Real Estate Investing School Podcast

Episode 133: Become Financially Literate through Real Estate with Andrew Freed
Release Date: February 19, 2024
Host: Joe Jensen
Guest: Andrew Freed

Episode Overview

This episode centers on financial literacy, practical strategies for scaling quickly in real estate, and how to leverage real estate for financial independence. Guest Andrew Freed shares his journey from corporate life to rapidly growing his real estate portfolio, offering actionable advice on partnerships, stabilization, deal analysis, and the mindset required for success. The episode breaks down joint ventures vs. syndications and challenges conventional advice often given by traditional financial advisors.

Key Discussion Points & Insights

1. Andrew's Entry and Rapid Growth in Real Estate

Background: Started real estate journey during the COVID-19 pandemic after reading Rich Dad, Poor Dad ([02:04]).
Previous Path: Followed "American Dream" (education, good job, condo in city), but realized he didn’t want to spend 30–40 more years working ([02:15]).
Turning Point: Recognized 80% of his net worth was tied up in a one-bedroom Boston condo. Used a $200k HELOC to fund initial investments ([02:40]).
Strategy: Specializes in buying operationally inefficient but structurally sound multifamilies, stabilizing within 3–4 months, then moving to the next deal ([01:03], [03:46]).
Growth: In just 3 years, completed 20–25 deals and 5X’d his net worth ([03:46], [01:33]).

“I've only been in real estate for three years and that's how I've been able to scale so quickly as I take on these projects that you can stabilize in three to four months with good operations, not an influx of cash.”
— Andrew ([01:03])

2. Market Selection and Scaling Up

Niche Approach: Focuses on markets with a high concentration of multifamily units for more deal flow ([06:22]).
Flexibility: Shifted from trying to buy in Boston to Worcester, MA after facing repeated competition and supply challenges ([04:15], [05:27]).
Lesson: Ensure your “buy box” has enough market supply. Avoid becoming so niche that deals are impossible to find ([06:22]).

"One of the biggest mistakes I see in real estate is people niche, but to the point that there's no supply."
— Andrew ([06:22])

3. Partnerships and Joint Ventures

Organic Growth: Partnerships should evolve over time—don’t partner simply because of friendship, but to combine complementary skills ([07:39]).
Role Specialization: Andrew excels at back office and management, seeks partners proficient in tenant/maintenance relations ([07:39]).
Networking: Founded Worcester’s largest real estate meetup, catalyzing partnerships ([08:50]).
Structures: Started with simple JVs: 50/50 or split based on contribution, migrating to more sophisticated syndication structures as experience grew ([09:54], [11:16]).
Syndication Start: Costly legal requirements (up to $50k) mean only big-enough deals make sense for syndication ([11:41]).

“Partnerships, the best partnerships happen organically over time for relationships that you know people from 6, 12, 18 months already... it's really imperative not to choose somebody based off whether you like them or not. It's really choosing them based off whether their skill sets offset your skill sets.”
— Andrew ([07:39])

4. Joint Ventures vs. Syndications

Definitions:
- JV: All partners are active, typically with smaller deals or where each member has a defined role.
- Syndication: Passive investors, requires regulatory compliance (SEC exclusions), higher legal/admin costs ([14:29]).
Pragmatism: Choose the model that fits the deal size, investor base, and operational needs ([16:34]).

“Just imagine yourself like Batman. You have many tools in your tool shed, right? It depends on what the deal calls for...”
— Andrew ([16:34])

5. Stabilization Best Practices

Fast Turnarounds: Prefers buildings with tenants on month-to-month leases to allow rapid stabilization ([18:26]).
Tenant Negotiations: Uses the “binder strategy” (in-person rapport, showing market rents, compromising where beneficial) to keep units occupied and increase rents ([18:52]).
Efficiency: Balances increasing rents vs. turnover costs; prefers “single base hits” across many deals over aiming for just home runs ([23:50]).
Systems: Immediate organization (keys, locks, contractor Rolodex) and empathy-driven tenant communication ([18:52]).

“This is a people business...you really have to take an empathetic approach, right? ...Usually it's something small, like a faucet or a window or like a hole in the wall, a couple hundred dollars which I'll pay all day to buy Goodwill, right?”
— Andrew ([18:52])

6. Deal Analysis and Scaling Tactics

Metrics: Focuses on all-in cost per unit plus get-ready costs relative to market rent (the “1% rule” or better) ([25:31]).
Tools: Uses BiggerPockets calculator for quick deal vetting; only goes deep after quick screens ([26:34]).
Expectations: Multifamily deals rarely cash flow on day one—plan for 6–12 months of stabilization ([24:27]).

7. Mindset, Time Management, and Learning

Thought Freedom: Practical application of focusing mental energy only on things that further your goals, based on “Coin of Heaven” from Neville Goddard’s Wealth Mindset ([28:32]).

“I'm very intentional about where my thoughts go and whether they go towards my goals or away from my goals.”
— Andrew ([28:32])

Daily Routine: Follows the “Miracle Morning” (SAVERS: Silence/Meditation, Affirmations, Visualization, Exercise, Reading, Scribing) ([32:06]).
Education: Gained over 10,000 hours of real estate expertise in 3 years through meetups, podcasts, and constant study ([32:06]).
Elimination and Delegation: Applies Pareto’s Principle (80/20) and prioritizes tasks that yield the highest output ([33:49]).

8. Financial Independence and Critique of Financial Advisors

Problem: Most people’s wealth is tied in assets (401ks, home equity) that don’t produce cash flow ([35:54]).
Solution: Convert net worth into cash flow-producing assets—like real estate ([35:54]).
Critique: Calls out financial advisors as “stock salesmen,” incentivized to retain client assets for fees rather than true holistic advice ([37:28], [39:23]).
Advice: Only take investment advice from those who are financially successful and walking the same path you want ([42:18]).

“Everybody's playing the wrong game. Like, me and you are playing Monopoly. Everybody's playing Sorry, over here.”
— Andrew ([35:54])

“If you're working in money, you got to learn to speak money, or else you're never going to achieve your goals.”
— Joe ([41:22])

Notable Quotes & Moments

On Partnership Evolution:
“Just like anything in life, you really got to crawl before you walk, before you run.” — Andrew ([09:54])
On Mindset and Quantum Mechanics:
“Where you direct your consciousness and the level of focus you have on something can determine any... reality or anything you want.” — Andrew ([30:17])
On Scaling Quickly:
“I'm over here doing three, four or five single base hits. I'm creating four, five hundred thousand dollars of equity with my quick plays as opposed to your long, your home run.” — Andrew ([23:50])
On Real Estate Tax Benefits:
“Every dollar I get in real estate is a post tax dollar because I have all that depreciation sheltering all of my income.” — Andrew ([48:33])

Timestamps for Important Segments

[01:03] — Andrew’s quick-scale multifamily investing approach
[02:04] — COVID-19 as the catalyst for pursuing real estate
[03:46], [01:33] — 20–25 deals in three years, 5X’ed net worth
[06:22] — The importance of market selection/supply
[07:39] — Organic partnerships and complementary skill sets
[11:41] — The cost of syndications and when to use them
[14:29] — Joint venture vs. syndication explained
[18:26] — Stabilization techniques and month-to-month rentals
[25:31] — Key deal analysis metrics
[28:32] — Thought freedom and focus
[32:06] — Education, time management, and daily routines
[35:54], [37:28], [39:23] — Financial independence, critique of financial advisors
[48:33] — Tax benefits and efficient wealth building

Final Four Questions: Highlights

Dream Deal: Acquire a 20–30 unit building in good condition, with rents 50% below market—create major value via stabilization ([46:14]).
Book Recommendation: Seven Habits of Highly Effective People by Stephen Covey ([49:56]).
Expensive Mistake: Lost $15k to a contractor who disappeared; the lesson is to perform better due diligence ([51:43]).
Purpose of Life: “To provide more value to the world than what you took.” ([53:13])

Connect with Andrew Freed

Instagram: @investorfreed
Worcester meetup: Simplified REI
LinkedIn/Facebook: Andrew Freed
Investor-focused agent in Worcester, MA

Episode Takeaways

Intentionality is key—apply focus to goals, partnerships, markets, and daily habits.
Build your investment toolkit: Know when to deploy JVs and when syndication is warranted.
Value cash flow and tax advantages—playing the right financial “game” sets you up for true independence.
Learn from those living the success you seek; be conscious of advice and incentives in the financial industry.

“Be intentional and control your destiny.”
— Joe Jensen (Host), ([53:58])

Real Estate Investing School Podcast

Episode 133: Become Financially Literate through Real Estate with Andrew Freed
Release Date: February 19, 2024
Host: Joe Jensen
Guest: Andrew Freed

Episode Overview

Key Discussion Points & Insights

1. Andrew's Entry and Rapid Growth in Real Estate

Background: Started real estate journey during the COVID-19 pandemic after reading Rich Dad, Poor Dad ([02:04]).
Previous Path: Followed "American Dream" (education, good job, condo in city), but realized he didn’t want to spend 30–40 more years working ([02:15]).
Turning Point: Recognized 80% of his net worth was tied up in a one-bedroom Boston condo. Used a $200k HELOC to fund initial investments ([02:40]).
Strategy: Specializes in buying operationally inefficient but structurally sound multifamilies, stabilizing within 3–4 months, then moving to the next deal ([01:03], [03:46]).
Growth: In just 3 years, completed 20–25 deals and 5X’d his net worth ([03:46], [01:33]).

“I've only been in real estate for three years and that's how I've been able to scale so quickly as I take on these projects that you can stabilize in three to four months with good operations, not an influx of cash.”
— Andrew ([01:03])

2. Market Selection and Scaling Up

Niche Approach: Focuses on markets with a high concentration of multifamily units for more deal flow ([06:22]).
Flexibility: Shifted from trying to buy in Boston to Worcester, MA after facing repeated competition and supply challenges ([04:15], [05:27]).
Lesson: Ensure your “buy box” has enough market supply. Avoid becoming so niche that deals are impossible to find ([06:22]).

"One of the biggest mistakes I see in real estate is people niche, but to the point that there's no supply."
— Andrew ([06:22])

3. Partnerships and Joint Ventures

Organic Growth: Partnerships should evolve over time—don’t partner simply because of friendship, but to combine complementary skills ([07:39]).
Role Specialization: Andrew excels at back office and management, seeks partners proficient in tenant/maintenance relations ([07:39]).
Networking: Founded Worcester’s largest real estate meetup, catalyzing partnerships ([08:50]).
Structures: Started with simple JVs: 50/50 or split based on contribution, migrating to more sophisticated syndication structures as experience grew ([09:54], [11:16]).
Syndication Start: Costly legal requirements (up to $50k) mean only big-enough deals make sense for syndication ([11:41]).

“Partnerships, the best partnerships happen organically over time for relationships that you know people from 6, 12, 18 months already... it's really imperative not to choose somebody based off whether you like them or not. It's really choosing them based off whether their skill sets offset your skill sets.”
— Andrew ([07:39])

4. Joint Ventures vs. Syndications

Definitions:
- JV: All partners are active, typically with smaller deals or where each member has a defined role.
- Syndication: Passive investors, requires regulatory compliance (SEC exclusions), higher legal/admin costs ([14:29]).
Pragmatism: Choose the model that fits the deal size, investor base, and operational needs ([16:34]).

“Just imagine yourself like Batman. You have many tools in your tool shed, right? It depends on what the deal calls for...”
— Andrew ([16:34])

5. Stabilization Best Practices

Fast Turnarounds: Prefers buildings with tenants on month-to-month leases to allow rapid stabilization ([18:26]).
Tenant Negotiations: Uses the “binder strategy” (in-person rapport, showing market rents, compromising where beneficial) to keep units occupied and increase rents ([18:52]).
Efficiency: Balances increasing rents vs. turnover costs; prefers “single base hits” across many deals over aiming for just home runs ([23:50]).
Systems: Immediate organization (keys, locks, contractor Rolodex) and empathy-driven tenant communication ([18:52]).

“This is a people business...you really have to take an empathetic approach, right? ...Usually it's something small, like a faucet or a window or like a hole in the wall, a couple hundred dollars which I'll pay all day to buy Goodwill, right?”
— Andrew ([18:52])

6. Deal Analysis and Scaling Tactics

Metrics: Focuses on all-in cost per unit plus get-ready costs relative to market rent (the “1% rule” or better) ([25:31]).
Tools: Uses BiggerPockets calculator for quick deal vetting; only goes deep after quick screens ([26:34]).
Expectations: Multifamily deals rarely cash flow on day one—plan for 6–12 months of stabilization ([24:27]).

7. Mindset, Time Management, and Learning

Thought Freedom: Practical application of focusing mental energy only on things that further your goals, based on “Coin of Heaven” from Neville Goddard’s Wealth Mindset ([28:32]).

“I'm very intentional about where my thoughts go and whether they go towards my goals or away from my goals.”
— Andrew ([28:32])

Daily Routine: Follows the “Miracle Morning” (SAVERS: Silence/Meditation, Affirmations, Visualization, Exercise, Reading, Scribing) ([32:06]).
Education: Gained over 10,000 hours of real estate expertise in 3 years through meetups, podcasts, and constant study ([32:06]).
Elimination and Delegation: Applies Pareto’s Principle (80/20) and prioritizes tasks that yield the highest output ([33:49]).

8. Financial Independence and Critique of Financial Advisors

Problem: Most people’s wealth is tied in assets (401ks, home equity) that don’t produce cash flow ([35:54]).
Solution: Convert net worth into cash flow-producing assets—like real estate ([35:54]).
Critique: Calls out financial advisors as “stock salesmen,” incentivized to retain client assets for fees rather than true holistic advice ([37:28], [39:23]).
Advice: Only take investment advice from those who are financially successful and walking the same path you want ([42:18]).

“Everybody's playing the wrong game. Like, me and you are playing Monopoly. Everybody's playing Sorry, over here.”
— Andrew ([35:54])

“If you're working in money, you got to learn to speak money, or else you're never going to achieve your goals.”
— Joe ([41:22])

Notable Quotes & Moments

On Partnership Evolution:
“Just like anything in life, you really got to crawl before you walk, before you run.” — Andrew ([09:54])
On Mindset and Quantum Mechanics:
“Where you direct your consciousness and the level of focus you have on something can determine any... reality or anything you want.” — Andrew ([30:17])
On Scaling Quickly:
“I'm over here doing three, four or five single base hits. I'm creating four, five hundred thousand dollars of equity with my quick plays as opposed to your long, your home run.” — Andrew ([23:50])
On Real Estate Tax Benefits:
“Every dollar I get in real estate is a post tax dollar because I have all that depreciation sheltering all of my income.” — Andrew ([48:33])

Timestamps for Important Segments

[01:03] — Andrew’s quick-scale multifamily investing approach
[02:04] — COVID-19 as the catalyst for pursuing real estate
[03:46], [01:33] — 20–25 deals in three years, 5X’ed net worth
[06:22] — The importance of market selection/supply
[07:39] — Organic partnerships and complementary skill sets
[11:41] — The cost of syndications and when to use them
[14:29] — Joint venture vs. syndication explained
[18:26] — Stabilization techniques and month-to-month rentals
[25:31] — Key deal analysis metrics
[28:32] — Thought freedom and focus
[32:06] — Education, time management, and daily routines
[35:54], [37:28], [39:23] — Financial independence, critique of financial advisors
[48:33] — Tax benefits and efficient wealth building

Final Four Questions: Highlights

Dream Deal: Acquire a 20–30 unit building in good condition, with rents 50% below market—create major value via stabilization ([46:14]).
Book Recommendation: Seven Habits of Highly Effective People by Stephen Covey ([49:56]).
Expensive Mistake: Lost $15k to a contractor who disappeared; the lesson is to perform better due diligence ([51:43]).
Purpose of Life: “To provide more value to the world than what you took.” ([53:13])

Connect with Andrew Freed

Instagram: @investorfreed
Worcester meetup: Simplified REI
LinkedIn/Facebook: Andrew Freed
Investor-focused agent in Worcester, MA

Episode Takeaways

Intentionality is key—apply focus to goals, partnerships, markets, and daily habits.
Build your investment toolkit: Know when to deploy JVs and when syndication is warranted.
Value cash flow and tax advantages—playing the right financial “game” sets you up for true independence.
Learn from those living the success you seek; be conscious of advice and incentives in the financial industry.

“Be intentional and control your destiny.”
— Joe Jensen (Host), ([53:58])

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133. Become Financially Literate through Real Estate with Andrew Freed

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Summary

Real Estate Investing School Podcast

Episode Overview

Key Discussion Points & Insights

1. Andrew's Entry and Rapid Growth in Real Estate

2. Market Selection and Scaling Up

3. Partnerships and Joint Ventures

4. Joint Ventures vs. Syndications

5. Stabilization Best Practices

6. Deal Analysis and Scaling Tactics

7. Mindset, Time Management, and Learning

8. Financial Independence and Critique of Financial Advisors

Notable Quotes & Moments

Timestamps for Important Segments

Final Four Questions: Highlights

Connect with Andrew Freed

Episode Takeaways

Summary

Real Estate Investing School Podcast

Episode Overview

Key Discussion Points & Insights

1. Andrew's Entry and Rapid Growth in Real Estate

2. Market Selection and Scaling Up

3. Partnerships and Joint Ventures

4. Joint Ventures vs. Syndications

5. Stabilization Best Practices

6. Deal Analysis and Scaling Tactics

7. Mindset, Time Management, and Learning

8. Financial Independence and Critique of Financial Advisors

Notable Quotes & Moments

Timestamps for Important Segments

Final Four Questions: Highlights

Connect with Andrew Freed

Episode Takeaways