Episodes

Although most asset classes in Real Estate have become saturated, smaller industrial is still wide open with market inefficiencies and fewer investors pursuing it. There are great deals on properties priced under $20,000,000 with credit tenants, in supply constrained markets, and under the radar of larger institutions. Lance Pederson and his partners at Resonance Capital are acquiring solid B class properties in six states across the industrial heartland. They’re implementing simple value-add st...

When it comes to making money, flexibility is a key ingredient because things are always changing and fluid. Right now, despite signs of huge distress, rising interest rates, and economic volatility, prices for most Real Estate assets are still priced too high for experienced, disciplined investors to pay. As a result, there’s a lot of dry powder in the market, especially with smart intuitions and Private Equity. Many are pivoting from acquisitions to ground up development. Omar Khan, Managing P...

Many Real Estate investors who start out in residential properties gravitate to commercial asset classes like office, industrial or self-storage. With these asset classes, you have fewer interactions with tenants because they don’t live in the properties with all the drama that this can entail. Jonathan Hayek, founder of Endurance Properties in Cheyenne, Wyoming, started with single family houses and small multifamily properties before acquiring a vacant small office building which he works in a...

In order to generate great returns in a saturated market, identifying an asset class with a high barrier to entry can be necessary. Affordable Housing, in particular, can be a challenge because of steep municipal regulatory hurdles and compliance issues that make acquisitions and operations complex and difficult. As a result, few investors have the bandwidth that it takes to operate these properties. Denis Shapiro, Managing Partner of SIH Capital group, is launching his second alternative invest...

In an environment where it’s difficult to achieve significant cash flow with direct equity investments in Real Estate, investing in the debt can be an attractive option. Investing in debt usually has less risk and can generate yields as high as 9%-11%, and sometimes even higher, with the assets as collateral. Carrie Cook, President of Ignite Funding, makes investing in Real Estate available to people who always wanted to invest but didn’t think they could afford it. Through Ignite Funding, indiv...

In any business, economies of scale result in more efficiency and profitability. Multifamily investing is no different. Instead of operating in multiple markets and managing several different management companies, you can streamline your efforts while reducing risk and generating better returns by focusing just one of a select few markets. Having a presence in fewer markets can also make acquisitions easier as you establish a stronger presence in the local broker community and gain access to mor...

There are many ways to invest in Real Estate successfully, but one often overlooked vehicle is publicly traded REITs. Publicly traded REITs are funds comprised of public Real Estate companies, many focused on one asset class. Whether it’s a Multifamily fund, Cell Towers, Cannabis, Mobile Home Parks, Self-Storage or others, the world of REITs has grown dramatically over the past several years. By investing in these funds, you get access to some of the best Real Estate portfolios in the country wi...

Getting a high yield on cash flowing residential property has gotten harder, even in secondary and tertiary markets. Even with interest rates climbing over the past year, which makes properties hard to cash flow, sellers have not lowered expectations for what they think their properties are worth. As a result of this and a tighter lending environment, sales volume of commercial properties has contracted 70% in recent months. Mark Updegraff, CEO of Raze Capital, acquires, manages, and develops co...

Wealth Channel is a media company that connects accredited investors to proven sponsors of Alternative Investments. Wealth Channel provides valuable content on the exploding world of alternatives for people who are looking for better returns than the stock market with less volatility. Scott Hawksworth, Chief Marketing Officer, is responsible for expanding the community and creating great opportunities for all stakeholders. Scott is an expert at leveraging the power of traditional organic search ...

Every fortune 500 company plus thousands of others place employees in corporate housing. From a landlord perspective, the rents that are paid for these properties vastly exceed long-term rentals and have less wear and tear. Angela Healy, CEO and owner of Avenue West Managed Corporate Housing, places corporate employees in fully furnished residential condos and manages the whole process for the owners. These condos are great investments for Real Estate investors who are looking for truly passive ...

Both residential and commercial occupancy rates and rents are contracting in many places and the government remains committed to taming inflation. Additionally, taxes, insurance, and other expenses are increasing. For operators with loans coming due over the next couple years, the combination of less revenue and increased operating and borrowing costs, may make refinancing nearly impossible. As a result, a lot of landlords who acquired properties at record high rents and record low cap rates wil...

With so much disruption in the capital markets, lending today has gotten increasingly complex and difficult to navigate. In order to be successful in the current environment, sponsors need to be more resourceful and creative than at any other time in recent history to get deals funded. In the near term, a lot of distress in the market will provide great opportunities for operators and investors. Adam Finkle, Principal of Tower Capital, is a Phoenix-based mortgage advisor who advises clients acro...

The key to success in any Real Estate venture is conservative underwriting. In a super competitive environment, it’s easy to convince yourself to believe unrealistic assumptions in order to bid high enough to win a deal. This can cause major heartache when surprises occur, and the market doesn’t fully cooperate. Zamir Kazi, founder of ZMR Capital, has acquired 33 large multifamily properties over the past few years with private equity. Although Private Equity partners can be more demanding of Ge...

There’s a need for 7 million more affordable apartment units in the country, but the cost of new construction is so high that it’s hard to build new apartments and rent them out at affordable rents. That’s why municipalities provide tax credits to builders so they can bring these units to market at rents tenants can afford. Lee Harris is President and CEO of Cohen Esrey, a 50 plus year old company that builds affordable apartment buildings in many markets in the U.S. to help fill the insatiable ...

There’s a need for 7 million more affordable apartment units in the country, but the cost of new construction is so high that it’s hard to build new apartments and rent them out at affordable rents. That’s why municipalities provide tax credits to builders so they can bring these units to market at rents tenants can afford. Lee Harris is President and CEO of Cohen Esrey, a 50 plus year old company that builds affordable apartment buildings in many markets in the U.S. to help fill the insatiable ...

Even though interest rates have risen dramatically over the past year, most apartment owners have not adjusted their expectations downwards when it comes to lowering the prices of their assets. This delta in the bid-ask of prices has contributed to a 50%-70% slow-down of transactions over the past several months. Lending standards have also gotten more onerous, so it’s making it more difficult to secure financing for buyers. Caleb Johnson, Founder of Red Sea Capital, has specialized in multifami...

With most existing multifamily properties still priced too high to generate decent cash flow, many operators are turning to ground up development to generate more attractive returns. When these projects go according to plan, investors can get all of their money back or even more upon permanent financing, and achieve an infinite return thereafter. Sam Bates, Founder of Bates Capital Group, has transitioned out of the acquisition of existing properties to exclusively focus on ground up constructio...

By ruthlessly managing expenses, you can make C Class properties profitable, but there are ongoing challenges and risks. Even after you’ve stabilized the properties, there are continual maintenance issues and expenses you can’t accurately predict. Issues with outdated plumbing and electrical systems plus other issues erode net operating income. In addition, the possibility of further inflation and unemployment combined with rising expenses pose further risk. Jason Biak, Partner of Compounding Ca...

Prices on older buildings can look attractive but you get what you pay for. The biggest challenge with older properties is being able to project expenses. Properties from the 1960’s 70’s, and early 80’s tend to have a lot of deferred maintenance, especially the plumbing systems. Maintaining and replacing old plumbing is very expensive and can negatively impact the financial performance of the property. Lee Yoder, Founder and CEO of Threefold Real Estate, has done a great job acquiring and managi...

The state of Florida is continuing to see exponential growth, especially Central Florida. The markets of Tampa, Orlando, and Sarasota are adding jobs and population at an unprecedented pace. As a result, Real Estate rents and values have held up well, especially compared to other boom and bust markets. Evan Shields, Founder, CEO & Managing Partner of Indelible Capital Partners, started his company in 2022 and is acquiring C to B- value add multifamily properties with 20-100 units. As other opera...

Even in deep recessions, Class B apartments are stable assets and generally withstand downward economic pressure. Class C apartments, on the other hand, pose significant risk because of unanticipated costs to repair and maintain these properties plus delinquencies that can exceed 20%. As a result of these Class C operational challenges plus higher interest rates, a lot of C Class operators are having major challenges right now that will end up as major losses for investors and operators. Mark Ha...

Unlike residential mortgages, commercial loans are vastly more complicated with thousands of different lenders with different lending guidelines and product types. As a result, the process can be overwhelming with a lot of potential pitfalls. Mitch Ginsberg, CEO of Commloan.com, has created an easy-to-use technology platform which gives borrowers unprecedented access to 700 lenders and thousands of loan products. Borrowers can now seemlessly shop online for the best loan products for their spec...

With the cost of construction and borrowing costs rising, it’s become prohibitive to build new neighborhood strip centers with very few new centers built in the last fifteen years. As a result, occupancy levels at existing properties in growing markets is in the mid-high 90’s and sometimes even 100%. Contributing to recent high occupancy trends are professional service companies like retail insurance agencies and other business-to-consumer companies, plus medical providers like dentists, chiropr...

40% of multifamily properties bought in Q 3 and Q 4 2020 and 2021 with variable rate debt will likely not get refinanced by their current lenders. In these scenarios, operators will be forced to attempt to raise more money via capital calls from their current investors and/or take on rescue capital from 3rd parties. The last option is to give properties back to the bank. Over the past couple years, the high price of multifamily properties did not pencil without high leverage bridge debt, but as ...