#032 Mark Walker made 36% cash on cash return on his first deal and was hooked.
On this episode of House Flip Masters Holly is joined by guest Mark Walker. Mark is founder of Luxmana Investments, which focuses on residential and multifamily investments. Mark was able to go from being a part-time investor with a full-time job in high tech, to someone who quit the corporate rat race in pursuit of his passion and now thrives as a multifamily investor.
Mark’s real estate journey started in 2004 when he bought his first property in South Denver where he earned 36.5% cash on cash return. After the sell of his first property Mark sat the business out for some time because he was having a hard time getting deals. Mark admits that had he known what he knows now he would have not sat out the 5 years that he did, because he says that there are always ways to find deals if you keep looking for them.
In 2010, Mark partnered with a general contractor and they scrapped a couple single family homes in a trendy part of Denver, they bought in an area that was getting a lot of investment and built a three story duplex in place of the original house. Before this first project was even done Mark and his partner started another project. In 2011, Mark started to reinvest the gains from his partnership projects into buying single-family homes.
Mark reminds us that as long as you have a formula for success you need to stick to it. Holly agrees that you need to create rules for yourself and live by them otherwise you will be all over the place.
Mark discusses how his journey has been much like the game that many entrepreneurs are inspired by, CASHFLOW. In the game you start off doing small deals and you graduate to doing larger deals. Mark says that is how he has structured his journey; in 2013 he purchased a small deal which was bought from him shortly after. He moved from his first property in Colorado to a complex in Texas.
In 2015, Mark had enough passive income built up that he was able to start focusing on his investments. During this transition Mark had a family member who allowed him the opportunity to job shadow in the market that he wanted to be in. He job shadowed for around 9 months until he started to venture out on his own.
Mark enjoys working with multifamily properties and shares with listeners how you can increase the value of your multifamily property. When you acquire multifamily property you want to increase the revenue and decrease the expenses, if you can do those two things the net operating income goes up and so does the value of the property. You can increase your income by utilizing the utility bill back. You can also reduce your expense by implementing a water conservation plan; in states like California where water conservation is crucial you can hire someone to come in to help you figure out how to reduce the amount of water being used – toilets can be changed out, faucets can be adjusted to reduce the flow of water coming out.
Mark shares advice for those who are interested in getting involved with multifamily investing; he advises that you get a sponsor or a mentor to help you get the education and knowledge to get into the business.
If you are interested in learning more about Mark and what he has to offer you can visit www.Luxmana.com If you are interested in learning about multifamily or maybe you already invest in multifamily and want to learn ways to boost your income, Mark is offering a free guide that he has written to our listeners.