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No Excuses with Jason Malabute
Episode 41323rd October 2022 • Real Estate Investing with the REI Mastermind Network • REI Mastermind Network | Real Estate Investing
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Born in Los Angeles, California, Jason Malabute, an MBA, is a seasoned Real Estate Investor, an active Philanthropist, and a CPA (Certified Public Accountant). Despite being born with a condition called ‘Cerebral Palsy’ that affects speech and muscle movement, Jason Malabute never took it as an excuse and used his disability as a motivation instead. When asked about his motivation, “I want to be a role model to kids with disabilities and kids from low-income neighborhoods of what is possible”, is what he said.

Jason Malabute started his real estate journey in 2018 and studied real estate for 1 whole year before finally investing in three rentals in the very first year of 2019, in Indianapolis. After successfully following the investment strategy called BRRRR (Buy, Rehab, Rent, Refinance, and Repeat) for multiple properties, Mr. Malabute took the leap from single-family to multifamily investing under the mentorship of Sterling White. Sterling White is the founder of Sonders Investment Group and is involved with both buying and selling over 100 single family homes. Mr. White has recently scaled his portfolio to just under 500 multi family apartment units.

Following the footsteps of Sterling White, today, Jason Malabute is the proud owner of Malabute Properties LLC and has recently exited out from all the single-family homes in 2021. He has now totally submerged into the multifamily investing in Indianapolis and Kansas City areas, where his prime interest remains in acquiring 6-30 unit apartment buildings.

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"You can invest 10,000 hours and become an expert or learn from those who have already made that investment." - Jack

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No-Excuses-with-Jason-Malabute.mp3

Transcript

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So that's why I decided to transition everything off.

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Do more.

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So that I can be more productive with my time because time is the most valuable commodity that we have because we don't know how much time we still have versions.

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Did you wear a rat?

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Smiled lot.

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Welcome to the REI Mastermind network, where host Jack has gathers amazing stories from leaders in real estate investing.

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In each episode, our guests will tell you what they're doing that works what they've tried that failed, and best of all, you'll learn actionable steps.

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To take your real estate investing to the next level.

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Now here's Jack with another value packed episode.

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Jason Malabute is with me here today.

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Jason, I appreciate you giving me this time and Jason is a real estate investor, has an MBA licensed CPA.

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A lot of experience and Jason also has cerebral palsy.

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And so, we're going to dive into, no excuses when it comes to not only your real estate investing, but your business life in general.

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Then Jason was recently just told me a story about you.

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You have a meet up tonight.

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You were at the gym working out.

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You sprained a toe or injured yourself in the process, you're going to be.

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You're still meeting. You're still going to progress with that. I'm going to point everybody to your website Jason and I'm going to. I'll make sure to have this link in the show notes, but it's jasonmalibu.com and.

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Your next meet up will have this episode released. Before then it will be October 26th, so go to Jason website, reach out there and Jason can maybe get you on the list or give you some details but.

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Thank you, Jason, for being here with.

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Me today.

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Thank you very much that for having me on your.

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So, I really appreciate that.

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You mentioned you'd like to talk a little bit about making no excuses, and something that I took a note on, and maybe I'm taking it out of your out there.

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But you said the words losers looked for excuses, and winners find a.

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Way to make it happen.

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Could we start at the very beginning?

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Specifically, regarding your condition and what the process and what happened there.

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Yeah, every woman, cerebral palsy vehicles that don't know what Siri before the answer was.

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The facts near skills that the green circle part.

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It depends on person to person.

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Some people have a mild.

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Super policy and some people have a more.

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Wasn't working for more severe cases.

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Was whenever they warn their doctors told my parents that I'm gonna be able to talk or be able to think for myself.

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However, when I was growing up my mom.

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Special moment still they drive me around we go.

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To the mall.

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And we would see people without hope.

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All the different kinds of disabilities, and they would be doing minimum wage.

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Type of work.

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And then there's nothing wrong with minimum word type of work, but I knew that.

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I would do something greater than that.

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My expectations for myself and how I saw myself even as a child, was at its very high level compared to what society.

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So, I always help myself to a higher standard.

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When you were talking about losers looking for excuses in a lot of way a.

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Lot of people also.

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See themselves as victims and they just stay in that mindset.

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It sounds like you were self-motivated in that.

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How did your?

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Family help you regarding keeping that mindset.

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And where it needed to be.

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Ever because?

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Think about it that growing up and growing up with a disability.

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I mean, it's very easy for me that's there's silver in the towel.

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A long time ago.

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As they've collected disability, they just stay home and watch TV every single day and not do.

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Lastly, we were alive, but I always wanted more improvements.

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And and something that my parents always told me growing up.

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Especially with that.

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You always told me when you become an adult, you're gonna have a hard time finding in high paying job because it's a building.

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You can't complain, so he really pushing towards entrepreneurship, and they're going overboard through college and then don't have business.

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I wanted to start.

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Until I found real estate and you know that's what I became obsessed with.

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But sharing goods?

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Through going through college and then eventually earning your MBA and you're a CPA.

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And that's not exactly the easiest process to get through for anybody, let alone in your situation.

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You went on campus, you went.

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Where did you?

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Go to school.

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So, I don't know if you're from around here, but it's a small private university in Burbank, CA.

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It's called.

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World Very university, and that's where I got my shirt of science in accounting and also my MBA.

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And then you went the entrepreneurial route.

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What made you decide to do that versus you would have probably still earned a pretty stable job or.

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What would people consider a pretty stable job in the W2 world?

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No, I would have because I always find that news.

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Right after college.

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We barely cover lot when you have a college degree.

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Did you forget?

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No wrong because I apply for pretty much every single firm here in Los Angeles.

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I was going on interviews, but.

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I was not getting.

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Hired, however, writing that:

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For that opportunity, however, I was not making that kind of money.

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Is that?

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Other people in my profession would make.

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And I was trying do.

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Move to another firm so I could increase my salary.

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No, I didn't do that.

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That's when I realized that, hey, I've been doing this for years and not getting.

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As it says, I want by the team down I was able to build my real estate from volume through significant amount.

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So, I was thinking maybe a reason why I couldn't find it.

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Yeah, I know it hunting job that I wanted.

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Maybe that's not.

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Is that what God put me here for?

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He did not come here to become more here for the rest of my career.

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He brought me here to do something brilliant.

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And that's how I fell in love with the whole idea.

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Proneural rap.

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So, what's your core business?

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Are you primarily a hired gun, CPA, or do you focus on your real estate?

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I no longer brought its owner. I'm 100% Bullbars a real say. I'm really focused on the multifamily side.

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And the specific video we focus in the Indianapolis and the Kansas City markets.

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OK.

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So, when you got into real estate, can I ask what started you on that journey?

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How did you find your way to real estate investing?

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So, I was still lying, Michael.

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I didn't stack this, and they had a rental property, and I was doing the taxes.

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I realized that hey, these people are.

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Making money rope, whereas I'm doing anything.

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It doesn't matter if they go through different.

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ced the rules that I remember:

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Forum post every single blog I was watching.

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Every single podcast interview that he was doing, I was a big grey card on band so that was my first year about real estate.

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One of the things that strikes me there is that at an early age then, as a CPA, you saw people taking advantage of real estate when you were doing their taxes. I frankly don't run into a lot of CPA's.

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Who took a similar path?

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You'd think that they'd all notice the similar trend when they're working on.

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Other people's taxes.

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Because most accountants by nature are conservative and now, they are going to value security more than rules.

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That's why they would.

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Rather, try to climb their corporate ladder rather than try to.

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Venture out and do something themselves.

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OK, so in real estate when you first started off did you start off wholesaling?

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Jump right into rentals?

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What are you?

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What and what does it look like here today?

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And how has it evolved?

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That's the way I first.

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Started investing in Indianapolis IN I'm in Los Angeles, CA.

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Yeah, it's:

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And that the business model that directs doing there is doing single parallelisms.

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OK, so today you're pretty much doing your rental properties.

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good point and I'd so back in:

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Back in:

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Closing the property.

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Would you do rehab your property to get a qualified tenant?

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But you do find a lender to refinance?

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To take you out.

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Five to seven months and I was thinking was spending all this time just.

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Did that during this award or so I had to scale right forward and back.

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Right now, I'm reading a book by the founder of Lightstone and who those don't know.

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But still lives within the bigger or if not the biggest real estate firms out there right now, and something that the author was talking about, words that it takes a fair amount of energy and time.

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Just do something small.

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As it isn't being great, that's why I decided to transition everything.

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Go into more detail.

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So that I could be more productive with my time because time is the most valuable commodity that we have, because we don't know how much time we also have on this Earth.

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Did you wear a rat?

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Smiled lots, no bragging doing.

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I started working with my mentor, very close, stuttering what?

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Woodrose donors during white Sterling White is a successful Rosie investor. 10 years of experience when he built his single family look forward to 200 plus dollars.

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Exit out all that and then build up a group bully over 500 most item or.

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learned from him. I'm in room:

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Last year I decided to sell my single-family home and quit my job so that I could focus 100%.

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One more item.

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You mentioned that you could put all this time and effort into one door, but now you're focusing on multiple doors.

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You're being able.

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Could you give us an example?

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It sounds like you've been doing this for about a 12-month period.

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How quickly is your portfolio been growing?

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Most that valid.

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This is special in this market cycle that we are in now, right?

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Like if you do that before like record it took him with three-year with them.

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Do find it first apartment in New York and like he's worth more than 1/2 billion dollars, no so multi.

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It's Niraj here and that makes sense.

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Who were still there are people that rent New York, but I feel like we're definitely going.

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Who's the right direction, because, for example, when I first started.

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I was trying to do everything on my own, but now I built A-Team and it's much easier to scale when you have people who are.

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Helping you with the underwriting.

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People who work roots in the ground but evil through native voters.

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People who are able to meet with the owner basic ways.

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People who are able to tour properties or and at the same time I have it for years and it's making calls hungry although older, so they were going to lower the red lights and we get something that people don't understand is that.

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Right?

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They this is a basement.

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Yeah, this buying property and building a business so that you get the properties that.

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Of that I have financially sound properties.

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Like the capital properties are getting a certain return on investment.

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So just to remind everybody, we're talking to Jason Malibu to you can find him at jasonmalibut.com.

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I'll make sure to have that link in the show notes again and I take advantage of because you have another meet up coming up.

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October 26

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And reach out through his website for those details or through social media.

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If you scroll to the bottom of his pages where you're going to find all his social media links.

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So, Jason, you broached the subject, so don't blame me.

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We need to chat about the market conditions right now.

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What do you think is going on?

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What are your expectations and what do people need to brace for?

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I still remember.

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Back in:

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2021 never started the war.

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More than ever, people were throwing away their fundamentals.

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Right?

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More than ever invest there buying ads.

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For that.

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Throughout 2 gaps there bending on work market that they are investing in because he thought that.

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Tablets are gonna continue to compress forever.

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But sadly, we won't.

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Don't know it like history always repeats itself, and even if it's not exactly the same, it's gonna be in limits.

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What happened dangerously.

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So, we're starting to see that now.

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Wait, I we got another 75% basically full height?

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In the image.

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And it's crazy triggered by the March. You will get interest rates rich 3% and now Britain at 8%. If you aggressively under any braking.

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January, February, March would funny to anyone.

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And they go if you did not have that app.

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And you're right, you are in big trouble, and you should be calling.

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Me to tell.

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Me in the body, probably for me too.

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And then we're definitely going to see more paying coming up because we still have not learned our lesson ever.

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President just did.

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Let alone we give meds with this.

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Probably even more money in today.

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I mean, which makes no sense.

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We want so ever, and I'm not bringing the holidays.

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So, let's do like economy and the business side.

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Uh, I'm not sure why they would do that in the numbers after November after them with them.

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opportunity to first quarter:

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Yeah, I'm not going to get political either Jason, but at this point I almost feel like we're being taunted.

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You can have something called the Inflation Recovery Act, and then when you re glance through it, it almost looks like it's doing the opposite in which it's titled.

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It's it doesn't.

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I just don't get it.

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Anymore, but you also talked about.

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Building a team like.

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Can you talk a little bit about that process, and especially since you're doing everything from a distance, I can't stress how important it is to find those good people boots on the ground if you will, to do some of this work on your behalf in these markets.

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Can you see that, Peter Bradley?

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Yeah, the.

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Says Bryant, is that the one?

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Yes, that Cody boy right, go away boy with my favorite play.

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Blowing up and I remember.

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2000 What does in five?

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Six,:

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But he's not winning the championship and only got the right nutrients around.

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And it's the same thing.

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Real estate, right?

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Like I don't.

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You can't do everything like that.

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Immediate team and uh.

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And there was an important thing when I'm choosing with team members is that they have the same values and the same fish in it.

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So, I lived my life by three by.

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One is integrity with doing what it's supposed to do, even when nobody is watching you.

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Two is accountability, which means when something happens, that's not how you want it to be.

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Take responsibility for everything with your faults.

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Get to the decisions that you made.

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So, there's no finger pointing or any of that, and never as three of being upset, right?

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So going back to my career.

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Brian example, I remember watching going growing during his practice, you know, do a stable mood.

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He practiced the stadium hundreds of times during its brightness so that when he grows store game, he executes the payroll.

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Dover top perfectly bruises doesn't over in the yards of you watch it film over him over and over again, and they're going long.

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Hysteria while his teammates or out the abbreviation doing what he it's warm.

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And I feel like I bring up some kind of.

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Intensity in the room state.

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Game as.

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Well, I appreciate you sharing those 3 pillars that you live by.

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It's really important.

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And one other thing that you mentioned earlier is return on time and I think that's one of those things that we, as real estate investors or entrepreneurs.

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For that matter, we get so focused on return on investment, when in fact what we're actually looking for is.

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Return on time.

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How have you found ways to?

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Provide that return on time for you.

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And some points.

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Yet I do more richer runtime.

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For example, I have a copilot who does all my hauling woman, because that's not the best news.

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So, by the time I mean, I'm sitting behind that phone with breaking those thoughts, thinking with that.

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Then there were the underwriting.

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And the practice of my time either.

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But at the same time, I'm not concerned about work, life balance or any nonsense.

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Always help out.

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It being since that bull and it also being known for being a brat at work, it's all right here.

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Yeah, no, but it's really interesting that it's a very different perspective.

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Everybody is hunting for that.

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Work life balance and that's sure buzzword in every industry that we seem to touch.

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This has been a great conversation, Jason.

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I do have some rapid-fire questions that I'd like to throw at you if you're ready for him.

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But one more time jasonmalibu.com and you can connect with Jason regarding his next meet.

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Up and to learn more about Jason and what he's up to.

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But are you ready to give this a whirl?

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Yeah, and do it.

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OK.

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So, we've all seen the late-night programs promising everybody to get rich quick to no money down when it comes to real estate investing.

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What is one of those real estate investing myths you'd like to bust?

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Oh, so many, but if I had to pick one is that one deal is not gonna make you rich.

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Is that now we're able to buy a Lamborghini or a or God of this 10?

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Moves it, so that's why you have to build your portfolio, but at the same time, it's important that you're underwriting.

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It's conservative so that you would actually.

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Free cash flow and that eventually he had.

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Union role.

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Right to protect and all those.

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Words that you want.

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And one of the things that really struck me is when you were talking earlier about your.

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About market conditions and you're absolutely right, people will do whatever they can to justify and change their underwriting guidelines to match what they think the market is producing instead of sticking with their under their expectations or that return on investment that they need out of it.

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And frankly, you're setting the perfect example.

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There is to just be patient and be selective versus altering what?

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Yeah, that's really a lesson there that.

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I just really it just when you just spoke.

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Now it just really struck me again.

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Yeah, because.

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For the language I remember one of the mortgage broking actors.

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Kansas City and last year:

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Then in our nation and their campus anywhere is no different.

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In Kansas City, how?

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What are the biggest red roads?

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Last year I think good like 8.9% and when I was talking to brokers last year, they were telling me that some group were winning deals because they were undermining the deals at it.

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10% rent

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So, it's for the whole band of the upper errors than the broker at make no sense.

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First of all, is involved in this city is at 8% this year, which is in record-breaking year.

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So, so how are they justifying the 10%? And then if all this is not gonna happen again?

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It's crazy how some people can manipulate.

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What is the definition of being conservative?

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Yeah, as well as I do those performers that are associated with now.

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You're probably deep into it.

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They come with a lot of multifamily properties.

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Those proformas as much as I'm concerned its fiction more than anything else.

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They're just painting such a rosy picture until you get into the weeds and actually ask for details.

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And I don't even know why they bother sending it.

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To me anyway.

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What was your biggest real estate investing mistake you've made and what did you learn from it?

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One where the problem is I purchased.

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I didn't know.

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How to read an inspection report.

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When I first when I purchased through C investing in this scheme, the word I asked a couple people what they thought in the words they are said oh.

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It's fine I'm I don't see any replies.

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Yeah, you don't see any reply and it stunt itself and.

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One of the things.

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That I've missed on that question report warns up with knob and tube wiring in the Parisian fix at Norman.

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Two wiring every heartney.

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$15,000 so we were having a hard time and she selling that property because people were giving US cash offers of ever more than ever. Asking clients however they were all backing out.

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So that was a really challenging time.

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However luckily for me.

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Me, I was able to find somebody who was willing to pay full price despite all those red lights on their impressive reports.

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And that that's one thing I'm proud of is that I've never lost money real estate.

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I broken even on some deals, but I didn't say that I've learned more from the viewers I roped in, even from.

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Rather than the word, I admit profit.

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Give me a book you would recommend that everybody check out or what are you currently reading?

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With that boat.

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So, for everybody I told Jason beforehand not to say rich dad or thinking grow rich because we get that so often.

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So, a good book that I really loved that I run so many times.

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When I first got a hold of it was me of a set or pretty average by Grant Cardone.

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I'd recommend.

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People do read that book.

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OK, great.

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If you could go back in time and give your younger self one piece of advice.

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What would that be?

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I will keep it PDI will say leave the women alone when you are still in their 20s forget about partying.

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Yeah, but.

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Cool, now the focus on building your prisoner.

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You know focus on building their business with new or young.

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You know all that stuff, warm and fuzzy?

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Come as you become more successful and roots right by here.

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Sure, and then lastly adjacent, is there a question or concept you wished we would?

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Have covered here today.

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Yeah, what am I doing now in the multi family?

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What is our strategy moving forward?

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But if you guys wanna learn more about that you got to go to my website which is WWW dot.

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Did some other booted I come.

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You can book a call with me, and I we can talk more about most identity.

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That is awesome.

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I appreciate it again, Jason, you're welcome back.

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I hope you'll take me up on that.

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Invite and I'll make sure to have all those corresponding links in the show notes.

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So, Jason, thank you again.

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Boys again, dad.

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Thank you so much for providing made with that that formed its Android story.

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Have you learned at least one actionable step to incorporate into your real estate investing?

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If so, please consider returning some of that value by leaving a positive review, subscribing to our YouTube channel, or joining our growing network on Facebook and Twitter.

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You can find links to all of our social media accounts in the show notes.

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See you next time.