Welcome to the Best Ever midweek news brief, a new series where we will highlight the top headlines CRE investors should be paying attention to this week, followed by a deep dive on a larger news topic or trend alongside a CRE expert.

Today’s Headlines:

• Retail is Back, Baby: Retail vacancy has hit a 17-year low, prompting landlords to withdraw the rent discounts and concessions they’ve been offering struggling tenants since the pandemic. This signals intensifying competition, meaning that retail may officially be back.
  
  
• PHX Leads in Q4 Apartment Demand: Apartment demand in Q4 outpaced pre-COVID norms in some key markets, with Phoenix leading the way with an absorption of nearly 4,300 units in Q4 — close to 3,500 more than the annual average in the decade leading up to the pandemic.
  
  
• Rental Fraud on the Rise: According to a new survey from the National Multifamily Housing Council and the National Apartment Association, more than 70% of major apartment landlords say they have seen an increase in fraudulent rental applications over the past 12 months. With this report, it appears that this problem is here to stay. (Here’s our previous episode on how renters are using TikTok to defraud landlords.)

Today’s Guest: Andy McQuade is the principal of The ARM Companies, which provides procurement and management consulting to clients in the real estate industry. Andy joins host Paul Mueller to discuss recent JLL reports which suggest that material costs are expected to increase in 2024 by anywhere from 2-6%, but electrical and related switchgear costs could be higher as companies continue to face labor and availability issues. Meanwhile, HVAC manufacturers and suppliers have also announced price hikes as high as 10% in some cases.

Andy McQuade | Real Estate Background

• Principal at The ARM Companies
• Previous episode:

  • JF3265: Save Six Figures on Your Next Project With These Construction and Efficiency Upgrades

• Portfolio:
  • Self-Storage
• Based in: Rochester, NY
• Say hi to him at: 
  
  • andymcquade.com
  • LinkedIn
  • Podcast

Sponsors

BAM Capital

Andrew Brewer, a real estate developer and the owner of IronGall Investments, joins our host Ash Patel to discuss his strategy for development in one of the nation’s hottest markets: Austin, Texas. His former career as a stationary engineer led him to real estate development, and in this episode, Andrew details his due diligence process, the right time to raise capital, how he works with local municipalities, and more.

Key Takeaways:

• His Competitive Edge: Andrew targets hyper-local projects in the Austin area to maintain a competitive edge. He carefully invests only in the city's fastest-growing submarkets — communities seeing major growth and development of their own job centers beyond just being commuter towns into Austin. By focusing on these localized markets with increasing housing demand, Andrew maintains a competitive edge vs. out-of-market investors.
  
  
• Being Diligent with Due Diligence: Andrew's ideal land contract includes 4-5 months of due diligence with two months to close, plus 30-day extensions on both. This allows time for necessary third-party reports like geotech studies, endangered species assessments, utility mapping, and meetings with the city planning office to confirm allowable density. He prefers to sequence reports by risk level rather than paying for everything upfront, avoiding sunk costs if a deal-breaker emerges.
  
  
• Working with the City: Andrew invests in both raw land and land zoned for multifamily. He aims to maximize density, but scales based on target demographics and pricing. While cities generally don't oppose his projects, he avoids battles by targeting locations aligned with their future land use plans. He secures variances to tweak development requirements, but ensures the overall project conforms to the area's designated use.

Andrew Brewer | Real Estate Background

• Owner, Developer | IronGall Investments
• Portfolio:
  • Multifamily, townhomes, mobile home parks, RV parks, single-family subdivisions
• Based in: Austin, Texas
• Say hi to him at:
  • IronGall Investments
  • Distance 3 Development
  • LinkedIn
• Best Ever Book: Michael Collins, by Tim Pat Coogan
• Greatest Lesson: Make sure that you are very careful when choosing a partner and make sure that the people you partner with can actually deliver on what they say they can do.

Sponsors

BAM Capital

Sarah Sullivan, CEO of SuGo Capital, joins our host Joe Cornwell on the Best Ever Show to discuss her road from Silicon Valley to the headaches of single-family investing and eventually to multifamily and alternative assets, including how diversifying her personal portfolio turned into a shift in her business model and the opportunities SuGo provides to investors.

Key Takeaways:

• Outsource, Simplify, Educate: Sullivan likes to outsource as much as possible. Managing vendors is easier than managing employees. If you bring someone in-house, that's a big commitment. SuGo doesn’t have property management in-house. They have investor relations and marketing in-house, but everything else — legal, accounting, etc. — is all outsourced. Their marketing strategy is simple: strictly email. You won't find Sullivan on social outside of LinkedIn, and her company focuses on virtual events to educate investors with the goal of providing as much value as possible.
  
  
• A Business Model Is Born: Looking at her personal investments, Sullivan realized at one point that she was 90% invested in multifamily. Realizing she was exposed to market trends that could impact her entire net worth, she built out a portfolio that included alternative assets to get her multifamily exposure to 60%. She then packaged these alternative investments like forex and gold — which she does due diligence on herself — for investors, and they were a hit, effectively shifting her business model to offer more options for her investors.
  
  
• Due Diligence Never Stops: Companies grow. Team members change. Executives change. The way they do business changes. Doing continuous due diligence on your partners and with whom you invest ensures that as relationship dynamics change, your partners continue to align with your goals and trajectory. (You can download Sullivan’s investor due diligence checklist here.)

Sarah Sullivan | Real Estate Background

• CEO | SuGo Capital
• Portfolio:
  • Multifamily, energy, forex, and gold
• Based in: San Francisco, CA
• Say hi to her at: 
  • Sugocapital.com
  • LinkedIn
  • Freedomin3.com 
  • Leleka Care Foundation
• Best Ever Book: Rich Dad, Poor Dad, by Robert Kiyosaki
• Greatest Lesson: When you’re getting started, don’t try to do everything yourself. The right partnership can really launch you. Find someone who’s 10 years ahead of you, figure out how you can add value to them, learn from them, and then you can take off on your own.

Sponsors

BAM Capital

What does the Air Force’s nuclear weapons department have in common with multifamily syndication?

Geoff Kudlacz.

Kudlacz — known as “Geoffrey Dollars” on social — joined our host Slocomb Reed on the Best Ever Show to discuss his transition from Air Force nuclear missile operator to multifamily syndicator, including how he got started by raising capital from family and friends for his first deal, which was located in a neighborhood that you would not want to find yourself in. Kudlacz goes on to discuss his tips for getting started in multifamily syndication, the mistakes he and his team have made and the lessons borne from them, and why finding the right partner(s) is everything.

Key Takeaways:

• The Property Management Tipping Point: The reality about third-party property management is that they’ll never do everything the way you want it to be done. That’s the tradeoff. Operationally, once you get your business in order and you optimize NOI, then it’s time to consider vertically integrating with in-house property management. It’s a natural evolution that every syndicator eventually reaches.
  
  
• Mistakes and Lessons: The road from nuclear missile operator in the Air Force to being a GP on 700 multifamily units was littered with mistakes and valuable lessons learned — mistakes like overspending in the wrong areas, overshooting rent projections, and buying buildings outside of the team’s operational wheelhouse. But mistakes have to happen. If you worry about being perfect on your first deal, you'll never get started.
  
  
• Partnerships Are Everything: When choosing partners, don’t be blinded by the dollars they might bring to the table. You can find money anywhere. The right partners are rare. A partnership is like a marriage — you’ll be interacting with this person and having difficult conversations with them daily. Treat the search process as such.

Geoff Kudlacz | Real Estate Background

• Managing Partner | Pacific Sands Funds
• Portfolio:
  • GP on 700 multifamily units across four states
• Based in:
  • Los Angeles, Calif., and Kansas City, Mo.
• Say hi to him at: 
  • Geoffreydollars.com
  • Instagram
  • LinkedIn

• Best Ever Book: Buy Back Your Time, by Dan Martell
• Biggest Lesson: Stick with what you know. If you’re going to buy something that’s outside of your purview, make sure it’s at a small scale and you’re doing it with your money and not your investors’ money.

Sponsors

BAM Capital

Ash Patel and Dan Lewkowicz discuss Dan's real estate journey and expertise in net lease investments. They explore strategies for risk mitigation and profit maximization in single tenant properties, comparing them with multifamily assets. Dan offers practical advice for investors in the retail and net lease sectors, emphasizing the importance of analyzing tenant and property health.

Dan Lewkowicz | Real Estate Background

• Senior Director | Encore Real Estate Investment Services
• Based in: Birmingham, Michigan
• Say hi to him at:
  • LinkedIn
• Best Ever Book: Think And Grow Rich by Napoleon Hill

• Greatest Lesson: Having to start over as a CRE broker after getting out of house flipping.

Sponsors

BAM Capital

Multifamily Fundamentals is a 10-part series hosted by multifamily investor and syndicator Matt Faircloth of the DeRosa Group. In each episode, Matt and his guests dive deep into the fundamentals of not just investing in multifamily, but in building a real estate business. They dissect everything from choosing the right market, to underwriting and financing multifamily properties, to mastering investor relations — all the way to building out your multifamily dream team.

On this episode, Matt Faircloth and Vincent Celeste delve into the intricacies of raising capital and nurturing investor relationships for multifamily real estate projects. They discuss creating a strong investor database, leveraging social media for outreach, and the importance of systematic processes in business growth. The conversation also highlights the need for investor education and building a robust infrastructure before seeking deals.

Key Takeaways:

• Investor Database Importance: The episode underscores the significance of building a robust investor database. This foundational step is crucial for successful fundraising and maintaining long-term relationships with investors in the multifamily real estate sector.
• Educating Investors: Matt Faircloth and Vincent Celeste highlight the need for educating investors. Providing comprehensive knowledge and insights about the multifamily market can build trust and encourage more informed investment decisions.
• Systematic Processes and Social Media: They emphasize the role of systematic processes in business growth and the effective use of social media. These tools are vital for outreach, marketing, and maintaining investor engagement, thereby playing a key role in the success of real estate ventures.

Sponsors

BAM Capital

Passive Investor Tips is a weekly series hosted by full-time passive investor and Best Ever Show host, Travis Watts. In each bite-sized episode, Travis breaks down passive investor topics, simplifying the philosophy and mindset while providing tactical, valuable information on how to be a passive investor.

In this episode, Travis Watts discusses improving personal financial management as a crucial step before investing, highlighting ways to save on everyday expenses like utilities and vehicle costs, and the importance of hiring tax strategists and reviewing insurance premiums.

Sponsors

BAM Capital

In this episode, host Joe Cornwell is joined by David Meyer, a real estate investor who serves as VP of data and analytics at BiggerPockets. David discusses current market conditions and trends, the dangers of sitting on the sidelines, and what he’s buying now and why. 

Key Takeaways:

• The Great Interest Rate Debate — What He’s Seeing: Mortgage rates likely won't continue falling linearly, as hoped, in 2024 due to factors like record-low affordability, inventory shortages, and sluggish sales. Some demand and supply improvements are happening slowly, but no big shifts in market dynamics appear to be coming over the next few months. While bond investors expect further rate cuts, we may see more volatility first before rates can meaningfully decline again.
  
  
• The (Dangerous) Waiting Game: Trying to time the real estate market is dangerous and near impossible. If rates fall again, competitive conditions will return, erasing affordability gains. Rate declines are expected to be slow. Even a small decrease may spur lots of new competition and higher prices. So while tempting, waiting for the perfect entry point doesn’t necessarily guarantee better affordability or opportunity.
  
  
• The Midwest Resurgence: David is currently focused on acquiring small multifamily and single-family rental properties in the Midwest, bullish on the region long-term even as others eye the Southeast. “I think in 10, 20 years, we're going to see a resurgence in the Midwest,” said Meyer. “And I want to get into it.”

David Meyer | Real Estate Background

• VP of Data and Analytics at BiggerPockets
• Portfolio:
  • Rental properties and one lonely STR in Colorado
  • Passive investor in multiple multifamily syndications

  • Lending funds

• Based in: Amsterdam, Netherlands
• Say hi to him at: 
  • LinkedIn
  • BiggerPockets — where David's new book, Start with Strategy, is now available.
• Greatest Lesson: Not outsourcing things quickly enough and trying to do everything himself.

Sponsors

BAM Capital

Farris Gosea, the founder of Farris Gosea Capital, talks about scaling his multifamily portfolio to 920 units, including the challenges he’s experienced along the way from finding great maintenance technicians to implementing better systems.

Key Takeaways

• Scaling in Real Estate: Farris emphasizes the importance of transitioning to larger properties and why it’s critical to have a long term mindset prior to scaling.
• Financial Strategies and Management: Farris shares insights into his approach to financing and managing his properties, including self-management strategies, and the benefits of using professional property management software. He also highlights the importance of maintaining control over operations and the strategic decision not to raise external capital for his investments.
• Maintenance Challenges and Deal Sourcing: Farris discusses the challenges faced in scaling a real estate business, particularly in maintenance and staffing. He provides tips on finding good deals, focusing on off-market opportunities, and his criteria for identifying profitable investments.

Farris Gosea | Real Estate Background

• Founder of Farris Ghosea Capital
• Portfolio:
  • 920 units
• Based in: Schererville, IN
• Say hi to him at: 
  • rentalincomepodcast.com/group
  • ellsburygroup.com
  • farrisgoseacapital.com

• Greatest Lesson: TSet aggressive goals, and have a longterm mindset. Then work backwards from there.

Sponsors

BAM Capital

Ferd Niemann, a seasoned mobile home park operator and real estate attorney, dives into the niche world of mobile home park investing. He shares expert insights about the nuances of real estate law, the specifics of mobile home park operations, and some of the risks associated with mobile home park investing that investors often overlook.

Key Takeaways

• Transitioning to Mobile Home Park Investing: Ferd Niemann shares his journey from working in insurance and as a county appraiser to becoming a real estate lawyer and mobile home park operator. He emphasizes the shift from single-family homes to mobile home parks due to competitive market conditions and the pursuit of greater returns.
• Navigating the Challenges of Mobile Home Parks: Ferd discusses the unique challenges of mobile home park investments, including zoning issues, the value of vacant sites, and the significance of local market conditions. He provides insights into managing these challenges, emphasizing the importance of due diligence and understanding local market dynamics.
• Strategic Approaches and Best Practices for Mobile Home Park Operations: The episode covers strategic approaches to mobile home park investing, such as focusing on parks with potential for infill and improvement, and the benefits of owning multiple parks in a region for managerial efficiency. Ferd also delves into best practices for setting up legal entities for different aspects of the investment to mitigate risks and streamline operations.

Ferd Niemann | Real Estate Background

• The MHP Law Firm
• Portfolio:
  • 1,500 mobile home park sites
  • Various LP investments
• Based in: Kansas City MO
• Say hi to him at: 
  • themobilehomelawyer.com
• Best Ever Book: Rocket Fuel by Gino Wickman
• Greatest Lesson: Trust your gut.

Sponsors

BAM Capital

Neil Timmins, CEO of Agent Optional, shares his journey from being a top Remax agent to an opportunistic commercial real estate investor. He details how he transitioned from residential to commercial real estate, his strategies for acquiring and managing industrial and retail properties, and his innovative approach to creating passive income streams for real estate professionals.

Key Takeaways

• Transitioning from Residential to Commercial Real Estate: Neil discusses his shift from a successful career in residential real estate to commercial investments, emphasizing the importance of diversifying income sources and the challenges and rewards of this transition.

• Strategies for Acquiring and Managing Industrial and Flex Properties: Neil shares his criteria for selecting commercial properties, including his preference for fewer tenants and longer lease terms. He discusses his experiences with retail and office space as well, including the nuances of managing these assets, from lease enforcement to tenant turnover.

• Creating Passive Income Streams for Real Estate Professionals: Neil explains the concept of passive income in real estate, the importance of diversification, and how he assists other professionals in achieving financial stability through commercial investments.

Neil Timmins | Real Estate Background

• CEO of Agent Optional
• Portfolio:
  • 96,000 sq ft of industrial
  • 20,000 sq ft of office
  • 15,000 sq ft of retail
  • 23 doors of multifamily
  • Two Airbnbs
• Based in: Des Moines, IA
• Say hi to him at: 
  • LinkedIn
  • agentoptional.com
• Best Ever Book: Winning Through Intimidation by Robert Ringer
• Greatest Lesson: Get a mentor early, and get educated. You’re going to pay for it one way or another, so you’re best to do it through a mentor.

Sponsors

BAM Capital

Syndication Attorneys

Ward Schraeder, a versatile real estate mogul with over 30 years of industry experience, shares lessons he's learned spearheading massive commercial and healthcare developments, acquiring failing businesses, and simply seizing the right opportunities regardless of asset class.

Key Takeaways

• The Power of Diversity in Real Estate Investments: Ward emphasizes the importance of diversification in real estate, highlighting his ventures across hospital developments, commercial real estate, and bank repo acquisitions. His approach to diversification acts as a hedge against downturns, creating stability and growth. 

• Leveraging Opportunities in Bankruptcy Acquisitions and Turnarounds: Schraeder shares his experience in acquiring and turning around failing companies, shedding light on the strategic approach of assessing and revitalizing distressed assets. He discusses the significance of understanding the fundamentals of business management in successful turnarounds, including managing accounts receivable, payable, and effective tax planning.

• Insights into Medical Real Estate Development: Ward shares his projects in the healthcare sector, such as the development and operation of medical facilities across the country. He provides valuable perspectives on the landscape of healthcare real estate, including regulatory challenges and opportunities for independent developers in this niche market.

   

Listen to Ward’s previous episode: 2429 - Taking Opportunities To Next Level

Ward Schraeder | Real Estate Background

• Schraeder Family Partnership
• Portfolio:
  • Hospital and other CRE properties
• Based in: Kansas City, MO
• Say hi to him at: 
  • Instagram
  • YouTube
• Best Ever Book: Count of Monte Cristo by Alexandre Dumas
• Greatest Lesson: Get started young, and let time do it’s thing. 

Sponsors

BAM Capital

Syndication Attorneys

Multifamily Fundamentals is a 10-part series hosted by multifamily investor and syndicator Matt Faircloth of the DeRosa Group. In each episode, Matt and his guests dive deep into the fundamentals of not just investing in multifamily, but in building a real estate business. They dissect everything from choosing the right market, to underwriting and financing multifamily properties, to mastering investor relations — all the way to building out your multifamily dream team.

Guest host Matt Faircloth and Vincent Celeste of The DeRosa Group dive deep into the strategies of building and nurturing your investor database to raise capital. 

Key Takeaways

• Building a Strong Investor Database: Learn how to create an extensive investor database and understand why it's crucial to establish this infrastructure before hunting for deals. Discover strategies to effectively communicate and engage with potential investors, ensuring a solid foundation for future ventures.
• Creating a Lead Funnel: Understand how leads and potential investors may interact with your business depending on where they are in their decision-making process. More importantly, understand how you can customize your communication efforts to meet them where they are.
• Creating Engaging Content and Utilizing Social Media: Uncover the power of consistent, educational content creation to attract and retain investors. Learn how to effectively use social media platforms to build credibility, share knowledge, and establish a strong online presence.

Sponsors

BAM Capital

Syndication Attorneys

Passive Investor Tips is a weekly series hosted by full-time passive investor and Best Ever Show host, Travis Watts. In each bite-sized episode, Travis breaks down passive investor topics, simplifying the philosophy and mindset while providing tactical, valuable information on how to be a passive investor.

In this episode, Travis reviews a brief history of American tax law to give listeners an accurate perspective of how modern day tax policy fits into the broader historic landscape. He also shares some tips for stacking the odds in your favor when it comes to reducing your tax burden such as investing long term and investing in real estate.

Sponsors

BAM Capital

Syndication Attorneys

Dave Holman, Founder of Holman Homes, explores the world of green building syndications, historic renovations, and innovative refugee housing. He shares how he’s built a $40 million portfolio and is able to give back to his community while remaining profitable.

Key Takeaways

• Sustainable and Cost-Effective Building Practices: Dave emphasizes the importance of green building and sustainability in real estate, discussing how environmentally friendly practices can be both cost-effective and beneficial for long-term investment. He critiques certifications like LEED, advocating for practical sustainability over marketing gimmicks.
• Investment Strategies and Refugee Housing: Holman shares the intricacies of managing and investing in refugee housing, highlighting how this approach aligns with both profitability and social responsibility.
• Renovating and Modernizing Historic Properties: Living in Maine, many properties are circa Revolutionary War construction. Dave shares the challenges and opportunities this creates for investors looking to bring these buildings into the 21st century.
  

Dave Holman | Real Estate Background

• Founder of Holman Homes
• Portfolio:
  • 370 units, $40MM AUM between current holdings and development projects
• Based in: Portland, ME
• Say hi to him at: 
  • holmangrouprealty.com
  • holmanhomes.com
  • katahdinpropertymanagement.com
• Best Ever Book: Cradle to Cradle by Michael Braunghart
• Greatest Lesson: Also do research and due diligence on recommendations from contractors.

Sponsors

BAM Capital

Syndication Attorneys

Sam Bates from Bates Capital Group talks about shifting his real estate business from acquisitions to development, mainly in multifamily and retail spaces, due to recent market changes. He discusses challenges like zoning laws and investor management, and the impact of COVID-19 on the sector. Bates also shares insights on financial strategies and risk mitigation in large-scale real estate development.

Sam Bates | Real Estate Background

• Owner of Bates Capital Group
• Portfolio:
  • 1,000+ multifamily units
• Based in: Dallas, TX
• Say hi to him at: 
  • batescapitalgroup.com
• Best Ever Book: The Success Principals by Jack Canfield

Sponsors

BAM Capital

Syndication Attorneyshttps://www.bestevercre.com/podcast/building-success-insight-int

Vanessa Alfaro, a real estate investor with $50 million assets under management and founder of Venus Capital Partners, shares her profound insights on leveraging AI in real estate. This episode, recorded at the onset of 2024, delves into the transformative impact of AI on property management, acquisitions, and investor relations within commercial real estate and how teams can integrate it to maximize returns.

Key Takeaways:

• AI in Real Estate Operations: Vanessa discusses how AI technologies like chatbots are revolutionizing property management by offering efficient and scalable solutions. She emphasizes the importance of adapting AI not only for acquisitions but also for everyday business operations, ensuring a competitive edge in the rapidly evolving real estate market.
• AI-Driven Personalization and Efficiency: AI has an extraordinary ability to personalize interactions, both in terms of investor relations and property dealings. Vanessa shares how she uses AI for analyzing investor profiles and broker personalities, enhancing her communication strategies, and optimizing investor engagement processes.
• Future Trends and Adaptability: Looking towards the future, Vanessa advises listeners to stay adaptable, highlighting the rapid pace of technological development and the need for constant learning and application of new AI tools to stay ahead in the industry.

Listen to Vanessa’s previous episode: 3261 - Disrupting the Real Estate Game with AI

Vanessa Alfaro | Real Estate Background

• Co-Founder of Venus Capital and Founder of LunaX AI
• Portfolio:
  • $50mm AUM in TX, LA, MS, KY and MO
• Based in: Houston, TX
• Say hi to her at: 
  • Linktree
• Best Ever Book: Buy Back Your Time by Dan Martell
• Greatest Lesson: You pay for education one way or another, either through coaching or through experience and mistakes.

Sponsors

BAM Capital

Syndication Attorneys

Daniel Wood, a real estate developer and event promoter from Sweden, reveals the unique challenges and opportunities in European real estate development, particularly in the post-COVID landscape. Daniel shares his expertise in UK investments, his innovative approaches to property development, and the unique way he’s bringing investment education to crowds around the world. 

Key Takeaways:

• Challenges in European Real Estate Markets: Daniel provides insights into the European real estate landscape, highlighting the differences and challenges compared to the US market. He discusses heavy regulations in some European countries as well as his strategic choice to invest in the UK.
• The Power of Innovative Investment Strategies: Daniel is a part of the Rich Dad program, bringing Cashflow Clubs to cities worldwide with the hope of educating thousands about real estate investing. He also discusses his unique approach to raising capital through joint ventures instead of traditional fixed-interest models, reducing risk and increasing profitability.
• Adapting to Market Changes Post-COVID: Daniel shares his experience navigating the real estate market during and after the COVID-19 pandemic. He talks about how the UK property market reacted differently compared to other parts of the world and how he capitalized on government stimulus measures.

Check out Daniel’s previous episode: 2463 - Recovering from a Huge Loss

Daniel Wood | Real Estate Background

• Real estate developer and event promoter
• Portfolio:
  • Developments in the UK
• Based in: Gotland, Sweden
• Say hi to him at: 
  • LinkedIn
  • swedishwealthinstitute.com 
• Best Ever Book: 7 Habits of Highly Effective People by Stephen Covey
• Greatest Lesson: Switching to joint venture structures in our deals has been worth its weight in gold as opposed to the syndication model.

Sponsors

BAM Capital

Syndication Attorneys

Wyatt Simon of Full Circle Equity Partners shares his journey from aspiring NBA player to a successful real estate entrepreneur, revealing the strategies and challenges he faced while building his portfolio of 176 units. In this episode, we explore Wyatt's unique approach to real estate, including his transition from single-family homes to multifamily properties, his hands-on experience in property management, and how he developed his own direct to seller system.

Key Takeaways:

• Starting Small and Scaling Up: Wyatt’s real estate journey began with a modest duplex, progressing to single-family homes, and eventually to large multifamily properties. He shares his methodical approach to scaling and some of the challenges he encountered in his early days of self-management.
• The Importance of Effective Property Management: Wyatt shares his transition from using third-party management to setting up his own management company, highlighting the challenges and learning curves involved in self-managing a large portfolio.
• Leveraging Direct Seller Systems for Better Deals: By setting up direct to seller systems and partnering with a business associate skilled in systems management, Wyatt was able to acquire more properties efficiently. This strategy highlights the importance of finding off-market deals and creating a reliable deal flow in the competitive real estate market.

Wyatt Simon | Real Estate Background

• Principal at Full Circle Equity Partners
• Portfolio:
  • 176 single family and multifamily units
• Based in: Omaha NE
• Say hi to him at: 
  • fcequitypartners.com
  • wyattsimon.com
  • Facebook

• Best Ever Book: 7 Habits of Highly Effective People by Stephen Covey
• Greatest Lesson: Buying a single family home without inspections and being unaware that I needed permits to do the remodeling. 

Sponsors

BAM Capital

Multifamily Fundamentals is a 10-part series hosted by multifamily investor and syndicator Matt Faircloth of the DeRosa Group. In each episode, Matt and his guests dive deep into the fundamentals of not just investing in multifamily, but in building a real estate business. They dissect everything from choosing the right market, to underwriting and financing multifamily properties, to mastering investor relations — all the way to building out your multifamily dream team.

In the second episode of Multifamily Fundamentals, host Matt Faircloth, alongside real estate expert Justin Fraser, dives deeper into the essentials of multifamily investing. This episode is a treasure trove of knowledge for anyone from beginners to seasoned syndicators in multifamily real estate investment. The focus shifts to the nitty-gritty of structuring deals, investor relations, and making sound decisions in the multifamily arena.

Key Takeaways:

1. Structuring Deals and Understanding Splits: There's no hard and fast rule for structuring deals with investors. While industry standards exist, everything in a deal is negotiable. The episode emphasizes the importance of finding a balance in profit distribution among general partners (GPs) and investors, ensuring a win-win scenario. They debunk myths around fixed profit splits and advocate for flexibility to adapt to different market conditions and deal specifics.

2. Investor Relations and Trust: Building trust with investors is paramount. The episode delves into the philosophy of treating investors' money with utmost respect and prioritizing their interests. Faircloth and Fraser stress the importance of being custodians of investors’ funds, focusing on risk mitigation, and delivering desirable returns.

3. Decision-Making and Asset Management: The discussion highlights the thousands of decisions made in asset management, from minor fixes to significant renovations, and how each of these should be guided by what’s best for the investors. This includes prioritizing steady, trustworthy progress over high-risk, high-reward strategies.

4. Negotiation and Communication: A significant portion of the episode is dedicated to the art of negotiation and transparent communication with investors. Understanding investors' expectations and crafting deals that meet these expectations is crucial for long-term success.

Sponsors

BAM Capital

Passive Investor Tips is a weekly series hosted by full-time passive investor and Best Ever Show host, Travis Watts. In each bite-sized episode, Travis breaks down passive investor topics, simplifying the philosophy and mindset while providing tactical, valuable information on how to be a passive investor.

In this episode, Travis explores the key factors that should go into your decision to quit your W-2 job. He also shares that this path is not for everyone and truly depends on your investment and retirement goals.

Sponsors

BAM Capital

Ash Patel interviews Adam Carswell from RaisingCapital.com. Adam shares his journey from semi-pro basketball to capital raising. He discusses the importance of due diligence, integrity, and legal aspects in capital raising, and highlights the value of networking and mentorship in real estate investing.

Adam Carswell | Real Estate Background

• Director of Connections at RaisingCapital.com
• Based in: Tampa, FL
• Say hi to him at: 
  • LinkedIn
• Best Ever Book: The Way of the Superior Man
• Greatest Lesson: Service above self.

Sponsors

BAM Capital

Discover the power of social media for capital raising with Jesse Futia, real estate brand advisor and co-founder of Fin Ghost. He shares the transformative role of platforms like LinkedIn in capital raising and investor networking, and provides tips for investors looking to boost their digital brand and capital raising efforts.

Key Takeaways:

• Building a Digital Brand: Jesse emphasizes the importance of a strong digital presence, particularly on LinkedIn, for real estate professionals. Regular content creation is key to establishing trust and authority in the industry.
• Capital Raising through Social Media: Leveraging social media, especially LinkedIn, for capital raising is a pivotal strategy. Jesse shares his own experience of engaging with potential investors through consistent, relatable content, stressing the need for a personal touch in digital interactions.
• Consistency and Content Quality: The consistency of posting and the relevance of content are crucial. Jesse advises posting daily or several times a week, sharing both professional insights and personal stories, to build credibility and attract higher investment contributions.

Jesse Futia | Real Estate Background

• Co-Founder of Fin Ghost
• Portfolio:
  • 150 units self-storage and multifamily
  • Student housing in Upstate New York
• Based in: Seattle, WA
• Say hi to him at: 
  • Finghost.io
  • LinkedIn
• Best Ever Book: Can’t Hurt Me by David Goggins
• Greatest Lesson: Your digital brand is the most valuable asset you have. Take it seriously, and be consistent with your posting. You will see dramatic results in your capital raising and investing efforts.

Sponsors

BAM Capital

Joe Riley, CEO of Patriot Family Homes, discusses the dynamic world of short-term rentals, focusing on challenges and opportunities within this niche. He shares his thoughts on how the short-term rental industry will be impacted alongside economic decisions in 2024 and how owners can maximize profits going into the new year.

Key Takeaways:

• Shift in Business Focus: Joe discusses the strategic shift from acquiring properties to acquiring short-term rental operators, a response to the challenges in real estate acquisitions due to fluctuating home prices, interest rates, and rising operational costs.
• Market Dynamics and Regulatory Impact: The episode highlights how market regulation levels significantly affect the short-term rental industry. Less regulated areas have seen a surge in supply, impacting investor returns, while tightly regulated markets like Savannah have been more stable.
• Advice in Maintaining Profitability: For short-term rental owners, Joe recommends diversifying listing platforms, adjusting booking strategies, and targeting medium-term guests during off-seasons to maintain high occupancy and revenue.

Joe Riley | Real Estate Background

• CEO of Patriot Family Homes
• Portfolio:
  • 550+ short-term rental units in 13 states 
• Based in: Chattanooga, TN
• Say hi to him at: 
  • patriotfamilyhomes.com

• Greatest Lesson: Find your niche, and stay focused. Become the absolute best operator in that niche that you can be.

Check out Joe’s previous episode: 2738 - The Innovative Strategy to Scale Military Short-Term Rentals

Sponsors

BAM Capital

William Edwards of GDD Invests explores his dynamic journey from small-scale beginnings to managing substantial real estate portfolios. William shares the steps he took to teach himself real estate investing, how he progressed from LP to GP deals, and the role local market knowledge can play in your investment deals.

Key Takeaways:

• Transitioning into Real Estate Investing: William shares his journey from a 24-year career in ERP and CRM software to real estate investing. He shares the importance of capital preservation and asset diversification in response to economic uncertainties like the 2008 financial crisis and COVID-19.
• Strategies for Growth in Real Estate: William details his progression from limited partner investments to general partnerships in multifamily properties. He provides insights into the selection and management of multifamily units, with a focus on market knowledge and property type.
• Investing for Your Goals: William talks through the stages of his investing career. The deals he pursued always reflected the goals he had at the time, and his criteria changed over time to align with those goals.

William Edwards | Real Estate Background

• Managing Partner at GDD Invest
• Portfolio:
  • GP of 188 multifamily units
  • LP of 5,000 multifamily units
  • One self storage fund
  • Land investments
• Based in: Charlotte, NC
• Say hi to him at: 
  • LinkedIn
  • Instagram
  • gddinvest.com
• Best Ever Book: Tax-Free Wealth by Tom Wheelwright
• Greatest Lesson: Walk every unit. 

Sponsors

BAM Capital

Jeremy Kane of Patriot Capital Investments shares his journey from house hacking while in the military, to scaling up to 1,200 doors of multifamily in two years, to taking the lead on a 70,000 square foot ground up development industrial warehouse project. He shares creative strategies for putting yourself in front of potential investors and why he’s diversifying his portfolio into industrial. 

Key Takeaways:

• Balancing Financing and Investment Strategy: Kane discusses the intricacies of financing commercial real estate projects, emphasizing the balance between loans, investors, and equity splits to achieve success. He also provides insight into the approach of building a 70,000 square feet industrial warehouse complex in San Antonio without loans, focusing on bringing in investors and potential refinancing for quick replenishment of funds.
• Creative Approaches to Capital Raising: Kane shares some unique ways he’s put himself in front of people with “expendable” income and business acumen, ideal investors for commercial real estate deals.
• Transitioning Strategy in Real Estate Ventures: Kane emphasizes the significance of transitioning between different real estate ventures, from smaller multifamily properties to midsize deals, and the importance of staying grounded and humble despite past successes.

Jeremy Kane | Real Estate Background

• Patriot Capital Investments
• Portfolio: 
  • 1,200 multifamily units
  • 3 residential properties
• Based in: Austin, TX
• Say hi to him at: 
  • LinkedIn
• Best Ever Book: Atomic Habits by James Clear
• Greatest Lesson: Building your team with the right people that match your values and risk is okay if it’s calculated.

Sponsors

BAM Capital

Multifamily Fundamentals is a 10-part series hosted by multifamily investor and syndicator Matt Faircloth of the DeRosa Group. In each episode, Matt and his guests dive deep into the fundamentals of not just investing in multifamily, but in building a real estate business. They dissect everything from choosing the right market, to underwriting and financing multifamily properties, to mastering investor relations — all the way to building out your multifamily dream team.

In the first episode of the Multifamily Fundamentals series, seasoned real estate professionals Matt Faircloth, Hervé Francois, and Justin Fraser delve into the Core Four method, unraveling the secrets behind scaling a successful multifamily real estate business. From discovering deals to underwriting, raising capital, and executing the business plan, they offer invaluable insights into the pivotal roles that drive long-term growth in commercial real estate.

Key Takeaways:

• The Core Four Superpowers: Explore the critical roles of the hunter, brain, money, and hammer in multifamily real estate. Understanding these distinct roles and their interplay is pivotal for scaling and sustaining a successful business.
• Importance of Collaboration: Successful multifamily teams thrive on collaboration. While each role operates independently, their synergy and collective effort determine the success of a deal. Collaboration among hunters, brains, money managers, and hammers ensures a comprehensive approach.
• Roadmap to Success: Having a roadmap and educating yourself can significantly improve your chances of success. Learning from the bumps along the way, creating a solid roadmap, and staying confident can pave the way for real estate investors to achieve their goals and scale their businesses effectively.

Sponsors

BAM Capital

Passive Investor Tips is a weekly series hosted by full-time passive investor and Best Ever Show host, Travis Watts. In each bite-sized episode, Travis breaks down passive investor topics, simplifying the philosophy and mindset while providing tactical, valuable information on how to be a passive investor.

In this episode, Travis discusses the idea of creating your own economy and focusing on what’s in your control. We are constantly bombarded by headlines about the economy and real estate investing, and a lot of it impedes us from achieving our goals. So, Travis encourages you to change your perspective and think about what you can do to take control and make 2024 your best year yet.

Sponsors

BAM Capital

Jon Hilley, Founder of 1031 Specialists, unravels the mysteries and myths surrounding this powerful tax-saving strategy. He shares the potential benefits of 1031 exchanges, addressing common misconceptions, and even some lesser-known hacks that investors can use to their advantage.

Key Takeaways:

• The Power of Compounding Tax-Free Returns: John Hilley highlights the significant advantages of using 1031 exchanges to defer capital gains taxes. By reinvesting your profits tax-free, you can exponentially grow your real estate portfolio and maximize your returns over time.
• Debunking Myths: Many investors believe that 1031 exchanges are complicated or restricted to specific scenarios. However, John dispels these myths, emphasizing that 1031 exchanges can be more flexible and straightforward than commonly thought. He also clarifies misconceptions about property types, entities, and transactions that can qualify for a 1031 exchange.
• Timing Matters: Understanding the timing of a 1031 exchange is crucial. John explains that while you can defer taxes by initiating a 1031 exchange, the year of the first property sale is what ultimately determines when you pay those taxes. He provides insights into managing your tax liability by strategically navigating the 1031 exchange process, even if you opt out of it.

Jon Hilley | Real Estate Background

• Founder of 1031 Specialists
• Based in: Denver, CO + Orange County
• Say hi to him at: 
  • Twitter
• Best Ever Book: The Giving Tree by Shel Silverstein
• Greatest Lesson: Raising $100MM doesn't guarantee success.

Sponsors

BAM Capital

Sterling Griffin, Founder of Sterling Capital, shares his journey from homelessness to financial freedom through medical real estate investing. He discusses the unique strategies he employs in this niche market, the importance of mentorship, and valuable lessons learned along the way.

Key Takeaways:

• Buy Off Market, Sell on Market: Sterling emphasizes the importance of buying off-market properties in the medical real estate sector. By identifying hidden opportunities that haven't yet been priced at their full market value, investors can secure unique deals that offer significant potential for profit.
• The Power of Mentorship: Sterling attributes much of his success to mentorship. He highlights the value of learning from those who have already achieved what you aspire to accomplish. Mentorship can provide essential insights, shortcuts, and the right mindset needed to thrive in the world of commercial real estate.
• Investing in Medical Real Estate: Sterling's approach to medical real estate investing involves securing existing properties, planning for specific tenants, and having exit strategies in place. While the market dynamics may change, Sterling focuses on delivering consistent returns, typically targeting around 30-31% returns, showcasing the importance of adaptability in real estate investment.

Sterling Griffin | Real Estate Background

• Founder of Sterling Capital
• Portfolio:
  • $20 million in medical real estate
  • $9.5 million in other NNN commercial properties
• Based in: Austin, TX
• Say hi to him at: 
  • LinkedIn
  • Passivemedicalrealestate.com
  • Twitter
• Best Ever Book: The Success Principles by Jack Canfield
• Greatest Lesson: Not getting everything in writing and relying on a tenant's word as I invested heavily into specialized development for their needs.

Sponsors

BAM Capital

The Federal Reserve decided in December to keep its key interest rate unchanged for the third consecutive meeting. This decision came as inflation showed signs of cooling and economic conditions seemed stable overall. In addition, Federal Open Market Committee members unanimously voted to pave the way for multiple rate cuts starting in 2024 and beyond. Specifically, they projected at least three quarter-percentage point decreases in 2024, assuming the economy evolves as they expect. This rate cut forecast is not as aggressive as what some market participants had anticipated, but more aggressive than what Fed officials had previously signaled.

In this Best Ever Roundtable, our hosts — Ash Patel, Slocomb Reed, and Joe Cornwell — discuss the Fed’s December meeting and what its indications about future rate cuts could mean for investors in 2024.

Sponsors

BAM Capital