MB 079: How I Lost $2M in Multifamily and Lessons Learned – With Damion Lupo

One of the big real estate rookie mistakes is to turn into a Walmart shopper as you build your team. It is easy to see a coach, lawyer, or property manager as an expense and choose to go with someone less experienced—or even elect to do the job yourself. But today’s guest can attest to the fact that a quality team is an investment that can save you millions in the long run.

Damion Lupo is a serial entrepreneur with a ‘think big’ mentality. In the last 25 years, he’s founded more than 30 companies in a number of industries including insurance, precious metals, venture capital, financial consulting and real estate. Damion is also a black belt in three different disciplines and the architect of Yokido, his very own martial art.

Damion’s personal philosophy centers around self-responsibility and a conviction that candor, growth and a big vision provide the only path to freedom. His commitment to these values led to the creation of Total Control Financial, a FinTech that seeks to reinvent financial control and empower Main Street with the tools of financial transformation. Today Damion discusses his first multifamily deal, a 119-unit property in Memphis that resulted in a $2M loss, and the lessons he learned from the experience. He shares the transformational power of failure, the importance of building a team you can trust, and the extraordinary value of a mentor. Learn how Damion’s shift from consumer to contributor had a revolutionary impact on his life.

Key Takeaways

 [4:03] How Damion got into real estate

• ‘Tripped’ into it
• Read Rich Dad, Poor Dad
• Attended seminar for additional resources
• Attracted to big-time cashflow potential
• Quit insurance to pursue real estate

[5:44] Damion’s first steps in real estate

• Bought house with Visa card
• Planned to sell on payments after remodel
• Strategies in place to pursue more properties, but wasn’t taking action
• Failure to return phone calls almost led to bankruptcy

[7:18] How Damion was able to avoid bankruptcy

• Gained momentum by purchasing eight houses in month
• Purchased another 50 houses over next year (AZ, AL)

 [7:58] How Damion got stretched too thin early in his real estate career

• Despite success, decided to try something different
• Started high-end rehabs all over country
• No team in place to help
• Lost track of projects
• Not paying attention to numbers
• Let ego take over (want more and more)

[9:35] The lessons Damion learned from his first multifamily deal (119-unit in Memphis)

• If you can’t be there, send team member with ‘massive integrity’
• Listen to the numbers, get out if necessary
• Stress test your team before going all-in
• Don’t delegate too much, too soon

[14:31] What Damion could have done differently on the Memphis deal

• Choose experienced partner
• Move to site or have partner on-site
• Invest in an experienced team, especially project manager
• Leverage experience of mentors (make new mistakes)

[19:50] The value of a coach/ mentor

• Damion lost $5M over two years after firing coach
• Powerful to have people ‘call you on your shit’
• Don’t let ego get in the way of listening
• Helps you be methodical (rather than emotional)
• Offers perspective, intuition to pass on bad deals

[24:48] Damion’s advice around leading a team

• Clarify expectations up front
• Have team share back what was heard in own words

[25:52] How Damion reinvented himself after hitting rock bottom

• Equated net worth with self-worth (identity tied to money)
• Learned that impact must be driver, wealth as side effect
• Spent two years making shift from consumer to contributor
• Teaching (martial arts, financial literacy) allows him to give, be present
• People with contributing mentality happier, more successful
• Can’t think your way to your Om, must do

[32:45] How dark times set you up for success and fulfillment

• Must experience trauma to learn you are not in control
• Recognize difference between success and fulfillment
• Damion finds fulfillment in seeing people get out of ‘financial bondage’

Connect with Damion Lupo

DamionLupo.com

Damion’s Books

Reinvented Life Workbook

Resources

Rich Dad, Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not! by Robert T. Kiyosaki

The 4-Hour Workweek: Escape 9-5, Live Anywhere, and Join the New Rich by Tim Ferriss

Financial Freedom Summit Wait List

Free eBook: The Secret to Raising Money to Buy Your First Apartment Building

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