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Ep 88: From House Hacking to Controlling $4.5 M in Real Estate with Danny Randazzo

Danny Randazzo got started in real estate investing through good old fashion hard work with a mindset to accomplish any goal he commits to. In high school, he started tracking monthly income and expenses to the penny to track money coming in and expenses going out. In 2013, he took every available liquid dollar to buy a 3 bedroom 3 bath primary residence in the San Francisco Bay Area. He house hacked with two roommates that nearly covered his cost of living plus homeownership (Danny paid about $450 monthly). After selling his place in the summer of 2016, he moved to Charleston, South Carolina with his fiancé (at the time) to build a real estate empire. In the winter of 2016, he made his first investment purchase, buying 2 commercial buildings that have 6 rental units.

Since then, his company has purchased 1 commercial building with 14 rental units, 1 short sale renovation project and a 4 unit residential rental. His company now controls over $4,500,000 in commercial and residential real estate. Their current focus is commercial and multifamily investment opportunities that generate positive cash flow and or have value add opportunities.

ON TRAVEL: “Its over 50 (countries traveled to)… Go out and experience other cultures and really have an appreciation for living in the best country with unlimited possibilities for entrepreneurs and business owners… Real Estate is something that interests us highly as a means to motivate our lifestyle and afford us the opportunities to travel around.”

ON MOVING INTO HIS MARKET: “We settled on Charleston because we had a community of people. My wife was originally from Charleston. So we had a group we could be in grained with. We have a broker and an attorney in house who is part of our team. So it was a great way for us to get started with an existing network in place where we weren’t starting from scratch. There is a growing economy in terms of jobs and population growth so two of the major factors I look for in a good real estate market we are experiencing here in Charleston&ellip;”

ON MENTORSHIP AND EDUCATION: “I read for fun, but fun to me is stock market books, real estate books, finance books. I’ve always been very diligent around that and really building a foundation of what drives me is that education component.” Book of Influence: Rich Dad Poor Dad – Robert Kiyosaki Author of Influence: Dr Dolf de Roos – for commercial investing

COMMERCIAL VS. RESIDENTIAL: “You have the ability to really scale and grow your monthly cash flow in a faster method. There is a difference between buying 10, 100K SFH versus one million dollar commercial property where you can have lower maintenance, lower management oversight and potentially higher margins when you bring in some of those triple net lease options as compared to a single family rental.

WHEN EVALUATING COMMERCIAL OPPORTUNITIES: “We like to look for properties that will #1: produce cash flow on day one of purchase or very quickly there after if there is a value add component… And then, also have the opportunity to increase the value of that asset through increased revenue to that property either through increasing rents with tenants or potentially adding different streams of revenue. If we add an additional thousand dollars of income per month that equates to a significant portion when you value that property at the cap rate based on the current NOI. So little things like that can make a big impact to a large asset within the commercial space.

ACTIONABLE STEP: “It’s still something that I’m working on: surrounding myself with more like minded individuals and mentors to help guide as you go through new transactions. I would love to have more people around me to support and have a continued network… I think it’s really important to step outside of your computer and connect in person with people. Walk people through your property or show them what you’re working on and validate your numbers. For me… getting started… I think it would have been helpful, I think I would have avoided the mistakes that I have made if I’d had a Mentor… Just have a Mentor.”

WORDS TO LIVE BY: “Be quick to apologize if you make a mistake. Take ownership on your life and your actions. People get caught up where they want to invest in real estate but then they sit on the couch and watch TV for two hours in the evening. You have control over your destiny. You have control over your life style. There are very very very few excuses that ever should be brought up in taking control of your life and really getting to where you want to be BECAUSE IT’S UP TO YOU. You own your life. You own your mistakes. You own your successes.

Another Book to Read: Extreme Ownership – Jocko Willink

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