Founded in 2020, Multifamily Mindset is headquartered in Clermont, Florida. Their focus is strictly on multifamily property acquisition and sales. Their Instagram account boasts 25.4K followers. They also have a less successful YouTube account with only 12,232 total views to 155 videos, with some videos only having a handful of views. Their last YouTube post was on Oct 20, 2021. The company also handles The Growthcast podcast on Spotify and Apple, which is active daily.
One thing is for sure, compared to other business models, there aren’t many courses out there that specialize in multifamily real estate investment. One good reason is that most people who get into multifamily real estate business are experienced investors and brokers who are looking to scale their businesses.
Multifamily real estate investing is not something that you would recommend to beginners in the real estate industry, and yet this course claims it could deliver easy financial success to newcomers.
This fairly new course has received significant criticism for the actions of its owners and coaches. Just who is behind this course? How legit is the actual training program and do its students actually succeed? Is this course and business model the right fit for you? Read along and we’ll answer all these questions in detail.
Since we are on real estate investment, Local Lead Generation is an alternative business model that rents out digital real estate to local businesses. This model draws similarities with real estate investment, but without all the hassles. It might be worth checking out.
Who Is Tyler Deveraux?
Tyler Deveraux is a real estate investor who has an impressive resume in the industry. He notes that at the age of 21; he began his journey into real estate when he acquired his first student rental property. There is no record of his net worth available online but he claims he has “control over 2,500 apartment units, throughout 6 different states, with values north of $250 Million.”. That’s quite a claim.
Now residing in Maui, Hawaii, Tyler is a co-founder and CEO of The Multifamily Mindset which provides new and veteran investors with the training and support needed to invest in multifamily properties. He is a managing partner of MF Capital Partners based in Orlando, Florida, a privately held multifamily investment company that has been in the business since 2014.
He is also currently a keynote speaker for KCSB since 2013, and Co Founder of Ideal Web Solution, a web design and management agency for real estate investors since 2015.
Tyler's previous work includes president of Marketing Source Consulting from 2011 to 2015, Sales Manager and Public Speaker for Online Strategies from 2011 to 2015 and a Sales Consultant for Imergent Inc.from 2007 to 2011.
Who Is Ryan Woolley?
Ryan Woolley is a real estate investor. He is a co-founder of The Multifamily Mindset. He earned an accounting degree from Utah Valley University in 2007. Like Tyler, he is a managing partner of MF Capital Partners.
There aren't any details to his businesses nor his net worth available online.
Pros and Cons of Multifamily Mindset.
Pros
Tyler, Ryan, and the coaches are all veterans in the multifamily real estate industry.
High quality educational program. Specializes in multifamily real estate but also includes all info you'll need about real estate investment in general.
Cons
Course price is very expensive.
Unless you have serious capital in hand. You need sponsors for deals, and not all deals get sponsored by the program.
Program claims to have exclusive software to calculate deals, but is similar to other paid programs, such as bigger pockets.
Who Is the Multifamily Mindset Course For?
- Beginners who are new to real estate business, although the course price and high investment may not be the best for newbies with low capital.
- Experienced real estate investors who wish to upscale their business with multifamily real estate.
- Current multifamily real estate investors who wish to get more training and guidance.
If you find this course doesn't fit to you, Open Door Capital is an option.
What Do You Get With Multifamily Mindset?
You start by going to their official website. Here you will sign up for one of their free live events, which is basically a training seminar, if available in your area. Signing up will require you to put in your email and phone number. There is no ticket. Your name will be on the guest list. You are also allowed to bring a +1.
After signing up for the event, you will be asked for your address so they can ship you a “free masterclass guidebook”.
Once that’s all done, you can download a "cheat sheet", a PDF with 5 major tips on acquiring multifamily properties.
A one-day event that lasts an hour and a half, it is an introductory seminar that gives an overview of multifamily real estate investment. The discussion includes:
- The System - step-by-step system for investing in multifamily real estate.
- Capital/Funding - where and how to raise the funds for your deals.
- Connections - provide you with connections with investment partners.
Multifamily offers a “free” multifamily mindset 3-day seminar that will be offered to you at the one-day event. This seminar actually costs $997 for you and a plus one, but comes with a $300 travel voucher. A YouTube review from a certain Jordan Norr explains that the course offers a reimbursement of the $997 if you can do a deal within 6 months of completing the training.
This is what happens in the 3 day event:
How Much Does Multifamily Mindset Cost?
During the free events, they will mention and sell the Multifamily Mindset course. Their cheapest starter package comes at around $8,000, which already puts this course as one of the most expensive courses out there. They will definitely push you to purchase their premium mentorship program, which costs a whopping $38,997.
How Do You Make Money With Multifamily Mindset?
There are 3 roles that you can earn in multifamily real estate investments.
- Deal Specialist
You are the deal specialist, as you are the one who will invest in this property. - Sponsor
The sponsor is the one that will help you qualify for real estate deals and apply the loan you need, as most money partners prefer experienced investors. Here, it is the program itself. - Money Partner
This is where you'll be able to loan the funds from. The program claims you will have access to Tyler's own money partners.
So how do you, as the deal specialist, earn? Out of the total revenue, the money partner will take 70% as they are the one who took the risk of funding the entire enterprise. The sponsor will take 5% as a fee for qualifying you. This leaves you with 25%, or more in some cases.
Ownership revenue is only one way to earn. You also earn from re-selling the property at a higher price. Last, you also earn a 3-5% of the purchase price "acquisition fee" for securing the deal.
A typical apartment costs about $10M and has a hundred and fifty units. Tyler promises that even finding one good deal is enough for you to fund your retirement.
Is it possible to earn with Multifamily Mindset? Like with any other legit courses, yes. The thing is, it will take much more hard work than what the program claims.
Do Students of Multifamily Mindset Make Money?
So do the students of Multifamily Mindset actually make money? I haven’t found any success stories from any Multifamily Mindset students. The review on their site is the same reviews from their Facebook account, which is flooded with non-related spammers.
All positive reviews are actually directed at their live events. There are no success stories to be found with actual specifics.
I mentioned criticism about the course from the start. This is where it gets worrisome. A certain Zach Harsh who claims to be a student of the course posted his experiences on multiple customer review sites. It is a long and very detailed review, you can skip to the summary.
Nancy and Abraham's Multi-Family Mindset Testimonial: From Nurses To Real Estate Investors
Nancy and Abraham's Background and Story
Nancy and Abraham are nurses for 11 years. They started real estate investing while working their nursing jobs. They started with a 21-door portfolio of small properties, which they eventually converted to bigger properties after joining the Multi-Family Mindset.
How Their Business is Doing Today
Nancy and Abraham have made significant improvement in their real estate business after focusing on multi-family properties. This strategy enabled them to create an inventory that generates significant passive income rather than just simply adding numbers to their portfolio. Their goal is to reach 100 units and finance new deals by selling a portion of their current portfolio.
Nancy and Abraham's Biggest Challenges with Multi-Family Investing
Overcoming Self-Doubt: Nancy struggled with impostor syndrome. Despite their current achievements, she struggled to build confidence and achieve their goals.
Time Management: As full-time nurses, Nancy and Abraham struggled to squeeze in time to educate themselves while managing all of their real estate properties.
Market Understanding: Understanding and adapting to the complexities of the multi-family market required significant learning and adaptability.
Managing Investor Expectations: As the couple welcomed investors into their business, they struggle to keep up with different demands, expectations, and responsibilities.
What's not mentioned in the interview: Owning real estate properties involves ongoing costs on maintenance, repairs, property taxes, and insurance. The average maintenance cost is about 1% of the property value per year. For a $200,000 property, this means $2,000 annually in maintenance expenditures alone.
Summary of the 188 Unit Deal Incident in Columbia, South Carolina.
Multifamily Mindset made several big promises that they hadn't fulfilled. They hard sell the $38,997 premium mentorship program during their high-pressure 3-day presentation. They push attendees to find ways to pay for the course, even urging them to withdraw their 401k and pay the tax penalty.
Zach discovered a previously underwritten 188-unit deal in Columbia, South Carolina. Zach and partner contacted Ryan to suggest putting in LOI and giving them pricing. It took 4-5 days to meet Ryan and another 4-5 days to meet Tyler in order to sponsor the deal. By the time they met, someone else had already taken the deal.
Soon after, another student contacted Zach and told them that Ryan and Tyler committed to sponsoring them four times, but then backed out. Another group of students were in danger of losing about $200k due to contract extensions because Ryan did not want to fund the additional $50k the lender was requiring.
A student who partnered with Ryan and Tyler on a multifamily deal also contacted Zach. Zach was supposed to be part of the deal, but she claimed that Zach's coach was trying to get her to drop people out of the deal, possibly to increase their percentage share. Zach then called his coach, who threatened to record the conversation and get his attorneys involved.
This incident sparked the issue that Ryan, Tyler, and the coaches are not interested in helping the students. Judging by the story, they are more interested in making money from course sales and from getting a bigger cut from their students' lucrative multifamily deals.
Tyler's reply:
Over a month after, Tyler himself replied to this accusation on one site where the comment was posted (biggerpockets.com). They met this reply with praises to his credibility.
Tyler defended the 401k accusations, stating that Zach's memory failed him as it was Tyler's own story he was talking about when he withdrew money from his IRA to pursue the business years ago.
He then explained that they keep an excellent track record because they are careful about sponsoring deals. Tyler reminded Zach that students actually should convince them to sponsor their deals. This means if they don't agree, then the deal is not a good one.
Tyler also declared that they only ever backed out of a committed sponsorship once and this was because of a freeze issue in Texas that caused a lot of plumbing problems. Tyler then claims that it was the program that took the loss and not the student.
Finally, Tyler pointed out that they only took 25% of the general partner cut and the students made close to 50%. He said that the other students didn't want to do business with Zach for some deep-rooted reasons.
Pros and Cons of Multifamily Real Estate.
Why multifamily and not single-unit real estate? Why would you choose the former rather than the latter? Here's a breakdown of the advantages and risks involved with multifamily real estate:
Pros
Having multiple units means stable cash flow as compared to a single-unit which loses when vacant.
Easier to finance as it offers less risk for banks/lenders because of the predictable cash flow.
Easily scalable, as multifamily offers the opportunity to move towards commercial real estate while single-unit rentals expand one property at a time.
Tax benefits from deducting maintenance and operation costs, estate depreciation, and cost-segregation tax benefits while the real estate market value increases.
Hiring a property management company to hand maintenance and communications with tenants can turn this business into a passive income for you.
Cons
Greater starting capital as multifamily properties are priced at millions plus you still need roughly 20% down-payment.
High competition against many experienced investors. When developers and property management companies compete over the same building or land, the price rises high.
Multifamily properties are a management nightmare - for newbies.
If you'd rather jump right to commercial real estate, consider a more specific course like Cashflow to Freedom Academy by Ryan Stackhouse and Jess Reed.
How Relevant Is Multifamily Real Estate Investment in 2022?
Real estate is one of the more popular industries in 2022. In the United States alone, there are already 2 million real estate agents with more adding each day. With the housing crisis and aftereffects of the pandemic, now would be a great time for real estate investment. The question is, is it for you?
Real estate business is not as easy as these courses would make it sound. It takes a sizable chunk of your time and money to get started. It is also quite complicated. There are many laws and regulations, which may differ by state, that you must abide by or face grave consequences.
Multifamily real estate business is even harder, especially for newbies. The huge capital needed for investment is intimidating to anyone. Sure, the returns are high if you can run a successful business, but the risks are just as high.
If you do have the skills and resources that can give you a good chance of succeeding in multifamily real estate business, then I say go for it. If you are one of the lucky few who is able to acquire at least one good property, hire a management company and you’ll basically have a passive income business.
Speaking of passive income business, I have other thoughts. I prefer one that's way less complicated. You could say it works like real estate investment.
Basically, you create and rank your site on Google, then rent out your digital space to local businesses. They generate leads from your ranked site and pay you rent. The best part is it costs almost nothing, both in money and time, to maintain..You don't have to worry about dealing with employees, or property maintenance, or any of those. The only worry you'll have is if the world wide web disappears.
I've been growing my business for years and it only took a few hours a day and a little money out of my pockets to get it started up. You won’t get rich overnight, that’s for sure, but I was able to scale my business that I now make 6 figures completely passively. Compared to real estate, this business model offers almost zero risk. Check out Local Lead Generation if you want to know more about how you can attain financial freedom.
Why aren't I seeing any "comments" on the web re Co-Founder Ryan Wooley leaving Multifamily Mindset & Multifamily Capital Partners, per his broadcast email of 1/23/24; i.e.:
"To set the record straight On Oct. 9, 2023, with much thought and consideration, I advised my business partners in MFM and business partner in MFCP and kaizen that I wanted to discontinue my business relationship. it was not an easy decision, but there were many occurrences over the past several months/years leading up to my request for this separation."
Appreciate your very fair review of MFM & MFCP, but there was one line in your dialogue that stood out to me:
"There are no success stories to be found with actual specifics."
Thank you for this information.
I did the Seminar and now I'm debating if I want to pay $1500/ for just me ro go (I couldn't find a guest), they dont offer the $300 voucher unless you explain to them that your traveling over 2 hrs away.
I booked a hotel but only but a down payment on the training.
Your information help me to finish making my decision.
This is an investment to learn more about Real Estate Investors.
Yea so when you pay the $1,500, you’re going to attend a 3 day event. There is an upsell close to $40K to gain access to their year-long coaching program.
Do not sign up for the $35-40K coaching. There is no coaching. It is just webinars with other "students" which you can do for free. There is no $35-40K value that MF Mindset or any of its employees/agents can offer. Stay away from the coaching.
Good information, because they dont tell you about the 38K banana. Stay away from these folk because they are very deceptive in their 1 day promo to get you to the 3 day promo to get you to the 38K fart
Thank you so much for that review!!! My boyfriend just signed us up for this $1500"investment". As soon as I heard he paid that I started to do my research and it sounds like a pyramid scheme. I just made him aware that their three day "seminar" is only to scam you out of more money! I was too tired to go and it honestly gets me livid to know that our hard earned money went to two money hungry scamsters!! Well thanks to the review I will not be going. My boyfriend seems to think hes going to learn something. I truly hope he does or id be asking for a refund.
Your BF is about to get BAMBOOZLED…Sorry I got bamboozled on on 2 other programs with the same MO one of them I got some money back and the debt forgiven
Appreciate the detailed information
Ippei Kanehara, this was one of the best reviews I have read. Very detail,objective and helpful. Thank you