MB 072: How to Overcome the Most Crippling Limiting Beliefs – With Tyler Sheff

What is stopping you from achieving financial freedom through apartment building investing? Is it because you don’t have single-family experience? Are you intimidated by the perceived complexity of the multi-family space? Or maybe you think you don’t have enough money to consider pursuing multi-family deals? Today’s guest has encountered and overcome all of these limiting beliefs, and today he reveals how to get out of your own way and get on the road to financial freedom.

Tyler Sheff is the founder of CashFlowGuys.com and the host of the Cash Flow Guys Podcast. He was making six figures as a merchant mariner when he and his wife took a hard look at their future. Tyler didn’t want to wait until he was 65 to enjoy life, so he took compensatory time and gave himself six months see if real estate investing would prove viable and provide the cashflow necessary to attain financial freedom.

In just 11 months, Tyler had replaced his income. At that point, he had invested in 26 units in Florida and Tennessee – using none of his own money. Now he leverages his 17 years of experience to demystify the real estate investing space, encouraging others to focus on cashflow and take massive action toward their goals. Today, Tyler shares his journey, explaining how he landed his first few multi-family deals, why single-family experience is unnecessary in the apartment building space, and how he employs relationship marketing to raise capital. Listen in as he unpacks each of the limiting beliefs that held him back and reveals how to overcome ‘analysis paralysis’ and move forward with your dreams of building passive income and escaping the rat race.

Key Takeaways

 [2:55] How Tyler got started in real estate

• Desire to ‘get rich quick’
• Made money as house flipper
• Sold portfolio before market crash
• Acquired huge tax bill
• Went to work for government as merchant mariner
• Climbed ranks to six-figure salary

[4:32] Why Tyler returned to real estate

• Way to legally, ethically avoid taxation
• Focus on cashflow this time (not appreciation)
• Job on ship kept away from family
• Not feasible to continue for 20 years (physical toll)
• Wanted better quality of life, time on hands

[8:08] Tyler’s experience as a landlord

• ‘Accidental landlord’ in late ‘90’s to maximize returns on sales of fix and flips
• Got into multi-family in 2014 to scale quickly

[9:10] Tyler’s first multi-family deal

• Pre-approved for VA mortgage
• ‘For Rent’ sign on four-plex
• Paid zero down, received check for $1700 at closing
• Moved into one unit, rented other three
• Rehabbed quickly
• Cashflow right away
• Converted one unit to vacation rental
• Cashflow increased from $1,200 to $5,000/month

 [12:12] Tyler’s next two deals

• Learned to raise capital (Secrets of Successful Syndication seminar, Sam Freshman book)
• Built team, cut teeth on ten- and 12-plex in Memphis
• Tennessee known for cashflow (not organic appreciation)
• ‘Overimproved,’ didn’t see anticipated ROI
• Learned to analyze needs of tenants
• Brought to total of 26 units in 11 months
• Capital raised through IRA lenders
• Tyler able to quit government job

[17:22] The limiting beliefs that held Tyler back

• Analysis paralysis (first deal so good, couldn’t stop comparing)
• Fear of making mistakes was crippling

[19:22] Why single-family experience is unnecessary to enter the multi-family space

• ‘Almost better off with no experience’
• Tyler feels single-family background made him too conservative

[21:49] How Tyler achieved multi-family deals without using any of his own money

• Partnered with experienced property management company
• Enlisted exceptional legal and accounting teams
• Experience of team led to capital (didn’t matter that Tyler was inexperienced)

[23:05] How Tyler leveraged ‘relationship marketing’ to raise capital

• Started podcast, Cashflow 101 workshops
• Positioning self as expert led to referrals
• Matched investors with experienced syndicators
• Learned from those syndicators (willing to help)

[24:44] Why the complexity of multi-family is a limiting belief

• Same as single-family, just larger scale (only one roof)
• Tyler contends apartments are easier to work with
• Many moving parts, must be able to manage others effectively

[25:50] The importance of Tyler’s first deal

• Critical in realizing he could do this
• Second and third deals built confidence as he encountered and overcame problems

[26:56] How Tyler’s life has changed

• Doesn’t have to ‘hunt’ for next check as buy and hold investor
• Receives mailbox money each month
• Continues to attract capital, source opportunities
• Time available to educate others with free content
• Freedom to spend time with family

[29:51] Tyler’s perfect day

• Watch sunrise in kayak
• Fish all morning
• Work on podcast, instructional video in afternoon
• Help others attain same kind of financial freedom

[30:27] Tyler’s advice for aspiring multi-family investors

• What do you have to lose?
• Only tangible thing is time
• Educate yourself and take action

[31:02] How Tyler wants to be remembered

• As change-maker who ‘made difficult stuff simple’

Connect with Tyler

Cash Flow Guys

Tyler’s YouTube Channel

Resources

Secrets of Successful Syndication

Principles of Real Estate Syndication by Samuel K. Freshman

Free eBook: The Secret to Raising Money to Buy Your First Apartment Building