Episodes

Industrial properties were at 80% occupancy and selling at 5 cap rates pre-pandemic. Now they’re over 90% occupancy and selling at 8.5% cap rates. With interest rates most likely coming down, this represents a great opportunity to invest in industrial. Warren Buffet says never bet against America, now is a great time to invest in industrial properties. Judd Dunning, President of DWG Capital Partners, is raising a fund to acquire single tenant Sale Lease Backs from profitable companies with stron...

David Saxe is co-founder and Managing Principal at Calvera Partners. His company started out by buying small value-add multifamily properties in the San Francisco Bay Area and has grown to acquiring larger properties in Austin, Dallas-Fort Worth and Raleigh-Durham. Calvera invests in markets with strong health care and technology industries, often in places to which Californians are relocating. His company recently launched an evergreen fund where they are creating a diversified multifamily port...

With so many multifamily syndicators having executed value-add business plans over the past several years, there are fewer of these properties available for acquisition. Additionally, older properties have more deferred maintenance, and therefore are more difficult to underwrite. Most of the time, even with lower prices, the risk is not worth the reward with older properties, and newer properties appreciate more over time. Over the past year, more Class A properties have traded hands. Neill Bert...

Over the past several years, it’s been difficult to generate cash flow investing in commercial Real Estate equity. There’s been too much investor demand driving the prices up and the returns down. Investing in debt, however, presents opportunities for strong cash flow with lower risk. As bank lending has gotten less accessible over the past couple years, borrowers have been forced to seek out other sources of capital, which has presented great opportunities for private lenders. Paul Shannon, co-...

Acquiring quality multifamily assets has gotten increasingly competitive over the last several years. This is one of the reasons it’s become more profitable to build communities from the ground up. Whereas the economics are enticing, however, there’s commensurate risk. There’s interest rate risk with floating construction loans, there’s construction cost risks with the move in material prices and labor costs, and there’s lease-up risk. Andrew Brewer, Founder of Iron Gall Investments, is building...

The commercial real estate market has seen more activity over the past few months as a result of pent-up demand and optimism that interest rates will decline. Many institutions, Private Equity firms, and other investors have lots of dry powder and are eager to deploy capital. As large Retail and Office have fallen out of favor over the past five years, an insatiable demand for stable industrial and multifamily assets has exploded. Cliff Booth, Founder of Westmount Realty Capital, has been a larg...

Investing into smaller, consistently profitable, old economy businesses is a great way to generate cash flow and diversify risk. Business-to-business companies with reliable, steady client bases can generate consistent returns. Compared to most other asset classes, including commercial real estate, you can buy these companies at very low multiples of free cash flow with much higher debt service coverage ratios. Jason Ehrlich, managing partner of Fruition Capital, has raise a fund that invests in...

It’s impossible to time the market, so it makes sense to buy at the right price relative to current markets. If you don’t stay active, you can miss out on great opportunities. It also makes sense to hold for long periods of time, because five years or less is often not enough time to expect precise execution of a business plan given the vagaries that are entailed. Peter Linneman, Principal of Linneman Associates, is a prolific multi-decade investor and founder of Wharton's Real Estate Department...

For steady, predictable cash flow, few assets perform as well as Flex Industrial. There’s a dearth of supply where tenants can operate their businesses, and the cost of relocating is often prohibitive. There’s also little day-to-day management because the spaces are mostly warehouses with a minor office component. Ian Horowitz, Managing Partner at Equity Warehouse, owns 15 properties in the Southeast that are a combination of Flex Industrial and Self-Storage. He’s gradually selling them off to r...

Nothing negatively impacts apartment performance metrics like vacancies. That’s why it pays to take great care of tenants, and to have precise systems and processes to replace tenants when prior ones leave. Many apartment operators take up to 60 days to fill a vacancy. Jered Sturm, CEO of SNS Capitol Group, however, has a meticulously refined process that takes three days to fill vacancies from the day a tenant vacates. As a result, Jered has a 98.5% occupancy across his 1400-unit portfolio. Jer...

Over 90% of U.S. businesses generate less than $5 million profit per year, yet these businesses are the backbone of our economy and employ the majority of U.S. employees. Whereas the majority of Private Equity investments are in larger companies, many smaller companies are investable and need access to capital and additional expertise to grow. Mason Myers, Founder of Greybull Stewardship, invests in companies with $5 - $25,000,000 million in profit and has a strong track record helping these com...

Running multifamily properties in tertiary markets can have major challenges, especially finding qualified staff and drawing from a smaller tenant base. Despite these challenges, you can still acquire at a low enough basis where big gains can be made. Many of these properties are inefficiently managed by long-term local owners with little or no debt and rents hundreds of dollars per month below market. Seth Teagle, Principal of The Stream Group, vertically manages properties in tertiary markets,...

As investors tire of stock market volatility, and market awareness for private investments increases, allocations are increasing for non-traditional assets. In the past decade, and even more recently, retail investors have increasingly investment more money into privately held Real Estate, Private Credit, and Private Equity. With the right investment strategies, there’s predictable cash flow and limited volatility. Successful investing is a game of survival that results in the accumulation of we...

The affordable housing issue persists in this country as homeownership becomes further out of reach for most people. One of the most viable solutions to this issue is manufactured homes, or Mobile Home Parks. They can be great cash flowing assets, but there’s a lot to know to be able to manage them effectively. Daniel Weisfield, co-founder of Three Pillar Communities, has built a portfolio of 70 communities across 14 states. Unlike a common misperception of old, poor-quality parks, many parks ar...

As the cost of acquiring existing multifamily assets has escalated over the past decade, it’s been more lucrative to construct these projects from the ground up. Although borrowing and material costs have gone up over the past couple years, ground up construction has historically rewarded investors with higher returns than acquiring existing assets. AJ Klenk, Managing Partner of Catalyst Capital Partners, started out as a multifamily broker before expanding into ground up development. He has 15 ...

Many multifamily syndicators are facing major headwinds including interest rate increases, record new supply, escalating expenses, and vacancies. In order to thrive in this environment, you have to have an excellent organization that executes meticulously on business plans and maintains healthy working relationships with their lenders. Bikran Sandhu, Co-Founder of Rise 48, has never made a capital call or missed a debt payment. In the face of unprecedented rate increases starting in 2022, Bikran...

Most people who bought multifamily properties back in 2008-2010 wish they had bought more. Since then, multifamily values have soared. We never know when we’re at the bottom, but it’s possible we’re at a bottom now. Multifamily prices are down over 25% from the peak, and demand will ultimately again exceed supply as new construction projects get absorbed. Also, more people are renting as a lifestyle choice and as the cost of homeownership continues to increase. Brad Sumrok, the #1 nationally kno...

Investing in large metro markets mitigates a lot of risk compared to smaller markets. In these markets, it’s easier to find tenants, banks, contractors, and other resources necessary to operate Mobile Home Parks. Ryan Narus, co-founder of Archimedes Group, owns 85 Mobile Home Parks in the Southeast. To learn the business, Ryan moved into the first park he bought, and managed the property himself. Since then, Ryan has learned all aspects of running Mobile Home Parks, and has adapted to the many c...

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 ...

Transaction volume for multifamily is down 80% from its peak. Distressed owners are holding on as long as they can to prevent selling at a big loss while buyers are waiting for more seller capitulation, and the possibility of imminent rate cuts. In markets like Austin, new supply equals 15% of total inventory, so builders will eventually be forced to sell at steep discounts. For class C properties, where heavily leveraged bridge debt owners are unable to make payments, and they don’t have the mo...

Investors seeking truly passive, mailbox money are gravitating towards Single Tenant Triple Net Lease properties. When you have a credit tenant, and a strong long-term lease, you have very little to worry about when it comes to getting paid. If you’re in a larger metro urban area with limited land, or a growing suburb with high average income, your property will likely appreciate well over time and your investment will far outpace inflation. Like most asset classes, NNN is highly competitive, bu...

As multifamily and office properties are struggling, more money is flowing into other asset classes, like Single Tenant Net Lease. Over the past decade, STNL has become a specialized asset class as more investors, including 1031 buyers, have sought a safe, predictable refuge for their cash. It’s also an asset class where you can buy institutional quality properties for as little as $2 - $5 million. Laith Hermiz, CEO of Ironside Realty, has built a career on forming strong relationships with the ...

We’re currently in the longest bull market in U.S. history as the government continues to print trillions of dollars. With this unprecedented situation, continued inflation and rising interest rates is unavoidable. Depending on what happens, it’s possible that rates can go as high as the high teens, like they did in the 80’s. This scenario will spur a declining stock market and depreciation on most assets. Jim Rogers, renown six-decade investor, author, and commentator, predicts choppy waters ah...

Since mid-2022, multifamily prices have plummeted over 30% and transaction volume is down 80%. Class C, in particular, has taken a beating. In the Class A space, sales volume is starting to pick up as owners are being forced to sell by lenders or institutional partners in advance of impending loan maturities. In most markets, rents have stopped their decline and beginning to stabilize. In addition, rates may be plateauing and ready to decline. As these factors come into play, and as new inventor...