Nick’s Real Estate Masterclass by Nick Huber

Who I made the Masterclass for…
I’ll be clear → anyone can benefit from these lessons. Everything in this course will help you become more informed, prepared, and confident to start or scale your real estate career. But there are 4 types of people it can help most…

1. Beginners ready to turn Pro
You’ve done your research. You’ve been devouring information online. You’re starting to make connections in the real estate world. You’re asking the right questions. You can see your future in real estate — you just want to make sure you’re on the right path. Well, you’ve come to the right place! I made this course to share a clear and highly detailed picture of how to build a career in real estate — with real-life examples. I’ll give you an unfiltered look at what I did and how I did it — what works, and what doesn’t.

2. People with resources who want to use them wisely
These are people who are ready to make real estate a part of their future, but they’re not sure which way to go. They want to look at it from 1000 feet above and analyze asset classes. They are able to pick and choose their path as they either buy real estate on their own or invest.

3. Passive Investors who want to invest with confidence
These are people who earn enough money that they are looking to passively invest. They can’t move their focus away from the main money-maker, but they want to learn how to invest in real estate through sponsors. They want to partner with operators who are doing deals, analyze the deal with confidence, figure out what questions to ask, figure out where the risk is, and understand how all this works.

4. Investors and Operators who want to level up
The most important group, the one I am most aligned with and is exactly who I am. You are the person ready to buy an asset, or you own property or are ready to make real estate a big part of your work and wealth. You are ready to level up and raise outside capital, build a management company, a real estate private equity firm, and expand to make real estate a tremendous part of your life and career.

What this course is not

This is not a way to get started in real estate today with no money. It is not a way to get rich quick in real estate. It’s not a way to go from 0 to 1 and create new wealth through real estate.

This is not a guide on operating specific asset classes of real estate. This is not a complete, in-depth guide on any one aspect of real estate.

While it provides the frameworks, this is not a guide on putting together your first deal with other people’s money and jumping in head first.

Real Estate doesn’t have to be a country club

Real estate is so much a country club, really a “who’s who” business that if you’re not born into it, there are very few ways to understand it. The people who are in this business don’t just go out and share a lot. I have an abundance mindset and believe the more I help people, the more will come back to me. The more people I meet the more my life can benefit.

You look at real estate in America, most of the big real estate families, this is in their blood, they learn this stuff around the kitchen table. They follow it around with their parents and their trucks to these properties. They were on this trajectory of real estate very early.

I was not from one of those families. I started service business and made some money. Then I needed to find something to do with that money. So I spent a ton of time learning all this on my own. I didn’t know the language that I needed to speak. When I talked to bankers I didn’t know the terms that I needed to be aware of. When I discussed my properties with outside investors I didn’t know how to mitigate and manage the risk.

If you don’t have family members or you’re not in the inside club of people who know the ins and outs of Real Estate and have done it for their careers, it’s not very approachable. This masterclass is built for a person without those resources as a way for somebody on the “outside” to make real estate a viable career and investment.

Get a rock-solid foundation of real estate essentials
see a full course syllabus at the bottom of the page!

Real Estate Valuation

• Smell Tests, Speculation & Trends
• Underwriting — Determining What a Property is Worth to You
• Aspects of a Solid Cash Flow Model
• Monthly Cash Flow Model
• A Detailed Analysis of My Model
• How to Find a Model Specific to your Industry
• Deal Overview
• Due Diligence

Real Estate Fundamentals

• How Do Real Estate Investors Get Really Wealthy?
• Two Almighty Definitions: NOI and Cap Rate
• Overview of My Portfolio
• How Appreciation Works
• Ways to Force Appreciation
• The Roll-up Strategy
• Cap Rate Compression
• A Key Operational Advantage (and The Holy Grail)
• How to Use Time as the Ultimate Economic Tailwind

Leverage

• How Leverage Amplifies Gains and Losses
• Visualizing Leverage in Real Estate
• Refis and Recaps
• Debt Yield & Debt Constant
• Debt Constant: Overview, Worksheet, Quiz, Review
• Debt Yield: Overview, Table, Quiz, Review
• Glossary of Key Terms
• Alternative Financing Method: Securities Backed Line of Credit

Tax Advantages of Real Estate

• Depreciation & Bonus Depreciation
• Recapture & Capital Gains
• Interest Expense as a Deduction
• Income vs. Capital Gains
• QOZ — Qualified Opportunity Zone
• Cost Segmentation Study Examples
• IRS Depreciation FAQ
• Basis & the 1031 Exchange
• Additional Tax Loopholes

Risk

• How to Assess & Manage Risk
• How to Lose a Lot of Money Really Fast
• The Cyclical Nature of Real Estate
• How to Hedge Your Risk
• Stress Tests
• Model Walkthrough — Variables Affecting Cash on Cash, Debt Yield, and Debt Constant
• Operations, Emotions & CAPEX

Deal Structures

• How Private Equity Works
• Prefs, Promotes & Waterfalls
• How to Think about Fees
• How Should You Structure Your Deal?
• PPM and Executive Summaries
• The Straight Split Structure
• Vetting LPs and Managing Expectations
• Re-capitalizing a Deal
• Multiple Examples of Case-Specific Executive Summaries

Nick’s Real Estate Masterclass
Course 148 Lessons
A deep dive into real estate. How deals are measured, structured, financed and operated. The risk factors, how to gain a competitive advantage, and more.

How the course helps you think about leverage in Real Estate [preview]
As you go through the course, you’ll think, “All of this sounds pretty awesome so far! Buy property, increase NOI or roll-up, create value — it’s a great system. Let’s go figure out our operational niche and get rich!”

Next I’ll teach you about the gasoline we can pour on the fire to multiply our returns and crank up our cash flow and put our appreciation on steroids. I’m talking about a little something called leverage.

It is debt. It is borrowed money from a bank. A loan. Mortgage. A note. It is called a few different things.

Leverage amplifies everything. Every real estate investor I know uses it and loves it and lives or dies by it. If you’re new to this thing, prepare to have your mind blown by its power.

First of all, this is a double-edged sword. I’m about to tell you how it works FOR investors. It can just as quickly cripple projects and bankrupt investors. We’ll talk more about the downside in the RISKS section.

Let’s dive in and use one of my previous deals to paint the picture.

We did a deal in Newfield for $2.175MM. We bought it at an “in-place” cap rate of 7.31% and a “pro forma” cap rate of 13.46%. We only needed to put up $543k of our cash to buy it. A local bank that does commercial lending financed the rest.

Huge question that informs everything else → how much of the purchase price will the bank finance?

It depends on the asset class, the bank, and the strength of the borrowers/operators. If you are good at what you do, have a lot of cash, and have experience cranking out the numbers you are projecting, you can get debt at a reasonable price.

In the masterclass I go much much deeper—over 10 lessons—on the ways you can use leverage to scale up your portfolio… as long as you pay attention to the ADJUSTED RISK of the project.

EVERYTHING INSIDE
With over 90,000 words and 2+ hours of video, this course contains everything I’ve learned on the front lines of real estate the past decade. Want a peek? Click on any of the lessons with the blue “Preview” button to see what you’ll be getting!

Introduction
How do real estate investors get really wealthy?

• Who is this course for?
• How do real estate investors get really wealthy?
• The two almighty definitions: NOI and Cap rates
• Cap rates and NOI – a quiz
• Quiz Review
• Nick’s Journey
• Nick’s Portfolio (Recorded December 2021)
• Nick’s Portfolio (Recorded March 2022)
• A note

Feedback and Comments

• Before you dive in

How to create a lot of money out of thin air

• The wealthiest guy I know
• Trampolines, gyms and cold hard cash

The skills you need to win
There are certain things that folks who do real estate deals need to be good at. If you’re not interested in my subjective opinion, skip this section.

This section is for the folks who plan to buy and manage property and structure deals.

• Sales
• Communication and Writing
• Resourcefulness
• Likability, Trust and Emotional Intelligence

Types of real estate

• A list of niche real estate asset classes and key terms

The mindset of a successful investor

The rest of this document is the “how”. This is the “why”. I get a bit philosophical here, and if this isn’t your thing feel free to skip.

But I feel strongly that mindset is 90% of the game. And if you can master it you will win. So here goes.

• The way to think about the critical aspects of business

How to learn any asset class very quickly

Here are three ways you can begin to learn asset classes and find your niche.

• Find the professionals – talk to them, work for them or compete with them

How real estate is valued

• Smell Tests, speculation and trends
• Underwriting – how to figure out what a property is worth to you
• Aspects of a good cash flow model
• Deal Overview
• Monthly Cash Flow Model
• A walk through of my model
• Where do you get a model specific to your industry?
• Due Diligence
• Due Diligence List

Appreciation

How does property get more valuable? How do we make it more valuable? What factors influence appreciation?

• How appreciation works
• The ways to force appreciation
  An operational advantage and the holy grail
• The roll-up strategy and cap rate compression
• Time – the ultimate tailwind

Leverage

• Leverage Basics
• Key definitions
• The great amplifier
• Visualizing Leverage in Real Estate w/ Nick Huber
• Refinance and Recaps
• Deal Breakdown: My $2MM cash-out-refi
• Debt Constant
• Debt Constant Worksheet
• Debt Constant Quiz Review
• Debt Yield
• Debt Constant Table
• Debt Constant / Debt Yield discussion
• Debt Constant / Debt Yield Quiz
• Quiz Review
• Alternative financing method: securities backed line of credit

Test your knowledge – managing risk

• Model Walkthrough – Stress Tests
• Stress Tests – Excel.xlsx
• Managing Risk – Quiz
• Quiz Review

Update

• What do you think so far?

The Tax Advantages of Real Estate

In this section we’ll go over the tax treatment of real estate and how we can use it to our advantage.

• Depreciation / Bonus Depreciation
• Basis, Bonus Depreciation, Recapture, Capital Gains
• Interest Expense as a Deduction
• Real Estate Professional Status
• 1031 Exchange
• Step-up In Basis
• Income vs. Capital Gains
• QOZ – Qualified Opportunity Zone
• Conservation Easements
• Additional Loopholes
• Basis and Depreciation Quiz
• Recapture and Capital Gains Quiz
• IRS Publication 946 – Depreciation
• IRS Depreciation FAQ
• Cost Seg Study Example – Self Storage Facility
• Cost Seg Study Example – Vacation / rental property

The Risks of Real Estate

• How to lose a lot of money really fast
• Everything is cyclical
• Operations, Emotions and CAPEX
• How to hedge your risk

How do I get started?

• What you probably don’t want to hear
• Quality over quantity
• The golden rule of real estate
• How much cash do I need and what kind of returns can I expect?
• Scale or stay small?
• Beta vs. Alpha
• My framework for spotting real estate opportunities
• Real estate opportunities I love right now

Your real estate team

• The Banker, Attorney, CPA, Contractor and Insurance Agent
• The hardest relationship to build – contractors and service providers

The dynamics of buying a property

• Are you a closer or a joker?
• The off-market cold call
• Looking at deals from Brokers
• The offer
• DEAL OVERVIEW: Gloversville – when the buyer has all the leverage
• LOI – GLOVERSVILLE SIDE BY SIDE (4).pdf
• PSA, Real Estate Attorney, Due Diligence Period
• Due Diligence Request List.pdf

Raising OPM (other people’s money)

• A day in the life – trying to finish raising for a deal
• Raising Other People’s Money
• Sources of Outside Capital
• When should I get LPs? Should I raise money on my very first deal?
• Selling Limited Partners on your Deal
• Communicating and Reporting
• Company Overview Deck
• Preferred Equity Deck Example
• 2020 Year in Review – Bolt Storage
• 2021 Year in Review, Bolt Storage

How to dominate Twitter

• How I raised $5MM in capital on Twitter
• How to go from 95 followers to 95,000 followers in 10 months
• The bad news

Deal Structures

• The real estate private equity terminology you need to know
• How real estate private equity works
• Terms
• Prefs, Promotes, Waterfalls
• Fees
• How to think about fees
• How should you structure your deal?
• PPM and Executive Summaries
• Elmira NY Investment Prospectus
• Accredited Investors
• The straight split structure
• My process with LPs
• Vetting LPs and Managing Expectations
• Re-capitalizing a Deal
• Ohio Portfolio Executive Summary.pdf
• FINAL LP Expected Case Akron Bowling Green Wolf.xlsx
• Bolt Track Record.xlsx
• Peru, IN Storage Portfolio Executive Summary.pdf
• Georgia Portfolio Executive Summary.pdf
• How to think about building a sustainable private equity company
• How my real estate private equity and management company work together

How to scale your portfolio

• The Method
• Building your team
• Finding off-market deals
• Deal-flow from brokers
• The ability to close “messy deals”

Investing with others as a Limited Partner

Nick looks at a multi-family investment deal in the Phoenix market and gives his thoughts from the perspective of a limited partner.

He also analyzes his own investor deck and talks about questions and assumptions that he would have if he were coming at it from the other angle.

What questions should I ask?

• New York Self Storage Investor Deck
• New York Self Storage – Nick’s Thoughts

My biggest mistakes in real estate

• New development, zoning and prepayment penalties

Nick’s Deal Breakdowns and Additional Resources

• My first deal and how we made $2MM through a cash-out refinance
• Pittsburgh PA Deal
• Shippenville PA Deal
• Closing on Erie / Pittsburg (vlog style)
• Deal Breakdown – Gloversville (2021 Update)
• RE #73: Nick Huber – Self Storage & Sweaty Businesses
• RE #112: Nick Huber – Self Storage, Twitter, & Sweat (Part 2)
• Profitable Real Estate Investing I Nick Huber l Pomp Podcast #453
• Get to know Nick – and the non-sexy areas of entrepreneurship
• Nick’s Booklist
• How profitable is a storage facility? Nick’s 2021 Deal Breakdown
• Nick’s Talk at Re-Convene
• Deal Breakdown – Tompkins County NY

The case for buy-and-hold real estate

• Parting thoughts

Don’t stop here, get all the details and full access

You want to see every part of the course. You want to gather information — due diligence. I respect that.

But think about how much faster you’ll understand and close—or run from—deals once you’ve learned from a decade of my process and insider deals.

Everything is first class, high-value content I spent hundreds of hours preparing so you can save time and thousands of dollars. I hope to see you in there!

Nick’s Real Estate Masterclass by Nick Huber, what is it included (Content proof: Watch here!)

• How to create a lot of money out of thin air
• The skills you need to win
• Types of real estate
• The mindset of a successful investor
• How to learn any asset class very quickly
• How real estate is valued
• Appreciation
• Leverage
• Test your knowledge – managing risk
• Update
• The Tax Advantages of Real Estate
• The Risks of Real Estate
• How do I get started
• Your real estate team
• The dynamics of buying a property
• Raising OPM (other people’s money)
• How to dominate Twitter
• Deal Structures
• How to scale your portfolio
• Investing with others as a Limited Partner
• My biggest mistakes in real estate
• Nick’s Deal Breakdowns and Additional Resources
• The case for buy-and-hold real estate