Episodes

Aug. 31, 2023

353: Reduce Your Risk By Investing In Deals That Are Pre-Vetted By Industry Experts

When you invest your hard-earned money, it can make sense to have someone else vet opportunities for you to ensure success and reduce risk. When it comes to investing passively in Real Estate, there’s a lot to know, and there are countless opportunities to invest in. Many of these opportunities are valid, many aren’t. John Rubino, COO, Founder and Partner of JID Investments, helps investors avoid the pitfalls by steering them into well-vetted, trusted operators with strong track records and high...
Aug. 29, 2023

352: How To Succeed In Short-Term-Rentals

Short-Term-Rentals have exploded over the past several years and investors have prospered. Recently, however, several markets have gotten over-saturated, and vacancies have climbed. Appreciation in home values has also made these properties more difficult to cash flow. Kirby Atwell, CEO of Living off Rentals and podcast host of Living off Rentals podcast, has a different strategy for success. Kirby acquires properties in smaller markets. These are smaller, destination markets with far lower home...
Aug. 25, 2023

351: Nothing Avoids Price Declines More Than A Great Location

Great locations save the day when broader markets go south. High density, infill markets with lots of employers and desirable amenities insulate properties from severe downturns which inevitably occur. Mark Hentemann, Founder of Quantum Capital, started out building a portfolio of 20–30-unit Multifamily buildings in Hollywood, CA and nearby L.A. neighborhoods. These properties appreciated considerably as he was able to bring rent-controlled, below market rents up to market. Mark has subsequently...
Aug. 23, 2023

350: House Flipping Can Be Lucrative, But It’s Not For Everyone

Flipping houses can be a great way to make money, but only a handful of people are truly successful at it. There’s a lot you need to know and there are many ways to make costly mistakes. Roger Blankenship, Founder of FlippingAmerica.net, has successfully flipped over 1500 homes, but lost it all back in 2014 by expanding too fast, overextending himself, and having the wrong employees. Roger’s goal is to prevent others from making some of the same mistakes he made and to provide extremely valuable...
Aug. 16, 2023

349: Great Deals In Multifamily Real Estate In The Next 6-12 Months

With loan terms maturating and escalating borrowing costs, many Real Estate properties are going to be in trouble. With these escalating costs combined with higher operating expenses and contracting rents, many properties will be sold at deep discounts in the next 6-12 months. This will present great buying opportunities for acquirers. Cameron Pimm, Co-Founder & Principal of Urban Landings, has been investing in multifamily properties in Atlanta, Charleston and Las. Vegas and generating internal...
Aug. 14, 2023

348: Disruption In The Construction Of Apartment Buildings

This country is facing a housing affordability crisis with few foreseeable solutions. Shortage of supply, increased construction costs, and the costs to operate have escalated. If the cost of construction could be reduced, however, it would be the first step to solving the affordable housing conundrum. Mike Kaeding. CEO of Norhart, is innovating the way apartment buildings are being built with more cost efficiency and is incorporating advanced technologies into the day-to-day operations. This in...
Aug. 11, 2023

347: Lots of Real Estate Distress Will Present Great Buying Opportunities Over The Next Few Years

1.5 trillion dollars in Real Estate debt is coming due by 2025. This Is starting to cause major distress across asset classes, markets, and sponsors. On top of increased borrowing costs, expenses such as insurance, taxes, and labor have increased faster than rents and delinquencies are becoming more common. On the other side of the equation, great deals for investors are on the horizon to acquire distressed assets. Patrick Grimes, Founder of Invest on Main Street.com, is taking advantage of this...
Aug. 9, 2023

346: Get Solid, Consistent Returns Against Lending Or Owning Single Family Homes

Single family homes are the most conservative asset class to both operate and lend against. Right now, inventory levels are the lowest they’ve ever been, so prices have maintained despite dramatic interest rate increases. Matt Owens, CEO and Owner of OCG properties, has bought, renovated, sold or held over 1000 single family properties in the last 15+ years. Matt currently has a debt fund where he lends against single family homes in the Midwest that generates a consistent above market return fo...
Aug. 7, 2023

345: There’s More Operational Inefficiency In Smaller Multifamily Buildings Without On-Site Staff

Although there are multifamily properties of all sizes that are not managed well, smaller buildings without on-site staff and ma and pa owners tend to be more likely to be run unprofessionally. These properties pose opportunity for new buyers with more professional management infrastructure and processes. Will Matheson, Co-founder with his twin brother of Matheson Capital, has had incredible success adding value to smaller properties and generating consistently large returns. In one Class A prop...
Aug. 4, 2023

344: Get Hands-Off, Passive Income By Investing In Short-Term-Rentals

One asset class for passive investors that often gets overlooked is Short-Term Rentals. Like in other asset classes, there are companies that will manage the whole process starting with identifying the properties and managing them from start to scratch. You can get monthly cash flow with properties in great vacation destination markets with a lot of appreciation. Leslie Anne Morris, The Cabin Lady, is the owner of Josh’s Cabins, a company that finds properties for out-of-state investors, and han...
Aug. 2, 2023

343: Controlling All The Operational Aspects Of Apartments In-House Leads To Increased Profitability

By controlling all the construction and property management processes, you can successfully operate Multifamily properties, as long as you don’t overpay for the properties and you know how to manage expenses. Matthew Shields, Founder and CEO of Significan, has been buying and operating Multifamily properties mostly in Northeast Ohio and Atlanta since 2017, and generating excellent returns. Matt is a serial entrepreneur who also owns other companies including Virtus Ventures, a software company t...
July 31, 2023

342: Choosing The Right Operator Makes All The Difference

Passive investing can generate cash flow, appreciation, and tax benefits through depreciation. By investing with others, you don’t have to spend time managing properties which may not even cash flow. They key is finding operators with the right experience and skills to make sure your investment is secure. Whitney Elkins Huttten, Director of Investor Education at Passiveinvesting.com, is a partner in $700M+ of real estate including over 5000+ residential units (Multifamily, Mobile Home Parks, Sin...
July 28, 2023

341: Low Risk, Conservative Returns From Hard Money Loans

If you want to invest in Real Estate but don’t want to be a hands-on operator, a great way to participate is through hard money lending. When you invest with the right company, it’s a conservative investment that provides high yield, consistent passive income with better liquidity than hard assets. Brock VandenBerg, President of Talimar Financial, started out lending his own money to house flippers before raising money from other investors. He now has a fund that lends mostly on single family ho...
July 26, 2023

340: Leverage Will Make Or Break Real Estate Deals

40% of floating rate Multifamily projects acquired over the past few years will not be able to get refinanced. This will cause distress for operators and opportunities for acquirers. Additionally, increased insurance costs, especially for older properties, and increased property taxes are further burdening properties’ net operating incomes. As a result of these challenges, experience and the ability to flawlessly execute on business plans has become of paramount importance over the last year as ...
July 24, 2023

339: Dislocation Generates Opportunity

As the cost of capital has increased dramatically, and generating yield has gotten more challenging, institutional investors are increasingly looking for specialized niches within sectors to invest in. Outside Storage, Cold Storage, Senior Living, and Affordable Housing are just a few examples of burgeoning niches. Institutions also prefer vertical integration and invest heavily in underwriting the managers of assets to reduce risk. Deborah Smith, Co-Founder and CEO of The CenterCap Group, provi...
July 21, 2023

338: Who You Invest With Is More Important Than What You Invest In

When it comes to investing, there are always risks. Despite countless resources on how to vet operators and deals, the most important decision you’ll make is who you invest with. Proformas and projections are at best, educated guesses, and things rarely go according to plan, so the differentiator is the operator. The best operators have moral fiber, and as important, successful track records, competence, and an ability to adapt to changing circumstances on the ground. Litan Yahav, an experienced...
July 19, 2023

337: Fortune Favors The Brave

Increasingly, Real Estate investors on the coasts are deploying money into the Midwest. Not only are these markets less expensive, but many of them are thriving like never before, and are less volatile. Markets like Columbus, Indianapolis, Kansas City and several others are seeing massive job and population growth. People are leaving the coasts and moving to these markets for a higher quality of life. Lee Ripma, a multifamily broker and investor, started investing in Kansas City and moved during...
July 17, 2023

336: 8% Yield With No Leverage With Chicago Industrial Properties

Nothing has caused more heartache and stress in Real Estate than too much debt. Leverage can work great in upmarkets, but it can cut the other way in a downturn. Joel Friedland, Principal of BRIT properties, has been buying infill industrial properties with all cash since learning the hard way during the 2008-09 financial crises. Joel and his investors are seeking very conservative investments with the number one goal of capital preservation. He buys highly sought-after properties that result in...
July 14, 2023

335: The Midwest Is Experiencing Job And Population Growth

Nothing ensures success more than focusing on what you love and what you’re truly good at. Real Estate is a multi-trillion-dollar industry with many avenues to pursue, but you’ll thrive the most by identifying your strengths, and as important, your weaknesses. Logan Freeman, Co-founder of FTW Investments, made some costly mistakes early on, but now specializes in select asset classes and markets in the Midwest within driving distance of Kansas City. Logan is now sticking with what he understands...
July 12, 2023

334: Today’s Market Requires More Experience And Discipline To Be Successful As The Obstacles Mount

Over the past several years, most operators in Real Estate did incredibly well, often regardless of experience. The rising tide lifted all boats. Today, more experience and skill will be required to acquire properties at the right price and operate them successfully. Having an established network of local brokers, local lending sources, and vendor contacts are becoming more critical in a market with far less margin for error. Specific asset class and market focus will also be paramount. Josh Fer...
July 10, 2023

333: RV Parks Are The Next Hot Asset Class

In commercial Real Estate, most asset classes are already saturated with competition. It’s difficult to identify opportunities that are still relatively undiscovered and provide great cash flow at the same time. An exception to this is RV Parks. Over 10,000,000 families in the U.S. own RVs and they’re hitting the road in greater numbers than ever before. As a result, many RV parks are operating at full capacity and raising their Average Daily Rates. There are over ten thousand RV parks in the co...
July 7, 2023

332: Self-Storage Is Still In The Early Stages And Mostly Run By Smaller Operators

One asset class that performs well in any economy is self-storage. When people are downsizing, they need self-storage. When they’re moving, changing relationship status, or running out of space for any reason, they need self-storage. Self-Storage is also great because rents are typically month-to-month, so you can raise rents with relative ease and not a lot of resistance from tenants. Charles Kao is an expert in self-storage development and operations who consults with investors all over the co...
July 5, 2023

331: Government-Sponsored Housing Is A Lucrative Niche

Finding strong cash flowing properties has become increasingly difficult over the past several years as the amount of money chasing Real Estate has risen dramatically. Most properties typically require a value-add business plan which can take months, if not years, to complete before generating cashflow. In-place cash flow, however, is a rarity. One exception is government-sponsored Section 8 homes, or smaller, 1–4-unit apartments. These properties cash flow right out of the gate. Mat Simmons, Ma...
June 30, 2023

330: In The Current Market, Skill Of The Operator Is More Mandatory Than Ever

The market for multifamily right now is seeing severe headwinds. Escalating insurance costs, rising property taxes, and rising interest rates are just a few. As such, sponsors need to deploy special deftness and adaptability to survive over the next couple years. On the transaction side, sales volume has fallen 70% from last year as the buyer-seller bid/ask delta still remains high. Even though there are danger signs, distress has not yet been ubiquitous and sellers and buyers still have a wide ...