Get to Know Nexus' Director Of Brand Operations Mick Lefort.
Nexus Property Management® prides itself on providing an essential service while adding value to owners’ assets, but underlying so many of our decisions and policies is an effort to educate and share what we’ve learned along the way of becoming The Property Management Authority in New England. Where we find we’ve had success with our clients, the vast majority of Americans still underappreciate the earnings potential that real estate offers when managed correctly and efficiently. In time, we will help to rewrite the norms of investment as more and more people learn how companies like Nexus minimize risk and maximize reward, but for now we will share a Nex-cess story that speaks to the mistakes in our society as a whole.
THE AMERICAN DREAM:
Mick Lefort is a perfect example of what an American kid is supposed to grow up to be. He excelled in school in the classroom and on the ballfield, received full academic and athletic scholarships, and after a couple years of playing baseball professionally, he graduated from the University of Rhode Island and began a successful career as a teacher. He entered the profession with a first year salary of $36,000, which is peanuts compared to most Bachelor Degree level jobs, but as a single man living in an apartment and having no college debt, Mick managed to save about $8,000 each of his first couple years out of school. As a public employee, he was starting to pay into a pension (to compensate for low entry salary) so there was no real need to learn more about investing. He’d grown up the way America tells you to and he’d managed to save a couple bucks along the way. But then he needed to buy a car; and eventually met his wife and in time bought a family house on an acre of land in a town with an excellent school system. This is the blueprint. This is the way we do it in this country. Mick was working hard and he was building a life for himself.
But there’s a major problem with this story. Yes, Mick appears to be living a successful American life, but only through the lens of the present. He’s making money that allows him to live a happy life, with a lovely wife and children, but his money isn’t working for him...because even for a guy who excelled in the classroom, no one taught him. He’s relying on a pension that has never been less reliable. The story we sell kids and adults in this country is incomplete...at best we get a CNN or FoxNews report about how people aren’t saving enough for their futures, but little applicable instruction on how to do it better other than saving more: enter Nexus Property Management®.
When Mick first came to Nexus it was as a teacher looking to make a couple extra bucks in the summer months as an employee. Along the way, he learned what we hope so many more will learn sooner than later: Real Estate Investment with a reputable property manager is the most reliable way to make your money work for you.
Due to his being so far down the typical path, it took Mick about three full years to reorganize and build up enough equity to buy his first building, a four unit apartment in West Warwick, Rhode Island. Through its NVest®️ program, Nexus found this apartment, analyzed its earnings potential, represented Mick through the buying and closing process, updated all four units, and then filled them with tenants, all of whom are still there. If you talk to people in real estate, it is nice if you can break even in your first year of ownership, if all goes well. With Nexus in his corner, Mick will take home about $5,000 after a year that included replacing all major appliances, a flooded basement, and the other headaches that can come with home ownership (that is--when you don’t have someone there to manage your property).
“For someone like me, who’s had the good fortune of never really having debt, outside of the mortgage on my home, the idea of investing $50,000 into real estate was a monumental hurdle. Being conservative had kept me comfortable, but Nexus showed me what I was missing and educated me on the steps and scaffolds that they created to limit risk. If someone like me was able to take the plunge, anyone should be able to...and I hope they do.”
“Now I’m waiting for equity to build again.” Just like previous Nex-cess feature Jesse Mayo, Mick is all in and hoping to buy his second building as soon as equity builds again. “As Nexus explained to me, it’ll take a year or two more before I can take another $50,000 out of this apartment. At that time, I’ll look to buy an additional property. Then we’ll go through the same process and if all goes as expected, it’ll take less time to buy a third because now I’ll have two properties building equity, not to mention the income that they bring with them.”
Mick’s experience shouldn’t be a Nex-cess story; it should be the norm. The $50,000 he references is with the expectation of paying 20% up front, but had he bought an apartment building before he bought his family home, he’d only have needed 3% as a first time home buyer. This is the way we should all be buying homes and getting our money to work for us. The barrier to entry is not money, it is knowledge. Nexus’ model is all about education and it is our hope that we can continue to reach more and more people like Mick, but hopefully earlier and earlier.
On February 9, 2020, Mick was able to begin the process of refinancing his first property. It’d taken less than a year to accrue enough equity to start looking for property number two!!!
Gregory Rice is the Vice President of franchise sales for Nexus Property Management®.
Nexus Property Management® is a National Property Management Franchise that manages all types of rental property from single family homes or condos to large apartment buildings and complexes.
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