In this episode, Kevin joins host Stephen Schmidt to discuss how Multifamily Utility Solutions focuses on helping multifamily property owners maximize their revenue through strategic agreements with service providers. The conversation delves into the importance of understanding different contract types, the value of education in the market, and the significance of building long-term relationships with clients.
00:00:00 – 00:00:57
Introduction to Real Estate Pros Show and Investor Fuel
00:00:00 – 00:00:57
The Real Estate Pros Show features interviews with real estate investing professionals and service providers from across the country. Its goal is to share current effective strategies to help listeners grow and scale their real estate businesses. The show is powered by Investor Fuel, a leading company supporting real estate investors and professionals.
00:00:28 – 00:02:00
Property Insurance for Real Estate Investors
00:00:28 – 00:02:00
The video introduces a specialized property insurance service designed for real estate investors, offering coverage that is 15 to 30% cheaper than traditional agencies. Users can quickly set up an account and obtain quotes for their properties, with the ability to activate or deactivate insurance for fix-and-flip or rental properties in about two minutes through an online portal, eliminating the need for direct communication. The policies are billed monthly and prorated daily based on coverage duration. This service is powered by MSI, a major independent managing general agent with extensive experience and a large customer base.
00:01:28 – 00:05:19
Interview with Kevin Gardner, Tech Guru and Multifamily Expert
00:01:28 – 00:02:48
The show welcomes Kevin Gardner, a tech expert with 20 years of experience at Comcast, where he managed teams negotiating agreements with multifamily property owners. The host introduces the niche topic of multifamily property agreements, promising valuable insights for real estate investors. The introduction also highlights the mission of Investor Fuel to help real estate professionals and investors grow their businesses significantly.
00:02:23 – 00:05:19
Kevin shares his background, starting his career selling cable door-to-door for Comcast to support his young family. Over two decades, he advanced to vice president of sales and marketing, overseeing multifamily property agreements and commercial development teams. He enjoyed Comcast’s entrepreneurial environment during its early growth but found the increasing corporate structure limiting. This motivated him to start his own company to help new investors in apartment and mobile home communities understand the importance of having agreements with service providers on their properties.
00:04:40 – 00:06:44
Importance of Agreements with Service Providers
00:04:40 – 00:06:44
The speaker discusses a common misconception about paying for services in real estate investing, highlighting an opportunity to both provide service and educate investors. They introduce Investor Fuel, a leading mastermind community for professional real estate investors that offers collaboration, advice, and exclusive benefits. These include 100% funding for purchases and repairs, a health insurance program, and discounts that often outweigh the cost of membership. The speaker encourages scaling a business to live a dream lifestyle and suggests visiting investorfuel.com to explore these value-added revenue opportunities, especially relevant to multifamily investing.
00:06:11 – 00:09:50
Value and Revenue Opportunities in Multifamily Properties
00:06:11 – 00:08:07
The speaker discusses the value investors can gain beyond just rental income, highlighting that additional revenue streams depend on the property type and agreements with providers. They mention typical earnings of $20 to $30 per unit annually plus a one-time incentive, which can significantly impact the property’s asset value, especially when factoring in cap rates and property size.
00:07:30 – 00:09:06
The conversation shifts to investors, particularly syndicators, who hold properties for a few years to improve and refinance or sell them. The model described is turnkey, requiring minimal effort or onsite supervision from investors. The speaker shares a lesson learned about the importance of managing every financial detail carefully, emphasizing that a million dollars is simply one million individual dollars that need attention.
00:08:34 – 00:09:50
The service being discussed operates on a commission basis with no upfront costs, aligning their incentives with investors’ success. They only get paid a small percentage of the revenue they help generate, ensuring their goals are aligned with maximizing investor returns.
00:09:12 – 00:14:36
Market Insights and Contract Types Explained
00:09:12 – 00:10:52
The discussion begins with an emphasis on market awareness and education regarding provider contracts from companies like AT&T, Spectrum, and Comcast. Providers often prefer bulk agreements, which make sense for some properties but not all. Investor Machine is introduced as a sophisticated, data-driven lead generation and marketing partner for real estate investors aiming for consistent, high-quality leads.
00:10:21 – 00:12:38
Investor Machine prioritizes understanding clients’ investment goals, whether for generational wealth or short-term flipping, to recommend suitable contract types. The two primary agreements are explained: bulk contracts, where service is paid for all units as an amenity, which can be costly if not offset by rent or fees. Providers prefer bulk agreements due to operational simplicity and customer count, especially in competitive, high-class properties. Investors need to evaluate if such agreements will pay off over a typical five-year investment period.
00:12:08 – 00:14:36
The conversation highlights that bulk agreements require payment regardless of occupancy or usage, similar to investing in amenities like a fitness center. Some properties, especially senior housing, may value video services more than internet amenity. Key factors influencing contract decisions include property class, occupancy, renovation plans, and intended holding period. A five-year contract could be a disadvantage if selling earlier, especially if comparable properties lack such agreements. The right contract varies by property, much like property values differ based on location and characteristics, underscoring the need for tailored solutions.
00:14:07 – 00:19:26
Client Acquisition and Growth Strategies
00:14:07 – 00:15:43
The speaker explains that their client acquisition strategy includes a referral program, podcasts, LinkedIn activity, and newsletters. They prefer working with new real estate investors, growing alongside them over time. An example is given of a client who started with about 20 units and has since expanded significantly.
00:15:14 – 00:16:53
The discussion highlights the Investor Fuel Club, a coaching community that enables partnership opportunities nationwide to help new investors avoid costly mistakes and fears. The speaker reflects on the growth of a client from 20 units to over 2,000 units, illustrating the long-term success of their relationships.
00:16:28 – 00:18:12
The speaker addresses the concept of ‘mistakes’ in their work, framing time spent on deals that do not close as an investment in long-term client relationships rather than wasted effort. Although some time could be spent securing deals, the focus is on building lasting partnerships rather than short-term gains.
00:17:41 – 00:19:26
The speaker discusses the challenge of clients expressing urgent needs to close deals quickly but then delaying action for various reasons. This inconsistency can be frustrating but is understood as part of business, with changes in priorities or circumstances affecting timelines. The speaker emphasizes that this lack of urgency is generally not intentional.
00:18:52 – 00:23:14
Business Growth, Challenges, and Future Plans
00:18:52 – 00:22:11
The speaker discusses reaching a significant turning point in their business, referencing Malcolm Gladwell’s concept of ‘The Tipping Point.’ After years of steady effort, their business suddenly gained momentum by identifying effective strategies such as podcast appearances, newsletters, referral programs, and a structured email process. These efforts led to increased efficiency and the ability to handle more deals with existing resources. The business has since experienced solid growth, supported by a loyal client base that continues to expand their property portfolios.
00:21:24 – 00:23:14
Looking ahead, the speaker expects the business to double in size within 12 to 24 months, including revenue and the number of properties managed. While staff growth will be necessary, efficiency improvements mean the team won’t need to double in size. They acknowledge that regulatory changes could impact the business, but emphasize their adaptability in finding solutions for clients to monetize broadband rights. Recent FCC changes had minimal or even positive effects on their clients. The conversation concludes with gratitude for the guest’s participation and insights.
00:22:37 – 00:25:41
Contact Info and Closing Remarks
00:22:37 – 00:24:14
The speaker emphasizes their commitment to being true business partners with their clients, highlighting that their success depends on their clients’ success. They mention their ability to provide services across all 50 states. When asked where people can connect with them personally, the speaker shares that they are active on Facebook and LinkedIn under the name Kevin J Gardner, where they also promote their self-help books. These books draw from lessons learned in business, life, and sobriety.
00:24:11 – 00:25:06
The speaker provides more details about their work and online presence, including their website multifamilyutility.com and their book titled ‘Change Your Thinking, Ignite Your Life,’ which also has its own website. The host encourages listeners to connect with the speaker and thanks them for joining the Real Estate Pros podcast and Investor Fuel.
00:24:41 – 00:25:43
The host discusses the benefits of joining the Investor Fuel mastermind community, which includes networking with other investors, access to 100% financing for deals, and member-only vendor discounts that can offset membership costs. They invite interested guests to apply via investorfuel.com/pros and mention additional free resources available in the show notes.
00:25:12 – 00:25:41
The host reminds listeners to subscribe to the podcast to avoid missing future episodes and concludes the show with well wishes.
