Explore Enis Shehu's journey in the Real Estate Industry

Firstly , thank you. I wasn’t expecting the interview, but I’m super excited to actually sit down with you. I have been the founder of Whiteacre Properties since January 2015 and it has been a full time journey into real estate investing since that day.

Probably not that different from yours as we grew up in the same country. So I’m Albanian, moved to Italy at 14 years old; 1997 was not the best year for Albanians. So, I moved to Italy as a high school student, went to university and then I moved to the United States after that, always kind of looking for a better future. That was the whole idea. I loved Italy, had a really good time there. I still have family and friends there. Then, I came here for school and the rest is history because I got married and have children. Then, I started the business and this has been my new life. 

Actually, I went to law school in the city of Padova and then transferred here for Business because you couldn’t really start law school here until you graduated college. So Endicott College, up in Beverly, Massachusetts is where I went to, which was a great school, beautiful. Manchester by the Sea is right by the water.

In Dunkin Donuts. I think that was in the city. I was there because we made a stop there as every Albanian in the area. Coming from Italy where you get the small shots of espresso I had no idea about these huge cups of coffee. In my first job, I learned a little bit there and moved on. I think next was probably a restaurant in Melrose where there was another restaurant on Route 1, a steakhouse.This was when I was 21, 22 years old.

In 2008 we actually purchased a restaurant. So my brother and I had been working off hours right after school. The family had been working at different restaurants because obviously when you come in as an immigrant, what else can you do? Then we ended up buying a restaurant. We were all working for different people so we thought of just getting together and buying a place. So we bought an existing place in Quincy, MA. We operated that for five years. It was extremely tough because now you had different family personalities mixed together, long hours, people not showing up, employees. We grew sales from $600,000 a year to over $1,000,000 a year. In 2012, I got married and I felt like I couldn’t be doing that anymore. My wife said that I couldn’t be married to both her and the business and I had to choose. So, Joni (my brother) and I sat down with dad and told him we had to take a break. So we sold it in 2012. – Enis Shehu

It was a great experience. I was really young, and had no idea what I was doing. I was thrown into management and I didn’t have that background of experience so I learned on the fly and it was really tough. I’ll never open another business like that ever again. So, during the time that this was 2008, 2012, the market in real estate was going down. We knew nothing about real estate back then, but we had some clients come to the restaurant who were mortgage brokers. They were telling us about this triple decker house in Dorchester who was selling for $175,000. They needed to work all of that. We loved the idea of buying rentals, owning them for cash flow and all that stuff, but just don’t know where to start. So, I took a year, went back to Albania for over a year with my wife, 18 months. Then when I came back, we didn’t have a business. I was looking for a job at that point, we were expecting a baby. We had just gotten a house. So it was just a lot of things going on and Joni only actually was the one that got me to like the mindset of actually going full time into real estate investing. People talk about being self-starters and all that, but for me, my brother’s been a huge influence. – Enis Shehu

Well, my brother had purchased a family unit in Worcester on Wingfield Street in Ontario, six units. He bought it when we were running the business, the pizza place, He had a marketing company too, online marketing stuff. So, that was completely him. I wasn’t involved in that, but he had some cash coming from that, so he went out and bought the 6 unit. So when I came back he already had a family giving him $3,000 a month after paying everybody, the mortgage, property taxes, insurance. He asked: “Can we buy ten of these?” Obviously, I was naive enough and agreed. However, it takes time to build a real estate business, to create a portfolio of houses that can give you that cash flow. So for the first six months, he actually put his money aside and suggested for us to see if I could do this full time. In the meanwhile, he would cover my salary because I had expenses.

Just to be completely honest, it’s not like we have figured it out. It’s always a work in progress. I don’t want to sound like a guru. Obviously, we’ve been doing it for nine years now, and we have portfolio rentals. We have a good team in place, fixing and flipping homes, but it’s always an ongoing pursuit to get better. But going back to your question, in 2015, a huge part of the process was actually the learning, and we did that through BiggerPockets. BiggerPockets is still very active today. You can find it at BiggerPockets.com. You can find a lot of local people doing deals, sharing their stories, tips, and tricks. So, we were on that website a lot. I think from the website, we learned about local meetups. The whole idea with Meetup is to take BiggerPockets and just move it locally, and people get in the room and talk real estate. Now, I hosted the meetup here in Natick, but in 2015, I went and was part of Black Diamond, which was run by Ed Bellamy and Nicola Woods. They had a great event, where just once a month, people would get together and network. So, I went and joined those guys and learned from what others were doing in Boston. One of the people I met there was part of a national mastermind for real estate investing, so we decided to join. It wasn’t very expensive; I think it was about $200 a month for the membership fee, but those guys made a huge impact on our early journey. They told us about lead generation and how to generate leads through off-market properties. Starting out, everybody was like, ‘Well, let’s look at the MLS (Multiple Listing Service), get an agent, look at the MLS, and run some numbers.’ However, from very early on, probably within the first six months, we started doing direct mail, making phone calls, and door knocking – things that, even back then, you had to do to find a great deal. We learned the marketing side of the business early on so we didn’t have to rely on agents for what was coming on the market. The whole idea behind that was that we didn’t want to compete with others. If we wanted to be profitable and run a business full time, we knew that we had to make money on every deal, and the MLS is just too competitive. You can buy on the MLS, wait five years, and that’s when you see the results of that investment. Or you can buy today at a discount, and you can make a profit. So, we went all in on that. – Enis Shehu

They’re both equally important. So either you have time or money. I’m actually teaching a class about this exact question right now. We have people in the room who are working 9 to 5, and they have money set aside. They want to start investing, so they can take that and work with a marketing company to begin doing some direct mail. But it’s time-consuming. Alternatively, you might have time, and then you can do things like door-knock or drive around, what we call ‘drive for dollars,’ to look at properties that are rundown and make contact with the homeowner. It’s challenging because you have to put yourself out there and start talking to people, building those relationships. You could also approach agents and say, ‘Hey, if you have a property that’s rundown and you don’t want to list it, I’m happy to buy it.’ So there are certain things people can do to get into real estate investing. Most people still prefer to buy on the MLS and think of it in the long term, which is perfectly fine. However, you need to understand how to analyze deals. What makes a good deal? In Massachusetts, it’s one of those areas where everything is old. So, you’ll look at a spreadsheet, run some numbers, and you might think that a certain deal secures cash flows, but old buildings break down all the time. Therefore, you must educate yourself on the whole process. There is a formula to follow. You can learn about buildings, construction costs, and renovation expenses. So, there’s a lot to learn, in my opinion. – Enis Shehu

Our first property was in Wayland, on Concord Street. Honestly, I drove by it this morning, and I always slow down to look at it, taking a trip down memory lane. We used direct mail in the area around Concord Street, sending out approximately a thousand letters. There was a gentleman named John, who lived in Florida. The property had been completely vacant for about five or six years, overgrown, with a terrible landscape. John, who was over 80 years old, was excellent at negotiating. This was my first deal. He was asking for $300,000, and we initially wanted to pay him $250,000. However, he pushed hard, insisting on $300,000. We had no experience in calculating renovation costs or determining the resale value, as this was our first property purchase. When it came to the fix and flip, we did our best to estimate the expenses, relying on input from contractors and advice from people we had met at local meetups. Unfortunately, we didn’t turn a profit on that deal. In fact, we lost a few thousand dollars, probably around six or seven thousand. However, I was the listing agent, and I managed to recover some of the losses through the commission, making it a break-even situation. We bought it for $300,000 and sold it for $660,000. Although we spent $300,000 on renovations, there were additional costs like holding fees and commissions, which left us in the red. I worked on it for about six to seven months. The general contractor played all kinds of games, quickly realizing I had no experience, which led to frequent changes in the work order. Looking back, many things went wrong. In hindsight, I acknowledge that I should have had a better grasp of construction costs and should have made more accurate estimates of the sale price. A competent real estate agent could have helped determine the post-renovation property values. – Enis Shehu

Yes, I advise people to prioritize the deal over the money. When you find a great deal, there are various options available for securing the necessary funds. You can attend our meetups or connect with local investors. There are individuals willing to provide guidance, but having a great deal is the key starting point. The reason is that you make your money in real estate when you purchase the property. While it may sound like a cliche, it’s absolutely true. Joni and I have made numerous mistakes, and we continue to learn from them. The primary reason we’ve sustained our business is by acquiring properties at a discount. Therefore, the question of financing often arises. Hard money, for those unfamiliar with the term, refers to lenders who aren’t traditional banks but are willing to finance up to 90% of the purchase price and the entire construction cost. It’s called ‘hard money’ because these lenders focus on the property’s value rather than credit scores or personal financial details. If you have a great deal, they are likely to provide funding, irrespective of your level of experience. For newcomers, the interest rate may be slightly higher, around 12% to 13%, with two points. However, with experience, you can negotiate better terms. These lenders will fund you because, if you are well-prepared, have networked through platforms like BiggerPockets, participated in meetups and masterminds, and have essential knowledge, you don’t need to know everything, but you should grasp the basics. When approaching a lender with a well-structured deal, even if it’s your first one, they are more likely to agree to fund 90% of that. From their perspective, they’re financing a discounted property, which means they can foreclose and recover all their funds with a profit if necessary. This way, they are adequately protected. – Enis Shehu

I’ve never experienced a foreclosure. In fact, I’ve even assisted a private lender, a hard money lender, in handling a property that went through foreclosure. So, if a borrower fails to make payments or disrupts the financial arrangement, the lender may take possession of the property. For example, my hard money lender took control of a property, and I stepped in to manage its construction and listing, ensuring that everything was in order. This is something to keep in mind. Even though hard money lenders typically fund 90% of the project, you’ll still need to bring in the remaining 10%. This means you need to have a clear financial plan. Let’s say the purchase price is $300,000. You’ll need to bring $30,000, plus cover closing costs, which would get you close to $40,000. If it’s a $300,000 project, and you plan to spend an additional $50,000 on renovations, remember that you’ll still have to pay subcontractors upfront. Therefore, for a project where you buy for $300,000 and invest $50,000 in renovations, you should ideally have $50,000 set aside to initiate the project. So, you have a choicEnis: you can either secure that capital or consider partnering with family members, such as your parents, siblings, or friends. We often utilize this approach. By borrowing from friends and family, you can launch a project with little to no personal capital. This way, you can have friends lend you the $50,000 while the hard money lender covers the rest. There are multiple strategies to explore, but it’s essential to be aware that when starting out, having some capital or reliable financial support from friends and family can be instrumental. – Enis Shehu

You definitely need a good agent, unless, of course, you happen to be one yourself and have a deep understanding of the local area. A successful real estate investor truly comprehends market values and the specific area they invest in. I’m often asked why I don’t invest outside of Massachusetts, and the reason is simple – Massachusetts is a highly competitive market, and my expertise is concentrated in Greater Boston, perhaps stretching as far as Worcester. I have an in-depth knowledge of particular neighborhoods, understanding the values of each street and house. How do you acquire this knowledge? Well, you can either educate yourself or collaborate with a skilled agent. In addition to an agent, you should have a real estate attorney on your team. Having someone who understands real estate paperwork is absolutely essential. If you’re in need of such a professional, consider attending meetups and reaching out to local investors. I’m more than willing to provide recommendations and assistance in this regard. Furthermore, having a reliable contractor is crucial, unless, of course, you are a contractor yourself and can handle the renovations. You can bring a contractor on board as a partner or for the job, but trustworthiness is key. Another important addition to your team is an insurance company representative. You need someone who can help ensure that your project is adequately and properly insured. At a minimum, your core team should include an agent, an attorney, and a lender. These individuals are essential components of your real estate investing journey.

There are a couple that come to mind. We purchased a property in Brighton, right next to Boston College. It marked the most expensive home we had bought up to that point. Normally, we stick to the $300,000 to $600,000 acquisition price range, but this one was $1.5 million. Even the way we ended up at the seller’s appointment was quite unexpected, as it was outside our usual target area. We typically don’t go for multifamily properties over a million bucks, but we had initially visited a property in Arlington. During our visit, the seller surprised us by saying to meet him at his brother’s house in Brighton. So, we headed to Brighton, initially to discuss the property in Arlington. However, the seller informed us that he wasn’t interested in selling that one. It was 8 p.m., and I remember thinking that was an afternoon wasted and I could have been at home with the kids. As I was heading down the stairs on my way out, I ran into the other brother. He casually asked why we stopped buying. This sparked a conversation, and they mentioned a property in Brighton. The price tag was $1.5 million, which made us initially hesitate, given its cost. But as we began to analyze it and inquired with them and other rental property owners in the area, it turned out to be a fantastic deal. In fact, it’s the property we still own today. We decided to change its use, going from a three-unit to a four-unit building because it had four stories. Surprisingly, the basement, which they used for mechanicals, was legally zoned for an additional unit, which they had never utilized. We embarked on a full gut renovation, investing $600,000 in the process. So, with five acquisitions and six after renovations, the total cost came to $3 million. It’s still in our possession today, and it generates a monthly rent of approximately $20,000. This deal had many exciting components, and it reflects our journey of learning as we went along, not knowing everything but never giving up. We educated ourselves, undertook a significant renovation project, and successfully changed the use from three to four units. We rented it out to students in the area. – Enis Shehu

Obviously, biggerpockets.com. It’s a platform where you can connect with local individuals in person and build meaningful relationships. I became a licensed real estate agent early in my journey. While I had no desire to serve as a listing agent or a buyer’s agent for others, obtaining a real estate license proved to be highly beneficial, especially during the first years. The commissions earned were the only profits I took home. Every profit we made in the business kind of stayed in the business. What kept me motivated was the steady flow of commissions from listing my own properties. Additionally, having the ability to run comparable sales and access the MLS (Multiple Listing Service) allowed me to gain a comprehensive understanding of the local real estate market. I continue to do this on a weekly basis. I go in just to see what’s going on in Natick, what’s going on in Framingham, what’s going on there, like who’s buying what LLC is buying. So I get to know the buyers and I see their process. So it’s easy for me to tell you right now who’s buying or selling at what price. This ongoing analysis allows me to identify active business buyers and those who are purchasing properties for personal use, as they are two distinct categories of buyers. You can either work closely with a real estate agent, but be prepared to engage with them frequently, or you can become an agent yourself. Either you do it with an agent, but you’re going to bother the agent a lot or you become one and to just get kind of you see the MLS and see exactly what’s going on. That’s what I did. In summary, I didn’t solely rely on local books; instead, I found immense value in meetups and the MLS. – Enis Shehu

There’s so much in real estate, isn’t there? You’ve got commercial, residential, and multifamily properties. Honestly, it all comes down to personal preferences and why you’re getting into real estate investing in the first place. For many people, it’s about generating passive income, but here’s the thinGreta: multifamily properties aren’t exactly passive. Even if you delegate property management to a third-party company, you’re still involved. You need to stay in touch with them, review reports, handle issues when the property breaks down, and manage leases. That takes time. Now, there’s commercial real estate, which I don’t know much about, with triple net leases and all that. It might be easier to manage, but it often requires deeper pockets. Everyone’s different. Single-family homes are generally easier, but they might not provide enough monthly income. If you lose a tenant and the property sits vacant for a month, you’re out of income for that period. I personally prefer multifamily properties for several reasons. You can scale your investment quickly, buying ten, twenty, or even thirty units, which allows you to grow faster. In our case, we brought property management in-house, and it’s working out well for us. It’s a great option if you have the right person in the right seat. However, it depends on what you’re comfortable with and your capabilities. Multifamily properties may appreciate more than single-family homes over time, but you need to handle the pressure of managing multiple units and people. It’s all about finding what suits you best. – Enis Shehu

That’s our bread and butter, but it’s also quite risky. Making a profit can be tough considering what’s going on in the market right now. Homeowners are less willing to sell, and you hear about low inventory. This holds true for us, both in terms of buying off-market properties. Fewer people are willing to sell right now, and those who are often expect top dollar. This means you end up paying top dollars for a project. On top of that, construction costs are high, and finding skilled labor is challenging, higher interest rates are too. Compared to the COVID period, which was excellent for us, this is perhaps the toughest time I’ve seen in the nine years I’ve been in the business. To succeed, you need to invest heavily in marketing to find off-market deals and have excellent project management skills to get the work done quickly. In the fix-and-flip world, you need to be in and out fast – that’s the whole game. If you can do it in three months, that’s great. We took on many projects. We’re a team of three on the construction side. While we’re not the ones swinging hammers, just the two of us in the office, we have one project manager on-site, and we work with subcontractors. But when you have seven or eight projects all over the place, it’s not ideal. Instead of six, it took us 8 to 12 months. This doubling of the holding costs, like going from a $40,000 annual mortgage payment to maybe $60,000 or $65,000, cuts into your profit significantly. Ideally, when it comes to the timeline, aim for a renovation period of a month to three months, and then allow for 45 days to sell the property. So, in total, aim to wrap up the whole process in six months.

That’s a great question. We’re currently going through a lot of changes. We have a team of ten, including departments for sales, acquisitions, and marketing since we still find off-market deals. That’s what my brother manages. I’m more focused on the construction side, especially since I now hold a C license, which enables me to pull permits. When it comes to capital and buying real estate, having enough capital on hand is crucial. I’m sure you’ve experienced, as I have, the stress of being low on capital. So, we’ve been working to put a system in place. We initially began with the Entrepreneurial Operating System (EOS) outlined in the book ‘Traction’ by Geno Wickman. We read the book and then hired a coach to help us implement certain elements and shifted to the ”Objectives and Key Results (OKRs)” system. We set goals and structure our weeks and months around them, ensuring that everyone has clear responsibilities. It’s essential to be coachable and seek help. I didn’t come from a corporate background; I went from school directly into business, learning as I went. What I’ve come to realize is that, beyond making money, creating a positive team culture is important. It’s about making the workplace both hardworking and enjoyable, which I believe takes careful thought and effort. – Enis Shehu

Every three days, I wake up early to go to the gym. I wake up at 4:30 and go back home by 5. Ideally, I want to start my workout by 5:30, but sometimes I don’t quite make it. I’ve been doing a lot better in terms of sticking to my schedule. I have two young kids at home, so I think to myself, ‘You deserve this after all these years.’ It’s a work in progress. I started by saying that I haven’t figured it all out yet. The work we do is incredibly rewarding, especially when you have a great team working together and being profitable. However, it’s a lot of work. – Enis Shehu

We primarily function as a marketing and lead generation company so we have a large database of people we reach out through various means, such as direct mail and our online presence. We focus on buying single-family and multifamily properties that require renovations or have potential for value addition. By ‘value add,’ I mean we either do renovations, add a second floor, or even demolish the property to construct a new one. If the potential is there, we’re all for it. We initiate conversations with homeowners, agents, and wholesalers about such leads. On average, we analyze between 50 and 70 leads per week and attend 10 to 15 appointments weekly. We typically sign a deal every other week. Currently, 80% of our total revenue comes from fix and flip single-family projects. We acquire these properties, obtain permits, carry out renovations, stage them, and then sell them. Every few projects, we also acquire multifamily properties. But you got to remember why you started and for us was the cash flow. Right now, we’re buying multifamily properties with three or more units under one roof, although three units are the smallest. We prefer properties with seven, eight, or ten units for scalability. Additionally, we have 60+ storage units and commercial office space in our portfolio. We also engage in wholesaling. Wholesaling means having a contract with a seller, and if we secure a property at an exceptionally good deal, we may choose to assign our contract rights to another party, earning a profit without the need to invest in the property, renovate it, or raise capital. So we do a little bit of wholesaling too if we are spread thin with projects. Over the last 12 to 18 months, we have been spending more time on the multifamily space in Boston. We have delved into the zoning regulations of the city, which can be quite unique and neighborhood-specific. We were able to get a permit for a 34-unit property. Our focus now lies in ground-up new construction. In the future, we hope to dedicate more time to this direction, potentially purchasing properties, tearing them down, and constructing large multifamily buildings. So, we’re spending more time on that.

So agents and wholesalers can reach out to us at any time, as we’re always looking for leads and good deals. We work with different people, including those with 9-to-5 jobs and retirees. Currently, we have around 15 to 20 private lenders who don’t do this for a living but want to diversify and not put all their money on the stock market. When dealing with private lenders, I usually bring them in on a fix and flip project, which typically has a short-term loan duration of 6 to 12 months with an interest rate of around 10% to 12% and they can be involved in the property and the process or trust us to handle everything. We sign agreements outlining the project plan, and they receive monthly payments or a lump sum at the project’s completion. For those interested in real estate investing but lacking the time or knowledge, we generally require a minimum investment of $50,000 due to the scale of our projects because we don’t want to get ten investors at 20,000. I personally handle investor relations, and our lenders have direct access to me, including my cell phone number. They can call me anytime. They can meet me here at the office. So it’s a personal relationship with a lender. However, for larger investments, such as those involving 34-unit properties, a different process is in place, and it typically involves dealing with credit investment firms because we need to raise more capital for that. – Enis Shehu

Yeah, I would. I’d definitely do less flips and focus more on wholesaling because it’s less risky. I would still build a lead generation machine so that I’m not reliant on others. This way, we can be selective with the properties we work on in the long term. I’d do fewer fixes and flips because they’re very time-consuming and often a lot of issues come up. I’d transition into more wholesaling and I’d buy more multifamily properties. We used to be quite conservative and missed out on some great deals. Hindsight makes us wish we had acquired those properties. So, buy as many multifamily units as you can. – Enis Shehu

It’s addictive. I share that in everything we do, from the classes to the meetups and social media. Here, I see people who have started working with us and are now becoming real estate investors, buying multifamily properties. We’ve had two team members do this in the past year, and it’s a small team of just ten people. One is an immigrant who purchased a three-unit property, and the other, Eric, bought a two-unit property. Both never thought about buying before, but being around and listening to real estate discussions changed their minds. It’s truly wonderful. – Enis Shehu

Real estate investing has changed my life. I know it can be extremely challenging but I believe the key is to educate yourself. Everyone’s situation is different, influenced by factors like time and family, but in the long run, it can have a huge impact. It’s simple, but it requires taking those baby steps to educate yourself. Surround yourself with people who understand business and real estate investing. I believe that the people you hang out with can make a big difference. If you find that friends, family, or colleagues talk negatively due to their lack of knowledge,don’t listen to them. Instead, stay close to successful individuals who are actively engaged in real estate. I think this has made a significant difference for me, at least. – Enis Shehu

Thank you for inviting me, it was awesome.