This is episode 38 and we have the pleasure to have Hendra Tambunan – Multifamily Real Estate Investor principal partner of Idea Box Capital.
Hendra is Principle of Idea Box Capital. With Fortune 50 management and Big 4 leadership experience under his belt, Hendra has turned his entrepreneur ambitions towards Single Family investing that eventually turned into Multi-Family Investment in late 2018, a decision that has allowed him to access new opportunities and expand his financial interests.
Currently, his portfolio includes more than 700 apartment units in Texas and Kentucky.
Mercy has successfully managed and operated two catering business that triple the revenue in a few years after getting her MBA. She decided that she is ready to embark real estate business through multifamily investment. With Hendra, her portfolio includes more than 700 apartment units in Texas and Kentucky.
Coming as a foreign student to the US, Hendra & Mercy earned their degree in San Francisco. After graduation, Hendra has worked in Pre-IPO startups, Fortune 50, and Big 4 corporations while Mercy worked in the hospitality industry and successfully operated multiple restaurants.
After investing in Single Family on the side to save for their son’s college fund, they realized that it’s not scalable fast enough. It prompted Hendra & Mercy to start looking into Multifamily by late 2018 and finally decide to jump into Multifamily investing by mid-2019.
Here is the transcript:
EPISODE 38 🎧 Hendra Tambunan – Multifamily Real Estate Investor – Principal Partner of Idea Box Capital
Nicholas Brown 0:04
Welcome to the Nicholas Brown podcast, a podcast talk show about real estate investing, business leadership and personal development. Each week we explore current real life case studies about how to build financial independence through investing in real estate to build your personal portfolio through passive income models, along with interviews from the top business leaders and personal development leaders. Now, here’s your host, Nicholas Brown.
Nicholas Brown 0:37
All right, welcome to the show, everyone. Welcome. This is Episode 38. And we have a special guest, I just want to tell a story how I came across this person, which I’m starting to realize is about sharing and building a bridge. But I found this person on YouTube channel. So I believe in reason why I say I believe in sharing and building the bridge, I want to give a shout out because I want to find out about this person, this person and his him and his wife without seeing this on YouTube. So I want to shout out to Chris Thompson, and Daniel Nichols of the YouTube channel. The two smart assets, make sure you guys subscribe to their channel. And I don’t know what episode it is, but I may put it on there. But this I came across this person here. So what I’m going to do is before I read the about you section, if you’re watching on YouTube, make sure you guys subscribe to my channel where you get more videos and information, education information such as this, which you also can see on there. You’ll see on the playlist. I have loads of podcast videos to educate you and get you guys set. Okay, if you’re listening in on my podcast, make sure you download this also this this is a great this is a golden tool, I promise you because because it’s about building bridges. So here we go. We’ll begin. So Hendra is a pistol of idea box capital with fortune 50 management, a big four leadership experience under his belt. Hendra has turned his entrepreneur ambitions towards single family investing that eventually turned into multifamily investment in late 2018. A decision that has allowed him to access new opportunities and expand his financial interests. Currently, his portfolio includes more than 700 apartment units in Texas and Kentucky. Death as we speak. His wife which is which is the coast principal Her name is mercy Hallam cabinet. Okay, so mercy has successfully managed and operated two catering businesses that triple the revenue. In a few years after getting her MBA, she decided that she is ready to embark real estate business to multifamily investment with Hendra. Her portfolio includes more than 700 apartment units in Texas and Kentucky. The story is they will. Here’s the story, ladies and gentlemen, coming from a foreign student to the US. Hey Andrew Mercer, merci earn their degree in San Francisco after graduation. Andrew work has worked in pre IPO startups fortune 50 and big for corporations while mercy worked in the hospitality industry and successfully operated multiple restaurants. After investing in single family on the site to save for their son’s college fund. They realized it’s not it’s not scalable. It’s not scalable fast enough. A prop propped it Hendra and mercy to start looking at multifamily by the late 2018 and finally decide to jump into multifamily investing by mid 2019. For more information, feel free to contact Kendrick immersa at every call 510 to seven zero to nine to zero or you can email them at info at idea box capital calm. Welcome to the show. Hi, Sandra. Thank you for having me, Nicholas, appreciate appreciate that say before May I just you know, I just appreciate you giving that information man and just want to get straight to the show. What we like to do Ladies and gentlemen, if you’re listening for the first time, though, if you watch it for the first time, well like to do with most most of the guests which Andrews actually qualifies for both things which hinge I’d like to talk about personal development also because I believe in personal development. And you you draw me on a video because you, you you you buy positive thinking you don’t like stinking thinking I don’t eat I like to where there’s a will there’s a way So, but three things we focus on is motivation, teaching and perspective. So the first thing is a little bit about motivation. What got you into this business?
EPISODE 38 🎧 Hendra Tambunan – Multifamily Real Estate Investor – Principal Partner of Idea Box Capital
Hendra Tambunan 5:01
One more thing are you, you already started out in, you know, in your introduction, I came as a foreign student, so I enjoy the luxury of going to college without the burden of student loans. And when we have our, our son, we also want our something enjoy that luxury. Okay. And obviously, it’s a college fund is just getting more expensive. And we start to shift our passive income from the college fund, but it’s not scalable fast enough. So I think the biggest why the biggest driver is obviously is our son to begin with. Right. And I think that life changes. And then beyond that, also, mercy and I also involved with a nonprofit organization where they do adopt kids, where both of us are from Indonesia. So obviously, that’s dear to our heart. And getting an access to education is pretty challenging over there. So one of the areas that we’re looking for also up to this is just helping sponsoring students over there. So they can go to coffee, good and go to the school. Right without worrying about all the the burden was a financial from, from the family. I mean, a anything we can help.
Nicholas Brown 6:18
Right counts, right? building the bridge, yeah, build the bridge, exactly. As they say, pay it forward. But building the bridge, you know, so, you know, if you if you can be a blessing someone why not, you know, want to have basically is finances, stable parent security, you know, have choices. I said, Now, I believe in that. That’s awesome. So you got a nonprofit, that’s your ultimate goal. Also, can you shout out in case someone’s watching or listening to you? What’s the name of the nonprofit?
Hendra Tambunan 6:47
Yeah, it’s actually it’s a nonprofit organization called wolf harvest. They’re based in Monrovia. They do have what we call adopted child, where basically for $30 a month, anyone can sponsor a kids, and they’ll help them you know, introduce the students, they get the reports, once you adopt them, then then they you basically sponsored them until they graduate from high school.
Nicholas Brown 7:13
That’s awesome. How’s it turning out? Is this something is already beginning. Oh, that’s the goal isn’t?
Hendra Tambunan 7:20
It’s already it’s already we already sponsored the last few years already, right before we before we joined the multifamily investment. But it is something that we’re dear to our heart, and we’ve tried to scale it up.
EPISODE 38 🎧 Hendra Tambunan – Multifamily Real Estate Investor – Principal Partner of Idea Box Capital
Nicholas Brown 7:32
That’s awesome, man, that’s awesome, that’s awesome. So it says I did my research, what drawn you from single family to multi because that’s what my goal. That’s what I’m doing now. So what what draws you to that? What Why don’t you switch over from? I know why. But I just wanted to the listeners, I have new listeners.
Hendra Tambunan 7:53
Yeah, one of the area, this economy of scales, right. Because here’s the thing, I know that. In California, it’s a lot of single family, you cannot find anything that’s cash flowing. I know in certain areas in Texas, you still can get some cash flow, but not in California. Now, one thing that’s really drawn to me is out of state is obviously the cash flow. But one thing that a lot of people don’t realize that once you hit them with their family, which is five minutes and above, your appreciation is going to be forced. Because now in the single family unit, your appreciation driven by the market, if your next door is selling for 200,000, that’s most likely you’re depressed going to be somewhere around there, right. But with five units and above your price valuation, it’s not dictated by your next door, but it’s how efficient, effective you are in operating and renting that multifamily. So that’s what we call what we call knowingness and net operating income. Now, the higher the higher level of income going to be that which is meaning your operation is pretty effective and efficient, then the higher value isn’t going to get. And that’s something that you can still control more than just waiting for the market to hit. Right. You know, for example, like in Dallas market right now, market is so hot, so strong, it’s great. Everybody’s happy with single family but right, this method, right? The force appreciation, what we call it in multifamily can be done in any market, providing that there’s no fundamental that like, quote, population growth in the area, that market is still human still there.
Nicholas Brown 9:43
Right? For example, you can adjust the wrench right? You can raise the rent. So that’s what he was talking about pretty much kind of like it’s what’s the term called forced appreciation? Is that correct?
Hendra Tambunan 9:55
Yeah, and then only that’s right only rent increasing the rent because That’s on the upside, right? But a lot of people don’t realize also they could be minimizing the expenses, or taking like a simple like just changing your showerhead for your tenants. Right? Low flowing toilet, coffee or water or the cost of the water utility, right? That kind of thing LED light, you know, that kind of thing.
Nicholas Brown 10:22
Right, how many do you in your team, your wife in the team we currently have? How many apartment units? How many doors? This is called Ladies and gentlemen, am I right? It’s called doors, right?
Hendra Tambunan 10:34
Yeah, I mean, number I think you mentioned is about 700. But obviously, grown a little bit. You know, and I don’t want people to think about Oh, and get $1,000 like that. It’s a team sport, right? It is an effort to realize, realize that you want to get in there. It’s a team sport, you play a role within the team and the partnership that how you grow together. Now, a lot of people don’t realize that, you know, when you want to an open own apartment building, he doesn’t necessarily you own it out, right? I mean, you can, but for many people, you can partner up together, and that’s how you grow together also,
Nicholas Brown 11:12
which is also known as syndication, correct.
Hendra Tambunan 11:15
That’s correct, That’s it, it’s a syndication where you get to be people that play an active role and also a passive role. That’s where the concept of syndication is. And so if you are too busy, or you don’t know enough about multifamily, that’s where you can coming in working with your operator that you trust to have built relationship with and you can take down a bigger multifamily complex that way. Right. Okay. And okay. And typically, during that time, depending on the return, you’re going to enjoy the cash flow and then some depreciation and then also you get some gain some equity also toward the asset within a few years, typically five to seven years old.
Nicholas Brown 12:01
Okay, that comes to the next question, which teaches something, how did you accelerate so fast and two years, three years or 2018? This two, ladies and gentlemen is 2021. as we as we record this, how to accelerate so fast, that’s a lot of units. That’s a lot. That’s aggressive. To me, that’s aggressive. I don’t know in the month not the commercial multifamily people think this low or that small. I think that’s aggressive man.
Hendra Tambunan 12:35
Well, I always say I can tell you that because I’m smart. I’m pretty, you know, all things but now it just basically it’s talking about proximity, right? You know, how you build momentum and everything that you do you just building momentum because of the proximity you are you are who you are based on the population surrounded with I haven’t really tried it but people that know their stuff in multifamily and he wants to open up and partner up with me and helping me and then we can grow together that kind of a deal that partnership that we’re always constantly looking and we’re fortunate enough to be associate with those partners in the beginning of our journey.
Nicholas Brown 13:19
I saw that was because he explained the three T’s ladies and gentlemen is how I came across it that draw me I was I was related to that I understood that what he said Ladies and gentlemen, the three T’s Are you getting this because it’s a partnership is relationship. What is the three T’s Are you just talking about? Yeah, to start the business you know
Hendra Tambunan 13:40
so I do believe in building a relationship you got something to offer value one thing that really a big impact for me when I was reading a book called go giver go so I do believe go giver by Bob Berg that book was so impactful in my life that became a philosophy in my building realistic other people okay. Bob Berg Yeah, right there you are the go giver. So we the go giver, and I mean you always put other first right you always put everything you know go giver mentality or Google your mindset. You always put other people have priority first and you serve their need. And I do believe that we can do that because of the we have three t time talent and treasure in everything that we build relationship, we got something that we like we can give other people. Well, pressure is you know, is your money, right? Your capital. No, sometimes you feel like the easiest way to you just like give some money and somebody somebody asked for help you get the money, that relationship right. You know, you helped him out that way. But the other two is also pretty crucial here. You have also your talent. Because in building relationships, you get something that you can bring, maybe your experience Ruby, or the skill that you’ll gain from your job. It may be something that you’re talented, I mean, some people already talented enough with, you know, with language or excel programming or coding or a music right in any way you conducting contribute there. And then the last one is actually time as the last thing, that’s the last thing that people forget, it’d be half the time. I mean, free tea, you can build a relationship with the partner that you want to potential partner that you want to partner up with their case, or even building a relationship together.
Nicholas Brown 15:44
Right, right. Right. And that helps build momentum. Also, you want to, as we say, what can you come to the table with, so we can meet our goals to get momentum? So actually, that’s actually, I believe in that? Most definitely. So, here’s the last thing and I definitely appreciate your time on here. Um, what are the pros and cons? I noticed? what what what’s the someone look out for? Because some, some people think something’s like in rental real estate investing, this is a myth, you know, watch the late night shows or whatever. So one of the one of the myths or misconception people have or about a multi family properties. What should you look out for what to do stand up. So
Hendra Tambunan 16:32
I would say a lot of people want to invest in real estate, but then neglect the fundamental maker and learn to invest in themselves, right, getting getting getting to investing in themselves through courses, education, mentorship, coaching, because a lot of people just want to see, you know, all the, you know, the bells and whistles from the late night. TV shows like, oh, real estate, real estate, real estate, this is great assets. In fact, guys, this is this is a real business, I mean, keyword, business, this is a business, right? That’s right. If you, if you don’t really educate yourself enough, I mean, you can lose your pants literally, to hell. So that’s always very key. For people that want to get into real estate, make sure they get educated themselves. Think about it, before you invest in real estate, invest in yourself, because that kind of knowledge is going to carry you for a longer, much longer time. Remember to event at your partners. I always tell people like you know, even though you’re playing and more like a passive role in the syndication or even, you know, any deals, but think about the relationship you’re you’re building, nobody’s gonna be think about like people getting married, right? Nobody pick up the girl off the street on the streets like, Hey, will you marry me right away? Go to process, right. And a lot of people neglect that because they because they’re, they got a shiny object syndrome. It’s like, Oh, this is great. This is realistic, this multifamily This is gonna be returned. I want to I want to jump on it right away. Invest, invest in yourself, get educated, then you can see it. And number two, not only just seeing it the deals, but you’re going to see it the partner, the characters, the value, are they aligned with you because a lot of people that we have the shiny object syndrome, we overlook the quality and the character and the ethical and the morale of the partner who got to be operating the business. Right. So that really, really helped you up to avoid all the bad deals. That’s the fundamental things that I really recommend for people that want to jump into any of those deals. Okay, okay.
Nicholas Brown 18:52
Well, hey, Andrew, I appreciate your time. This Quick, quick moment here, which I know you appreciate less john, because he has another take another job you don’t do you? This is more passive what he’s doing now also. So I appreciate his time, which to tell a story he asked me how could he help me I love that. And I appreciate that Ladies and gentlemen, I appreciate that. So I’m seeing that I grow. But any last words any shoutouts or any thing you want to give out to the listeners before we in this?
Hendra Tambunan 19:25
Yeah, and then feel free to reach out to me. Any anyone that want to ask any questions, I’ll be more than happy to help anyone that want to get into real estate or want to learn about multifamily. I mean, I am where I am today just because somebody invested their time. There you know with me, particularly where I am I want to page four to four people that want to learn about multifamily. Want to learn about it I want to anything about multifamily. Just feel free to reach out you can go to my website, idea box capital calm or shoot me an email at info At idea boss, capital calm, and I’m also in Facebook to look it up my name and Hendra timboon. I’m born happy to connect unhealthy.
Nicholas Brown 20:11
Ladies and gentlemen, I want you guys. I want you to reach out to him because I’m going to invite him to come to my Meetup group. My Meetup group is called passive Rei network. So as we speak now I have four locations in the Texas area, Dallas Fort Worth, Austin, Houston, and Dallas Fort Worth, Austin Houston. I forgot the next set, Antonio, but I invite you guys up which I invite Mr. Hendra. Hopefully he be there where you reach out to him. If you have any questions, Scott, love to have you again. Mr. Andrew, if we have a meetup, a live meetup without forgetting questions, anyone is interested in becoming a passive investor. They’re just reached out to you. But thanks for coming on to the show, though. Thank you for having me. Okay. All right. Ladies and gentlemen. Make sure once again, you subscribe to this channel. Make sure you download this podcast episode. And once again, don’t condemn don’t complain because you have a choice to make a change. Have a great day.
Nicholas Brown 21:18
Thanks for joining us on the Nicholas Brown podcast. Make sure to visit our website www dot Nick brownie.com where you can subscribe to the show in iTunes, Stitcher or via RSS, so you’ll never miss a show. While you’re at it. If you found value in this show, we’d appreciate a rating on iTunes. Or if you’d simply tell a friend about the show that would help us out too. If you like this show and you are a new real estate investor, then check out one of Nicholas’s free reports called the wholesale Dominator report. Also located on our website www.negroni.com slash free reports. Be sure to tune in for our next episode. And remember, don’t condemn, don’t complain because you have a choice to make the change. Have a great day.
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