Categories: Podcast

110 – How To Become Financially Free With Multifamily Investments with Alex Kholodenko

Synopsis:

Alex is a multifamily syndicator and private money-raiser here in the Bay Area, specializing in helping busy professionals invest in tax-efficient real estate funds that produce heavy cash flow.

In this episode, Alex will be telling us his story of how he got into real estate investing and the different lessons that he’s learned from investing with other groups before creating his partnership.

Key Points:

Intro

Alex is a real estate investor that specializes in helping busy professionals to create passive tax-efficient income cash flow. He lived in the Bay Area for 25 years and been investing for more than 10 years.

Alex In Real Estate

Alex specifically focuses on commercial real estate on bigger deals. He helps busy professionals to become passive investors. He works with a lot of investors specifically in the Bay Area but has some investors in other parts of the country. His role is defined as Investor Relationship Liaison between investors.

Tax Advantages In Multifamily Commercial Real Estate

The dividends that a passive investor receive are offset by expenses that are passed on. When you become a passive investor, at the end of the year, you’re going to get what’s called K-1. This is a distribution form that you need to report on your tax returns. You need to focus on expenses and capital expenditures. When Alex acquires a property, we try to acquire a property that is an off-market deal that is that needs some additional value. He can then slightly rehab it since the acquisition and sell it by increasing the profit while holding the property by increasing the rents. He was then able to pass on those business expenses related to rehab to improvements to the property on the cost segregation side including depreciation cost. So it offsets the dividends while you’re receiving the cash flow.

Finding Deals

Alex is constantly looking for new partners by going to meetups and conferences. He has strict criteria though. He meets with people personally. Once he’s comfortable with the guidelines and criteria, he then presents the opportunity. He is looking about 4 to 6 deals next year and going to raise $6 million.

Alex’s Goals

Alex and his partner’s goal is to obtain financial freedom and build a strong relationship with people and help them along the way. He states that it is important to have quality time with family and friends. Most of the time, people are too busy with work and errands that take precious time away from their loved ones.

Challenges

The biggest challenge is hiring web designers. It takes a lot of time to find a trustworthy expert. He is in the process of building a system to avoid changes down the road.

Learning and Advice

Find a mentor and be coachable. It’s good to align yourself with people that are very experienced, listen to their advice and get educated as much as possible before you dive in.