In today’s episode of Cash Flow Pro, we talk with active Naval Officer and real estate investor Marcus Long from A Long Legacy Capital, LLC. Marcus invested in real estate to achieve financial freedom through passive income. He began with...
In today’s episode of Cash Flow Pro, we talk with active Naval Officer and real estate investor Marcus Long from A Long Legacy Capital, LLC. Marcus invested in real estate to achieve financial freedom through passive income. He began with single-family homes and later discovered the flexibility in multi-family syndications. Today, Marcus has more than 300 doors across Alabama, Oklahoma, and Colorado. Did we mention he did all this while abroad?!
Inspired by what he learned while navigating the military real estate market, Marcus founded A Long Legacy. His goal was to share the knowledge he acquired throughout his journey and help others create passive income to focus on what is essential in their life.
In this episode, we discuss:
The real estate military market
Transitioning from single-family to multi-family investments
How to get investors and invest while overseas
Self-directed IRA’s – what they are and how they can benefit you
Don’t miss out on all the tips and tricks on starting investing in real estate no matter your circumstances!
Find your flow,
Resources mentioned in this podcast:
Casey Brown 0:06
Hey there, and welcome to today's episode of cash flow Pro, your real estate investment podcast and YouTube channel. We are excited you're here today I am here with Marcus long, have a long legacy capital. Marcus has been serving in the military for several years. And first of all, thank you for your service, Marcus, we appreciate that. And he is looking at the the way to develop cash flow in order to transition his his family out of the military life as he moves forward. So again, Marcus, thank you for your service. And welcome to the show. How are you today?
Unknown Speaker 0:52
I'm doing great, Casey, thanks for having appreciate it.
Casey Brown 0:55
Yes, sir. Absolutely. We were always we're always tickled when we can hear from hear from folks who have have given back to all of us in different ways. And so you know, the first thing obviously, we want to kind of hear about and what we what we'd like to talk about in this show is is is where people were when they kind of started saying when they when you started kind of figuring this thing out saying, hey, wait a minute, how are these? How are all of these ultra wealthy becoming ultra wealthy? And they're all saying the same thing? It's through cash flow? And how does that like, like, Where were you when you first kind of started figuring that out? And then obviously, what led you to where you are today?
Unknown Speaker 1:37
Yeah, thanks, Casey, you know, it's kind of a, it's a bit of a journey. And maybe I didn't learn quite as quickly as some of the others that are doing it in a couple of years. But I've been in the Navy for a little over 21 years, as you mentioned, I'm getting ready to make my slash fall. And I actually bought my first real estate about 17 years ago. And it was, I was, I was I had been enlisted in the Navy, I had been selected to be an officer and was going back to college at the University of Missouri. And I you know, I had always kind of already dad growing up and stuff, so kind of enjoyed finances and some things like that and was going in finance, as well. And so, I think I knew kind of, you know, that the owning homeownership and things was kind of this like longer term, you know, Path to Wealth. That led me to, to buy that my first home, which I house hacked and later turned into a rental 17 years ago. Yeah, though, so I had that like, cash flow and stuff like that. But I didn't go doing some pre operational things in the military. And so I just started sharing, you know, over the course of a number of years, I picked up a few a few more single family rentals. And really just in the past probably about you know, four or five years ago as I you know, rising and I was kind of debating like you know, when that time comes am I going to transition into you know, a contractor job or stay you know, stay in for a little bit longer do I want a W to what I want to do and, and so, you know, I kind of started looking at real estate as an opportunity. Yeah, you know, you too and I started picking up a few more single family rent
Unknown Speaker 3:40
a four year old and you know, I kind of had to get back from you know, my daughter who I think was probably about four so at the time and it's kind of I'm absolutely you know, going to off ramp and get ready to but when I was honest with myself, I knew that single family some of the stuff that I had done wasn't enough to replace you know, my income, the difference in my pension and current income from the military and so
Casey Brown 4:12
it's tough to nail that it's tough to get it's tough to even move from where you where you were, it'd be the end get any kind of a vision for how that even looks down the road.
Unknown Speaker 4:21
It isn't and then I hadn't been up to that point and not been super intentional about it. You know, it's kind of opportunistic about picking some up and ultimately had about 1515 doors but you know, even at that and a lot of those were in rural Missouri you know, not like huge cash flow cows and stuff there so yeah, joined as I moved over to England a couple of years ago joined a mastermind for active duty and veterans called another war room mastermind and that's what kind of exposed me to some different strategies you know, I had done I've done Airbnb, you know, once and like house hack and did a couple little things like that, but mostly it was single family buying hold For sure, it kind of opened my eyes to different strategies. And that's what kind of like led me into the multifamily space. And I, you know, invested as a passive investor on a few deals. And then as I got to learn more about it made the transition to a general partner.
Casey Brown 5:17
Oh, man, that's great. And so the the single family doors that you own and and of course, we've, we've had some other folks on here that have either or are either active duty or training or have completely transitioned, I don't know that I've, I don't know that I've ever had anybody on the show that is right, like in this, this phase, where you are where you're like, Hey, I'm, I'm transitioning out, and this is going to be my new career. But the single family doors that you ended up with were those were those properties that because the reason why I bring up the other folks that I've had on here is is one guy was getting, he was moving around and getting VA loans living in the house for a while and then and then moving out. Now, obviously, I don't think he lived in 15 different houses in rural Missouri. But what how many of those, if any, were tied to your ability to get a VA loan?
Unknown Speaker 6:09
Yeah, actually only only one of those rentals, that was the very first property that I bought 17 years ago, I did buy a note back with a VA loan, but we actually sold it when when we left there. And we live. You know, that was kind of the kind of the historical guidance to military. Buy one everywhere you move around and stuff and I don't necessarily the best advice, you know, I lived in Hawaii and San Diego and stuff and some pretty expensive Denver's pretty expensive markets. And that doesn't mean you can't find good investment deals that, you know what, what I think too many people would do is buying a property that they wanted to live in, and then hope the numbers worked out to turn it. Left, right. And so if that's the, if that's kind of what you want to do, you really have to analyze that as a rental, when you're looking to purchase, you know, the property Yeah, up front,
Casey Brown 7:03
you know, most, most of the most of the folks here locally that do that are that have ended up renting. And I again, in my listeners know, I always bring up our local military market and how thankful we are around here for for their presence, because of the economy that they bring, and so on and so forth. And, and but what was what the majority of those folks who ended up with rentals was even far more unintentional probably than you even were when you when you were buying these. And that's that's the fact that the homes were not worth what they owed on them when they got orders to move. And so when they got orders to move, now they're sitting there saying, you know, and anybody that knows military movement stuff, and unless you're way higher up, you don't get any kind of compensation package for moving or anything like that. So these guys were basically just hung with these houses, saying, Okay, what's my way out of this, and the only the only way out of it was to, to rent it, and in hopes that either it covered the payment, almost covered the payment, or was something close to there to keep them out of financial ruin. And as a as a real estate agent. close to that, and having been standing right next to several of these situations early on in my career, I'll tell you what, it really got to the point where I have been known to advise military couples or families or whoever comes in here, that if they're like, if they're just starting out, I mean, like that needs to be the furthest thing from their mind is buying a house. And again, that's, that's basically me taking a commission check out and tearing it up, because they're qualified, they're ready, they're good to go. But they're like, Hey, I'm here for a max three years, Max three years, that's, that's if they don't get orders for in two, or one or eight.
Unknown Speaker 8:59
Over the past couple years, we've got a little bit fortunate with the market, you know, and people think, you know, it's, it's always gonna appreciate that much. And, you know, it's
Casey Brown 9:09
not ever gonna be another bad day. But,
Unknown Speaker 9:11
yeah, but then there's some, you know, there's some, there's a wide variety of military markets and stuff out there. And so that's, it's not black or white. You know, I think that, yeah. Knowledge and they need to know what their goals are, am I looking for a home for myself for an investment property, and be able to think about analyzing that, as you go into it? You know, before you know, your it's time for you to move and then making that decision.
Casey Brown 9:34
Yeah, and then like you said, analyzing it from the beginning is really the most it's almost, it's almost to a certain degree and then and then it's like, I don't want to put the burden of saying underwriting something for somebody, like on a on a single family purchase for themselves, but essentially, it's the same thing. I mean, it's saying, hey, does this financially is this financially responsible? Does this financially make sense does this is this something that's good to better myself and my family, or how is this going to look on the other side, whether I want it really bad today or not? It comes down to what is the stance and the other the other part of, of this equation that comes into play and so much so comes into play many, many, many times, is the VA funding fee and I say VA funding fees, specifically, because I feel like I'm referring directly to the VA loans and the VA homebuyers that we've we've dealt with that I'm that I'm talking about. But that VA funding fee, and of course, the amount has changed over the years based on the insured, you know, the insurance needs of the VA because a lot of people say, Well, if if a military person moves out and they get foreclosed on it cost the taxpayers all this money, when in fact, it really at the end of the day, there's there's some some logistical fees and stuff, I'm sure that it probably cost the taxpayers. But at the end of the day, a lot of people don't realize that those military folks, the VA folks have paid a funding fee, when they close that home loan, and that funding fee goes into an insurance reserve that is then paid out if it has to be foreclosed on, and there's a loss. And so, again, I hate to get off on on single family, stuff like this and and very basic VA borrowing guidelines and stuff, but I just feel like it's unnecessary, it's unnecessary, if there's anybody out there listening that that could potentially be saying, hey, this may be my track to, to doing this. But there's just there's some risks there associated now. When I forget where you were, we'll go back into conversation here about where you were when I so rudely interrupted. I just wanted to bring that up. But but when you were when you were kind of getting you said you sold one you the last VA home purchase, you you bought, you ended up selling it, is that correct?
Unknown Speaker 11:59
I mean, we actually we were only there three years, and it didn't turn out, you know, that we came out, okay, you know, selling it and stuff, but it did appreciate some and of course, again, that was good time. We did, we did sell that when the other than that I was generally buying in Missouri, generally around, like where I grew up an area I was familiar with there. So that's kind of single family stuff was in some of those, I was like working with my brothers were geographically separated. And, you know, as I was looking kind of, to getting closer to the transition that I mentioned and stuff, there's some of those more rural areas, there's not a lot of professional property management, you know, we're managing some of the properties ourselves. And you know, you know, we're thinking, we're starting to do this to create, like, this passive income that we talked about and stuff, and it was anything, you know, and so we just, I got exposed, I got exposed to the multifamily stuff and involved with some of that I, you know, I kind of went back and talk to them. And I said, Hey, you know, we can produce equal or better returns than the stuff we're doing right now there and I could help them be more general partner. So I'm not, you know, that's not necessarily passive either. But so we're starting to offload some of those single families and roll the equity and onto the passive side of some of my syndications.
Casey Brown 13:19
Also, awesome, man. And then And then, you know, once you start creating it, isn't it funny how the how those when you start feeling that passive income, like when you start getting those checks, and you're like, Wow, this, it really was that easy? I mean, isn't that funny how it just it kind of, it kind of becomes intoxicating in a way because then you're like, Well, okay, if I did that once I can do it 10 times, okay, then you get to do it 10 times, and then you're, and then and then all of a sudden, you're like, I can do it 1000 times, and then you know what I'm saying? So it's it just becomes it becomes a way of life where,
Unknown Speaker 13:56
yeah, that's been really rewarding. So is, you know, I mentioned, like being a finance major. And I've always enjoyed talking to people about personal finances and helping educate and stuff and so time to find, you know, multifamily, despite the fact that I had real estate investments. And so, you know, once I did my passive investments myself, and then became a general partner, I have partnered on three syndications in the past 10 months, and, you know, I've been able, with, you know, friends and family and stuff, and, you know, a lot of people just don't know that that opportunity exists. And so to be able to, to teach them and open their eyes to other opportunities, you know, alternative to the stock market and things like that has been really rewarding for me as well, as you mentioned, kind of the addictiveness of that you know, someone had the first deal they start seeing the distributions and you know, they're already asking like, hey,
Casey Brown 14:53
we want more of
Unknown Speaker 14:55
these. Then, you know, as I went to my transition, that was like one of the pieces Um, you know, boards multifamily, like, I really enjoy the, you know, the impact we can have on the communities that we invest in, you know, making it really a home for our residents, you know, having events and things. The impact, as I mentioned, kind of like education providing value to our investors. And it's, even though as I mentioned, being a general partner isn't passive does create a lot of like flexibility for myself and my family, you know, because I'm doing this, you know, with a computer and phone from England right now, right? And so that are easier to do in person with people. It's certainly possible, you know, to do it with a computer and a phone. And so it just provides a lot of flexibility for me to, to schedule around and, you know, be more present with the family, take the kids to school to be with me and things like that. So those were a few of the things that really stuck out to me and kind of pulled me towards the multifamily space as we make this transition.
Casey Brown 15:59
Sure. Now, so let's, let's transition this discussion towards the, of course, when we've covered the early years of of single family or your first VA purchase 17 years ago, and then which kind of which then kind of branched into several other, you know, rental purchases that I think you said, you and your brother or brothers had kind of owned and managed and whatever that case is. So now, now you've transitioned towards, towards the multifamily towards the LP and GP kind of scenarios. What Where are you at, like right now, today, as we talk, how many doors do you have? Where are they located? And what do you have going on as far as that's concerned?
Unknown Speaker 16:44
Yes. So you know, first, I invested in three syndications as an LP and 300 doors across Alabama, Oklahoma, and Colorado. And I chose to mess with people that I had met in the, the military mastermind that I mentioned earlier. And, you know, because I was connected with those, I met with them on a regular basis. You know, they were an arm's length away from me, I could kind of learn and have conversations. And so I invested three deals there. And then, you know, like, I wanted to transition to be a general partner. And that was kind of my intention. As we move out of the military. And stuff I approached, one of them kind of talked to them, you know, we'd known each other for a little while, at this point, he knew my real estate experience, we've managed several properties. And I talked about, kind of ask them like, hey, what would bring value, you know, like capital raise wise and things to partner on a deal? Like, where can I contribute an asset management way and things like that started having that. And so clicked on the first deal I did was 100 unit in Pryor, Oklahoma, just outside of Tulsa. Last July. And since
Casey Brown 17:56
then, this is, this is an LP.
Unknown Speaker 18:00
That was my first one.
Casey Brown 18:03
First one is a GP. Okay, cool.
Unknown Speaker 18:10
My first one is a general. And then got, you know, I kind of, you know, met some new partners and stuff based on that particular transaction. And we did a an eight unit down in Arlington, Texas, that we did a short term rental conversion on because down the down the street from the stadium, following that a 75 unit in College Station, Texas, just near Texas a&m in November, and then 121 unit in Houston, just here in February. And so yeah, it's been a pretty past year, I guess.
Casey Brown 18:51
Yeah. Now we're so as a GP, where have you? Are you still kind of working through the friends and family part of your investor book? Or? Or what are you doing to gather investors for each of these deals?
Unknown Speaker 19:05
Yeah. So to the syndications were 506 B's the last one in Houston was a was a 506. C, even even that a lot, largely a lot of my investors were still, you know, friends and family, that just happier investors. Yeah, so start now, you know, I think a large bit of my investor base was made up of people that I've served with, you know, over the past 20 years, so some of them are military friends, some of you who might be government, civilians or things like that, that I happen to, to work with. And so that was a lot of my initial investor base, and, you know, kind of as we've shared, you know, some of that like those investors who feel that they their station where they make referrals, we've kind of, you know, connected and had conversations there. And so that's kind of, you know, and I've tried to do things like this and talking on a podcast and stuff and whenever you're able to share that yearns to kind of expand also, I have, in addition to the War Room mastermind for military, I've also joined, seven figure multifamily masterminds focus specifically on multifamily. And so, you know, I think some of those groups and stuff like that, you know, you kind of get connected, like, what is looking to be a general partner, you know, some are interested in investing as limited partners, you know, as part of their educational pathway, or, you know, some of them might have IRAs and things that they want to invest with other people that they kind of know, that's kind of some of the ways that it's expanding, and I tried to, you know, engage a lot, whether it's Facebook, or bigger pockets or things like that, to help other military members, you know, I kind of see a lot of times where Sure, people were talking, you know, like, hey, I really wanna get started in real estate, but I'm overseas for the next two years, you know, how can I get started? And so, you know, yeah, I tried to, you know, provide leverage my experience, both from being a long distance investor over the past 20 years to now like living overseas, and be able to provide value and stuff a lot of times, you know, that kind of, you know, starts up a dialogue, you know, between in and stuff. And some of those people have become investors as well.
Casey Brown 21:16
Well, one thing that you you just, you said, and I know, it was just something that you you mentioned, probably in passing 1000 times, but, but I want to go back to it, because it's so altra important to where we are as GPS looking for investors, and you said, the were one of the letters IRA. And I think that, that a lot of people that could be listening to this are, are are listening to this. This is the scenario I'm in, I'm in just just for instance, say it's military folks, for instance, because that's what we're talking about. And I'm stationed in wherever I don't have 50, or $100,000, to invest in your deal. And a lot of folks think that that's just okay, I don't have that money. Let's go on with life. Let's keep cashing these paychecks keep moving on. But but their letters, you said their IRA, a lot of people don't realize that, what that process looks like as far as saying, hey, I can go buy real estate with my IRA or 401 K, or whatever the case is. But my question leading into this with you is, is how do you specifically educate people on making that, making them understand that that is how these people are doing it, most of the folks are doing because, again, you take a you take your average citizen of this country, they don't have a few $100,000 sitting in their bank account. And again, a lot of people think that if they just don't have it, they just don't invest in real estate. But the fact of the matter is, they've got that money tied up with a financial planner, somewhere that is in there. And so anyway, go tell us a little bit about how you educate people, and how you bring that around full circle.
Unknown Speaker 23:14
So you know, and I can appreciate that people aren't aware of that, you know, because I myself didn't wasn't really even familiar with a self directed IRA until a couple of years ago, either. And so it was kind of that same time when I was exposed to multifamily and other things is when I kind of got exposed to some of this. And so, you know, being a finance major and stuff myself, if I'm not aware of some of that, I know, a lot of the, you know, the general public isn't aware of some of that stuff at all. So, you know, I, you know, created a self directed IRA myself, I've, I've mostly done like private lending and some other stuff out of it. But I've been able to use my experience in transitioning to having a self directed IRA in ways that I can use that, to share with others. And one of the most important things I think that I do is, you know, I've hosted actually the CEO of my self directed IRA custodian on for like, webinars and things. So I've invited my family, my friends, other investors, and, you know, just I've had her kind of do a presentation, provide some education and like, do some q&a sessions, right. So I can, you know, talk, learn how I've learned, but I can also bring in, you know, other experts in that industry, and stuff to you know, provide some of the details are answered, you know, nailed down, right, a lot of us might, yeah, questions about our scenario or situation, and those experts might be able to, you know, to address that more directly and stuff than I can so trying to provide access to the experts that I have a ship with to educate my network as well.
Casey Brown 24:54
Man, that's awesome because and that's again, that's the biggest shortcoming of this whole, really business in general is just education. And it's just simply telling people that, hey, you know, you don't have to sit in there and a mutual fund that's making point 5%. I mean, you don't have to just sit there just because that's what the majority of financial planners want, or that's the what the majority of those those folks, I mean, because obviously, if you start self directing that money into other types of assets that they don't get, they don't get paid. And obviously, that's why they're not saying, Hey, guys, this is you can make more money doing this, this and this, then you can what we're doing over here. And so with that being said, but again, people don't even know where to start. And I was a lot like yourself and my my background, and the I ended up with an agricultural economics degree in college. But the amount of finance and stuff that I took in college was massive. And they're, you're saying you ended up with a degree in the stuff and you were like, wait, what, huh? And I was the same way. I was like, What do you mean? So a lot of folks don't think that just because they don't, somebody doesn't have those, those that certified financial planner or whatever, that that that that that they call themselves behind their name, that they can't really find deals and make money. But the thing is, is that this real estate stuff makes money. Because here's an I always go through this scenario on the show, and people talk about okay, well, what about, oh, 70809, everybody lost their shirts, right? But the fact of the matter is, is that today, sitting here in 2022, I would take any house, at in any location, basically, that price data, 2006 price, and even though we came through that, who wouldn't take something that was at the value that it was in Oh, six and where we are today? So what does that tell me? That tells me that we've gone nowhere, but North. And again, the value of the dollar, the inflation, all that comes into play. So. So real quick, I want to touch on before we before we end the show today. You know, you said you're you're currently in England, like as in England and ruling land for that matter? And how does this management of these assets and such, what does that look like, from from from where you're sitting at right now?
Unknown Speaker 27:34
Yeah, so, you know, the, I think this is one of the great things about multifamily. And stuff too, is it's such a team, team game, a team sport, and, you know, that can play, you don't have to even be be co located together. And it's still a team sport, you know, and so, you know, somebody might be like, Hey, I have a great network to raise capital, but sourcing deals, or I think I could provide a lot of value being an asset manager. But you know, I don't love talking to brokers, whatever, you know, and so you can find other people that complement your skill sets and stuff to do that. And the thing, well, I do have partners that live overseas, as well, that are very successful asset management, it does take a lot of systems processes, and like relationships with people local. And so in each of those, you know, deals and stuff, we, we do have some partners that are either local, or, you know, within a quick day's drive, to get to the property to do that, and have some asset management responsibilities on some of the properties, not all of them. And then you know, on some of those, just my partners are responsible for that. So on each one of those deals, you know, like I raised capital and do investor relations, some of them I have some asset management responsibilities, you know, some I sign on a loan or earnest money or things like that, and so the kind of deal by deal situation. But, yeah, so excellent partners that happen with the the asset management, and we have some property management partners locally, on the ground that, you know, we've gone and met and stuff that help us manage them as well.
Casey Brown 29:11
Awesome, man, we'll talk about making moves, brother, I mean, you're sitting in England, you're active military, you're, you're doing that, but then at the same time, you've got these, you know, we've covered education, we've covered processes, we've covered team building, I mean, you know, those in my opinion of the three pillars of of doing what you're doing as it is, man, I mean, that's so that's, that's, that's just it's awesome, man, that's, that's on a different level, I mean, and then and then adding the element of of however many 1000s of miles that is over there, from the actual assets that you've got, I mean, man, that's, that's pretty killer. And then but you know, like you said, the investor relations part of it is, is what we specialize in. as well. And so it really kind of brings an element that but just man, the fact that you're doing it from from over there and while while serving our country is is just goes to show me as well as it should show the audience that you can do anything you set your mind to any day. I mean it just that's that's what you do. So Marcus, I want to kind of yeah man I want to kind of in this out here with if anybody in the audience is is potentially active duty right now or even in a spot where they're like, hey man, I really connected with you. And they want to reach out to you to either become an investor or possibly get on one of those webinars you talked about. How can the audience reach out to you and get in touch?
Unknown Speaker 30:46
Absolutely. So yeah, the best place along legacy.com It's kind of a one stop shop for all my stuff. You can set up a phone call with me send me an email, my social media and stuff is there. So yeah, if there's anything you know, I talked about that. You may want to dig into a little more reach out and connect. Bernie go into more details on on different parts of it. If you want a copy, I have recordings of the self directed IRA webinar that we did a few months ago with the see it CEO, if someone with a copy of that they can, you know, shoot me an email, I'll hook them up with the link to get that as well.
Casey Brown 31:22
Awesome. Awesome. Do you want to so people just go to the website and then send you an email directly from there, right?
Unknown Speaker 31:28
Absolutely. If it's Marcus at all, legacy.com
Casey Brown 31:33
awesome, and that's a ello en je le GAC y.com Marcus, I can't tell you you know, I always always tell people at the end of the show how you know how, how, it's hard. I know how hard it is to carve out 30 minutes of your day to come in here and the time we have the pre show and post show and whatever that kind of stuff. It's an hour. But man I really can't thank you enough for taking your time to be with us and our listeners today. And and Hey guys, if you need something from Marcus, he gave you a way to contact him. And again, Marcus, thank you so much for your service to our great country. And we hope everybody has a wonderful rest of the day and thank you for listening to the cashflow pro
Transcribed by https://otter.ai