HEATHER EWING: The CRE RUNdown

Ep. 41 Amanda Larson - Mastering Multifamily Investments

• Heather Ewing, CCIM • Season 1 • Episode 38

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Ever wondered how you can break free from the traditional 9-to-5 grind and create a life of flexibility and financial freedom? In our latest episode of the CRE Rundown, Amanda Larson, the founder of AmaX Equity, shares her compelling journey from electrical engineering and construction project management to becoming a multifamily real estate investor. Amanda offers a wealth of knowledge on making the leap from a steady W-2 job to the exhilarating world of real estate investing. She opens up about her early experiences, the transition from single-family rentals to multifamily investments, and how her engineering background has been a game-changer in her real estate career. Tune in to discover the importance of networking, continuous learning, and how real estate investment can empower you to achieve a truly fulfilling lifestyle.

What's the secret sauce to balancing a successful real estate career with a rich, fulfilling life? Amanda Larson answers this by sharing her insights on maintaining a growth mindset, especially for women in commercial real estate. Drawing parallels between the consistency required in fitness and running with building a real estate business, Amanda discusses the significance of lifestyle integration, problem-solving, and mental clarity. She also delves into the broader impact of creating abundance by merging passion with professional pursuits, offering invaluable advice for anyone navigating the multifamily real estate landscape. Don't miss this episode packed with actionable insights and inspiring stories.

Heather Ewing, CCIM :

Welcome to Heather Ewing, the CRE Rundown. I am your host, Heather Ewing, and thank you for joining us today. I have a great guest who you are going to get to know in the next 15-20 minutes, and her name is Amanda Larson. She is the founder of AmaX Equity. Welcome, Amanda.

Amanda Larson:

Thank you, heather. It's such a pleasure and a joy to be here with you today, so thanks for having me on. Definitely my pleasure.

Heather Ewing, CCIM :

So tell us a little bit about yourself and how you founded Ama. Give us the skinny.

Amanda Larson:

Yeah, great. So yeah, I'm Amanda. I'm based in Houston. I am a multifamily real estate investor, so what that means is I find and operate multifamily apartments and I help other people who want to invest in real estate but don't want to be active. So I give that opportunity for people to invest passively into my deals and they get a benefit from the returns, the cashflow, the appreciation and the depreciation. So that's the short scoop of what I do. I've been in real estate. I bought my first single family rental in 2010. So I've been doing it for a little while and got started in multifamily around 2018 as a passive investor. So moving from passive to active.

Heather Ewing, CCIM :

All of the upside without all the work right.

Amanda Larson:

Yeah, when I discovered passive investing, it was literally like a light bulb, like the shining light turned on, because for a long time I just thought being a landlord was the only way. And well, it's a good way for some it's. Most people don't realize what they're getting into.

Heather Ewing, CCIM :

Yeah, it's, it's more than a full time job. It's a 24 seven type of job. They agree completely. So, as we back up, so you're in this sweet spot now. But, right, people always have difficulty merging the gap right From where they're at, they're probably working at a W-2, which is great, right, because that's great. Being an entrepreneur is great. It's really whatever works for you. But what I like to do on this show is also to present opportunities for people like yourself, that people can get to know and work with and invest, but also in breaking down what were some of those crucial things that helped you get to where you're at. So, as we dig into that, let's start with because you're in construction, right.

Amanda Larson:

Yeah, my degree is in electrical engineering and I moved from Nebraska, where I'm originally from, and I moved to Australia and the first job was on a construction site as a site engineer and I did that for about five years and then moved into design and then moved into some litigation space, so really did the W-2 thing for quite a while, up until very recently when I moved into full-time real estate.

Heather Ewing, CCIM :

And I think that's the thing, too, that people need to be cognizant of is that typically there's a progression, whether it's knowledge, whether it's financials. You know experience in the area, and I think you don't know what you don't know right. So serving yourself with those networks and the people that are doing it is ideal. Yeah, that's. I always say that you don't know what you don't know right.

Amanda Larson:

So serving yourself with those networks and the people that are doing it is ideal. Yeah, I always say that you don't know what you don't know and I still don't know what I don't know. It applies at every stage and, as you say, real estate is a slow progression. It's not a get rich overnight but not get rich quick. It is a slow progression and some people move a little bit faster than others, but by and large it's, you know, a reliable way to make a lot of money over the long term.

Heather Ewing, CCIM :

Definitely and I think that's another advantage of it is that you can take it at your own pace, right? I mean, if you want to excel quickly and amass doors or whatever maybe it's keys, right, hotels but you can do it at your own pace. And that's what I really like too is the flexibility, just like some people are partial career people and investors and others are full-time and one or the other, so really anything does work. Look into it and find what fits for your personality and budget right.

Amanda Larson:

And I think that's like you said it so eloquently because part of why I believe in real estate so much is because you can make it fit your own lifestyle and supplement your lifestyle. And make your lifestyle Not gratifying is not the right word, but maybe more fulfilling. You could focus more on what you want to focus on and use it how you want to. It's an empowering tool, I find.

Heather Ewing, CCIM :

Definitely, I agree. So bouncing back, so working overseas for seven years, yeah, also I love that. That. You know the engineering, the construction, it all ties in perfectly with investing, yeah, and you know it's kind of like our own consortium. It's it's brokerage, it's investors, it's construction design and you know, of course you've got the attorneys mixed in architect, so it's. It's a neat circle to be a part of.

Amanda Larson:

It is. I think it set me up. It set me up really well. Um, especially, I got into the project management part of things and so got my. And then another little twist is, you know, I had got my MBA, um along the way. So it's like the, it's like the universe was setting me up to do this, almost, you know, like putting me through this transition to get the skills and the knowledge, and then just like this growing desire to want to move out and do something on my own.

Heather Ewing, CCIM :

Right? No, that people can either look to follow up on and investigate or they can continue past them and it becomes the wayside. And I think it's really important because so many people I've noticed want to know with absolute surety that if they make this decision for the rest of their life, they're gonna, you know, earn this type of percent or you know of their life they're gonna, you know, earn this type of percent or, you know, have a 100% filled property or whatever it might be. But anyone that's been in the industry knows that there's always wins, there's losses, and it's performing the due diligence so that you do set yourself up for the best decision. But nothing's perfect in life, right?

Amanda Larson:

Yeah, nothing, nothing is perfect. And and again, going back full circle, it's your w2 is not perfect either, and so part of you know part of why I do what I do is to give that people, people, another stream of income to increase their stability in life. Because I live, I worked, in a very cyclical sector and so we went through layoffs over and over. Every couple of years. There was like you either make it or you don't, and it's really uncomfortable. And to have those passive streams of income just knowing that that's there puts the power back into your place where you can feel comfortable where you are. And what happens with life with your W-2, you know you'll get through it and go on to the next one where, if you don't have that, it's a very scary place to be.

Heather Ewing, CCIM :

Um, definitely so, going back to australia again, I love, I love europe and overseas just like you do yeah, we're both travelers exactly where would you say on because you've had many travels? Where would you say that australia, just like you do? Yeah, we're both travelers, exactly when would you say on because you've had many travels? Where would you say that Australia fits in with some of your others? What are your top three?

Amanda Larson:

Yeah, so my top three. So Australia was. You know, I was there for seven years, so it was. It's a great place to travel, great place to visit, but when you're there working, living, it's you're working and living. You're not always traveling. For me, what I love about travel is to go somewhere completely different, not how I live my day to day. So Australia is not that for me. Australia was somewhere where I could speak the language, finish my degree and transition my life there. But in terms of traveling, I really liked Turkey. I went to Istanbul last summer and I love that. Mexico I go a few times a year. I love Mexico, and then I would say it's tough. I'm going to say Thailand, yeah, I have not been there.

Heather Ewing, CCIM :

Yeah, I'll have to keep adding to my list with these. Yeah To say you know the market is ever-changing. That's the one constant. What are you noticing as far as the market and ways that you're able to help the people that invest with you?

Amanda Larson:

so right now. So I focus on multi-family and multi-families going through, like you say, transition phase right now and and what I'm seeing there's. So to give your listeners maybe a bit of background if they're not aware. So multifamily kind of got into its peak around 21, 22, a peak in terms of prices, and then there's been some instability on the debt side of things. People took out some short-term loans. Those loans are struggling right now and it's caused prices to decline and so right now, multifamily is on sale roughly where I am like 20%, 25% from the peak, where I am like 20, 25% from the peak, and so for me it's I look at it as a fantastic buying opportunity to get in at a lower price than what you could have the last few years, secure some long-term debt and then benefit on the outside. For me, this is like the equivalent of. For me, this is like the equivalent of 2009, 2010, 2011, after the GFC, which is when I bought my first single family and I wish I would have bought, you know, 10 more if I could have.

Heather Ewing, CCIM :

Exactly the hindsight of 2020, right.

Amanda Larson:

I mean, if we learn from those lessons and apply the same philosophy today, I think it's a really great opportunity for people to get in. The challenge is, people are a little bit nervous because they don't know. They want to wait for the bottom, but no one knows that the bottom is here until the bottom has passed. Bottom has passed, and so it's getting past that and recognizing that real estate, regardless of when you buy, is going to be. It's a durable, durable product. It's surviving the ups and downs, and I think that we are near the bottom now, and so it's just riding the wave back up and so it's an endurance race, right it is.

Heather Ewing, CCIM :

Yeah, If you're well equipped, you know from the mindset, well connected and also have the numbers to sustain, that's where it all comes together. So what would you say? Was there a person? Was there a book? Was it your MBA? What would you say helped you to facilitate this transition?

Amanda Larson:

The transition from my W-2, do you think Right? So the biggest transition. So real estate's been part of my life. I grew up in a real estate family. Like they owned a lot of single families, so I saw the landlording side of things. But in terms of making the transition and deciding that I wanted to do this full time, it was I was attending a meetup in Houston and trying to get knowing that I wanted to get more involved in real estate, but not knowing exactly what I wanted to do with it, recognizing that it was a good investment. And I attended a meetup and it was about multifamily syndications and I didn't know such a thing existed.

Amanda Larson:

Even being kind of in the real estate space, I didn't know that you could invest passively in someone else's deal, and so that was the first step and then gaining more knowledge and getting more involved, I understood that I really enjoyed it.

Amanda Larson:

It's like running a business. It's not running a, it's not being a landlord. It's very, very different from that. So I loved the idea that you could scale it, that you could grow like, honestly, just grow a business out of it that happens to be real estate and run it really professionally and run it based on data and numbers and financials and have some surety behind it, as opposed to buying a house and hoping you can rent it and so getting more and more involved in learning and networking and understanding what the business was. That made me want to transition more full time. But then I would say, one of the biggest things than what you can do at this, at your nine to five job and life is more about work and it's more about creating abundance in your family and abundance in your life, and so that's what excites me the most about it is getting around.

Heather Ewing, CCIM :

Yeah Well, and that's where you perfectly segued into my next question of mindset. But I agree with you of you know, if your frame is this big, you're definitely not going to have, you know, these larger multifamily and other opportunities that do come up. And that's where I think especially. I think everyone has their own struggles with mindset at different times in different ways. But I think if you were to look collectively, I think women definitely play much smaller and I think you hear a lot about just single family homes and things like that, and I think, just being in the commercial sector, it just seems like so much more work to start with a house flip and this and that, and at the same time, I'd like to acknowledge that they're looking to better and improve their lives. But it goes back to you don't know what you don't know.

Heather Ewing, CCIM :

Right and that's also why I have this podcast is to share with people these great resources like yourself, the other investors is to share with people these great resources like yourself, the other investors, brokers this, that and the other thing throughout the entire nation. Because it's free, it's a great way to open your mind, make connections, learn. I mean I always say, if you have a growth mindset. It's an emporium. There is so much to learn through YouTube, through people like you started with the meetup. I mean, if, if there's a will, there's a way, and I think that's also where opportunities, people come into your life. Resources, other things that if you're focused in on doom and gloom and it's too hard and this and that well, you're definitely going to ensure that that's your life.

Amanda Larson:

So sure, yeah, yeah, and there's unfortunately a lot of people who focus on that.

Heather Ewing, CCIM :

So not a very different, different path. Yeah, right, so what would you say? So you are a runner as well, which, of course, is near and dear to my heart. What are some ways that you utilize your running and your mindset with your investing?

Amanda Larson:

yeah. So I mean there's a lot of parallels between running and, like, I think, fitness and activity in general and business. But it's just being, for me, like running, just like business, is about being consistent. So I tell people like I don't tell people. I, when people ask, um, like what, what makes me do it every day, or how do I do it every day, and I just said I don't give myself an option.

Amanda Larson:

Like, even before I was a runner, I was going to the gym a lot and I was like it's just part of my day, it's like taking a shower, it's like eating breakfast or whatever. Like, if you don't give yourself the option and make it into your day, it just becomes lifestyle and business is insane. It's not every day Do you want to wake up and you know work on your business and it's hard and there's ups and downs and it's like more ups and downs than going to work because you're on your own. But it's showing up every day and being consistent and getting through the hard times. And, yeah, running reminds me of that every day.

Heather Ewing, CCIM :

Um, yeah, and then it's a great time yeah yeah, I always say it's not, if it's when, yeah, and I think you nailed it on the head too, because I always say it becomes a lifestyle and for me it is stressful what we do, right, there's to your point. There's so many changes and there's big swings financially. Otherwise, and if you didn't have running or some physical outlet, there's going to be a lot of bad habits, right?

Amanda Larson:

and it's a great time to think and clear the mind and solve problems and I've solved all kinds of problems or come up with ideas when I'm when I'm running, because there's nothing else to do other than kind of think.

Heather Ewing, CCIM :

It forces you to be present, right yeah?

Amanda Larson:

yeah, I don't. I'm not a big on like a big meditator. I think I believe in it, but it's hard for me. But I call my running like meditation in motion, so it's my time to think.

Heather Ewing, CCIM :

I agree completely, I agree completely, I agree completely. So my last question for you, my dear, and this is always the big one what does living fully mean to you, amanda?

Amanda Larson:

Oh, good question, Living fully? I think it's just coming to life and showing up for life with intentions. And showing up for life with intentions, I feel like you see a lot of people just going through day to day and doing what they always do without thinking about why they're doing it or where it's taking them next week, a year from now, five years from now, and so really it's just deciding what kind of life you want and then building your day around that life to make sure that it's aligned with your goals, and then just being present. You know, if you show up, if you, if you're with friends, be with friends. If you're with your spouse or significant other, be with them and be present with them and appreciate the time and be be grateful Practice gratification.

Heather Ewing, CCIM :

That's perfect, definitely Well with that, amanda. I am so grateful that we were able to connect and thank you for sharing your wisdom with our audience. Please share. How can they? Connect with you.

Amanda Larson:

Yeah, there's a couple ways. So I'm very active on LinkedIn. I think, heather, that's Lena, that's where we met, so just Amanda Larson on LinkedIn. I visit my website. It's amaxequitycom, a-m-a-x-e-q-u-i-t-ycom, and there is a form. It's just you sign up for a newsletter, it's not. You know, I'm not going to spam you or anything like that. It just helps us stay connected and you can fill out questions or whatever you want and we can just connect and get to know each other. It's really about building relationships and, yeah, if, if there's ways that we can work together, like that's awesome. If it's just a relationship, even you know, that's fine too. So those are probably the two, probably the two best ways right now.

Heather Ewing, CCIM :

Excellent. Well, Amanda, thank you again. I appreciate it and I will see you soon.

Amanda Larson:

Thank you so much, Heather. It was a fun time and a great conversation.

Heather Ewing, CCIM :

You bet Bye-bye.

Amanda Larson:

Bye.