E34: The Path to Financial Freedom with Bobby Larsen

Cash Flow Fight Club

Financial freedom leads to lifestyle freedom. Bobby Larsen is using the power of real estate and multifamily apartment investing to build wealth, create cash flow and ultimately create financial freedom for himself, his family and his investors.

Most investors only dream of the kinds of returns Bobby Larsen has achieved in his 15+ year multifamily career. In this latest episode, this industry titan is spilling all his secrets to success.

Learn how Bobby navigated the financial crisis with capital protection at the forefront. Discover his strategies for maximizing returns in any market. And get an insider's look at how he launched Vanamor Investments to generate a jaw-dropping 57% average ROI!

Here are some power takeaways from today’s conversation:

00:00

02:39 - Bobby’s career background

07:20 - The benefits of partnerships

13:00 - The tortoise approach to maximizing returns

16:20 - Why Bobby remains bullish on Oregon's growth potential

24:15 - Embracing adaptability for real estate success

26:38 - The challenges of property management

29:45 - Bobby’s real estate outlook

33:11 - Multifamily's long-term appreciation potential

Episode Highlights:

[12:05] Bobby’s Investment Philosophy

Bobby cites Warren Buffett's two famous rules of investing that have strongly influenced his approach:

1. Don't lose money. This rule shapes Bobby's focus on capital protection over maximizing returns, taking a conservative approach to underwriting deals in order to withstand downturns without losing investor capital.
2. Don't forget rule number one. This reinforces the importance of avoiding losses at all costs. Bobby applies meticulous risk analysis and debt management strategies to his properties to ensure they can weather disruptions like recessions.

[13:00] The Tortoise Approach: Slow and Steady Wins the Race

Bobby takes what he calls the "tortoise approach" to maximizing returns - going at a steady, conservative pace focused on long-term stability over quick gains. He underwrites deals to withstand potential downturns through a 7-10 year hold period. While others chase higher returns through riskier strategies, Bobby believes his measured tactics will generate strong, reliable performance over an entire real estate cycle. Just as the tortoise eventually surpasses the hare, Bobby is content to achieve steady growth in his portfolio without jeopardizing capital.

[24:15] The Power of Adaptability

There are many facets involved in running a business from an operational perspective like administration, asset management, and more. Bobby emphasizes the need for an adaptable mindset as an entrepreneur - being willing to take on different roles and responsibilities quickly as needs change. He stresses the importance of flexibility to transition between functions smoothly. This trait is especially crucial in the early days of a startup when learning on the job.

[29:45] Where the Real Estate Cycle is Headed

Bobby shares his outlook that the market is closer to bottoming out than peaking after recent disruption from rate hikes. With construction slowing from inflation and cap rates improving, he feels positioning is strong for a new upcycle over the next 7-10 years. However, Bobby retains a long-term view, aiming to navigate short-term fluctuations and optimize returns through the full real estate cycle.

Resources Mentioned:

Vanamor Investments