Outrunning Failures

Building Wealth through Real Estate with Nizan Mosery

• Vish Muni • Episode 35

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Today's guest is Nizan Mosery.

Nizan is a serial entrepreneur, coach, investor, and host of The Traveling Investor radio show.

With over 25 years of experience in real estate, he is the co-founder and CEO of MTN Investment Group, LLC, and has successfully launched businesses across industries including hospitality, jewelry, and renovation.

His travels to more than 40 countries introduced him to spiritual leaders and practices such as Qigong and Vipassana meditation, shaping his journey as a holistic practitioner.

His mission is to wake people up and inspire them to live life on their terms with passion, purpose, and an unstoppable mindset.

multifamilyinc.com

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Creator/Main Host: Vish Muni

Show Advisor/Editing: DBT Marketing

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>> Vish:

Welcome to another episode of Outrunning Failures. Today we have another fantastic guest on the show is Nizan Mosery So me and Nizan belong to the same mastermind group and we do have a lot of, investors who we, both of us know about it. And Nizan is going to talk, walk us and talk to us about anyone can do real estate investing. And he's going to share as a, share a lot of experience as to the ups and downs in real estate. Nizan welcome. And please tell the audience, a little bit about you. What, what were you doing prior to being a real estate investor and how you got started.

>> Nizan Mosery :

Yeah, thanks for, having me on the show, Vish. I appreciate it. So, I, you know, I kind of like to say that, you know, my dad implemented or put in my head the idea of real estate. You know, we, you know, I joke, but he kind of, he used to tell us when I was a little kid, you know, that there's two types of people in this world. Those that pay rent and those that collect. And son, you always want to collect. And you know, when I, after going to college and whatnot, I, I went and rented an apartment in New York City and my father almost disowned me. He said, didn't I teach you anything? You're renting, it's like burning money. You're just paying somebody else's expenses and you're not gaining anything, you know. And I told him, I said, dad, I don't have $2 million to buy an apartment. If you want to buy me an apartment, I won't rent, but for now I have to rent. And, you know, that's kind of the mindset that I grew up in. and, you know, from there I went and built a portfolio with my brothers on commercial real estate. I had a renovation and restoration company while living in New York City. And then in 1997, I left New York and I, went travel, I went to Israel and I stayed there for a while and then I traveled the world for many, many years, with an empty backpack and, and then I settled back in Israel for several years and in 2009, I found myself in Boca Raton, Florida, flipping houses and wholesaling and doing all that kind of stuff. And I realized very quickly that after I sold the house, I, I didn't, I didn't have any more income coming in and I would have to go find another one and go find another one. It was always, I loved flipping houses, renovating them and making them look Beautiful and, and whatnot. But it, it was, it was very active. I would have to go out and find a deal, raise the money, bring it, sell it, you know, and I was using hard money and a lot of, you know, my own money or double closings to make it happen and so forth. And then, I, I found someone who was teaching multi family properties and I was like, the light bulb went off, I'm like, you know what, man, that sounds great. I want to buy, I want to buy rentals because then I heard my dad in the back of my head, right? Rent, rent, collect rent, collect rent. So you know, I started my journey and the, and the rental side and you know, while I was flipping houses, I was, I was holding on to a few single family homes as well, just because I bought them so cheap and you know, know I had good tenants in there, but the cash flow was very small, you know, it was very tight and if something happened to the house, you know, there was my cash flow for the entire year gone with the renovations and so forth. So I started buying, you know, I started, I bought a duplex in the south side of Chicago, and then I bought a four plex in West Palm at the wrong side of the railroad tracks. And you know, I had prostitutes and drug dealers and pimps and you know, real cream of the crop tenants on my properties. Right. So everything that they told me to do that told me not to do, I did. And that's kind of how I learned my lessons. And, and from there I just kind of grew my portfolio. And with a lot of luck and hard work and, and perseverance and persistence and stress and a lot of that, you know, I've been able to, you know, close on multiple properties and really, and build a portfolio and and it's been, it's been a wild ride.

>> Vish:

Well, Nizan thank you for sharing that journey of yours. How, how you got started. And then. So you are a second generation real estate investor. So your dad very, your dad was very clear. He told you very well, you have two choices, either you pay rent or you collect rent.

>> Nizan Mosery :

Right.

>> Vish:

but you didn't take your dad's advice, but you figured it out pretty fast, right? Now, now, when you say you are, you start. You also had a renovation and restoration company for a while now on all this flips, what you did, the single family homes, did you do all the renovation by yourself or you had another company?

>> Nizan Mosery :

No, I had. So yeah, I mean I was doing three, four flips A month. And there was no way for me to be able to do that myself. Right. So I had. I had teams of people working with me. I built a relationship with this one gentleman who had subcontractors or he knew other contractors, you know, drywall, guys and painters and tile people and electricians and plumbers. So through him, I was able to build a team of people. And, you know, I, was able to do multiple houses at a time.

>> Vish:

That is fantastic. So when you learned about, multifamily investing. So that was just an upgrade for you. It is a new asset class because you understood the cash flow, the terminologies, where to add value, how to add value. Now, ah. At one point, you also told that you bought properties on the wrong side of the town. And, could you, share an instance where you applied a lesson learned from your failed projects to a successful one?

>> Nizan Mosery :

Yeah, absolutely. So, it's knowing your market, right? So, you know, when I bought the duplex on the south side of Chicago, and then when I bought the 4 unit, the 4 Plex in West Palm, they were in bad neighborhoods, okay? I mean, really bad neighborhoods. So, you know, where every time I go collect rent in my fourplex, you know, cops would drive by and they say, hey, you know, we heard gunshots. Did you hear anything? Or, my, duplex in Chicago, the contractors would call me and tell me that they couldn't go into the house that day to fix it because they were attacked by a gang of, guys. And thank God they had their guns with them so that they could shoot back. so I learned very quickly. And the reason why I bought those properties was because I was hungry. I was. I wanted to do a deal already. It was kind of. I'm like, I'm not finding anything, and. And let's just do one. And the numbers look good. But I didn't look at the location, and I didn't look at really what was the issues on that property, the location, and how that could affect me. And so today, when I'm looking at a property, the location is. Is probably one the top three things I look for now. And we always say, right, real estate is location, location, location. But my point is, is that, you know, for all you listeners out there who are getting started in real estate, it doesn't matter if it takes you six months or a year or even a year and a half to find the right deal. Don't get into a deal if it's not in the right neighborhood just because you want to get a deal done, it'll cost you more in stress, it'll cost you more in dollars, it'll cost you more in, it'll cost you more to do that deal than it will to postpone that gratification or to postpone that income or postpone, you know, getting into a, property. It's best to wait to get into the right deal. You know, for example, this past year I kind of took a step back in investing and I didn't buy anything because the markets were just too volatile. And sometimes you have to, you have to have the, the wherewithal, you have to have the, the, you know, the strength to pull back and say, I'm not going to do anything, I'm going to wait. Because it's better to wait sometimes than to get into a bad deal, right? So I've learned those lessons that, you know, sometimes it's, it's okay to put on the brakes and even if you're, if you haven't found anything yet, it's okay. There was, there's a reason why you haven't found anything yet. Maybe you didn't build your, your broker relations too well. Maybe you're, you're looking in the wrong markets. Maybe you got to a market that's just emerging right now. There's got to be a reason why. So look at, look at the why, look at why. Am I not finding a deal? Am I too conservative in my underwriting? Am I not conservative enough? Did I build my broker relations deeply enough to where I'm getting a good deal? Do I have the right team surrounding me so that brokers will be, will be comfortable sending me their off market pocket listings? They're good opportunities, right? So there's something there. So look, look deeper into why it's taking you so long rather than jumping onto something that may cost you more in the long run.

>> Vish:

Well, Nizan you're so true about the location, location, location. So I didn't I didn't believe in that till I made that big mistake. Okay. During 2020, 19, 2020, I had invested in a lot of apartments indications as a passive investor. So I just went by the number of doors. Wow, this guy is doing a deal. 500 doors. So that looks good on my portfolio. So let me put some money in the deal. Let me put some money. So I mean it feels good when someone tells you, are you an investor in 3,000 doors or 4,000 doors? I mean I was only looking at those numbers. Okay. And then one day I went and partnered on Someone the deal for 200 and I mean a little more than 200. 200 doors and wow, it's good to be a GP on a deal. And what do I need to do now? I raise capital. Okay. And in Houston, MSA, we got it for less than 40k a door. It looks fantastic. And then I was thinking it's in Houston. Right. Things can't go wrong. Houston is a great city. Right?

>> Nizan Mosery :

Yeah.

>> Vish:

And and we bought the deal at a great price. And we struggled, to be honest, we struggled, struggle, struggled for three years. Nothing changed like what you're talking about the location. I can relate to all that. The whatever you spoke. Okay. We just couldn't change the neighborhood. We just couldn't change the neighborhood. You could spend whatever you want on the property. That's only thing is in your control. You can change the property. But we lost it. We lost. That was a big lesson learned for me and I was in a rush. Like, you went and did the deal because you wanted to do a deal, right?

>> Nizan Mosery :

That's right.

>> Vish:

And then you, you quickly realize it was in a bad neighborhood. But I wanted to do a deal as a GP and I lost it. The same thing, what you mentioned, it can cost you stress your credibility, dollars, sleepless nights, your health. And I went through all of this. Okay. So man, that is, that is so true. We, that is so important and we pay so less importance. At the same time, we don't get, we oversee that most of the time we get blinded. Right. So, so with that said, so what is your asset class now? Do you still do the flips or you, you're out of flips or you do only multifamily?

>> Nizan Mosery :

So I do multifamily student housing and short term rentals.

>> Vish:

Right, Right. I see at the back of the wallpaper, it's a Multifamily Inc. Is that your own company or what is it? Can you tell?

>> Nizan Mosery :

Multifamily. Multifamily Inc. Is my coaching company. So I help people, you know, get into the multifamily world, whether they have, you know, money. No money, credit, no credit. You know, I, my goal is to really help people, become financially free and break the shackles of this nine to five world that you know, we're led to believe that this is the way to happiness. Right. and you know, a lot of people, you don't have to buy 100 unit property. Right. I teach my clients is like, you know, what, what's, what are you looking to get out of this. Right? And a lot of people saying, you know, I just want to free up my, free up some m. Some of my time or I want to, I love what I do. It's just, I want my bills to be paid. I don't want to have a headache. I don't want to have to worry about them. So we'll take them and I'll show them how to buy a duplex or a four unit or three unit or a five unit property that can know that income from that property could pay off their, their phone bill, their utility bill, their car bill. And next thing you know, you know, they own a couple of units here and there and they don't have to worry about their bills anymore. So now they're kind of, they can breathe better, they can enjoy life better, they're not stressing out more. And that's that's why I created my coaching company, Multifamily Inc. And, and anybody that wants to go, you can check it out. It's multifamily inc.com. that's inc.com forward slash application. You know, you can fill out the application and you know, we can have a conversation and see if you guys qualify.

>> Vish:

Well, that is, that is extremely, important, Nizan what you're doing there, thank you for that. Because, you can always borrow more money, but you can't borrow more time. Right, right. So. And you're, you're teaching people how to recapture that little time. What is left. Right. Instead of, instead of spending it on things which are really not essential at the end of the day.

>> Nizan Mosery :

Correct.

>> Vish:

Right. So, so that is important and good luck with that. And I'll definitely send people your direction. And with, with that being said, so what, what, how do you do these deals? Do you have a, do you syndicate them or do you buy on your own or do you buy with a group of students or people?

>> Nizan Mosery :

So, yeah, so it depends, you know, like, I'm working on a, on a 180 unit property in Alabama right now. We're raising about $14 million for it. and that's, that's, that's a syndication, right? That's where we're raising money from other people and they're becoming what's called a limited partner. That's someone who has a limited, say and a limited liability on that, on, on, on all of that. So, we're doing that. There's another smaller property in Tennessee that we're negotiating right now with the sellers that I'VE got my coaching clients, you know, part of as well so they can come in and we're partnering together so that they can have success and go out and see what it's like from the inside and really learn and be and, and what it's like to you know, manage the asset and, and go through the entire acquisition process, go through the capital raising process, build out the team, how to interview the property managers and so forth. And then once we buy it then you know, the real fun begins, right? Then we start learning how to manage the property and work with the on site manager and, and become the asset managers and really show people the journey that the property is going to make from when we took it over till the day we sell it. And increasing rent and you know, minimizing the expenses and paying out distributions. So you know, I do it you know, different ways. The short term rentals, I do that on my own, myself and my wife, she's, she manages the short term rentals. You know, I go out and we acquire them and then she she handles the rest.

>> Vish:

Well with that now since you've been doing real estate for more than 20 years and so managing this bigger properties now, do you have ah, third party management companies or are you vertically integrated?

>> Nizan Mosery :

Yeah, that's a great question. So I used to, I, I used to own my own property management company and I realized that the best thing for me to do is to close that and hire third party.

>> Vish:

Let.

>> Nizan Mosery :

Them deal with that. So I hire and, and I interview property management companies and whatnot. And I'll tell you, you know, it's not so much the property management company that you got to really pay attention to. it's the on site property manager because you could have a great property management company. But if the person that is sitting in the office and dealing with your residence and leasing up and collections and you know, vendors and whatnot, if they're not a quality manager, it doesn't matter how good the property management company is. You need someone in that office that knows how to run collections, that knows how to you know, talk to your residents the right way, give great customer service, deal with the vendors, minimize your expenses, really take it on and, and make it their own. So you know, the property manager is the person that you really got to focus on and make sure that you hire the right one.

>> Vish:

Well, well that is, that is so true Nizan, because you could have the best of, you could, you could have the best of the BMW, the top end car Right. But if the mechanic is all messed up, no matter what brand you have, it is going to be messed up. Right.

>> Nizan Mosery :

It's the driver. It's not the car, it's a driver.

>> Vish:

It's a driver around the car. So that is why a lot of people don't, don't even pay attention to that, property manager.

>> Nizan Mosery :

Correct.

>> Vish:

Or the handyman. And that is when things go really bad. Because we have had that experience, we thought hiring the best property management company will do the trick. No, the property management company is great. But why did they fail on this project? Why did they fail? For the same reason like what you told just now. And that is a big lesson learned. Huge lesson. Because I lived through that. We lived through that. We failed on a few properties in spite of the hiring the best property management company. I mean these things, we, we learn more by doing deals. We learn more about, we learn.

>> Nizan Mosery :

I'll tell you, you know, there are mistakes that I've made that, you know what, it cost us a lot of money.

>> Vish:

Right?

>> Nizan Mosery :

That's, that's the, that's the lesson. That's the, you know, that's the cost of doing business, of, of being an investor, of investing. You know, things will go sideways. You got to be prepared for it. Right? You can't, you know, it's, it's, it's something that, that we all go through and if you're in this game long enough, you're gonna, you're gonna get to those points where, you know what, we have some failures, right? You know, I mean, all the big moguls, you know, I mean, look, you can take, you can take, you know, outside of real estate, you can take, look, Elon Musk, for example, when he started with his rockets, every rocket was what, hundreds of millions of dollars? And then they would explode or there would crash on the, on, on, on the downturn when they would come back. That's, that's a huge loss. That's, I mean, I don't know how many normal people could withstand such a huge loss and continue. Right? That's, that's what it's, that's what it's all about. It's about being able to get hit on the chin and shake it off and come back and say, okay, you know what we learned from that? Let's, let's move on. Question. The thing is that if you don't learn from your mistakes and you keep doing the same mistakes, that's when you got to look at the person go, okay, you know, maybe Maybe we don't want to do business with that person. They've done the same thing five times and they made the same mistake five times.

>> Vish:

Well, Nizan it's a. That is a costly feedback. I would call it feedback because it's like if you're getting into a boxing ring, the first five fights, you're going to get kicked,

>> Nizan Mosery :

Uh-huh.

>> Vish:

Then if you don't learn and you still continue doing that, you're not going to be there for too long.

>> Nizan Mosery :

That's right. That's right. Absolutely right.

>> Vish:

There's so many parallels from this. Learned, failed experiences, people. If you're going to be a swimmer, you're going to drink water sooner or later. That is feedback. Right. And very fast, you're going to learn how not to drink water. Right?

>> Nizan Mosery :

That's right. That's right.

>> Vish:

And you'll have to only get better from there onwards. You can't, 100%, you can't keep swimming the way you swam 10 years back, because that means you're in the wrong sport, right?

>> Nizan Mosery :

Absolutely. Absolutely. 100%. You know, the mistakes that I've made, and I still make mistakes, but I learned from them, I will never do those mistakes again.

>> Vish:

You never do the same mistakes, but something else will come up, which means you're not more educated, you have a lot more tolerance for pain and, a lot more tolerance for risk, right?

>> Nizan Mosery :

Correct. Which means there's a saying that I live by. It goes, wisdom comes from knowledge. Right. Knowledge comes from experience and experience comes from bad decisions.

>> Vish:

Right? Oh, man, that is so true. Right? That is so true. And now what do you do outside of real estate? Because we all do something which we, don't need any motivation, we don't need any likes, we don't need any discipline whether someone is watching us or not. We do one or two things every day. Right. So. So what are those things, if you don't mind? You want to share?

>> Nizan Mosery :

Yeah, no, absolutely. That's a great question. So, you know, I. Before I go to bed at night, like when I'm in bed and I have my eyes closed and I'm falling asleep, I start having. I start, I go through the day and I say, today I made good decisions. Today I did, you know, whatever I did, you know, Today I had a podcast with, Vish. That was a good podcast. It was enjoyable. It was full of content. I had a good day. I emailed and followed up with people today. That was a good thing that I did today. That was a positive thing and I go through the day and I tag it and I tag what I did as positive. And then, right? So I go through the day and I do that. And that kind of gives you a subconscious mind saying, you know what? I was successful today. I had a good day, right? And then as I'm falling asleep, I have my mantras. You know, I am successful, my company is strong, I'm strong, I'm happy, I have a good relationship. I'm grateful for everything that I have. I'm grateful for all of the upsets and everything that positive that happened in my day today. And I'll go through the things and I'll say, you know what, that didn't work today, but I'm grateful for that because now I know what not to do. And I'll do that and I'll go and I'll continue to give positive affirmations while I'm falling asleep, right? So that's one thing I do. And then, in the morning, what I do is I will, I'll look in the mirror as I wake up and I'll, you know, I'll leave my phone on the side and I'll go to the bathroom and I'll, I'll look in the mirror, I'll splash some water on my face and then I'll take 10 deep breaths. Like really, like full in deep breaths where my mouth is wide open and I'm, I like my entire body is just bringing in an oxygen. What that, what that does is it oxygenates your body and your mind and it entered and it lifts up your energy. So imagine what, what you do to your body when you fill it with oxygen. Pure oxygen, right? And then I look in the m. I look in the mirror, I look directly in my eyes and I won't blink. And I'll tell myself 10 times that I love myself. I'm awesome. I deserve wealth. Wealth is coming to me. Wealth is here. Wealth is now. I'm enough. I'm abundant. I live in abundance. And I just go through these mantras 10 times. And then when I brush my teeth, I'll take the brush and I'll brush with my less dominant hand and I'll do that. And of course, when I'm done, I'll go back and I'll brush with my, with my dominant hair with my right hand to get everything that I missed. But the reason why I do with my left is because it starts creating different neural pathways in my mind and it starts adjusting and doing Things and opening, opening things up in my mind. So that's, that's what I do when I, when I wake up, and whatnot. so those are a couple of things that I do on a daily basis. Nobody's watching.

>> Vish:

Well, that's a great thing to do because, you see, that is what sets you up for the day. Because you close the day with gratitude and affirmations and you start your day with affirmations, and it's only you can do all that. Nobody's going to do it for you. So I tell people it is all in your daily habits, how you set your day up. Now, why do you do real estate? Is there any reason behind, you doing that Real, estate? I have two questions. Number one is why do you do what you're doing?

>> Nizan Mosery :

Yeah, great question. So why do I do what I do? I'm not a college graduate, so I know, you know, I don't have a, I don't have a diploma or something that I can fall back on, that I can get a job or go with a company. I'm not an engineer, architect, lawyer, things of that nature. So real estate was something that, I was able to get into without having a formal education. Right. It's something that anybody can do. and what, and the reason also why real estate is because real estate is the one thing that can really make you wealthy. You have tax incentives, you have tax benefits, you have passive cash flow. If you're doing it right, you can build generational wealth for you and your family. Right? You can leverage it, you can hedge against it. It's something that, even though it dips sometimes, if you look at the, if you look at the, the graph of real estate, it's always gone more. Even when we had the crash of 2008, 2009, which was over 15 years ago, real estate prices have gone sky high. They're still going up. So, that's why I do real estate, because it gives. And it also gives me the freedom when I doing multifamily, even when I was flipping houses, I was able to do it in a way where I could travel with my family. And my crew is still, you know, renovating the houses because I taught them and I had systems and processes to go over to make sure that everything was done correctly. So it gave me the freedom, it gave me the passive income that I wanted. It created generational wealth. It helps me pay almost zero in taxes. Right. While building wealth. So it's. And it's something that anybody can do. If I can do it, anybody can do it.

>> Vish:

Right? All right. Thank you. Thank you for that Nizan And apart from building generational wealth, so what is your biggest why? Because my biggest why is I was brought up in a certain way and I don't want my, my children or my wife to go through the same. And I want to be a better dad, better entrepreneur, better husband, better father, better friend. So. that is my biggest why. And I don't want to be dependent on anybody. So that is what gets me up in the morning and gets me up and gets me going. Okay. M. And that is like rocket fuel for me because every second of the day I'm thinking about, thinking about this. And I don't want to fail. So there's no looking back for me. So every one of us have a why, which gets us out of bed no matter what and gets us going. So what is your biggest why?

>> Nizan Mosery :

A great question. You know the why, you know, my why changed from when I was younger till today. now my why is, you know, it's my kids, but my kids are already, you know, they're already taken care of and they're all done. My why is because I want to become the person, that my family is proud of. I want to become the person that leaves, this place better than I found it. And there's many different ways of doing that. And again, that's one of the reasons why I created my, my coaching company, Multifamily Inc. Because I want to help people. I want to help people. That's my, that's my motivation. While I love real estate and I love multi family, I love doing the deals together. My real, I mean, I really enjoy being in front of a room or being in front of a zoom like this and talking to people and watching them succeed and getting them to the next level. Because I know I helped someone. I know I was able to touch someone's soul and move them and, and make their lives better. That, that is something that really turns me on. And that's why I do what I do, right? I want to achieve success so that I can go out and make people's lives better. I wish I didn't have to charge people money to coach them to be a mentor. But I know how important it is for people to put their money, their hand in their pocket and pay for something. Because free has no value. But if they're paying for it, then there's value and they'll come and they'll learn and they'll do what I tell them to do. And it's important. And I tell this to my kids, and I tell this to everybody that I meet. If you can touch one soul and one life and make it, and make them make their lives better, you've changed the entire universe. Because each person is their own little universe within themselves. And if you were able to help someone move to the next level, make them happy, give them some sort of success, you've done your job. And that's my why. My why is to be able to go out there and make a change in people's lives and do better. And it could be, the lives of my residents, the lives of my investors, the lives of my family, the lives, the lives of my mentorship clients and coaching clients. Right? The people that I meet. You know, I was at a networking event, this past weekend in Nashville. There's about 500 people there. And you know, there were so many people that I was talking to and I gave them and I just shared with them from my experiences. And the, look in their eyes were like, dude, you know what, thank you so much. You're the first person that really gave it to me straight. You're the first person that made it so obvious and simple. And now I get it, Now I understand it. And thank you so much. And, and that really, you know, fueled me, that gave me energy, and that gives me energy to wake up and to do what I do no matter what happens.

>> Vish:

And that's so Nizan Your. Your why is making me emotional. So thank you, thank you, thank you for sharing that, why. But, what, what I feel is we are almost, coming to an end on this, on the podcast. But I need to thank you for your dedication, your dedication to coaching, your dedication to coaching and helping others change their lives and becoming better investors in itself is a, contribution and giving back to the community. Thank you for that. And, so you're in. In the end. Your dedication is what fuels our journey forward to overcome all this obstacles and failures and feedbacks together. And, let's all work towards becoming better investors and giving more back to the new investors. Thank you once again.

>> Nizan Mosery :

My pleasure. Thank you. Vish, it's a pleasure.