Getting started in the real estate game can be super tough, but this week our special guest is Ryan McKenna and we dive deep into the challenges of investing and how we can overcome them. Ryan advises us on how to start investing, what to look for when vetting sponsors, how you should look at investing long term, and much more. This episode is packed with amazing advice and information from a top pro-investor and guess what… it’s completely free. Join us this week and receive this FREE advice from a real investing pro. If you’re just starting out in the investment game and haven’t decided which path to take yet, then this episode is tailor-made just for you!
Getting started in the real estate game can be super tough, but this week our special guest is Ryan McKenna and we dive deep into the challenges of investing and how we can overcome them.
Ryan advises us on how to start investing, what to look for when vetting sponsors, how you should look at investing long term, and much more. This episode is packed with amazing advice and information from a top pro-investor and guess what… it’s completely free.
Join us this week and receive this FREE advice from a real investing pro. If you’re just starting out in the investment game and haven’t decided which path to take yet, then this episode is tailor-made just for you!
Key Takeaways
Resources Mentioned
Rich Dad Poor Dad - Robert T. Kiyosaki https://amzn.to/3ie8zV2
Essentialism - In pursuit of doing less - Greg McKeown https://amzn.to/35dDi0t
Interested in connecting with other like-minded individuals? Then join our VonFinch Private Capital Network. Learn more at http://www.vonfinch.com/invest.
About our Guest:
Ryan McKenna is the Founder of McKenna Capital, a real estate private equity firm that provides passive investment opportunities in institutional-quality, recession-resilient, real estate. Focusing on value-add multifamily, self-storage, and manufactured home parks, McKenna Capital has helped investors allocate capital across 10,000 + units with a combined asset value of over $1 billion. Ryan has partnered with some of the most experienced and well-respected operating partners across the United States and oversees all acquisitions, capital raising efforts, investor relations, and asset management for his firm.
Steven Pesavento 00:00
Getting Started in the real estate game can be tough. But in today's episode we dive in with Ryan McKenna, who's raised hundreds of millions of dollars is a passive investor and an active investor in commercial real estate. And we talked through some of the challenges that he's dealt with how he's overcome some of those things, and most importantly, how he recommends others go and do the same thing. If you're an active investor of your passive investor, you're gonna love this episode. Ryan's a heartfelt guy, and he dives into some really, really phenomenal stuff. Let's dive into it.
Ryan McKenna 00:34
This is the Investor Mindset podcast and I'm Steven Pesavento. For as long as I can remember, I've been obsessed with understanding how we can think better, how we can be better, and how we can do better. And each episode we explore lessons on motivation and mindset for the most successful real estate investors and entrepreneurs in the nation.
Steven Pesavento 00:56
Hey, guys, welcome back to the Investor Mindset podcast. I'm your host, Steven Pesavento. And today I have Ryan McKenna in the studio, super excited to talk to ya. How are you doing, Ryan?
Ryan McKenna 01:06
I'm doing great. David, excited to be here.
Ryan McKenna 01:09
Well, I'm excited to have you and as you guys probably know, and if you don't, Ryan McKenna is a full time real estate investor syndicator and founder of mechanic capital, a private equity company that provides passive investment opportunities and commercial real estate syndication, you know, they're focused on value add in the multifamily self storage and multi, our mobile home park space. And so McKenna capital helps investors allocate capital across 9000 units with a combined asset value of over 1 billion. So just to put it lightly, Ryan's got some experience on raising capital, on putting deals together on going out and getting stuff done. So we're definitely gonna dive into that, we're gonna talk a little bit about what you need to know if you're a passive investor and, and how to think about some of this stuff. Because regardless of whether we're talking about the environment we're in right now, or just generally, what you need to know, as a passive investor, you're not going to want to miss this stuff. So if you're ready to get into things, let's do it. Right. Hmm. Let's go. All right. So why don't we start out by taking a look back at earlier in your life? What are events or influences from your childhood shaped who you are today,
Ryan McKenna 02:19
I would say the biggest influence on my life has been my parents, and just the way I was raised in an environment I was raised, I come from an entrepreneurial family, my dad ran a business, and I always was there for me had the time to, you know, help coach me in every sport that I played, and my mom was obviously a big part as well, always being there to number one cheerleader. And I think at an early age, I saw, you know, just being able to run a business, some of the advantages, and there's disadvantages to it as well. But I think the biggest thing that was something I always strive for was that, that the flexibility and the you know, the ability to have that your time and to have control of it, and, you know, perfect examples. Like I mentioned, my dad was able to coach me in every sport, he was there at every practice, every game, and I just I grew up that way. And I felt like, you know, that's an environment that I want to be in some day with my family, and I chose a different path. And in real estate, my dad's business is not in real estate. But I just that was what I knew. And that's what I, you know, worked really hard to try to create for my own self and my family. And so, yeah, at a very early age, I just always wanted to be an entrepreneur, I've always been someone that's worked really hard, always had a side hustle trying to get ahead. And then you know, you get to the point where you're like, alright, you know, I'm in a pretty good place, I've been able to put myself in a position that I've always wanted to be in. And so I think, had I not grown up in that environment, I probably still would have wanted to get there. It's just I was able to kind of see it firsthand and be part of it, and then go on create it on my own terms.
Ryan McKenna 03:56
I mean, for so many people, that's the first step that they need to go and find when when they're thinking about wanting to do something, usually that's the bridge. So you're really, you've got to have a ton of gratitude that you grew up around parents that had that flexibility to be there and be able to show you that, hey, this is possible, because I'm sure growing up your whole life than you knew was possible. But I know so many people that go through that. And they they get to this place where they meet somebody or a business owner or a mentor along the way. And they're like, oh, wow, well, if he can do it, or if she can do it, then I can definitely do it. And that's kind of what gets them going so well. At what point was it? You know, you said your parents weren't kind of going down this real estate route. At what point did you decide that was the path versus maybe following a different type of entrepreneurship?
Ryan McKenna 04:42
Yes, so that this was probably my it was my freshman year of college. I played baseball at Arizona State and at a teammate of mine, whose father was an apartment syndicator and I just got chatting with him one weekend he was in Phoenix looking to buy some, you know, two 300 unit apartments and I just thought that was really cool. And I'm like, was fascinated like, how he was able to do it. And he basically taught me what a syndication was, you know about pooling it, you know, a bunch of investor capital together to buy these large apartments, and then go through the value, value add process. And so, you know, outside of baseball, I was I was kind of picking his brain, I just felt like, you know, that was something that was, it was really cool. And he shared with me how he had a ton of flexibility in his life, and he was always able to be there for his son. And just, you know, I think it provided us the opportunity to, you know, have parents that were very involved with us, and that help with our baseball careers. And so it just something just stuck there. And it was something I always felt like, you know, that's something I want to explore further. And around the same time, that's when I came across Rich Dad, Poor Dad by Robert Kiyosaki. And that book, you know, basically gave me the framework. And then here I had someone in real life doing it that was like a mentor to me that I could just go to and ask a bunch of questions and really kind of seek out you know, his knowledge. And so when I kind of put that together, you know, my first goal was to go on and play baseball at the next level. And unfortunately, that didn't happen, I end up getting sick and had to do a medical redshirt and really kind of bounced back to maybe a story for another time, but I had to kind of fall back on something. And I just knew in the business world, kind of what I had mapped out in my head what I wanted to do, and I was, I think fortunate enough to see other people do it. And then from an early age, I just started kind of putting the wheels in motion and setting myself up for the day that I was that syndicator while I was putting deals together. And you know, it took a little while, but I'm very happy with how things have ended up and you know, the path that, you know, I kind of went on that journey to get there.
Steven Pesavento 06:46
So real quick, I want to touch on something and then we're gonna move right forward. But you mentioned that there was a point where you realize that the dream that you had, you could no longer do, what was going through your head and what moved you past that point in towards syndication from believing and dreaming that you were going to be a pro baseball player.
Ryan McKenna 07:06
Yeah, I'll never forget the moment I was laying in the hospital bed, and the doctors were like, you'll never play baseball again. And when I heard that, my first reaction was like, Yes, I am gonna play, I'll do whatever it takes you to hell. But I was in a condition where my body was like that of an 80 year old man. I mean, I, I went through a lot of spent six months in a mental hospital, I got diagnosed with ITP, which is very similar to leukemia, and it was in like, right at the, you know, top of my career and at a point where it was really hard to bounce back. And so when I kind of had that realization, setting that look, even if I do come back to play baseball, I'm significantly going to be impacted by this time away and having to go through a medical redshirt and an Arizona State, it's like your junior year, you're going pro after that season, and, and I lost that season, because this was leading up to my junior year. So I felt like you know, I'm gonna work hard and try to get back on but I also had to have a plan B. And I told myself if I can't do it, and in the baseball world at a professional level I'm going to do in the business world. And so that's when I started reading a ton of books, I put it kind of all together with real estate was going to be my ultimate end goal. And it was always the plan. If I did well in baseball, I wanted to invest in real estate anyways. So when I started looking at real estate, I'm like, wow, I can I can do this and make pro athlete money being a real estate investor, real estate syndicator. So I started to shift and all the things I wanted through baseball, I mean baseball, absolutely love had a passion for but there was an afterlife that I knew was going to be there at some point that I was going to have to figure out what am I gonna do after that, and I just, I think, was able to fast forward, you know, my life a little bit to get to the place where I always wanted to be anyways, and I'm kind of living that now. But it was, yeah, definitely all the you know, hard work, the discipline, the motivation, everything that I put out there for baseball, my career, I shifted that over to the business world into real estate. And I think, you know, it's it's, it's not kind of what I planned, but I you know, life sometimes throws you some curveballs and you learn to deal with adversity and you move on. And, you know, it's I think it was a good blessing in disguise that, you know, makes me appreciate things a lot more. And I'm, again, I'm happy where things are today.
Steven Pesavento 09:22
Absolutely. And that's exactly and that's why I asked the question. I want to underline this for the listeners here. Ryan, what are you saying here was I'll do whatever it takes. He had this mindset. He was fully committed to baseball, and something swept him off his feet, you've probably dealt with that somewhere else in your life. If you're a listener, I know that I have. But the difference is when you're fully committed to something, you know, and you get knocked off, you don't know where to go next. But it's always important to be fully all into something but be willing to accept that things change and then go all in in the next direction. And that is 100% Without a doubt and I don't even know all of the details, but I can tell you that for sure that is a big reason why Ryan has been able to be successful is because he's willing to do whatever it takes. So for everyone who's listening and thinking, hey, I want to go and do this, or I want to take it to the next level, or I'm already killing it. And I've got 1000s of units, you know, look inside, I'm sure that is president if you're succeeding. So definitely thanks for being vulnerable and sharing that because, you know, sometimes in life, it throws us for a loop, we're dealing with it right now, life is changing as we know it, for a lot of people and people are getting stuck in this state of fear. And it's holding them back from moving forward from saying, Yes, I'm going to investor from taking that action. But in reality, there's always going to be challenges. And so it's actually an opportunity for you to move forward the same way that you did. So, you know, real quick, let's touch on the background, talk a little bit about what you guys do in the syndication space. And then I want to dive directly into some actionable stuff that people can take away and some mindsets and thoughts and beliefs that people can start adopting, and using in their own businesses.
Ryan McKenna 11:00
Yeah, so So our business was basically built out off of myself being a passive investor, I was in the corporate world for a while, and I always had that passion for real estate. And I dabbled initially doing some single family rentals, but realize that I couldn't scale that business. And so when I started investing passively into multifamily syndications, I got to the point where I was in about 12 deals, and I started sharing what I was doing with people, my network, friends and family, and there was a really high level of interest in, you know, wanting to be involved, or at least be able to participate. And so that's when I said, you know, I'm setting myself up here to be able to walk away from the corporate world, because I have cash flowing assets that you know, could cover my expenses. And I have this desire to help others and to want to, you know, share what I was doing with everyone. And so that's when I started kind of planning, you know, my next phase of my business and what I wanted to do, and in about three years of investing passively, I was able to walk away from my corporate job, and build mechanical capital to a place where we were helping hundreds of people try to achieve the same thing. And it's really set on, you know, finding some great opportunities, you know, from the standpoint of really like cash flowing value, add assets that have good upside and great tax benefits is kind of really where you know, where we focus. And a lot of it's in the tax friendly, warm weather states where people are moving to businesses want to relocate to so a lot of, you know, a lot of deals we're doing in Florida, Texas, Carolinas, Arizona, Colorado, and so just, it's all kind of was from, you know, early stages of investments that I've made, that kind of evolved into helping others and having the ability to put deals together. And it's just been amazing to see the interest level of other people that, you know, want a similar path or want to be able to have a little bit more flexibility in their life. And, you know, you can do it, acquiring as many single family homes as you want. And that's, that's an approach that works, but it's definitely more active. But I was able to do it passively. And I think that was something that maybe was a little bit different. And, but for me, it was like, Alright, if I could do this by, you know, putting x amount of capital to work, there's a lot of other people that can do that, too, that might be in a, you know, high paying job, or they might own their own business. And they're just busy. And they don't have, you know, the time or access to these great deals. But they got the capital and they've got time. I mean, there's a real ability to, to put together some nice passive income streams. And, and so that's really what we're built all around is helping others find these opportunities, and I continue to invest passively today, I get just as excited about the next deal. I mean, I love being a real estate investor. And I love all the benefits that come from it. And so that's that's really, what what our whole business is about. And the community that we're working into is just great. I mean, I love everyone's so willing to share knowledge and information and be helpful. And so it's just a fun place to be. And I'm just glad I get to do this full time.
Steven Pesavento 13:58
Yeah, absolutely. And that's the thing that I love about real estate investors and the community is that it's full of people are focused on growth both internally within their portfolio for their families, all of those things are super important. So let's take a quick break for our sponsors. And we'll be back in just a second.
Steven Pesavento 14:23
If you're an accredited investor, and you're interested in learning more about our investment opportunities, the exact types of investments that I personally invest in that head over to the investor mindset.com/invest or send me an email at Steven@vonfinch.com That's V O N F I N C H .com. Thanks so much.
Steven Pesavento 14:49
Right, and we're back guys. Let's dive deep into some great stuff on what passive investors need to know if they're going to go down this path because it used to started down this path as a passive investor, and then you went active, which I think is amazing. I think it's a path that a lot of people should go down if they desire to be active in this business, but when you're a passive investor, and you're, you're making great money, you're kind of new to the business, you're looking at single families, people are talking about, oh, go and buy this or manage that. Do you have time for this? What are some of the things that you recommend people educate themselves? Or where do they get started to start making these decisions on, hey, I'm gonna invest in that deal. And I'm confident ready to do it?
Ryan McKenna 15:33
Yeah, I would say, just from what I experienced, personally was, you know, it depends if you want to be active or passive. And I think I thought, owning a couple rentals was going to be more passive. And it just wasn't, I mean, I was the one that had to take all the phone calls, I just step away from my full time job to deal with things. And I didn't make as much money as I thought I was gonna make. And I just felt like, you know, it was good that I had that experience to learn from it. And there were definitely some good takeaways, but there were things I learned that I just didn't really want to deal with, or that I didn't want to, you know, manage going forward. And so if someone truly wants to be passive, you know, you can definitely do that it really doesn't take up much time, after you've been able to, you know, find some good partners, do your due diligence. But once you essentially wire the funds, I mean, you are hands off, you can kind of sit back and get the you know, the monthly updates and watch the renovation plans, you know, come to fruition. And so that's definitely a path, I'd say, you know, if someone's looking to maybe start out, I mean, you can do both, but if you're going to go into it part time, it's hard to be, I think, a part time active investor, because you now are assuming, you know, 100% of the responsibility and the risk, when you buy an asset and you so you've, you know, if you don't have much experience and you're doing it's maybe it's a great way to learn, you can make good money, but you also are taking a significant amount of risk. Whereas I think in real estate syndication, from my perspective, you know, you're putting your money to work, you know, with a professional real estate group that is overseen it that has a great track record, they've done well, they know the market, they have all the relationships in they're doing this full time, I just think that there's much less risk, in my opinion, you're starting, they're learning more about it. And I always, you know, I've got investors that do both. And the great thing about being a passive investor is that, at some point that money is going to come back to you. And if you can't find any good active deals right now, you can go park, your money and some syndications. And when that money comes back, you can decide what you want to do with it, maybe you then you know, become more active. Or maybe you go down a path where you invest a lot in the syndications. And then you get to walk away from your job one day, and then you can be active. So I think there's there's not one particular path. There's multiple ways to get there. But just in my opinion for starting out, I mean, do your research, you know, if you're someone that needs to have control, then you know, passive investing in real estate syndications is probably not for you. And if you're someone that's like, hey, I want to learn from others and be part of something and, you know, maybe I'm not 100% sure where I want to go, I mean, syndications, not a bad place to start and to kind of test it out and to see if you like it. And in my experience, I've seen a strategy with most, most of our investors after one deal, it's like, hey, when's the next one come in, because it becomes a foundation you can build off of, and it's real, I mean, that the passive income streams, the tax benefits, and then obviously, the, you know, the upside the force appreciation that you can get in these deals. So I really like, you know, again, with my experience, I like the passive investing better. But that's just my personal opinion.
Steven Pesavento 18:37
I've seen the same thing. And this is something I I've been talking a lot about with folks and and there's an idea of like, everybody has an expertise, I have this strong belief that you have a unique ability, I have a unique ability, Tom, John, and Jen all have a unique ability, something that they at their core, are the best that they are born to do. And they've developed that skill set and expertise and experience to be able to go and do it. Well. You know, you don't want a surgeon coming in who just got out of a boot camp, you know, coming in and, and doing surgery on you. And you definitely don't want to be putting your money into an investment. If you're that surgeon who just got out of that, that boot camp, right. So it's so important for people to focus on what their expertise is. And if you want to be active, man, I'm all about it. There's a lot of great ways to do it. But if you are really really good at what you do, and you'll find that you will love it and you can find some joy in it. I'm a big believer in make as much revenue make as much money as you can and park it and replace it with people who are experts so that you can just do your one thing because I think sometimes there's this problem that people have right and I'm sure you see in the industry as well. This lack of focus, you know, you talk to somebody and they're thinking about going down this path Oh, I'm gonna I'm gonna do some single family and then I want to do some multifamily and and I'm looking at Orange, I'm looking at this, and I'm looking at that. And unless you're working with other experts that are are the best at those things, you're probably going to do a pretty marginal subpar job, if you're trying to do all of them at the same time, because it just takes it takes time to become an expert. So I think that's some really, really strong advice. Thank you. So, so that this is where it comes down to the rubber meets the road, if if you're a passive investor, and you're going to go down that path, it's really important to pick the right sponsor. So when you're out there building relationships and doing this for your own passive investments, what are you looking for an a sponsor? And what's that process that somebody who might be investing 50, or, you know, 150, or a million dollars into a deal might go and do?
Ryan McKenna 20:45
Yeah, so I like to look at the, the team behind the deal. I mean, a lot of times people get caught up and just looking at the numbers. And I can tell you, the team, the people behind the numbers is what's most important. So get to know that sponsor, that operating team, look at their track record, talk to other investors who have invested with them in the past, and just really get a good comfort that they've got a good philosophy, good focus on the market that they are targeting, and that they've built a good team around. Because I bet all day on a really solid opera that I feel confident in than just someone who is putting together, you know, shiny, nice numbers that you know, in a glossy investor deck, I mean, I think it really comes down to, you know, who you feel comfortable with the relationship that you have. But again, going back to the track record, the market focus, the market does matter to I mean, I, I look at different deals, I mean, there's a reason we're focused in what I would say your tax friendly, warm weather states, I mean, they're also very landlord friendly states. And so that's, you know, my opinion, looking at different investments, those factors matter. But I think it's the people that matter most, and if you can get that, right, then you can start to kind of dive into the deal. And look at the you know, the sub market, look at the underwriting, how conservative is it, just trying to find any red flags, you can, but at the end of the day, you know, it's not going to be like, you know, this feeling of like, hey, everything checked the box, you know, 100%, I'm ready to go. I mean, sometimes, you know, you feel 85 90%, you know, good about the opportunity, and you just got to make that jump and and, and just know that, you know, even if everything is laid out, 100%, the way you want it to, it's a real estate value, ideally, things are likely going to change a little bit, there's going to be some bumps in the road. So I wouldn't get all hung up on it's got to be the perfect deal a perfect opportunity, I think if you get, you know, level of comfort around, you know, who you might be investing with, you know, I think you just you got to make that decision, and then just and then back them because they're, they're the ones that are responsible for executing on the business plan. And, you know, five year horizon is a long time. So again, if there's a bump or two in the road early on, it doesn't mean that the deal is gonna be bad. I mean, it's just, it's to be expected. So part of this is, you know, kind of throwing yourself out there taking some action. But after you've done your own due diligence, and you have a level of comfort that, you know, this is a good partner that you should be investing with.
Steven Pesavento 23:03
And what are some of those questions that the sophisticated investor would be asking to somebody like you, or me, if they were going to invest in one of our deals? What are some of those questions they should be asking? That's going to help them understand, hey, is this the kind of person team or deal that I want to be investing in?
Ryan McKenna 23:19
Yeah, I think a lot of it comes down. I mean, right off the bat, their communication, I mean, if it's someone that you feel like is going to be very transparent, be available, I mean, because a lot of times you get some of these bigger groups, it's like, you know, it takes three days to get an answer. And that could be a reason that someone might not want to move forward, because they feel like they're, you know, small fish in a big pond, or that's just going to be the way that the deal is going to be managed. So, but I like getting to, you know, to hear a story or two about like, hey, when have you had some struggles? And what did you guys do? You know, like, and, you know, was there a period of time where things didn't go as planned? And how did you respond to the investors, you know, obviously, you hear about all the good stories, but knowing, you know, some of the, some of the bumps they've had, and how they dealt with it, and what the impact was, and how, you know, investors, you know, were communicated to when that happened, you know, I think, doing as much due diligence as you can. Google's a great place, but also I would ask, you know, if you could talk to an investor to who have invested with them in the past, just a yet, you know, a different perspective from someone else who has invested with them, and maybe ask them, Why did you invest with so and so, you know, what, what was appealing to them? Or how did you come across, you know, this, this, this operating team? And, you know, and then, you know, looking at if you want to dive deeper into, you know, conservative underwriting? Well, I mean, that could mean different things to different people. So, kind of walking through that with with them as far as how they're, you know, setting certain parameters in the deal because there's a lot of different levers that can be pulled to kind of make the numbers look the way you want to and so kind of understanding peeling back the onion a little bit there and have them kind of show you like, Hey, here's what the current, you know, rent is in the area, and here's where we're going. And we want to be, you know, conservative. And so kind of having them walk you through maybe a few, you know, situations where they've taken, you know what the market is, and then, you know, push it back a little bit just so that there's not, you know, a scenario where everything has to go 100%, right for the deal to perform in the way that they're laying it out. Because you know, that there's gonna be times where things are just not going to go as planned, you need to have a backstop, you need to have reserves. And so I would have them walk you through examples, if they already aren't laying that out for the investor, because most investors might not know some of the questions to ask and how deep to go. But But again, it's I think, track record speaks for itself sometimes, too. I mean, if you've got someone that performed very well, and they've been in this business a while, you know, that that to me, is basically a really good sign. And then you can obviously go deeper as you, you know, get more comfortable with with them. And that particular dealer might be looking at,
Steven Pesavento 26:02
yeah, yeah, absolutely. That's awesome, really, really powerful stuff. It's the power of the question. At the end of the day, not being afraid to ask, there is no dumb question, especially when you're a passive investor, it at the end of the day, you need to get comfortable and make sure that you're looking at things from the right perspective. And so when people are just getting started, they've got a ton of questions as they start getting to know a little bit more about investing, I'm sure their questions change. What is it that you think really differentiates the people who succeed at passive investing? And who are consistently showing up and investing in these kind of deals and, and investing in the right deals? What would be the advice that you think one of those type of investors might give to somebody who's kind of up and coming in on their way there?
Ryan McKenna 26:50
Yeah, what I would say, and what I see is that I wouldn't get again, hung up on the numbers, you know, if you're kind of trying to analyze the all the deals I see, generally, they're within a percent or two, and these are all projections. So I think it comes down to a diversified strategy. So most investors that I see, they're looking at this long term, they're going to invest in multiple deals, so that when a deal comes up in Phoenix, or in Charlotte, I mean, it's, they they already know that there, they want to have, you know, diversification not only from a geographic perspective, but also from a sponsor perspective. So they like to invest with different sponsors, and then also a real estate asset class. I mean, primarily, I see multifamily. But I think, you know, if you're looking at cash flow in real estate, that has, you know, good upside, great tax benefits, it's a strategy long term. So I see most investors invest in multiple deals, so they don't get hung up on one particular deal that's going to make or break them. And so you don't put all your eggs in one basket, so to speak, I think that limits the risk, and also provides you a lot more opportunity, because you might be able to invest in a lot of really strong markets that, you know, I think are going to provide you good cash flow, but a good, you know, good downside risk mitigation, because, you know, different markets can perform at different stages in the cycle out there in the economy. And so those those investors, and they tend to know and get that they're a passive investor, and they'll ask questions, but they're not, they're not hung up on you, oh, there's one report, and it looks like occupancies down all over, they get that this is a long term investment, they know, kind of that it's, you know, it's gonna take time, and I think they understand that. So they don't stress about it, they don't worry about it, they focus in on what they do best, which going back to, you know, maybe they're running a business or they're in sales are doing really well. And they just know and believe and trust, that what they've invested in over time is going to do well for them. And, and so that's kind of that long term mindset, because these deals aren't set up for you to get rich overnight. I mean, it's a three to five year strategy of putting your capital to work. And you go through the value add process, so around, say, year two, or three, where it is where it starts to get fun, because you start to have some capital events, maybe you have a, you know, refinance, or maybe you you exit a deal early, and then that's when it gets fun, because you start to have a lot more capital coming in on top of the cash flow. So you got to go into it with that mindset. It's not going to be this, oh, I picked this great deal. And, you know, I'm waiting for me to myself to double my money, you know, overnight, it's, it's, it's a long term approach, you got to look at, you know, if you get in multiple deals, you have a blended return across your portfolio. And I think that's just kind of a sound way to look at it. And it's usually, you know, a portion of someone's overall assets too, so it's not like they're going 100% You know, into real estate or 100% in the stock market. It's, it's, it's a diversified portfolio approach.
Steven Pesavento 29:42
Yeah. Yeah, that's such such such good advice. Long term view is so key. It's not a get rich fast scheme. It's a great get rich slow, so you got to have some patience and be ready to ride the ride. So we made it to the growth rapid fire round where the questions are quick, but your answers don't need to be. So tell us Ryan success. How would you define success and what is success to you?
Ryan McKenna 30:03
Success to me is all about what I would call time freedom, being able to, you know, do what you want, when you want with whomever you want. And I feel like it's not a monetary thing, I mean, you can use money to get there to give yourself that ability, but it's being able to do the things with people I care most about, and to be able to spend that time with my family. And, and just really, you know, wake up every day with a positive attitude and just go out there work hard and always kind of try to strive and create and build something new because I like, you know, having something to shoot for. And when you achieve your goals, you set some new ones. And so, but at the end of the day, I'm not going to let any of that get in the way of my family and my life and you only live once. So want to make the most of every day you got.
Steven Pesavento 30:50
Yeah, amen to that. And habits, what are some of the Keystone Habits, the things that you do on a daily or weekly basis that have led to some of the success.
Ryan McKenna 30:58
So daily, I would say I've got a gratitude journal that I write three things in each morning that I'm very grateful for, that's a good way to reflect on all the things in my life that I feel, I'm just lucky to have. And it also kind of puts me in a positive mindset to start the day. And I like to also then just jump right into maybe some of the more challenging things in the morning, just to get them off my plate, and then usually makes for an easier going day, once you kind of tackle the hardest things when your mind is fresh. And for me, that's typically early in the morning.
Steven Pesavento 31:31
I love that. What's the book that's impacted your life the most, or one you're excited about right now.
Ryan McKenna 31:35
So the one that obviously is impacted my life the most is Yeah, Rich Dad, Poor Dad, I think probably for most in this space, it's, it's been one of those books, that's been the blueprint, you know, I actually been going over it with my daughter and kind of just pulling out little pieces of the book, just to kind of, you know, slowly start sharing, you know, just things that were impacted me and just trying to kind of teach some just important lessons about you know, managing your finances and, and so that that book is still one that's really been, you know, key in my life. Another one that I've read recently, several times, is essentialism, the disciplined pursuit of doing less, in an environment where you've got a lot on your plate, and you're doing a lot of different things. It's, it's how do you prioritize you know, the highest value and focus in on that and let the other things that are just, you know, immaterial go. And so a lot of it is round learning to say no, and I that's a good book for anyone, I think that's taking on a lot trying to do big things. But you got limited time, and you got to pick and choose what's most important.
Steven Pesavento 32:38
It's such a such a good book, highly recommend that one as well. So inspiration, what impact have mentors made on your life and how you look at going out and finding great mentors.
Ryan McKenna 32:48
So mentors been everything to me, I mean, that's how I, I kind of learned about what I wanted to do. I mean, obviously, you started with my parents, and just what they did in the business world. But then, as I mentioned, in baseball, my teammates father, he became my first mentor in the multifamily space. And I went and invested my first five deals with them too. And then so I got to learn along the way. And then I sought out other mentors who've helped me not only in real estate, but just in business and in life. And I think, I think it's everything, when you can learn from someone who's already done it, you can shorten that learning curve. And I love you know, being able to help others because I wouldn't be where I am today without other people that took time out of their life to to help me and to show me and so I'm all about giving back and helping others because it's fun when you can do it with people that are passionate, just like you are and that have, you know, similar mindset, and it makes it more fun than just kind of going and doing things off on your own.
Steven Pesavento 33:46
It's, it's so true. It's so very true. So closing on this Ryan purpose, what drives you to live your best life every day,
Ryan McKenna 33:54
it's, it's my why and it goes back to your lifestyle and being able to do what I want when I want with my family. And just like I said, you only get one life and you know, you miss 100% of the shots you don't take and so I'm a big believer in going and taking calculated risks. And just it really gets me you know, excited and fulfilled when I can go through and have a really strong day and spend time with with those that I love most. And, you know, that's that's just the life I'm, you know, I've gotten a second chance that you know, just what happened in baseball, so I don't take anything for granted anymore. And it sometimes can be just the simple things that are that are most important to you.
Steven Pesavento 34:33
I love that. Well, this has been awesome, Ryan, I know we could get into so many deep topics on all of your expertise, and maybe we will on another show. But where can people find out more about you or get in touch
Ryan McKenna 34:43
so you can go to mechanic capital.com It's our website and from there, you can reach out to me. We're on all the social sites as well Facebook, Twitter, Instagram, LinkedIn. So feel free to connect with me there. I'd love to chat and talk some real estate
Steven Pesavento 35:00
Absolutely. Well, thank you so much. And I'll leave everyone the same way I leave you guys every single show is with a reminder to live a life worth inspiring others and you can do so today by taking action on this by going out and applying some of these lessons. If you're looking to go out on the passive investing route, definitely take that leap. If you're looking to go down another route, take some action and take what Ryan was able to share with us and actually go and apply it. So thank you guys so much. And we'll see you guys next time.
Ryan McKenna 35:27
Thank you, Steven, appreciate you having me on your show.
Steven Pesavento 35:35
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