Episodes

Even though the U.S. economy is in a state of flux and there are other domestic and global uncertainties, trends continue to be in favor of growth in the South and Southeast in terms of population job growth and migration. The rate at which this is occurring is unparalleled and opportunities for solid investments in multifamily real estate will continue to present themselves. Charlie Young, Partner at Madera Residential, has been in the business for over three decades and has over 12,000 units i...

Most people aren’t even familiar with the term “Alternative Investments.” That’s because until a decade ago, operators of apartment buildings and other Real Estate assets, Private Equity funds, or private companies couldn’t legally market these assets to the public to raise money. Ever since the creation of the 506c code a decade ago, however, these operators can now legally market to retail investors so the general public can more easily access and invest in them. Alternative Investments provid...

In multifamily properties, it can be a challenge to manage buildings with fewer than 50-100 units. Third party property management companies cost a lot of money and having an in-house employee live on-site can be too expensive without enough units to amortize their cost. Additionally, it’s difficult to manage these smaller apartment buildings from afar, especially if you’re adding value to them with rehabs. Samuel Sells, CEO of Wild Mountain Capital, has acquired over 20 buildings over the past ...

There’s nothing passive about investing in older apartment buildings. Appliances, roofs, HVAC systems, plumbing etc. have limited lifespans so there’s perpetual upkeep and surprising expenses are far from uncommon. In new construction, by comparison, you can control all the variables and therefore the costs can be more predictable and therefore the profits. Roger Luri, CEO and President of LD2 Development in Chicago, and author of the new book “Don’t Buy Multifamily! BUILD IT,” has been in const...

If you pay close attention and evaluate what’s going around you, you can see opportunities and markets to be served that others don’t. It just requires continual awareness and objectivity and an honest appraisal of what you’re good at and want to spend time doing. After being in Investor Relations and a co-GP on a number of apartment deals, Matthew Baltzell founded Elite Podcast Bookings to connect sponsors and capital raisers with great Real Estate podcasts. There are literally thousands of com...

If you ever think of cell phone towers and rooftop antennas that transmit wireless usage, you might think the owners of these properties would have all the leverage in lease agreements with major carriers like TMobile, Verizon, and ATT because the insatiable need for increasing and better signal coverage. However, this isn’t entirely true. The carriers have more options than you would think on where to transit their signals from and can be brutal in their lease negotiations with landlords. Meir ...

With cap rates having gone as low as they arguably can go, multifamily operators are going to have to add deep value to properties moving forward to meaningfully increase their asset value. They can no longer rely on cap rate compression to generate high IRRs and returns for their investors. At this point, only the strongest operators will generate the kind of profits we’ve seen over the past few years. Steven Gesis, COO at Smartland, started in Northeast Ohio rehabbing, modernizing, and standar...

There’s been so much growth in Multi Family investing over the past few years it can make you wonder if it’s too late in the cycle to get into good deals. Yes, a lot of people are overpaying for properties, especially newer, inexperienced syndicators. There’s also risk that rents contract in an upcoming recession coupled with higher borrowing costs when floating rates adjust upwards. The fact remains, however, that 50% of the country are renters, and there’s still a big undersupply of B Class wo...

Sometimes great entrepreneurship is just applying common sense and having your eyes open to great opportunities. Brandon Schwab, Founder and CEO of Shepherd Premier Senior Living, owned 23 single family rental houses that were making $200-$300 per month per house when he stumbled upon the idea of lucrative Senior Living Facilities. Instead of making $200-$300 per home in monthly profit, he realized he could make over $10,000 per month with one single Senior Living facility. At the same time, he ...

If you’re willing to do what other aren’t, you may stand to benefit immensely. Jorge Newbery, Founder, Chairman and CEO of AHP servicing, has made a career out of inventing himself out of thin air. Jorge’s first big deal was a 298 unit apartment building in downtown Los Angeles in Skid Row for less than $3000/door in the late nineties. The prior three owners had been thrown in jail for violations, but Jorge saw immense value and had the confidence and bravado to take the project on. He ended up ...

Private Equity and Alternative investments have outperformed the public markets out of the last 35 years. However, few people are aware of investing in alternative investments such as Real Estate syndications in apartment buildings, Self-Storage facilities, and Mobile Home Parks, not to mention a plethora of other alternative opportunities like life insurance settlements, litigation finance, cannabis, and so many other ways to invest. As it stands, alternative investments only command 13% of U.S...

One of the great advantages of investing in Real Estate is the ability to shelter or defer paying taxes so you generate a higher return in the short-term and your money works harder for you and generates great wealth over time. Thomas Castelli, Partner at Hall CPA firm, has been a direct investor and also a limited partner in syndication deals so he believes in the value of Real Estate not only from a cash flow and appreciation perspective but also from a tax perspective. There are few other way...

If you’re not careful, you can lose a lot of money investing with the wrong people and the wrong deals. As human beings, we’re inclined to trust others and it’s difficult to discern dishonesty because we don’t expect it. Jack Gibson, a successful businessman, Real Estate investor, and Wealth building Strategist, lost a lot of money in tech stocks at a young age following the advice of a financial planner. Later, he was a victim of a Real Estate ponzi scheme. These costly mistakes taught Jack val...

Austin is one of the hottest Real Estate markets in the country. In order to be competitive and get the edge in this market, being there in person and having longstanding relationships has tremendous benefits. Andrew Campbell, Managing Partner of Wildhorn Capital, has built an impressive 4000 unit portfolio mostly in Austin that’s produced consistent strong returns for investors through cash flow and robust appreciation. He plans on making Austin his primary focus as long high-paying employment ...

The prices on multifamily apartment buildings have risen meteorically over the past 3 -5 years. In some cases, however, between the cost-per-unit to acquire the properties plus the amount per-unit to renovate them, the all-in price has exceeded the cost to build new complexes from the ground up. That’s why Michael Episcope, co-CEO of Origin Investments, has been only doing ground up deals for the past three years. Origin has a number of funds that are invested across eight fast-growing markets t...

A great way to reduce risk when investing in private placement alternative assets is to join an investment group. Investment groups give you access to other investors who you can compare notes with on successful investments and reputable sponsors you meet and start building relationships with. David Shirkey founded the Michigan Investor Group to help educate friends and family to help guide them through the complex maze of alternative investments and to introduce them to investment opportunities...

There’s no better way to vet someone you’re going to invest with than getting to know them personally. There are thousands of investment opportunities available and they all look great on paper, but the differentiator is the people because the proformas are generic. It’s the number of years of experience and the number of deals in the asset class of the deal the operator is raising money for, and equally as important, their personal character, that matters. Jeff Anzalone, Periodontist, Author, a...

When investing in Value Add Real Estate, construction knowledge is critical to avoiding costly mistakes that can ruin an investment. Dealing with contractors, engineers, architects, etc. can be a shark tank because they’re all trying to get your money. Also, if vendors don’t know what they’re doing or don’t have aligned interest with you, it can turn into an incredibly difficult situation. Van Sturgeon, seasoned Real Estate investor and principal of Greywood Restoration Ltd, has an extensive mul...

Alternative investments such as Real Estate and other private investment opportunities are becoming more favored as the stock market has had the worst first half of a year in 50 years. Whether it’s Real Estate, ATM funds, Venture Capital funds, Litigation finance, Life Insurance settlements, to name a few, more money is flowing into these assets because they’re less volatile and can generate better cash yield than traditional stocks. Denis Shapiro, Managing Partner of SIH Capital Group, invests ...

In the Real Estate syndication ecosystem, one of the key roles is capital raising. Operators are always in need of capital to fund their pipeline of deals. One great way to get involved in syndications is to partner with operators by bringing them capital to their deals. Charlie Rushton, partner at Saber Equity, has partnered with experience operators in Value Add hotel-to-multifamily conversions, multifamily, self-storage, and short term rentals by bringing them investor capital to their projec...

Ever since the creation of the 506c code a decade ago, which permitted operators to market to the public, alternative investing in Real Estate and other asset categories has grown dramatically. Whereas a decade ago it was virtually impossible, for example, to invest in early-stage technology companies if you were a retail investor, now you can invest in these companies through private placement funds. There are many different ways to invest outside of traditional stocks and bonds and get better ...

Operating Multifamily properties can be more difficult than it seems, and no one will care about your properties as much as you do. Whether it’s staying on top of expenses line by line or making sure tenants’ maintenance needs are being responded to quickly, there are tons of things in the execution that need to be attended to in order to maximize a property’s potential value and generate the highest returns. Ryan Nunes, Founder of LifeChanging Capital, has been acquiring Multifamily properties ...

As markets are changing, it’s critical to stay on top of trends to maximize your investment returns and minimize risk. For example, you’re starting to hearing more about Build-to-Rent communities as alternative living solutions for renters who no longer want to live in Multi-family complexes. They want more space, a two car garage, a lawn, and they don’t need the amenities of multifamily properties that a lot of people don’t use anyway. Brian Spear, Co-founder of Sunrise Capital Investors, start...

Real Estate has made many people rich, but there are other opportunities where the returns can be much higher and not necessarily with more risk than an average apartment building. Adam Jason, Partner in Legacy Group, manages Alternative Investment companies in Colombia with high upside and strong downside protection. His largest asset, The Green Coffee Company, is secured mostly by land acquired with cash or seller financing so there’s virtually no debt and therefore very little risk. The Green...