00:00:00 Mike Neubauer shares his journey into real estate investing, which began when he was a firefighter outside Chicago. With ample downtime at the firehouse and a desire to do something more, Mike was inspired by his father's interest in investing and decided to attend a Rich Dad Education seminar with his father and grandpa. After investing a significant amount of money in real estate courses, Mike and his father were committed to making their investment work. Mike describes the initial feelings of excitement and fear as they dipped their toes into the world of real estate investing. Having his father as a partner provided added accountability, and they followed the course's instructions step by step. Their first five properties were single-family homes, and they faced challenges due to conflicting schedules as firefighters. The first property took approximately a year to complete, from purchasing it to refinancing and moving on to the next investment. Despite the challenges, they remained committed and continued their real estate journey.

00:05:00 In this section, Mike Neubauer shares his experience of investing in single-family homes and the lessons he learned from his early failures. He mentions that after a year of dealing with refinancing and a $15,000 loss on a property, they started to find a groove and implemented the BRRRR method. Mike emphasizes the importance of recycling capital and getting the next property as quickly as possible. He then shares his advice to new real estate investors, suggesting they consider moving into commercial properties once they've gained experience with single-family homes. Mike explains that the transition to commercial properties, which he made around 2019, was driven by the realization that it takes the same amount of effort to manage larger properties as smaller ones and the potential for greater returns.

00:10:00 Mike shares his experience of transitioning from single-family to commercial real estate. He explains how he met a seasoned apartment investor during a mission trip and partnered with him on his first commercial property. The process went smoothly, and they made a significant profit. After that, they refinanced the property, and the appraisal value was much higher than their initial investment. The speaker expresses regret for not starting earlier and acknowledges the perceived barriers to entry in commercial real estate, such as the need for experience and a strong financial statement to secure a bank's trust. He also mentions that the bank is a crucial partner in the commercial world and that they want to ensure the investor is fully committed to the project. The speaker also touches upon the day-to-day responsibilities of managing a multifamily property, explaining that while it's possible to hire a management company, there are still hands-on responsibilities and potential issues to address.

00:15:00 Mike Neubauer then discusses the hands-on involvement required in managing a property in the multifamily real estate world. He shares an anecdote about having to handle a plumbing issue personally to ensure good customer service for tenants. Neubauer emphasizes that while the multifamily world is less hands-on compared to single-family properties, it still demands effort and dedication to achieve high returns. He talks about the importance of having a good manager and maintenance team to handle day-to-day operations and provide excellent customer service. Neubauer also mentions implementing automation and delegation strategies for investors who want to invest nationally and not be on-site. These strategies include having dedicated maintenance personnel, lock boxes, matter ports, drone videos, and mapping of properties to ensure effective remote management. Neubauer also discusses his transition to starting Grand Vision Capital group earlier this year with partners, where he spearheaded the process and got them interested in real estate investing.

00:20:00 In this section, Mike Neubauer discusses his transition from syndications to a fund model for real estate investing. He explains that syndications involve bringing together people with capital but no time to manage properties, while the investor handles the work and signs on the loan. However, investors are stuck with that specific deal and miss out on potential home runs in other deals. To address this issue, Neubauer developed the fund model, where investors pool their money and the fund buys multiple properties, providing diversification and the benefits of multiple deals. He emphasizes that the goal is to turn singles into home runs over time, allowing investors to grow their money without being tied to one deal. Neubauer also mentions that his company, Grand Vision Capital Group, works with high-income earners to help them turn their income into real wealth through strategic investments.

00:25:00 Mike Neubauer discusses his shift from syndication models to the fund model in real estate investing. He highlights the longevity and generational wealth benefits of the fund model, as well as the consistency it provides in returns. Neubauer then shares his experience with the first property they invested in through the fund model, an 88-unit apartment complex in Cedar Rapids, Iowa. He explains how they identified the deal and the advantages it presented for their investment strategy. Neubauer also compares the fund model to syndication and explains why it is more appealing to physicians, who often have busy schedules and prefer passive investment opportunities.

00:30:00 In this section of the "Savvy Physicians Choose Passive, Multi-Family Real Estate" podcast episode, Mike Neubauer explains why they focus on high-income earners, such as physicians and attorneys, for passive real estate investing. The reason being that these professionals make a significant amount of money per hour and investing in real estate passively allows them to continue focusing on their specialized skills while reaping the benefits of real estate investment. Active investing, like learning real estate from scratch or buying a $200,000 dump truck for business owners, doesn't make sense for them due to the time and resources required. Additionally, passive real estate investing offers tax benefits, such as depreciation, which can help offset their high tax brackets and make their investments more worthwhile.

00:35:00 Mike Neubauer discusses the benefits of investing in real estate for reducing tax liability. He explains that the depreciation from real estate investments can offset income, allowing investors to make more money without paying a larger tax bill. Neubauer also mentions that Grand Vision Capital Group is planning to close on a new property in Cedar Rapids and is hosting The Physicians Financial Summit in Chicago in March 2024 to share their investment strategies and answer questions from attendees. Additionally, Neubauer offers free second opinion consultations for doctors to review their financial plans and provide confidence in their financial outlook.