Welcome back to another episode of the REI Mastermind Network! I'm your host, Jack Hoss, and in today's episode, we have a very special guest joining us - Mike Kaeding, the innovative mind behind norhart.com. Mike and his team are revolutionizing the multifamily investing industry with their unique approach focused on tackling housing affordability and driving down costs. Through their innovative strategies, they have achieved an impressive 20-30% reduction in construction costs and have their sights set on reaching a 50% reduction in the near future. Mike's journey in the industry is equally fascinating, as he initially had no interest in joining his family's small multifamily building business. However, after his father's passing, he stepped up to the challenge and has been leading the charge ever since. Join us as Mike shares his insights into their groundbreaking techniques, their commitment to improving labor productivity in construction, and their mission to make a positive impact in the world through housing affordability. We'll also delve into Mike's podcast, "Becoming a Unicorn," and how he balances work and family life. So, grab your headphones and get ready to dive deep into the world of innovative real estate investing with Mike Kaeding on this inspiring episode of the REI Mastermind Network!
Connect with Mike Kaeding: https://www.norhart.com/
Topics & Bullets:
Mike Kaeding and his innovative approach to multifamily investing
- Solving housing affordability and driving down costs
- Achieving a 20-30% reduction in cost and aiming for a 50% reduction in the future
- Using strategies from other industries, like manufacturing, to improve labor productivity in construction
- Bringing all trades in-house and implementing assembly line techniques
- Creating a culture of improvement and solving thousands of small problems to drive efficiency
Mike Kaeding's background and journey in the multifamily business
- Growing up in a small multifamily building business started by his parents
- Initially not wanting to be involved, but eventually joining and taking over after his dad passed away
The importance of hiring the best employees and continuous improvement
- Flying in employees from other states and working with world experts
- Implementing lean videos to showcase team improvements
- Gradually implementing significant investments in infrastructure
- Letting go of struggling team members and hiring the best people
- The impact of hiring the right people on productivity and success
Mike Kaeding's personal values and priorities
- Making a positive impact in the world through housing affordability
- Prioritizing his relationship with his immediate family
- Eliminating anything in his life that doesn't contribute to these two main elements
- Valuing his time and trying to double up tasks
- Engaging in fun activities, like his daughter's YouTube channel
Mike Kaeding's podcast and beliefs on making a positive impact
- Mike Kaeding's podcast "Becoming a Unicorn"
- Emphasizing the shortness of life and avoiding wasting time
- Using time to make a positive impact and pushing things forward
- Motivated by the fear of not doing enough to make an impact
Breaking out of the reactionary cycle and establishing goals
- Human tendency to be reactionary and only respond to pain
- Establishing goals and a bigger "why" to break out of this cycle
- Building the right culture and surrounding yourself with the right people
Mike Kaeding's efforts to solve housing affordability nationwide
- Developing units for affordable living
- Aim to produce 60,000 units per year and have an impact on housing supply
- Expanding manufacturing facilities to Texas and Mexico
Mike Kaeding's recommendations and lessons learned
- Recommended books: "No Rules" by Reed Hastings and currently reading "Multipliers"
- Biggest mistake was not understanding the importance of building relationships in real estate
- Advice on hiring the best people and trying new things, even if not initially good at them
- The commitment to advancement and betterment within the team
The Keeper Test and investing in employees and technologies
- The importance of hiring the best employees and letting go of those who aren't a good fit
- Introducing the "Keeper Test" to determine long-term employee viability
- Stories of firing employees but helping them find better fitting jobs and improved happiness
- The cost-effectiveness of hiring the best employees in the long run
- Seeing investments in employees and technologies as necessary expenses
Communicating unique company values and a new investment platform
- Prioritizing making a positive impact in the world over maximizing profit
- Challenges of communicating and marketing unique values
- Launching a new investment platform targeting a broad range of investors
- Offering online accounts with interest rates and flexibility
- Working to replace banks and offering investors interest rates and bank profits
- Pitching investors before building the platform to ensure demand
Challenges in the reg a space and lessons learned
- The challenges of the reg a space, similar to a full IPO
- The importance of pitching investors before building to gauge demand
LIKE • SHARE • JOIN • REVIEW
SUPPORT THE SHOW!
"You can invest 10,000 hours and become an expert or learn from those who have already made that investment." - Jack
