Qualifying Syndication Investors with Jason Yarusi

Full Transcript

SUMMARY KEYWORDS

multifamily, investors, investment, people, investing, property, meetup, run, business, talk, point, morning, building, unit, questions, jason, deal, mismanaged, ultimately, months

SPEAKERS

Taylor , Jason Yarusi

Taylor 00:01

What's going on everybody? Welcome to passive wealth strategies for busy professionals. Thank you for tuning in. I'm happy to talk with you this morning. I'm your host Taylor. If you're new to the show, I'm a multifamily investor, multi family syndicator. I invest in self storage as well. And I'm a busy professional got a day job that I really enjoy doing. And I love making wealth on the side by investing in real estate. 

Today, our guest is Jason Yarusi from Yarusi Holdings, Jason's gonna teach us about the multifamily syndication business. And what he does to make sure his investors are really right for his business and making sure his business is really right for his investors because it's a two way street, this multifamily investment thing that we do. So he's got a lot of great lessons in in that world that he's going to teach us about. We're going to talk about his meetup. He and his wife pili. 

They host a very soon festival meetup in New Jersey where they live, focusing on multifamily investing. So we're gonna talk about that as well as some lessons that he's learned along the way as a successful business person in the northern New Jersey area. Thank you for tuning in. Once again, this is a fun interview. Jason's a really great guy. And he got up early to talk to us this morning. So we're going to talk about that a little bit more as well in the interview. Without further ado, here we go with Jason, you rusi from your rusi holdings. 

Jason, thank you for joining us today. Thanks for having me on psyched to be here. happy to talk with you. We had a bit of difficulty getting together and you're going to tell us all about your family life, but you got three kids and it sounds like they keep you plenty busy. So I'm glad we were able to get you here early in the morning. So for the listeners who don't know who you are, could you tell us about your background and your experience?

Jason Yarusi 02:00

Sure, Jason Yarusi of Yarusi holdings based here in New Jersey, we do value add multifamily properties in the Midwest and southeast. Currently, we have slightly over 750 units under management. Our focus is really in approvement point focus first where we want to find that value. I tried to just not only going to help ourselves and our investors, we're going to going to make a community better and we find we do that and work from the outside in we just create great product that's able to really benefit people on all sides and come from that need first, for who can we help and then help those people are investors to community that people will live there, get everything better where they are, and so real big active on that real big an active into fitness, and we talked a little bit offline and do a lot of running. 

So you can you know, go over my Instagram I run a lot couple hundred miles a month and that's my core focus. have three young kids five, three and one. been going through the house. sickness parade right here. But we're, we're in and out of it so so it isn't asked me tomorrow where we are at it but psyched to be here. Make it happen.

Taylor 03:09

Great, great. We got we got you. You also do business with your with your wife pili. But I'm sure she's tending to the kids right now as you

03:19

Sure.

Jason Yarusi 03:21

Sure. So, yeah, we're a husband and wife team, which of course spawns a lot of questions. How do you do in relationship and it's honesty is that it comes down to communication. It's really just making sure that we constantly connect and reconnect. And if things are slightly off, it's taking the time to just get point to point and just understand what's happening. 

So we can both make sure that we're aligning with what our vision is because there's no reason for us to, to go forward and work to create something if we both have different visions of what we're creating.

Taylor 03:53

Nice. Well, that's definitely good. A lot of people can't manage that. So I'd like to To get into talking about investing in multifamily, and you know what you're doing to make sure your investments fit well for your investors because you know, we might have as sponsors, we might have people come to us and say, Hey, I'm interested in investing in your deals, and you talk to them a little bit more. And it becomes apparent that it's really not the right fit. They're just interested in getting in multifamily.

 But the actual reality of investing in an illiquid real estate investment isn't good for them, it just it just doesn't fit with them well, and they might not be the right fit for your business, there might be just a bigger headache, then you're really prepared for anything like that. So, you know, let's talk about your process for qualifying your investors for your investment. So do you have a system or anything like that, that you work through anything along those lines,

Jason Yarusi 04:54

So we generally go through we call it our four pillar approach and Ideally, we want to come from a point of always being able to help the investor. 

And if we can't do that, then we want to be able to guide them to where it is because Because ultimately, when you talk to the investors, there was a great book I read called story brand and they labeled it as really the guide in the hero and and if you've read it, right, so, so you got we all think of ourselves as Luke Skywalker, but actually in this process where Yoda, because we're helping guide investors, and if I come to the approach to talk to investors, if I'm Luke Skywalker, will that will the investor ultimate shuts off because we all have this human need of how is this going to help me eat, sleep and live and if it's not something that meets that effect, where it's helping me, I'm going to shut off. 

So if I come here with this magical investment, that's the greatest thing on earth. And I say I'm touting my great experience and how I can do all this and how I can do all that and how I'm going to make it great. Well, people shy away from that because ultimately, they're scared because it's not helping them meet that just basic human need of how can I live How can I sleep, how can I eat? How can I feed my family? So we go from the other side, I don't really wait for the investment to happen because I want to talk to investors just to understand these four parts. One, what are they looking for? What are they currently investing in? What are they currently doing? And ultimately, you may find that if they're in stocks and bonds, and that's what they know, and maybe they're looking for, for for the diversification, and that's why maybe they're thinking about real estate, and it might not even be be multifamily real estate might just be real estate in general, which is fun to talk. 

Maybe they dabbled in some, no, they'd become an accidental landlord or they've done flipping or they've done some other things that that they've tried their hand and it's not for them and they really don't want to be active. Okay, so they're looking for passive investments in terms of that passive investments. Are they looking for cash flow, are they looking for maybe they're they're a doctor and getting killed and looking for some tax advantages or with of course cost savings. And bonus depreciation, maybe they have a bunch of investments that are that are kicking off cash flow, and you're just getting killed. And they want the appreciation that that we do with the studies we do that can help them, of course offset some of their tax liabilities. So being able to talk to the investors to understand what it is that they're looking for, and how we can help guide them to the right approach, because it may not be me. I mean, we if someone's looking for an investment that it has a horizon of three to six months. 

Well, as you mentioned, offline, these are illiquid investments, they're not made to jump in and jump out like it is potentially a stock, these typically 357 10 year olds, and the investor has to understand that understand why that can benefit them. And there could be of course, two things is asset backed real estate. But ideally, it's a return structure that's set up for them to benefit and they don't have to constantly jump in and jump out and when they jump out, look for the Next thing that they can invest in, so it allows them to be passive in the environment and get those returns. So that that's really the first hurdle is understanding how we can help them.

 Now the the next hurdle really comes down to me, who am I? Who am I? And and and why am I here talking to them because ultimately, if even if we have a prior relationship, even if you grew up here, they may know me from doing many different facets, you know, I have a construction company I've run opening restaurants opening brews, they may know me in all of those spaces, but they don't know me in the multifamily space. 

And if they don't know me at all, they have to understand what's my track record, because who am I and how am I qualified to talk to them about what we're doing currently? And what is my commitment to this because as we said, these are 3579 year investments. So if my track record constantly shows that I don't have sustainability and I don't have consistency and I'm constantly jumping in and jumping out of projects, and I don't finish anything. Well, that's not going to be a great story that my investors are going to feel comfortable investing with with me, because this is commitment. It's five 710 years that we're going to be partnered, whether you like it or not, we're going to be in a partnership. So you and that's it. And it's not something you really are jumping in and jump out. So make sure you can understand why I'm doing this work. 

Next is going to be multifamily. Why multifamily? Why are we in this space? What is it about the multifamily space that we really like that we're bullish on that we we delve in and why are we here doing what we're doing today? And ideally, what is the deals that we're looking for? Because investors need to understand maybe maybe they they heard about real estate, but they haven't heard about investing in apartment buildings. And if they have a thought of just for institutional players, or they just know stocks and bonds, mutual funds, and they have no idea about this whole other arena for investments. 

So this might be first time they're hearing this, but imagine all the steps we just did, we just did one through three. Imagine doing that when you need Money for an investment. That that's a lot that's a lot to ask of someone to take on so much information and and what happens is people would shut down. And that's why commitment rate for people when they do get a deal for a sponsor, that they're going in there and trying to get money and go through all the steps because whether just because I'm classifying them doesn't mean that everybody's not doing them because ultimately when you come into an investor, you're understanding what they're looking for, how you can help them multifamily the deal, and what's the deal you have. And so whether you're doing this before or after, that sets up your success rate because I'm leaving them with a deal structure of what we do. 

So they get the type of properties we're looking for the value add properties, so depending on the market may be we talked to Kentucky 75 to 150 units, BC assets built 19 72,005 cap x is going to be whether it's on the property side or the management side, we look to improve the properties over a five to seven year horizon, and we offer this kind of return structure. And these are the kinds of kinds of returns that we're looking to hit over that timeline. So they understand. And now they can take that. And they can take that away, they can allow it to soak in, and potentially come back with better questions. 

Or they really are into it. And we can understand how does this sound? And we can get from that point of saying, great, what kind of investment would you like to make if this we find the opportunity is going to fit the parameters? So I don't have that investment. But I may leave the conversation where I ultimi and guided that, that they're going to look to commit 2550 $100,000 Now, there's no commitment made, I don't have a project. 

So I'm doing all this work before we're actually into even a project. But what happens is 236 months down the road, we continue to now build our investor database, we update them we send out our newsletter we let them know we're working on Well, we find that deal. We find that deal that's within that product 1970s 2005 bc assets 75 250 units in the sub markets that meet these returns. And we go back to Mr. Mrs. Investor we say, and listen, we found a property. That's right. And we talked about, and we'd love to have you on board for the for the project. And we find our success rate is easily over 90%.

 And our raise capacity is generally less than a week, sometimes within a day or two, because we've already done the steps. So I'm not coming to them and trying to get them from, you know, literally the start line all the way through the finish line. With that conversation. We're literally just crossing the finish line. That's all it is. And now that I can feel good because I understood how this investments going to help the investor. I've guided them to what we're doing so that they're able to make a great qualified choice that they've made. So when I come back, it's really just saying, Oh, yeah, that looks like exactly what we talked about. I was very, I'd love to before Love it now let's do it.

Taylor 13:02

Nice. I there's a lot in there too, to unpack. And I would mention that that's the second recommendation for building a story brand we've gotten to show and my copy that just arrived. I haven't read it yet. But

Jason Yarusi 13:14

yeah, read it. It's, it's, you know, of course it's made for screenplays, right? But but it goes down to the just the human dynamic. It's It's very, it's very interesting because we do want to be if our point is always us, what is our point, right? If our point is not to really grow and help communities and help others and multifamily is magical. So you can buy investment, sure, you can get super wealthy, but you can also help your investors get super wildly wealthy, create legacy create more time for the inner life for their kids, you know, break away from their jobs. We're just making a ton of cash flow. 

But beyond that, you're also making this community where there's real people living in these apartment buildings and their families have a better life because you're proving that property and that you're bringing Jobs City area because you're creating jobs that maybe didn't exist before because the property was mismanaged. So you're giving people jobs now that job is not supporting that person who's not supporting their family. And that's, of course, now rising area. So Excuse me. So if you're doing that across the board, and you think about that, and the focus of just, you know, buying the apartment building, not just so much of, Hey, I'm going to buy an apartment building, that's a celebration, but the impact this this building could have in the community. It's just mind blowing.

Taylor 14:28

Yeah, absolutely. I think about it from the angle of a lot of these assets that we either look at or end up buying are, like you said, mismanaged and they're not taking care of the tenants aren't really cared for their maintenance issues aren't fixed promptly. And, you know, we want them to, we want them to want to stay we want them to frankly want to pay more in rent, we want them to want to pay their rent on time because they're so happy to be there. 

So we want to fix their, their manager their maintenance issues quickly and fix the leaks in the roof and all those kinds of things that some other owners don't do. Maybe they, they've owned the property for 40 years, and they're just not really taking care of it anymore. We can do better than that. Yeah, absolutely treat them a lot better. I think another big kind of area that you touched on there that's that's interesting to me is that your investors might not know you from a multifamily real estate background, you're kind of, you know, forming that relationship or or transitioning that relationship from one where they know you from your restaurant background or heavy construction or somewhere else.

And I'd like to touch on talk more about that and touch on that because I found personally I've had more luck, or more better results, finding investors who are already multifamily investors already, you know, meeting them within this space, because they already understand the investment, those kinds of things. Let's talk more about that. Your experience. And I don't want to say like, selling people on your deals in your business because selling has such a negative connotation deservedly but that's difficult right to transition people who might not already be real estate investors into investing in your deals.

Jason Yarusi 16:19

You know, it's funny as it I've never thought it that way but it but I would say like our first investment like not one person had invested in multifamily before wow and so again like sure yeah, I understand it. But when you come from a point of like, how can we help you and I disagree with the investment can do, then you're not really pitching them and if your track record serves, that you are qualified you do you say, and you get it done, and and you really push through and you make it happen that says so like so for for everything else I've done. I've put in the work and they know me from that consistency and my track record so my track record stands on its own and often So we have some mentees. 

And one guy was like, you know, well, well, I he was like it was it was way off the cusp. But he was like, Well, I don't have the experience yet. But show should I lie about my experience? I was like, Well, absolutely not. But let's look at this from the opposite way here is that you don't have experience. But do you? Because you have a Don't you have you have a restaurant New York City, correct. That you were with your dad. Now. Did you take that restaurant? And did you open up a second restaurant? Is it Yes, I say within those restaurants. Do you have employees? Yes. There was employees have families. Yes. Are you have you created a business that allows them to flourish and go home and feed their families have a place to live? Have you have you allowed this come from one restaurant to two restaurants and you revenues been growing year in year out? Yes. Why would say well, that's a pretty good track record right there.

 I would think you have a great track record. Look at the growth you've come in. And when you think from from that approach, but because you know, the multifamily space, a lot of people are in it right now and your tracker is going to serve on on how you full cycle because not, it's it's a new space for a lot of people. So there's a lot of operators out there who have not gone full cycle. And so if you can't go full cycle, so what is your actual track record? You've closed deals. So if you look at it from the point of saying, okay, but on these other investments I've seen them through because with any investment with any opportunity with any business, there's updates, there's down days, it's like everything in life.

 And it's how you push through consistently throughout, and what you do for those investors, so maybe I had some investors on my other projects, they have a question, am I getting back to him? Or am I knocking me back to them? Or am I not getting back to them in a timely fashion? That is one of the most important things from an operator standpoint is that you set up expectations, and then you meet expectations. So we close on a property, there's an email that goes out to to basically, you know, congratulate investors. We're very excited to have him on board because they're our partners here. We want them to be excited. They weren't excited going to this opportunity. We prefer them not to be a part of the opportunity, but we find it I, when we were sending out our monthly updates, I was like, maybe this is going everybody's spam, but we were getting zero responses. And so I would actually, I actually opened up MailChimp and had MailChimp start sending the emails just so I could track the rates. And I started, like, reach out to my so my friends in the investment like, are you guys getting this? Like? Yeah, I guess any questions like no, but what we are doing is that we set up the it's a pretty clear framework. So hey, you know, we do a little intro to the email, we do a point, hey, here's the good things that are happening here. 

The things that are not happening to plan, here's what we're doing to fix those things. please reach out with questions, send pictures, send updates past that with an email, but I've covered it, and here's good. Here's the bad, here's what we're doing to fix it next month. That's recap awareness. And with that philosophy of giving them the good the bad because ultimately, there's just good coming out. That's never true. So there's something missing but you give you give it a point the people understand that If I have an apartment building with 200 people living in it, it there's gonna be stuff that happens, right there has to be.

 And if if you're saying there's not, yes, something's missing from the story, but we find for that being clear, and when a question does come across, hey, here's the answer, get back to them in a timely fashion. Or if I need to get the answer, I'll be back to you with a response by, you know, tomorrow 10am, whatever is that timeline, and it's either this tomorrow 10am, I'm still waiting for this response. I will follow back, you know, at this point, as soon as I haven't, or here's your response, either which way I've set up that I tell him to do something, I'm going to do it because that that points for everything.

 If I can't do something simple as follow up or something as simple as getting back to you want to say, Well, how am I doing every other part of the business where I'm supposed to be, you know, talk with the management company, or I'm supposed to, you know, be working on this well, am I doing that when I'm supposed to be doing it? Or am I doing something else that doesn't align so From an operator standpoint, if there's a passive investor saying, Do I want to invest with this operator? Well, I mean, how's the response? Because

Jason Yarusi 21:08

just like anything, people don't ultimately get better when they get a deal, right? It's like, Oh, they got a deal. Now Now they're gonna be super responsive and super on it, whatever they are now is what they're going to be. It's like, and it's the same thing with raising money when I find a deal, then I'll raise the money. I'll do all that legwork.

Well, we could you sure. But is it going to be super difficult? And are you going to come from a point where you need money? Yes. So why do it that way wouldn't get to do it the easy way. And actually go out there and see how you can help people. And then on that point, then have the money raised,

Taylor 21:42

do the work ahead of time and consistently and a lot of those things that you said about you know, following up promptly, things like that they sound simple and easy, but an edited simple, but it's not necessarily easy. If it was easy, that every would follow up quickly and all that and it wouldn't even be a point to bring up. But it is actually absolutely important to to do and in any business, of course, but when you get people's money,

Jason Yarusi 22:12

and you don't have I mean, you know, getting back to them properly doesn't have to be like within five seconds, right, you could set it up is that any questions you have, will be back to you within, you know, a three hour timeline or 24 hour window, you'll you'll have a response from us. It just people if you if you set up expectations, it's just when there's no expectations and it's haphazard. That's where you seem, miscommunication can occur, and then of course, people being unhappy.

Taylor 22:38

Now, I'm going to ask you a difficult question that I don't know might be uncomfortable to answer, but have there been any experiences in your multifamily experience where you didn't live up to that goal and you know that maybe something didn't go right or you missed an email. I mean, I'm sure that it has, but Does anything stick out in your mind? Because everybody, I mean, we all every literally Everybody makes mistakes or doesn't live up to their, you know, I once

Jason Yarusi 23:07

I think I could talk to just things going out of whack of properties if you want to talk about that, you know, so we actually had a shooting not in our property but but a neighboring properties. And it was affecting our tenant base. And so because our tenants were getting scared, not an area where they were shooting, so they was like completely out of character. But there was just a, it was it was cities, basically city on housing, of course, being mismanaged, nothing happening there, no oversight, and there just happened to be a bunch of people that were living at the property that actually weren't the tenants. So we actually had a vacant unit that was backed up to this because our tenants in one building were getting scared and I mean, just definitely should. So we ended up I called the city went through a number of stages to actually find a way that we could get in touch with their police department that actually handles all their city housing and we actually use that unit base.

 As a stakeout unit, so and that steak unit allowed them to rest 12 people over three months, and basically clean up this whole thing that was causing concern, not ideal. Of course, I have a unit that's now down for three months that we're not bringing an income. So of course, does that factor in when you're just adding a unit? I mean, it's across 100 units, so it's not killing us. 

But is the bigger picture better is the bigger picture now it's a safer environment, absolutely out there. But that's something you can perform it for that it's like I can like underwrite for like, Oh, we potentially might have a shooting in this city on building next door that we're going to go there and take a unit offline and putting in a detective. The detective is going to come in there and do a stakeout for three months. Those are things that are going to happen like there's nowhere my business plan where I would have thought something like that. 

We've had, you know, random surge in electrical power at a building that it's it was on our properties to commit Kim responsibility but it literally blew up Six electrical lines are underground and took power off for you know, and that had really just take took power off for and it was like 12 units or something like that. 

But you know, cold weather people are out of power, not a good situation. So just and that comes down to having the right team, right and having the right team on board because it was able to happen so quickly that within 12 hours, it was back in line. But if I didn't have the team setup, I didn't have those dynamics, and I hadn't worked and done done the pre work. That could have been a major disaster. I could be like, oh, who am I going to call? How many do this you know, 10 hours on the phone with the utility company trying to figure this out. So there's there's just things that happen in these investments that are not a streamline because it's a living world, right that you're owning, when you own that living world.

 What can you do to ultimately do that? And so those are the things that stand out in mine. I'm good on on investor response. So but we just, I generally don't get a lot. It's funny and I just really because we set things up In I mean, sometimes they have questions they doubt myself they can text me and call me sometimes I'll get text but it's that simple you know i'd rather rather than text me is generally it's so few and far between you know that are I get a text with this text you back.

Taylor 26:13

Yeah makes it very easy. Another thing that I'm aware that you do that I don't think you touched on earlier was your meetup you hosted meetup in your area. And can we talk about that a bit and how that has been the results that you've generated for your business and sure, meeting investors or building your deal flow or anything like that always interested in learning what people are doing there.

Jason Yarusi 26:38

You know, the meetup we did from a point of just saying like, how can we create something to give back out there in New Jersey, there's a million meetups but nothing was really focused on multifamily Now there's a couple which is great now more people doing it, but before you know, it's it's one week is flipping and next month is wholesaling.

 Like so they will be all over the place. We said. We're gonna create a meet up and just go there and just talk about what we do. We don't know everything, but we know enough. tell people how we've done it, how we've done it successfully. And you know, I think the first meetup we actually had, like 4050 people was like, Oh, this is great. And we've grown the community, there's a little over 2000 members. Now we had it last night and like 100 people, and on average for for it. And we went there with no expectations. So it wasn't like, I'm going to do this meetup to find deals are going to point but I found that it's created so many relationships, it's created, I raised a ton of money from it. It's very interesting.

 And it gives you another place to be a thought leader. And I've had opportunities come across. So I actually have an opportunity that we're working on now with, I don't even think about this, but it's investor that came to my first meetup over two and a half years ago. And again, you have to think about Okay, what is the point here if I can create a community that can grow and and really help other people, there'll be benefits but I can't predefined what those benefits are like, Oh, if I do this, I'm going to get a million dollars well, that you want the millionaire So ultimately going to come there and every single person you're like, Well how can I get that million dollars but if you got the point, right is I go in there and give you everything and now we bring in some speakers like we had a super guy talking about underwriting he was a you know, he's a very he was the underwriter on the side town deal in New York, which was the biggest, you know, repositioning acquisition in, in in I think, United States history. 

So it was a major project back when I used to work for PKT came in talk to group last night like, that gives me access to a guy like that. And I'm just like, you sit there like wow, like, like, that's pretty badass but everybody that was sitting there in the room listening me their minds blown because because you left that room last night with with one thing that I blew up your business in a good way and potentially probably a lot more. But there I mean, I could point to 10 things in there that were just like wow, yeah, that was sweet. That was That was great. Having fun in there and just his perspective.

Taylor 28:55

Yeah, and it's fantastic for your for your branding too, because You're standing next to the guy who did the underwriting on this enormous deal. And you're doing big deals yourself. And it's that nice. Brand alignment. So absolutely, yeah, that's great as well. 

Yeah. Nice. So I mean, that that's fantastic. I mean, I run a meetup myself. So I always like to learn, you know, what other folks are doing and how it's benefiting you. And I like what you said about if you go with go at it with the goal of I need to raise a million dollars. You're going to talk to everybody about All right, you have my million dollars. 

Yeah. Yeah. That's a fantastic way to think about it. So right now we're going to take a quick break for our sponsor. All right, Jason, I've got three questions. I asked every guest on the show. Are you ready? I'm ready. All right, great. First one, what is the best investment you've ever made? Other than your education,

Jason Yarusi 29:54

best investment I've ever made other than my education. Oh, that's I would say because it doesn't have to be monetary or do you want to be monetary,

Taylor 30:05

it doesn't have to be monetary.

Jason Yarusi 30:06

I just my morning routine is is the best investment I make because it allows me to get up and be ready for my day. And it's that reset button right where you're prepared and you're ready to go. And so many people in life that they wake up, and it's rush downstairs, grab a coffee, brush your teeth, you know, get a car, just kiss the kids run out the door, dah, dah, dah, dah, dah, dah, dah, dah. And you're just in panic mode from the time you get up. And I've been there, I know it.

 But that's not how I want to live anymore. I want to go down there and find myself and be able to give myself that silence in that space in the morning. And and run and run gives me that clarity as well. So putting the investment in myself, and I have to do it early. I get up you know, 430 in the morning and I get up. Yeah, it's just it's, it sounds hard until you just say no negotiations I heard Jocko willick say I just say I just Negotiations I was like, that's, that's crazy. So in the morning if I if I'm having a psychic session, I say nothing, no negotiations, and I just get out of bed. And that's made it easy now, right? So so we're up late with the meetup last night got home, you know, and for that point, you just get up and do it because that's what needs to get done. And without that, I find that if I go and miss that, for whatever reason, which I rarely do, my day is not in alignment, and it's not set to succeed the right way.

Taylor 31:30

Nice. I mean, for listeners out there we started recording this at 7am. On Wednesday here 7am Eastern East Coast time and it sounds like you've been up for quite a while already got your hundred mile run and this morning,

Jason Yarusi 31:44

not not the hundreds. I hope we'll do another one coming up there. I'm looking for the next the next race to tackle here, boy.

Taylor 31:52

So do you have a quick you know, routine you can run down just so we get an idea of what it is that you do in the morning?

Jason Yarusi 31:58

Sure. So I do Get up, you know that for 13, I'll get up and really just splash cold water in my face. Just to give you that point that like, okay, we're into it, right? We've been doing this thing called 75 hard, which has a number of things that add on to our morning. We're basically done with 75 harbor on the it's called phase one, but it's the second stage of it, we have like a day left, which is nuts. But I get up, get down, go down, morning, have a coffee, I go over there, I do my meditation, I do my affirmations A lot of it is, you know, taken on how our how our run Savers, I do a quick brain games, then I'll get into doing my run. 

And from that path, I may read 10 pages first, but I'll get out there and do my run. Generally, my core run is six miles, get that in, come back out and I'll have that all done, you know, within some time of of being within the 6am 630 mark six, you know, 40 wherever I am and that mark and the kids will be on some level of getting up so I spend my time with them. Connect with them. Can I quote my wife take that moment there. We're all just there and my intent my focus is with them. And now I'm ready for my day.

Taylor 33:06

Nice, nice. Wow, that's impressive. It's a it's hard to do. I'm I'm someone I used to wake up early in the morning and go lift back when I worked in an office lift before going to work and it is a tough thing to maintain or get yourself out of bed say no negotiation, I'm, you know, going for a run, I'm going to the gym, whatever it is, like now, man, I want to lay in bed and keep sleeping. Come on, let's be

Jason Yarusi 33:31

real. You know, it's that thing where it just, I everybody has their own routine. Everybody has their level of hard, right? So so me doing seven days of running a week and like, that's what I do. You know, like, that's just what I do. And so that's become like my life. That's what I do. But not everybody needs that. I mean, two days a week may be perfect for people but it's having that consistency of what's a lifestyle, where it's not that point of starting a routine that you're ultimately it just too much to start, like we'll see that you know, in a couple weeks with New Year's Eve, everybody's gonna I'm gonna lose this. I'm gonna do that.

 I'm do that. But you already set yourself up for failure because it's so far from what your mental state is that you can't do that. And it just the transformation is always is that what can I build a life out of? What can I build from that life? And, yeah, sure there's mornings where I want to help, but maybe I'll get it all done and come back in, you know, and get back in bed with my wife, depending on what time it is, you know. So like, there's, there's always that approach, but if you get in there, get it done. It becomes your lifestyle. It's not so much a burden as in this is what I do.

Taylor 34:29

Hmm, yeah, yeah, I like that. Appreciate that. Some to maybe to work up to don't start with seven days a week. On the other side of that, we're there we have the best investment you've ever made. On the other side of that coin. There is the worst investment you've ever made. What is the worst investment you ever made?

Jason Yarusi 34:47

You know, it comes down. I had one investment where it was it was me and another partner. And it's so we actually had four partners, but he was a lead. I really just came in there to do systems for setup getting the operation going. But we didn't have clear things in writing before us many years ago. And he the way he handled it, and I wasn't in alignment with and he treated the other two investors in a way that I just absolutely just it was unacceptable.

 And so we were friends before but we had a falling out because you know, ultimately there was nothing clearly stated before of how it was gonna be happening but it beyond on paper, but we had a clear communication what it was and I think it it's worked out now but it was a it was tougher to start. 

We came in a point where it was like, you know, the recession, the power gun out in New York City was that year where like, you had those dead point then you had the recession so there was a number of years that were detracting but he was so into it. You know, sometimes when you're so into the business, you got something to stand two feet away from you. They're saying like a dude all you gotta do is do this because like you're just doing it like super hard. You know, like You're making it the hardest way. 

But you're when you're so into you can't see anything else because you just see what's right in front of you. And we couldn't align and and it basically blew up the friendship. And you just you never want that to happen. But I didn't like how it was it was all to me is that if if this is what you're gonna do to other people, when times get tough, well then this isn't the right alignment for me. So, going forward, you always put things down on paper, you always make sure you have clear things in writing, even if it's with family, because you don't want to have a conversation with a family member if you're going to work with them in some capacity today. 

And you say, Okay, let's go after it. And you're all psyched. And then five years from now, You both look back in a conversation one heard one thing one heard the other and it creates this whole Rift and that's why you see a lot of families, you know, fall apart in the future, because they didn't have clear communication when they started something and everybody heard something a little bit differently.

Taylor 36:52

Absolutely. That's I mean, and in the syndication world, that's the whole point of the ppm interact. Here's your Here's what could go wrong, here's what's gonna happen. And here's what the risk is. And, you know, I have friends who have invested in my real estate, syndication business. And, you know, frankly, I would, I'd rather keep the friendship if down the road, you know, the friendship where to get damaged or something like that I would have rather them kept their money in the first place. And, you know, keep the friendship then absolutely go wrong. So yeah, having that understanding is very

37:27

important. Absolutely.

Taylor 37:29

Yeah. Yeah. So my favorite question here at the end of the show, is what is the most important lesson that you've learned in business and investing?

Jason Yarusi 37:40

focusing clarity is key. You have to you have to focus and give things time because it focus and patience is a big thing, right? Especially now with multifamily with having so many members of the meetup this this this world of you know, everything's happening my phone, you don't get 900 alerts on the phone. Instagram showing these, you know, what looks like overnight successes is that the point of buying multifamily property who were like, well, I tried it a month and I haven't gotten, you know, like a property, it's like, well, you just need to put in the work and the work is creating. 

I know people have, you know, their family got a one building like 3040 years ago, and it's set up the family for like, ever. So these are not something where it's flipping where you may need to do 10 2100 houses a year, these can be very lucrative investments, just one at a time, or one or one a year or so. putting in the work to be focused and being patient is really the most important thing.

Taylor 38:39

Nice. I like that. And it's a hard thing to do, especially with these big investments that take a lot of time. There's a lot of moving pieces, and a lot of unknown. And it's hard to put in that work without seeing results. You know, instantly it's just something that we're we're programmed to, to want. I don't know and we can't get tricked, tricked by the people on Instagram, like you said, who maybe go rent a mansion to take pictures or rent the Lambo to sit on the hood of full so yeah, yeah, that's right. Well, Jason, thank you for taking time to talk with us this morning if folks want to learn more about you, your business podcasts, anything like that, where can they find you?

Jason Yarusi 39:21

Sure, they can email me at Jason at your rusi Holdings, com y AR USI or go to your rusi Holdings calm and from there, they can find multi family Foundation has a lot of our platforms on it.

Taylor 39:33

Nice. I've learned a lot by listening to you guys over the years. So I certainly appreciate all of that. Thank you for sharing your experience this morning. And thank you for I guess that you probably woke up much earlier than this morning. But thank you for waking up this morning and

Jason Yarusi 39:48

psyched to be here. Thanks for having me again.

Taylor 39:50

happy to talk with you. I hope everybody in the family you know is healthy all the kids and your wife and everything and everybody's off. Thank you Tara They get together. They illnesses but sounds like everybody's doing all right then. Yeah. Thanks once again, and we'll talk to you again soon. Sounds awesome. All right, everybody, thank you for tuning in. If you're enjoying the show, please leave us a rating and review on iTunes. They're very big help. If you know anyone that could use a little bit more passive wealth in their lives, please share the show with them and bring them into the fold. Thank you once again for tuning in and hope you have a great rest of your day and a great week and we'll talk to you on the next one. Bye