, but I bought for thirty eight thousand dollars in upstate New York and it sounds great and you shake your head. But it also was a pain in the ass and I subsequently got rid of it and ended up scaling up and going and got into less risky out of Section eight housing. And I'm sure some, you'll probably guess, spoke a little bit about Section eight housing here in the United States. We've got a very good thrown in the deep end got started. And you know, the old saying you don't get to deal number ten without doing deal No. One in that deal. No one was the triplex in upstate New York. So so back to you. Back to your question. Yes, I did start with multifamily, but wasn't as large as what I'm doing today.
Dave Debeau [00:04:47] No, I wouldn't I wouldn't expect was. So did you get off the boat with a boatload of money or how did you what did you do to
Reed Goossens [00:04:55] not a boatload of money? I saved about 40 grand. And again, that 40 grand was saved over the first five years of professional work. And I was going to do a. With that money, I was going to do a flip in Australia or something with it to get started in real estate. I always end up moving to the United States. That took a little bit of it out of the moving, of course, will cost money. So I bought the thing all cash. And then I was able to develop local relationships with the local banks. And over a period, about six months, open a bank account, a local branch, local bank. And I was called First Niagara Bank in upstate New York. And I think their existing anymore. But over a period of time, I was able to develop that relationship, show that I was depositing rental checks and then was able to get me a lot of credit, like twenty five grand or 30 grand. And that was able I was able to buy a deal. Number two with that. Again, very cheap property, but jaw droppingly cheap, quickly realized why they were so cheap. But it was really more the fact that I got started rather than just, you know, stuck in a book reading about real estate. It's like that thing you read about, you don't get buff by reading that. Go to the gym, you go to the gym. So the same old thing. Is that true? Yeah. Yeah, apparently that explains. I just keep looking at it, visualizing.
Dave Debeau [00:06:15] OK, so. So walk us through. OK, going from those crappy little multis that got your feet wet and your self financed yoga. When did you start bringing on investor partners or when did you start. I know as you mentioned before, we jump on love that you're big into syndication. So how does that whole
Reed Goossens [00:06:33] process get to all your Canadian listeners is actually very good buddy of mine using the Canadian term. He wasn't he was a Canadian friend of mine that would study university in Australia. He came out to New York in late 2013. I think I had three properties at that stage, but still working full time. And he really was like, oh, man. I mean, like eight units or whatever was the sum total of maybe a quarter million dollars worth of real estate in upstate New York. And he just he said, oh, that's great, well done. I just closed on a seventy unit and I said, what, seven zero? And he said, yes, seventy units. I was like, how the hell do you do that? And he's like, Well, I pulled a bunch of money from friends and family and I got to sell a carryback financing. I was like, whoa, whoa, whoa, whoa. Let let me I'm writing all this down really quickly. And that was he was actually the guy that started it all. And I also realized in myself and in the six to 12 months of first moving to the United States that I really reached the end of my tether pretty quickly. You know, I I didn't have any more money. I know banks weren't really lending to me because the fact was I was still fresh off the boat building that credit. So I really had to focus on syndication in syndication. What's other people's money? What's more, that sort of jazz that you hear about? And through that one conversation, I, I wouldn't go to mentor who was based here in the United States. And through that, I was able to build a brand and built the brand investing in the US, which is another podcast on iTunes. And it was in and around my story about moving to the United States because back in 2012, 2013, there's a lot of people trying to buy turnkey real estate in the United States and, you know, just explaining how to get credit and all that sort of stuff and how to get started and what's an LLC and what's an item number and blah, blah, blah. And through that platform, I was able to attract investors. And through that I was able to raise money on on large multifamily because with larger multifamily, I was able to move the Nowy and the net operating income and removing the net operating income also force the appreciation which really resonated with me compared to doing that on the triplex in the duplexes. You don't really you might bump the rent by one hundred one hundred fifty bucks a month, but that's not really forcing you to get three units. Your scale just isn't there. Yeah, that's that's really in a nutshell how it's sort of interesting.
Dave Debeau [00:08:43] Very interesting. OK, so now that you've been in the game for quite a while, you've got the podcast going, all that kind of stuff. What are what are some of the biggest mistakes that you see people wanting to get into multifamily investing, doing? What kind of mistakes were they have it look,
Reed Goossens [00:09:02] everyone's going to have a different journey. I think the big thing that people and to my point, erm myself included, when I first moved to the US, I was very in awe of the amount of free information that was out there, like compared to back in Australia where I would have had to pay a guru six or seven, ten thousand dollars to be mentored by them. And I it took me a couple of years to get to that point. I was like, OK, I need to get a mentor because I need a ride on his coattails to get to where I want to be. And so not necessarily a mistake, but just maybe delaying of the inevitable that I end up going down that path and for many, many years, like, oh, screw that, I don't need a mentor, I need a pipe, someone to tell me what to do. And but like any good coach, you know, the coach of the Toronto Raptors obviously did very, very well just recently. They need people there to teach him to sort of guide them along their journey. And and regardless if you, Steph Curry or some of the big names in the Raptors, you still need a coach to steer the ship in the right direction. So getting delaying, getting a mentor and being a mentor is really important. And regardless of what your thoughts are on it, surround yourself with other people who have been successful, even if you don't. Mental shape is being around all the successful people helps you in your own way, get to that that success in which you want to achieve in your life. So that's probably the biggest thing that I see people stumbling on and thinking they got to do it all by themselves, where, in fact, there's a lot of resources out there, free resources that you can leverage quite well in order to get going and get your first deal done, because you don't get to deal number 10 without doing deal number one right now. Definitely. Now, you mentioned that you're rich. That poor dad was a big influence on you
Dave Debeau [00:10:37] as it is as it has been on me and his billions of other real estate investors. But one of his other books was titled Your Unfair Advantage, where he basically says each one of us has at least one, if not multiple, unfair advantages. What would you say?
Reed Goossens [00:10:53] Yours is my unfair advantage. Look, I'm a I've always been brought up with the notion of being acutely aware of what a dollar is worth and how to create a dollar through the sweat equity or just rolling up the sleeves. I do remember being just legally, I think was 13 and a half in Australia to get a first first job. And as soon as the two sat in six months, I was at the local grocery store. Please give me your please give me a job. And my parents, you know, come from modest means. They're both schoolteachers back in Australia. And my dad always said to me, a fool and their money are easily parted. And I didn't grow up with it without but he didn't grow up in luxury. And so I always was still trying to work hard and to don't be afraid to roll up the sleeves and get a bit dirty, get the get get dirt under your nails. I remember doing many jobs throughout summers that could university in high school where I'm glad I chose the path of being at university and getting a degree and all that sort of stuff. But I was also not afraid to get a bit dirty and get a bit sweaty. So my other thing is no unfair advantage. I'm not naturally I'm a B student and a student, but I never gave up. My unfair advantages is resilience. And even if you do fail, you get back up on the horse and keep going again. You're going to dust your knees. Things are going to happen over time. And you've got to understand where you're going to go wrong and try to foresee that coming. But if you do, if you dust up, then keep going. Keep, keep, keep up.
Dave Debeau [00:12:22] That's a good point, because I find that a lot of people, as soon as we become adults, we develop this intense fear of failure or more like fear of looking stupid in front of other people literally boils down to. So any suggestions on how to get out of that because it holds so many people back?
Reed Goossens [00:12:41] Yeah, I'm going to forget the name of this book, but I was listening to a podcast where it talks. There's a book that talks about harnessing your inner child. You know, when you're a child, you it's like, why can't I do that data? Why can't I do that, Mum? Or why can't I just go over there? And, you know, the big questions that were very simplified in a child's mind and it's sort of the book is called like, I think harnessing your inner child as an entrepreneur and again, letting go of the shackles of what people think and these mindsets and the way in which we've been taught and brought up. And I think the biggest thing is we're a little it's a little bit to do with ego and it's a little bit to do with not thinking that we've arrived as adults. I know everything. I'm an adult. I should I should have my quote unquote a chai tea together. And in that then in turn produces this sort of weird dichotomy of like, well, I can't go and take that risk because of someone. So I might my parents told me this, this and that. So I think trying to understand that harnessing one, harnessing your inner child, but also continuing to learn and not being afraid to continue to learn. And I think as entrepreneurs in this world of things is so drastically and rapidly changing, we've really got to be like a surfer, you know, like ride the wave of change and be okay with change and not just be had the blinkers on and go down the path of of this being well traveled. Try and try and blaze your own path if you can, and do things a little differently. Sighs Yeah.
Dave Debeau [00:14:07] Yeah. Well said. Definitely. A lot of Canadians are interested in investing down in the States. Do you have any I mean, it's too, too big to get into a lot of depth, but any tips or suggestions on how to get their feet wet on on how to make that first step into investing in the United States?
Reed Goossens [00:14:26] Well, I think the big thing is the first step you need to do is understand what market and what you want to invest in. Right. So a lot of probably like a lot of Australians, a lot of Canadians are looking south of the border and saying, hey, there's all this great cash flow. Right? So you really got to define what you want out of us US investments. Secondly, you've got to then look at like what is going to be the best markets to invest in from north of the border. Right. You're going to be investing out of the country. So you choose a market where you may have a bit of a competitive advantage. Maybe you've got a relative there or a friend there or someone who can share information that you because you live in Canada, you don't necessarily know that being south of Smiths Street is bad or being north of Smith Street is bad. So trying to harness your network of people who do live in the United States once you've chosen a market or a couple of markets, really, I always encourage people to underwrite a minimum of 50 deals in any one market, because that will is a great desktop study on getting to know the market without actually being boots on the ground. And then you get to it. And then the second the third thing is reaching out to local brokers, local partners. If you can partner with anyone boots on the ground, I highly recommend doing it because it will then incentivize the person who's on the ground. It's the part of the deal that can you both got shared interests. Right. And so you don't have to necessarily worry if it's just your deal that's thousands of kilometers away and sort of set it and forget it. But no one's really looking over it. So there's a couple of things there that you definitely need to do. First, that people miss, that is trying to see what markets want to invest in. What are you investing for, really? What was your ultimate goal here and what's your value for investing in real estate in the United States and seeing if you can try and find local boots on the ground partner as the process goes along? I always, always, always, always recommend that people go and visit and touch and feel the markets. And he may have to do it a couple of times. But if you're going to invest a large sum of money, spending a couple of hundred bucks on a flight and accommodation for your diligence just to make sure you've got the right investment is small change compared to losing your shirt. So, yeah. Oh, Staveley.
Dave Debeau [00:16:34] So read. I believe you've got a book about investing
Reed Goossens [00:16:37] in the US a little bit about. Yes. Yes, I do. For those people who are watching, that's called investing the US. It's the same name as my podcast. It's named the Ultimate Guide to US Real Estate. And what it is is really all the best episodes that I thought a really good jam packed into step by step guide for people who want to invest here. And this is for both foreigners and local people. It's in and around my story. I talk a lot about how to find markets. I talk a lot about how to get set up here in the United States legally as an international investor is probably the only chapter, things like Chapter six that I talk a little bit about bank accounts and losses and all that sort of great stuff. And then I talk about how to underwrite deals and then how to develop your team on boots on the ground in order for you to be successful and talk a little bit syndication and then go on to talk a little bit about the tax strategies with ten thirty one. If people aren't aware of that, why they're so great in order to leverage up and scale your up to create long term wealth. So if anyone is interested, please reach out to more than happy to shoot them a free PDF copy. Listen to your show
Dave Debeau [00:17:40] and I appreciate that. If people want to find out more about you, read, what's
Reed Goossens [00:17:43] the best way for them to best? The best way is just to head up to my website. It's read Goossens dot com. It's a bit of a doozy. R.E.D. Geoscience dot com reduces everything. All the links are going to be there. All the contact information is there if people are ever coming through Los Angeles, because that's where I live and they want to talk, catch up for a beer or coffee or lunch, I'm always willing to make some time for people, particularly my Canadian brothers, north of the border. And we can have a few jokes and laughs about the Americans at the same time.
Dave Debeau [00:18:15] That sounds like a good plan. All right. Very nice to meet you. Thanks for your time on the podcast today. Thanks, Mike. All right, everybody, take care of you next time. Bye bye. Well, thanks very much for checking out the property profits podcast and you like what we're doing here. Please head on over to iTunes, subscribe read us and leave us to review. Very, very much appreciated. And if you're looking to create a regular flow of inbound investor inquiries about your real estate deals, then I invite you to attend one of my upcoming live online demonstrations. And you can check that out at Investor Attraction Demo Dotcom Ticker.