Steve and I connected at the Mike Ferry Superstar Retreat in Vegas this summer, where we both attended as alumni. 

 

Steve is a partner of a 45-person investment group that owns 2,000 units. For the past 30 years, he's been buying "things that people don't want and turning them into things people want" with the goal of 6% return on equity.

 

He earns a passive income in the high six figures from his efforts today.

 

Steve, without question, will be our commercial real estate investment expert in the room. He's happy to show you how to source deals and how to review them properly. He also ran a RE/Max office in Chino, CA for years, and still represents buyers and sellers with their home sale.

 

He needs help with hiring virtual assistants, utilizing AI, and would appreciate anyone's insight on repurposing retail stores for their highest and best use (fulfillment centers, last-mile distribution, etc). Please help him with that if you can.

Steve Depa's Real Estate Journey and Investment Strategy

• Frank Klesitz introduces Steve Depa, who has 44 years of experience in real estate, with 15 years in Mike's coaching programs.
• Steve shares that he typically kept more of his money than most people in the room, investing it wisely.
• Steve explains his strategy of buying small multifamily assets, rolling them up into larger, cash-flowing properties, and now controls close to 2000 units in five western states.
• Steve mentions that his investments provide him with between $750,000 to $850,000 of passive income annually.

Challenges and Opportunities in Small Towns

• Steve discusses the challenges of being a successful real estate investor in a small town like Chico, California, with a population of 125,000.
• He shares his experience with student housing and owning a property management company, which gave him a basis for his multifamily investments.
• Steve also mentions his investments in mini-storage and an industrial park, emphasizing his continuous search for investment opportunities.
• Steve notes that his son is taking over the brokerage side of the business, allowing him to focus more on investment opportunities.

YouTube Strategy and Lead Generation

• Frank inquires about Steve's lead generation methods.
  
• Steve explains he generates leads primarily through his YouTube channel, focusing on living in Palm Beach, Florida.
• He mentions he has not missed a week of posting a video in six years.
• Steve describes how he uses Zoom links in his YouTube video descriptions to book calls with potential clients.

Warren Buffett's Influence and Investment Philosophy

• Steve credits Warren Buffett and Charlie Munger for their influence on his investment philosophy, particularly the importance of return on equity.
  
• Steve shares that he shoots the videos himself but has someone edit them.
• He discusses the importance of consistency in his business operations.
• Steve mentions using Sierra for his CRM and leveraging virtual assistants for other tasks.

Expanding Business and AI Integration

• Frank asks about Steve's vision for his business. scriptwriting and video creation.
• He explains that his group looks at equity returns rather than cash returns, aiming for a minimum of 6% return on equity.
• Steve shares Mike Ferry's advice to "buy your best listing every year," emphasizing the importance of owning real estate over selling it.
• He discusses the strategy of investing in highly appreciating markets and cash-flow markets, depending on market conditions.

Builder Relationships and Market Strategy

• Frank and Steve discuss the importance of builder relationships in Steve's business.
• Steve mentions working with two of the biggest builders in the area and having relationships with about a dozen builders.
• He explains how builders refer clients to him for selling their homes while they build new ones.
• Frank suggests creating a YouTube channel for builders to showcase their work and attract more clients.

Lessons Learned from Investment Mistakes

• Steve recounts a recent investment mistake in Waco, Texas, where greed led to a loss, highlighting the importance of common sense in investing.
• He shares a successful investment in Tallahassee, Florida, where they achieved projected returns within a year.
• Steve emphasizes the importance of paying taxes as part of the cost of a good deal.
• He discusses the scale of his current investments, which range from 54 to 295 units, and his role as a 12-17% partner in 800 of the 2000 units.

Future Investment Plans and Business Systems

• Steve expresses interest in learning about the use of virtual assistants, AI, and better hiring practices to maximize returns and simplify his life.
• He mentions his desire to focus on high-value transactions and understanding other markets and opportunities within the real estate industry.
• Steve discusses the potential of fulfillment centers and last-mile opportunities as future investment areas.
• He emphasizes the importance of understanding the next big tenant profiles and the cost of replacement for building assets.

Building Wealth and Personal Growth

• Steve reflects on the importance of living rich or dying rich, having been frugal his whole life but now wanting to enjoy the fruits of his labor.
• He shares his strategy of taking things people don't want and turning them into desirable assets, which has been key to his success.
• Steve discusses the importance of architectural tweaks and vibrant colors to make properties more attractive.
• He emphasizes the value of surrounding oneself with people who can help achieve personal and financial growth.

Frank Klesitz's Marketing Strategy

• Frank Klesitz shares his marketing strategy of using assistants to reach out to potential sellers, creating a sense of urgency and exclusivity.
• He explains how this approach has been successful in securing deals and building relationships with property owners.
• Frank suggests that Steve could offer a similar service, helping investors find and evaluate commercial real estate opportunities.
• He proposes that Steve create a website and membership site to offer these services, positioning himself as a guide for avoiding catastrophe in commercial real estate investments.

Steve Depa's Future Plans and Contributions

• Steve expresses interest in Frank's idea and sees potential in creating a platform to help other investors.
• He acknowledges the need to grow and take his business to the next level, focusing on high-value transactions and understanding market opportunities.
• Steve appreciates the opportunity to share his knowledge and experience with others in the mastermind group.
• Frank and Steve discuss the logistics of implementing Steve's ideas and the potential impact on the real estate industry.