Episodes

For Real Estate investors who are capitalized enough to acquire properties over the next couple years, a lot of money will be made. Many current operators are over-leveraged and using floating rate debt and are now suffering the consequences. Many of them are losing money and will have to sell at a steep loss. Others are still making money, but not enough to qualify for refinances upon loan maturity, so they will also have to capitulate at a loss. Dan French, Managing Director of ATX, sold most ...

The stock market can be great for long-term appreciation, but it’s unpredictable and doesn’t generate as much passive income as alternative investments like Real Estate, Oil and Gas, Commercial Lending, and others. With alternative investments, you can generate greater than 10% returns on your money paid monthly or quarterly and pave a path to a comfortable retirement. Chris Miles, the anti-Financial Advisor and cash flow expert, consults with clients on how to invest their money in order to ear...

In the past couple years, there’s been an unprecedented amount of new multifamily developments under construction. With so many construction loans coming due over the next couple years, there will be many opportunities to provide preferred equity to developers who need gap funding in order to stay alive in their deals. With interest rates having more than doubled, and lenders requiring less leverage, borrowers will need to bring more outside money to the table. Darin Davis, Co-founder and Princi...

A sector of Real Estate that remains robust is outparcel developments. The demand for great locations exceeds current supply. Outparcels are attractive because they have great visibility, and they don’t compete with dozens of other tenants. Rents are typically higher, but well warranted based on traffic counts and visibility. Typical tenants are fast food, fitness chains, car washes, and gas stations. Josh Weiner, Principal of KLNB Commercial Real Estate Services, based in Northern Virginia, wor...

For predictable and consistent cash flow, it’s hard to beat small neighborhood retail with national credit tenants. Rents are secured by some of the country’s largest corporations, and there’s very little to do to maintain these properties. Like most asset classes, it’s still highly competitive, but there are great deals in the $1 million to $5 million range that are too big for a lot of small investors, and too small for larger institutions. Loren Ziff, a three-decade, seasoned investor with ex...

The best Real Estate deals often occur when someone sees what others don’t. In any market, there are always great opportunities. In today’s market, for example, there are especially great deals in suburban office. As workers have left downtown offices, they’ve chosen to work closer to home. As a result, many quality suburban office buildings are at 90% occupancy. Ash Patel, a successful Value-Add investor, invests in office buildings, flex Industrial, strip retail, and ground up construction. As...

As equity investing in Real Estate has gotten increasingly risky, debt investing has grown rapidly in appeal. One asset class in particular that’s especially lucrative is Specialty Lending against the development of cannabis cultivation facilities. There are currently 27,000 cannabis facilities in the U.S. and the number is growing. Rob Sechrist, Co-Founding President of Pelorus Capital Group, a cannabis-use Private Mortgage REIT, has conducted $500,000,000 in transactions since 2010, which make...

When selling a home, getting the highest price is not always the number one goal for sellers. Sometimes, a seller will forgo the hassle of fixing up a home plus avoid the process of listing and showing the property. Some sellers will exchange the work involved for the certainty and speed of a close, even at a reduced price. Robbie Faithe, CEO & Founder of Faithe Real Estate Group, is a top 1% agency in Albuquerque. In addition to conducting traditional transactions for home buyers and sellers, R...

Having a tight geographic focus, especially in multifamily, combined with an experienced operator, mitigates a lot of risk. There’s also no substitute for when an operator lives in the market they operate in. Local market knowledge, in addition to in-house property management, are a recipe for healthy returns. David Lamattina, Principal at Arrowpoint Properties, has over 18 years’ experience in acquiring, renovating, and managing C class apartment communities throughout greater Boston, and has g...

One asset class that’s experiencing particularly high growth is cold storage. The increasing demand for perishable goods, the expansion of the cold supply chain, and the focus on food safety and compliance are driving the need for advanced cold storage facilities. Cliff Booth, Founder and Chairman at Westmount Realty Capital, has invested in cold storage for decades and is developing new facilities to fill this rapidly rising demand. Westmount has been a large investor in value-add warehouses an...

In the Multifamily asset class, being vertically integrated is especially important. Managing apartments is very labor intensive with 24-7 residents, so a lot of things can go wrong. With so many people involved, and so moving parts, expense and revenue management is a continuous challenge. Shelley Peterson, President of Kahuna Investments, owner of 3000 apartment units, has migrated from third party management companies to in-house management and is seeing increased effectiveness, significant o...

Chasing high yields that never materialize because of unrealistic underwriting is a recipe for major disappointment. The most money in Real Estate is made buying quality assets at the beginning of cycles. Currently, we’re facing an environment where inexperienced operators paid too much for properties with too much leverage, floating rate debt, and unrealistic assumptions. As a result, there will be some form of distress in almost all asset classes. Peter Lewis, Chairman and Founder of Wharton E...

Although most asset classes will experience some forms of distress over the next couple years, one asset class that will be less impacted is Self-Storage. Recent prices paid for Self-Storage were less exuberant than Multifamily and other asset classes, so most operators are doing well enough to not have to sell at a discount. As an industry, Self-Storage is still mostly operated by smaller, less sophisticated operators, so opportunities to implement systems and create efficiencies translate into...

The multifamily sector is facing major headwinds. Not only have interest rates escalated at an unprecedented pace, but operating costs have also soared as well. In certain states, insurance costs alone have increased 100% or even more in the last couple years. With costs rising dramatically and rents plateauing, or even decreasing in some cases, there’s choppy waters that will not end well for many multifamily investors. Chris Grenzig, Owner of Jag Capital Partners, has built a vertically integr...

In secondary and tertiary markets in the Midwest, Multifamily prices have come down 27%-35% since the March 2022 peak and have a way to go. When distressed operators are forced to sell at a loss, the low prices they sell for create new comps in the marketplace. This is why there will be great deals over the next couple years for patient Multifamily investors. Reid Bennett, National Council Chair of Multifamily Properties for SVN International, is a top .02% Multifamily broker, and is an expert i...

It’s hard to find businesses that consistently generate profit margins in excess of 20%. One such asset class most investors don’t think about is laundromats, but they’re everywhere and simple businesses to run. Over the past couple years, Real Estate investors, in addition to others, have entered the laundromat space because of the strong cash flow and the ability to dramatically increase revenue by adding value. For starters, most laundromats lack the simple technological advances that make th...

In the multifamily apartment category, Class B provides the greatest hedge against risk. Renovated Class B apartments often have many of the same amenities as Class A, but cost anywhere from $300-$500 per month less to rent, depending on the market. In a tough economy, a lot of Class A renters move down to Class B properties in order to save money, but Class B renters generally don’t move down to Class C. Lee Harris, President and CEO of Cohen Esrey, has acquired and improved 10,000 Class B apar...

One of the keys to success in multifamily investing is picking a market that’s not fully discovered and still experiencing a lot of growth. Another aspect of this strategy is buying B class properties with huge rental upside without having to pay a lot in unit or exterior upgrades. Christopher Stout, Principal and leader of StoutCap, has selected Northern Alabama, NW Arkansas, and Fayetteville, NC as up and coming markets that are growing, but not yet saturated with other investors. These are fa...

There aren’t too many asset classes within Commercial Real Estate right now where you can generate a strong cash-on-cash equity return plus great upside. One exception to this is RV Parks. RV Parks are where Self Storage and Mobile Home Parks were ten years ago. There are approximately 15,000 RV Parks in the U.S. and many of them are often filled to capacity. Several of them are owned by ma and pa owners that have not maximized their true revenue potential. Robert Preston, CEO of Climb Capital, ...

Although multifamily Real Estate has been a stable, cash-flowing asset class for the past several years, many properties are facing major headwinds. Interest rate hikes, rising expenses, and slower rent growth has presented big challenges. Despite these current market conditions, however, there’s still a significant supply-demand imbalance of housing in the U.S. that portends well for multifamily in the long run. Daniel Holmlund, CEO of Good Samaritan Capital, is helping investors seeking consis...

If you want to invest in Real Estate, but don’t want to tie your money up for an extended period of time, a great way to do this is through non-bank private lending. When you invest in single family fix and flips in stable markets, for example, it’s a conservative way to generate high yield, consistent passive income. Kevin Amolsch, Founder of Pine Financial Group, owned several of his own single family properties before transitioning into private lending. Kevin now has funds that lend mostly on...

Other than Class A office space in top-tier markets, the overall office building asset class remains a healthy and viable investment alternative. There are several types of office product, and most are faring well depending on the location. Stewart Heath, CEO of Harvard Grace company, is building a portfolio of properties in the Nashville to Huntsville, Alabama, corridor, including cash-flowing office buildings. This market has seen explosive growth and offers great investing opportunities.

In highly desirable, steady markets not subject to excessive volatility, Real Estate values tend to hold and appreciate consistently over time, and are great, low risk capital preservation assets. One such market that has withstood the test of time is Chicago. Chicago remains a powerful magnet that attracts residents from all over the greater Midwest and beyond. Joe Smazal, Senior Managing Partner of Interra Realty, is one of Chicago’s top-producing Multifamily brokers in the $5-$15 million rang...

If you’ve been paying attention at all, you know there are clouds on the horizon in Commercial Real Estate. This is caused in no small part to escalating interest rates, which can move even higher. Amongst asset classes facing headwinds is multifamily. Depending on the market, there’s a glut of new construction, rents and occupancy are down, and expenses are up. As a result, many apartment complexes acquired over the past two to three years with floating rate debt will not get refinanced, which ...