Episode #200: It's a Family Business with Jonathan Barr

Passive Income Through Multifamily Real Estate

Owning real estate with family members can be a great way to benefit from family resources and trust, but it can also present its challenges! Today’s guest believes that, to be successful in a family-owned real estate business, it’s all about setting boundaries and having clear expectations. Jonathan Barr is a Principal and MultiFamily Syndicator at JB2 Investments. He started his real estate career just after the last global recession in 2009. He has since been involved in the acquisitions of over 400 residential flips in the competitive Los Angeles market. Along with his brother, Jeffrey, Jonathan started JB2 Investments and began investing in value add projects, 70-unit plus properties, and B to C-class complexes in B emerging neighborhoods. JB2 currently has properties in Kansas City and the OKC metro area and is looking to expand in higher cashflow markets. Tune in to hear his advice for keeping it in the family, as well as his perspectives on scaling and keeping property management third party!

Key Points From This Episode:

• Jonathan shares a bit more about himself and how real estate is a family business.
• Find out why Jonathan implements a “hold forever” investment strategy.
• His perspective on scaling versus doing the work he wants to do, not what he has to do.
• What it means when Jonathan says he looks for operational or expense reduction plays.
• The decision to focus on limited markets and how it eliminates assumptions.
• Growing up in a real estate family and starting a company with his brother; it’s about trust.
• Jonathan’s advice for keeping it in the family: set boundaries and clear expectations.
• Even approaching the 1,000-unit mark, Jonathan explains why he will probably always hire third-party property management.
• Hear how he found a property manager and built that relationship.
• The real estate investing tool Jonathan can’t do without: ActiveCampaign.
• What he learned from his biggest mistake: have due diligence lists for your due diligence lists!
• How creating more systems will help Jonathan grow his life to the next level.

Tweetables:

“We don’t want to have a billion-dollar company. We [would] rather be the shop that does three or four deals a year and doesn’t have a bunch of staff and overhead and people we need to manage, just because we value balance in life.” — @JB2Investments [0:06:42]

“We’re in a super competitive market right now and you need every advantage that you can have.” — @JB2Investments [0:10:54]

“Working with family, you can trust them 100 percent. You can give them access to bank accounts. You don’t have to worry about maybe a partner that you’ve only known for a few years and, in the back of your mind, you have to question some things.” — @JB2Investments [0:13:02]

Links Mentioned in Today’s Episode:

Jonathan Barr on LinkedIn

Jonathan Barr on Twitter

Jonathan Barr on BiggerPockets

JB2 Investments
[e-mail]
Limitless Estates
The Tax Stack Strategy
Garzella Group