E01: Land vs. Multifamily - a Real Estate Throwdown with Mark Podolsky & Mark Kenney

Multifamily vs. land investing: Which model is right for you? Do you have to choose one? Which is better for an active vs. a passive participant? Find out which business model would work best for you! 

Entering the ring for today’s matchup are two titans of real estate:  

• Mark Kenney: Representing cash flow creation via multifamily investing, Mark Kenney has 25 years of experience. He has invested across multiple asset classes, closed over 100 multifamily deals totaling over $1 billion, and more than 16,000 units across 13 states. Mark is also a sought-after speaker, a coach, a podcast host, and a family man.
• Mark Podolsky: Representing cash flow creation using the power of vacant land, Mark Podolsky brings the experience of thousands of real estate transactions and millions of dollars in real estate assets. Mark is also a best-selling author, an inspirational coach to hundreds of entrepreneurs, a public speaker, a podcast host, proud father and champion of “Letting Freedom Ring”. 

Here are some knockout takeaways from today’s conversation:

[03:48] Mark Kenney’s background and path to real estate wealth

[09:19] Mark Podolsky’s background and how he started in land

[12:52] The beauty of passive investing with regards to travel

[14:22] Land investing 101

[20:13] Minimum investment and creative ways to get started in land

[37:40 ] Round 3: The final pitch: Risks in investing/operating multifamily deals

 

Episode Highlights:

[14:08] Multifamily Investing vs. Land Investing

Mark Kenney and Mark Podolsky dive deeper into their respective business models of multifamily real estate investing and land investing.

Mark Kenney discusses the benefits of multifamily investing, including:

• Cash flow from day one
• Significant tax benefits from depreciation
• Control over the value of the property based on income and expenses He also mentions that passive investors in multifamily deals typically need $50,000 or more as an entry point.

Mark Podolsky explains his land investing model, which involves:

• Buying distressed land at 25-30% of market value
• Doing due diligence to confirm ownership and check for issues
• Quickly reselling the land through various channels, often using owner financing to generate cash flow He mentions that investors can get started in land investing with as little as $500.

Overall, they discuss the differences in their business models in terms of cash flow, returns, risks, and suitability for different investor types.

[37:55] The Risks and Returns of Multifamily Investing vs. Land Investing

For multifamily investing, the risk is generally deal specific, with distressed deals having higher risk but also higher returns. The biggest risk overall however is people - partners, property managers, etc. who may act unethically. As with land investing, Mark Podolsky says he has never lost money on a deal because they buy land at a steep discount. That being said, the main risk is ignorance, and if investors don't do proper due diligence when acquiring properties

[47:25] Entry Points and Returns for Passive Investors

For multifamily, passive investors typically need $50,000 or more and the goal is to double their money in 5-6 years, plus significant tax benefits from depreciation

For land, investors can get started with as little as $500, and deals can generate annual returns of 800-1200%

 

Resources Mentioned:

Mark Kenney:  

Mark Kenney: Multifamily Investing | Apartment Investing - Home - Think Multifamily 
email:  mark@thinkmultifamily.com   

Mark Podolsky: 

Website: The Land Geek  
Wholetailing program: www.thelandgeek.com/quickdeals 
Dirt Rich (Mark’s book) 

Mike & Ligia Deaton: 

Multifamily investing: www.deatonequitypartners.com 
Land Flipping Coaching: www.flippingdirt.us