How to Avoid The “Gotcha” Expenses Without Being Eaten Alive in Real Estate

Feb 5, 2021

Watch this workshop recap, where I unravel the hidden “gotcha” expenses of this multi-family deal.

Picking through a deal is critical to ensure you are buying a cash-flowing asset versus a money pit. BUT, “gotchas” just mean we need to research how to leverage these “gotchas” into a killer deal.
See the entire workshop at:
📣 Watch out for the next workshop where we turn these “gotchas” into dealmakers!


Hey, I’ve been in your shoes and I love sharing stories of my journey and how I got money working for me. I’ll show you how too!


My goal is to experience with you, what’s on the outside. By sharing what we learn, we can all do our part to keep doing what we love, flying, without the threat of loss of income.

Together we can fly because we are proud rather than fly to survive. Click the image below to join…


Pilots make excellent money and we love what we do. We are used to being in command and control in the flight deck. But it’s our financial future, managing cash flow, wealth, and passive income that can often seem OUT of our control. It can be a risky gamble to put your money into retirement funds and the stock market. No one gets held accountable if there are significant losses. And so it feels like you run out of options. 

After entering the world of Real Estate Investing, I’ve found a path to security, passive income, and feel in control again. 

Real estate investment stands on the solid foundation of homes and buildings, which is in high need. We have control of the tenants we have, screening them for reliability and long-term viability. We can take measures if someone isnt working out. We create the system and safeguards for our investment, and all the income comes straight to us. Our return on investment (ROI) is high and steady.

As a pilot and real estate investor I am passionate about helping other aviation professionals fly towards financial freedom through investing in multi-family properties. Let me show you how to put your money to work for you. 

Do you want to see your money multiply, creating financial freedom for your future? Are you interested in increasing your income through passive means? If so, book a briefing with me, and let’s talk.  

– When you’re out there getting offers for a single-family house, who’s your competition?

– [Man] Everybody.

– No matter what, no matter if it’s a duplex or this 10-plex, only pay what the property can pay for itself, because if you pay any more, you’re losing money.

All right, so this is what we have. It’s a 10-unit student housing apartment, all right? So as you can see, it’s 10 units. These look similar but they’re actually two different buildings. They’re on two parcels of land, and there are two fourplexes, plus in the back are two studios. So a total of 10 units.

What’s really appealing about this?

It’s one block away from Downtown Mainstreet where you got all the bars, breweries, restaurants, activities, comedy clubs, nightclubs, so it’s a really popular spot.

When I was walking past this, I was using my “Driving For Dollars” app, marked it, and I noticed some reasons why this hasn’t sold. So this was originally listed, and I’ll show you the listing here. Okay, so I use “PropStream.”

PropStream what tells me everything. It even tells me how much is left on the mortgage, which is especially important when you wanna do seller financing deals. Do you wanna know all the details about the property as much as you can, prior to getting involved with the seller? What is glaring here?

There are a few problems. First of all, look down towards the bottom on the left, you’ll see a listing. So this was listed for $2.4 million, now you continue going to the right, status, failed, days on the market, 133. I don’t like going through realtors, because realtors don’t have all the information.

I wanna know the details, I wanna know the expenses, I wanna know the mortgage amount, the interest, I wanna know most importantly, why do they wanna sell? Because if I know why they wanna sell, then I can arrange creative financing for a win-win deal so it benefits them.

Because if you are able to create a deal that benefits the seller, why would they say no? And it’s not always about the price, right?

It’s about what they want to do with the money. How can you solve their problem?

Anything over four units is a commercial loan. Most commercial loans are assumable. Pro forma is a guess. Whenever you see a pro forma, and you’re gonna see that in a multi-family mostly, it’s a guess. Any property you buy, always check the numbers, because this view right here is… It’s a salesperson. He’s trying to grab you in, so then, you end up buying a rotten egg.

So due diligence before even the offer. You would never give anybody your tax docket of your profit and loss, why? Because when you’re paying your taxes, you want to exaggerate your expenses, right? You wanna say, “Yeah, I didn’t make that much money.” “Don’t tax me as much.”

So the second column is 2019, full-year 19, right? Can you read that? $2,100? Do you guys see that? So he’s saying he spent $2,100 on landscaping, 2019. But his sales brochure, 2019 expenses, snow removal, and landscaping, $4,000.

So what’s the real number?

So I can call him up and say, “Hey, this one says four, and this one says two.” Well, if I say that, I’m gonna put him on guard and now I’m gonna lose this… The relationship I have with him, the transparency that he’s giving me.

So instead I asked him, “Oh, who does your landscaping?” “Who does your snow removal?” He does. Now a good deal usually for a bank loan is between 1.25 and two. If you’re able to get two or greater, quiet. That means the income is able to pay twice as much as the debt. And when you’re raising private capital, so instead of using a bank for the mortgage, you’re using somebody else’s money, you wanna be super conservative.

So I wanted as close to two as possible. Because I want a good relationship, I wanna make sure I pay them plus more, let’s make it safe. Cap rate? This is why I don’t like the cap rate too much, because the cap rate doesn’t account for the mortgage, and it doesn’t account for maintenance. If you search for a VA loan, somebody at Down Street has a VA loan.

No matter if you’re a veteran or not, that loan is assumable, that’s huge. That means your seller financing makes… It got really easy. You could just take over the monthly payments. That’s it.