Table of Contents - Remember That YOU Are Doing Your Investors a Favor With Agostino Pintus
Dave Debeau [00:00:09] Well, hey there. This is Dave Debeau with another episode of the Property Profits Real Estate podcast today, my special guest all the way from Ohio via Windsor, originally Augustino Pinto's. How Are You Doing Today, Augustino?
Agostino Pintus [00:00:23] Man Awesome man. Shows up to be here just to be here.
Dave Debeau [00:00:27] I'm glad to have you here as well. And Augustino, as a very experienced real estate entrepreneur with over 15 years of experience focusing primarily on multifamily properties and focuses primarily in the state that he's living in right now in Ohio. He's done multiple transactions. He's syndicating his deals. He's got all sorts of great stuff going on. So I'm really looking forward to sharing you, sharing some of your nuggets of wisdom about investing in multifamily properties over the years. So, Augustino, before we jump into that, why don't you just tell us quickly a little bit about your background and how did a guy from Windsor, Ontario, end up in Ohio, wherever it is that you're in Ohio, right?
Agostino Pintus [00:01:09] Well, I'm in Cleveland, Ohio now. I live in Akron, but we primarily by in the Cleveland market. And it's the bigger submarkets. But the thing is, is that I was living in Windsor and I left Canada for just more opportunity here in the States. And at the time, I want to be an entrepreneur my entire life, but ended up doing the whole corporate thing for a long period of time, primarily in technology and I.T. And I knew that even when I was in I.T. running large enterprise I.T., global technology groups, that kind of thing, I still wanted my financial freedom. It doesn't matter if you're making beaucoup bucks, you still want that freedom. And I felt like I didn't have it even at that level so early on. And we're talking like 15, 16 years ago, I decided to invest in single family and small multifamily. That's what I was doing at the time. I had no idea what syndication was. And a real estate attorney friend he is a few years ago told me about syndication and what it meant and how it worked. And I was like, oh, man, that's all I need to be doing, I, I should have been doing all along, you know, and and ever since I discovered that my whole life has pretty much changed, you know. And now I focus on, just as you pointed out, syndicating deals. That's primarily what we do. We do have coaching and other things as well. But I am a practitioner where we actually put deals together, raise capital and close the deals and we return nice healthy returns to our investors. Yes, yes.
Dave Debeau [00:02:35] OK, well, seeing the most of our audience is Canadian and we've heard about syndication, but it's not as prevalent up here as it is down in the states. Maybe just kind of walk us through your definition of what syndication is, why you like to do it, why you might need to do it for the kind of deals that you do it sure.
Agostino Pintus [00:02:55] But syndication as a practice exists across a variety of facets of business. Everything from movies to buildings are syndicated. And what that means is, is that the ownership of the asset is split up between general partners and limited partners. Right. The general partners of the people that operate whatever the business is or put the deal together, and the limited partners, the ones that contribute the money, they typically get a share of the pie of the asset in terms of stock or whatever it might be in in our case to get ownership in the property. And the GP, the general partnership, which primarily consists of myself and maybe one or two other partners, we're running the asset, we're operating it, we're assuring its performance, and we're getting out there and raising all the capital needed for it to perform. So the good thing for the LP is that they get to invest, deal alongside with us to really help the performance of the assets in terms of getting the cash in the deal. But then they also share in the returns a share on the upside. Right. Where what's happening is, is that we are getting a return. They get the tax benefits, they get a nice, healthy return in terms of a quarterly check in the mail. And they also get to secure and protect their money in an actual physical asset that's throwing off cash. It's been there for 50 years because typically by B or C class assets. And to me, it's very low risk. We're buying into an asset that's been there forever and collectively as a group, and we all get to share in the upside. It's a win win, if you ask me.
Dave Debeau [00:04:30] So are you primarily looking for properties that you can turn around and increase the value in the cash flow on? So perhaps underperforming assets, that sort of thing, that you can jack up the value in the cash flow fairly quickly?
Agostino Pintus [00:04:43] Precisely. We're trying to find value add assets. We primarily focus on A, B and C type properties. And what that means is properties that might be a little older. So anywhere between forty to twenty years old, something like that. I do it in reverse because typically it goes dcb a right. I gets depends which way you're looking at the letters, but that's the way I look at. Anyway, we've taken down more CS and BS, but it's a very, very tight market down here and in Ohio and those seem to be readily more available.
Dave Debeau [00:05:19] All right. So let's talk a little bit about syndication and how you go about finding investor parties, because that's kind of kind of my thing that I like mom and pops with is to not, per say, syndicate, but to get the ball rolling when it comes to getting their first investor partners on board and that sort of thing, because a lot of people are are petrified at the idea of talking to folks about investing with them. So how did you first get started with syndication? How did you clue in that you needed to work with other people's money to grow your portfolio?
Agostino Pintus [00:05:50] I did it a little differently because what I did was I actually bought my own big multifamily. So when I first committed to syndicating a deal, I had a bunch of small multifamily and some single family homes and things like that. I sold everything, sold it all I committed to do to do the syndication thing in multifamily. So the first thing I did was I bought my own multifamily about a small multifamily deal. I got a good deal on it and bought into it from there. I then partnered up with other people. Right. So what we were able to do is, number one, learn from my partners, of course, but also get educated, because what you just described a second ago is fear, right? People are afraid. They just the reason why they have all this oh, my God, what am I going to do is because they're not educated. They don't know what to say, how to say it, how to pitch a deal. What's the upside? I mean, because if you think about it, you are not asking for a favor when they're investing with you. You're not only not doing that, you're giving them a benefit. And for many people, this is where it gets a little shaky here is because many of these people have never heard of syndication either. And think of it like this. Imagine if you wanted to invest in a big multifamily deal. You look outside, you see this awesome cash flowing asset. We have no idea how to do it. It could be anybody. But we allow that. We create a mechanism for them to invest into a deal and have a big the lion's share, depending on how it's structured in the actual asset itself. Right. If anything, they are getting a return to getting equity in the deal. They're protecting their money. They get all tax benefits. To me, it's a win win win. I mean, where you have to change the mindset in that we're not asking for a favor. Please, please.
Dave Debeau [00:07:39] That's that's so huge, isn't it? Because so many people, they come at it from that needy, creepy point of view. Right. All I really need the cash to do this deal. Perhaps you've got cash. Would you be so kind as to consider letting me use it to buy this? You'll know it's exactly the way you're talking about. Hey, I've got an amazing opportunity. You don't say it quite this obnoxiously, but you'd be damn lucky to get in on this opportunity. I mean, it's you bring in the money we bring. We do all the work and you get a huge chunk of the profits. So, I mean, that's
Agostino Pintus [00:08:11] and you know what? And you're right, because there's some people you don't want on your deal. That's a thing. People don't even realize that. It's like if you're going to have if you're going to talk to someone and they're going to be bugging you every week, they're going to be calling you. How's it going? How's it going? How's it going, man? Come on. Now, let's at my experience for the right. No, no, I don't. I don't. I've been very lucky. I don't because I know what I want and I know what I don't want. Right. We our team, they perform. They do very, very well. We've syndicated many, many deals at this point. We're upwards of seven hundred units now. That's over six months. So it's not very that long. You know, in terms of the last six months alone, we've done that kind of acquisition. So we've very, very experienced what we do. And I'm very lucky that so far all of our LP partners, they're great. And but we also we underwrite our deals. We integrate our partners just the same way.
Dave Debeau [00:09:03] So a question for you, especially if somebody is thinking about doing this, whether it's syndicating or for up here, if they're just getting together a small group of of investors to do their first smaller multifamily property, what do you suggest your students or people who follow you to raise that first capital? Right. Because, again, most people aren't set up with a marketing machine for going out there and generating massive leads. Plus, you don't want to necessarily especially up here in Canada, you got very concerned with the Securities Commission, as you do in the States and all that kind of stuff. So where do you suggest people start off?
Agostino Pintus [00:09:40] You know, so to plug the bulletproof cash flow channel on YouTube, that's a good place to start right there. I mean, we have all kinds of great material to really learn and get educated because that's part of the biggest thing, right? If someone's trying to go at this cold and never done it before, there's some internal resistance in our minds. It's fear, right? It's fear. And the reason why we're afraid is because we don't have the data. We don't have the information. We don't know what's. They say how to say it, because here's a thing for me many people are just starting out, is to first learn the lingo, learn the language of the business right first and second is building the team that goes along with it, because you're not going to do all this yourself. You're not managing the property. You're not inspecting the property. You're not your own lender. You're not your own and your own inspector, not your own underwriter. So building the team also helps make you feel better about what it is you're doing. Then. Third, learn how to sell because this is a sales business and you have to really get in front of people, tell them about the benefits, tell them what it means to them. And one thing that coached students through is that it's not about you. No one cares about your needs. It's about them. How can you help me? How can you help me? That's what people want to know. How are you going to help me? Right. If you go and saying, well, I need this and I need that, it gives a crap. No one cares, right? No one cares what you need. Sorry. That's true.
Dave Debeau [00:11:10] Yeah. But you go in and what do you need. And here's how this fulfills what you need. Exactly right. Yeah, that's right.
Agostino Pintus [00:11:17] And you know what I'm part of it is that many wealthy people that's your target is going to be people that are independently wealthy or maybe they're entrepreneurs, maybe they're doctors or lawyers. They have all this cash that's going to get taxed. Siddarth here in the States or even more so in Canada. How do you protect that cash? That's their problem. You have the solution. Your solution is to invest it into a cash flowing asset, real estate, and get all the tax benefits, go along with it
Dave Debeau [00:11:45] and take it away, all your training and whatnot. I'm sure there's tons of this on your YouTube channel. But this is a question I have from my clients and students sometimes is how do you crack into that, you know, accredited investor type person? Right. Because they're not necessarily few and far between, but there aren't as many of them as they are the great unwashed masses. And everybody's taking a run out. Right. And they tend to be quite busy individuals. So how do you get their attention? How do you get in front of those kind of potential investors?
Agostino Pintus [00:12:16] You know, there are many more of those people than you think they are. There are there everywhere? They are everywhere. It's part of it is that it's the mindset that we put ourselves in. It's kind of like this. If there's ever a car that you want, let's say, for instance, you know what? I want to get a Volkswagen Bug. I want to get a blue Volkswagen Bug. Next thing, are you driving down the street and you start seeing Volkswagen bugs everywhere? Everywhere. Why? Because your subconscious is looking for it now, right? It's the same sort of thing. The reason why many people are afraid because they're not seeing those people, because they're not activating their system to look for those people. Right. But part of it that's the first thing. But secondarily is going to places where they are, where they go, typically nicer restaurants, nicer venues to go to meet ups because they're often looking to invest in real estate. They know typically they know enough to invest in real estate. They know they want to get into the game, but they don't know how to get in the game. Yeah, they don't know how or they don't have the time to mess with it. Exactly. You know, and I've met plenty of investors, even the events that we hold here in Cleveland, that they want to get in the deal. They want to get into the real estate game. They just don't want to mess with it. They're sitting on a half million dollars cash in the bank right now and they just don't know what to do with it. They know that one investor in real estate, which is the perfect person to pitch. Right. You don't have to sell them on real estate because that's how oftentimes that's the big hurdle you have to overcome is. If they don't know anything about real estate, how do you sell them on real estate and putting their money into an actual deal, which to me makes total sense. But I've been doing this for a while. So for someone who's never even considered it, it's a much tougher sell. And I mean, I have my own rules about how to go after those sorts of people. But really, I'm really targeting people that want to protect their assets. They know something about real estate in the power of real estate and what it can do for you.
Dave Debeau [00:14:14] So that's a good tip then going out to meet ups and real estate groups and whatnot and finding those people that already have the cash, but they don't necessarily have the time plus the opportunity cost right there, the doctor, the the dentist, the surgeon, what have you. Their time is best spent slicing people up and fixing people up. That's where they really make the money and then to put their money to work for them passively with you. And then you do the work to get the best returns, which is.
Agostino Pintus [00:14:41] And you know what? It's absolutely true. And there is one other thing, though, too. And I think this is where people fall flat sometimes, is that they really need to commit. Right. And that's probably one of the biggest issues, especially if you have a full time job, because I remember when I had a full time job and I was at that time and still, as I said, invested in smaller deals, that kind of thing on my own. And when you're when you're raking in all kinds of money, you kind of get lazy. You know, you kind of like, oh, man, there's a deal over here. But you know what, though? Look at that fix coming up. Right. I got that next. Next week, another get another paycheck. It's going to it's going to hold me here, right? Yeah. There's no pain. Right. There's no pain. You can either commit to doing this thing and communicating with everybody that you know, that you are a real estate person because you've already bought your own real estate deals and and you're out there syndicating and you are speaking to everybody you know about this business. That's the key. Right. Whereas if you're secured in your job, they use the air quotes because as long as you have a job, there is no security. You're leaving your the hands of your future and the future of your family is someone else's hands. As long as you're doing that, it's going to be very, very difficult to really commit to spending the nights and weekends and really getting out there and trying to market yourself to everybody that needs to hear your message.
Dave Debeau [00:16:08] Very, very well said. Agostinho, thank you very much, man. I told you, time flies when we're having fun. We might have to swing by and chat with you again down there down the road because you got lots of good stuff to share, that's for sure. But if people want to find out more about you and what you guys are up to, what should they do?
Agostino Pintus [00:16:25] They could search for bulletproofed cash for dot com and go on YouTube. We have all kinds of free material out there if you come to the website as well. Bulletproofed cash flow dotcom there. We also have our podcast there. We have all kinds of other materials and we're updating it all the time. If you scribe to the list, we will often share different deals that we're working on as well. So, of course, of our Facebook page, our Instagram page, all the same bulletproof cash flow. Just do a search and find us.
Dave Debeau [00:16:51] That's a good name. Good. Thanks very much. I really appreciate you sharing your your time and your experience today.
Agostino Pintus [00:16:57] Awesome. Thank you. Thank you.
Dave Debeau [00:16:58] All right, everybody, take care and we'll talk to you on the next episode. Bye bye.
Agostino Pintus [00:17:03] Thanks very much for checking out the property profits podcast. And you like what we're doing here. Please head on over to iTunes,
Dave Debeau [00:17:09] subscribe read us and leave us the 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.