Episodes

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...

The woes of the office sector are pervasive and no secret. The work-from-home phenomenon and the technology that enables it are clearly black swan drivers that have negatively impacted the sector. Apart from Class A+, trophy assets, the rest of the market is challenged, and even the market for trophy assets is nuanced. In some markets, where the culture is more supportive of in-person work, the office sector is actually doing well. Miami and Houston, for example. are performing quite well. Phil ...

It may sound too good to be true, but it’s possible to become an investor in residential real with no money. If you have no savings but want to start a career in real estate investing, wholesaling houses is a great way to get started. With wholesaling, you can put properties under contract and assign them to fix and flip buyers at a higher price. Jiries Dawaher, a real estate investor in Cincinnati, Ohio, has wholesaled over 1000 homes, mostly to house flippers. Since amassing a healthy net wort...

Even though B Class apartment prices have come down 20%-30%, sales volume for these properties is still at a ten-year low. Prices are still not low enough in most cases, however, to make sense in today’s interest rate environment. In Class C apartments, this is even more the case. Prices still have a ways to go further contract before they make sense. Andrew Cushman, Founder and Principal of Vantage Point Acquisitions, owns B to A- class garden style properties in secondary and tertiary markets ...

The Private Credit asset class is growing rapidly because investors love the cash yield and the lower risk profile than many equity investments. With first lien lending, you’re first in line to take over a borrower’s asset if they don’t perform. The $5 million to $10 million lower-middle market arena, in particular, is an underserved market because it’s too large for most ma and pa lenders and too small for larger lenders. Beau Hale, Founder and Managing Partner of Pine Peak Partners, lends to b...

As people are traveling at record levels, the hotel industry is flourishing with demand that is exceeding 2019. Leisure travel has grown significantly, and corporate travel has growth for several quarters. Since almost no new supply has been constructed in the last five years, there’s a current supply-demand imbalance that’s benefitting hotel operators. Greg Friedman, Managing Principal and Chief Executive Officer of Peachtree Group in Atlanta, owns 70 select service hotels, mostly in the Southe...

In order to generate great returns in an otherwise saturated market, identifying asset classes with a higher barrier to entry can be necessary. Affordable Housing, in particular, can be a challenge because of municipal regulatory hurdles and compliance issues that make acquisitions and operations complex. As a result, these properties can be lucrative, and few investors have what it takes to acquire and operate these properties. Denis Shapiro, Managing Partner of SIH Capital group, is expanding ...

As multifamily values continue to plummet, big institutions are jumping back into the game. Companies like Blackrock and KKR have announced plans to invest big in multifamily. In particular, many Class A properties are coming on the market at steep discounts to replacement cost and at prices up to 25% lower than the peak of the market. As the gap between what it costs to own a home and what it costs to rent far exceeds $1,000 per month, coupled with the long-term shortage of rentals over the nex...

Unlike many Real Estate asset classes that offer low initial cash flow, but promised upside, neighborhood strip centers provide 10% in-place cash flow in addition to healthy upside. By improving a shopping center’s visual appeal and bringing rents to market, great value can be achieved. Additional value can be created by selling off Quick Service Restaurant outparcels on the site, thereby returning significant amounts investor equity. Andy Thelen, Principal and Director of Capital Markets at The...

In the world of Alternative Investments, there are many ways to achieve cash flow. Bronson Hill, founder of Bronson Equity, has helped passive investors generate cash flow through different asset classes, including multifamily Real Estate. Many of these investments have done quite well, some have had challenges. Regardless of recent challenges, however, now is a great time to invest in multifamily properties as the market has corrected as much as 20%-30% on high quality assets. In addition to in...

There are still thousands of small businesses that require commercial office space to operate. Despite the negative press of office buildings in large downtown markets, many small suburban office buildings are completely occupied. Adam Craig, Founder and CEO of CLE Real Estate Group, shops buildings that have languished on the market, sometimes for up to 18 months, and makes lowball offers to acquire them at a low enough basis to make money. These buildings are typically non-financeable, so ther...

Self-Storage has more resilience across different economic cycles. Whether people are downsizing or upsizing, storing expensive toys, or making space for a home office, they need to rent storage space. Increasingly, small businesses are also utilizing self-storage. A third of all Americans utilize self-storage facilities for various needs. In the right markets and the right locations, self-storage has a steady, predictable revenue stream with low operating expenses that results in high operating...

There’s great money to be made in Section 8, affordable housing. Occupancy is generally very high, and tenancies can last for many years. It’s a recipe for steady, predictable income and high margins. On the management side, however, it can be hard figuring out how to manage lower income, working class tenants, working with local governments to get paid, and doing it at a profit. It takes a special focus and very tight systems. Mike Bonadies, Co-Owner and Managing Partner at TerraVestra properti...

Although there are great benefits to investing in Real Estate equity opportunities for the cash flow, appreciation, and tax advantages, investing in debt can be a great alternative for more immediate, conservative and consistent cash flow. These vehicles generate anywhere from 8% to 10%, or even higher. In addition to Real Estate debt or equity, there are still other ways to invest in lending vehicles with even higher returns, as high as 20%. Matt Owens, Founder of Owens Capital Group, has flipp...

Although there are great benefits to investing in Real Estate equity opportunities for the cash flow, appreciation, and tax advantages, investing in debt can be a great alternative for more immediate, conservative and consistent cash flow. These vehicles generate anywhere from 8% to 10%, or even higher. In addition to Real Estate debt or equity, there are still other ways to invest in lending vehicles with even higher returns, as high as 20%. Matt Owens, Founder of Owens Capital Group, has flipp...

To fully optimize the performance of a multifamily, you need in-house management. No one will fight as hard as you to be discilplined on expense management, tenant satisfaction, and upkeep of the property. It’s a commitment to build an in-house team, but the enhanced profitability makes it worth it. Brooks Mosier, Principal and co-founder of United Point Capital, is one of the largest buyers of single family homes in Kansas City, and has leveraged this experience into the acquisition of multifam...

Older apartment buildings have perpetual upkeep and high expenses. Appliances, roofs, HVAC systems, plumbing etc. have limited lifespans, so there’s always unanticipated expenses. In new construction, you can control way more of the variables and therefore the costs and the profits. Roger Luri, CEO and President of LD2 Development in Chicago, and author of the book “Don’t Buy Multifamily! BUILD IT,” has been in construction since the late 80’s and has seen several challenges in operating older m...

As deals have gotten harder to find over the past several years, you have to find solvable problems in order to make deals that pencil. Finding these deals and having relentless focus on operations is required in today’s marketplace. This focus on the nuts and bolt of operations mitigates risk. Further risk is mitigated by in-house management to make sure no corners are cut, expenses are managed tightly, and tenant maintenance requests are responded to promptly. Dave Codrea, Partner at Greenleaf...