Episodes

Prices on most value-add workforce class B and C multifamily properties are too high to execute successful business plans. Construction costs have escalated and obtaining higher rents is not a certainty as renters are being squeezed by inflation. Rob Beardsley, Founder and Principal of Lone Star Capital, started with workforce value-add multifamily, but has pivoted to affordable housing with mostly later vintage properties. Rob partners with non-profit entities, including municipalities, to rece...

Current events and policy will determine inflation levels and interest rates that effect our broader economy and Real Estate values and investments. Volatility around tariffs and other decisions will make a significant impact that effects all sectors of our society. Greg Makoff, Senior Fellow at the Mossavar-Rahmani Center for Business and Government at the Harvard Kennedy School, and author of Default: The Landmark Court Battle over Argentina's $100 Billion Debt Restructuring, has multiple deca...

Although prices have come down as much as 30% or even higher on Class B and C Value-Add multifamily, they haven’t come down enough for most seasoned investors to want to jump back in. There still needs to be further concessions to make the deals pencil, and to be worth the risk entailed with value-add. Buying and selling land in growing markets, however, can generate very attractive rates of return at far lower capital entry points. John Cohen, Founder of Toro Real Estate Partners, sold off most...

Investing in real estate syndications from 2015 – 2018 resulted in highly positive outcomes, including major appreciation and double-digit returns, often times as high as 30%-40%, or even higher. Investing in 2020 to 2022, however, may have yielded vastly different results, especially if you invested in Multifamily. Too many sponsors took on highly leveraged bridge debt and got buried when rates escalated. Sam Giordano, MD and Real Estate Investor, started passively investing in syndications in ...

There are many alternative investments you can invest in, but one centuries-old asset class almost no one knows about is claims investing. When companies such as Sears, American Airlines, Big Lots, or even Madoff Investment Securities owe billions of dollars, investors can invest in the claims against these entities and generate outsized returns without excessive risk. Joe Sarachek, a successful attorney and investor, is one of the foremost authorities in the trading of privately held distressed...

One of the highest in-demand asset classes is Small Bay Industrial. In the last several years, most of the new industrial construction has been large warehouses to address the growth of e-commerce. Small Bay, on the other hand, has seen very little new construction since 2008/09. Municipalities generally favor new housing. As a result, there’s limited inventory available for tenants, and therefor high occupancy rates across these properties. David Hansel, Founder and Managing Partner at Lucern C...

Most of the problems in multifamily right now are related to debt. Many operators are in their second extension phase and not making payments. Several of these are giving their properties back to the lender. These lenders in turn are looking for experienced operators to take over the properties. James Eng, “The Professor” of multifamily financing, is the National Director at Old Capital in Dallas. James has helped hundreds of multifamily investors strategize the right debt to obtain and acquire...

After a forty-year honeymoon of plummeting interest rates, it’s going to require a lot more operational skill moving forward to generate positive returns in commercial real estate. Although we’re going to see increased distress over the next several quarters, operational expertise will still be required to achieve desired returns. This is especially true in multifamily because of the daily demands of the asset class. Mark Hamilton, founder of Hamilton Zanze, manages over 25,000 residential units...

How deals are capitalized can make the difference between success and failure. This is why there’s a need for loan consultants. The process of determining and sourcing the right financing can be complex, so the services of loan consultants can be critical. Tripp Greene, Founding Member of Trinity Capital, helps investors navigate the lending landscape to identify the right source of financing that makes the most sense for a particular deal. Tripp also founded the Coast-to-Coast Real Estate Acade...

The growth of private market investing has taken off over the past few decades as returns have proven to be better over the long term. Fewer companies are going public these days and they’re staying private longer. Part of this growth of private market investing has been driven by large family offices. The number of family offices has increased ten-fold since 2008 and now stands at around 10,000. These offices invest for the long-term and therefore prefer alternative private investments because ...

Many people are taught that the best way to achieve financial security is to build a nest egg through stocks and mutual funds. Most Americans, however, even after following this advice, do not have enough money to retire and achieve financial independence. This is because the returns on these vehicles is lower than 10% on average per annum, and they generally don’t produce income apart from low single digit dividends. Chris Miles, a cash flow expert and founder of Money Ripples, teaches people s...

So many people are chasing value-add multifamily deals, that the deals rarely pencil. On the construction side, it’s also become difficult to achieve profitability because of prohibitive costs including higher interest rates. At the same time, the need for housing continues to outpace supply in many markets. One way to be successful in this environment is to partner with municipalities in Tax Increment Financing deals. With Tax Increment Financing, municipalities subsidize construction costs for...

A few years back, retail was completely out of favor. Everyone thought Amazon and e-commerce spelled the end of in-store shopping. The reality on the ground told a different story. Many prominent national retailers were actually growing and opening stores, and in-store sales held steady at 85% of total retail sales. That’s why LBX started investing in open air centers and has done very well in this asset class. Over the last year, LBX has additionally invested in a couple of opportunistic multif...

The multifamily business is a people business that is operationally intensive and requires experienced business acumen. To be successful entails great systems, winning teams, excellent customer service, and a disciplined marketing strategy. Ral West, serial entrepreneur and business mentor, has invested as an LP and co-GP with other sponsors in over 6000 units across 23 deals. Some of these properties are performing better than others. Ral has background in the chartered cruise ship and chartere...

Most new businesses fail within their first five years. That’s why if you’re considering going into business, investing in a franchise can be the best option. Investing in a successful franchise mitigates a lot of risk by aligning yourself with a proven concept and a leadership team that teaches you the operational components of the business and how to become successful. There are over 3000 franchise concepts in the U.S., both brick-and-mortar and service business you can work full or part time....

Most new businesses fail within their first five years. That’s why if you’re considering going into business, investing in a franchise can be the best option. Investing in a successful franchise mitigates a lot of risk by aligning yourself with a proven concept and a leadership team that teaches you the operational components of the business and how to become successful. There are over 3000 franchise concepts in the U.S., both brick-and-mortar and service business you can work full or part time....

The multifamily sector is facing major headwinds. Not only have interest rates escalated at an unprecedented pace, and are not going down, but operating costs have also soared. In certain states, insurance costs have increased 100%, or even more in the last few years. Chris Grenzig, Owner of Jag Capital Partners, has built a vertically integrated portfolio of smaller properties in Jacksonville, and has recently expanded into third party property management. Chris brings his wealth of experience ...

Investing in single family dwellings and three to four-unit apartments can generate cash flow and appreciation, but it’s become more difficult over time to find good deals, and they tend to be time consuming to manage. If you want to better leverage your time and capital, it can be more profitable to invest in larger syndications. Dan Rowley, General Partner of Spark Multifamily Investment Group, has migrated from smaller deals to syndications up to 50 units over the last couple years. Dan has ...

A great sector of Real Estate investing with a low barrier to entry is land flipping. Land flipping requires little start-up money, and the profits can be incredibly lucrative, with very little downside. There are millions of vacant land parcels in the United States. Mike Deaton, a successful land investor, generates as much income from land investing as he and his wife made combined in high-paying corporate salaries. Buying and selling land is easier than investing in houses, apartments, or oth...

A new apartment building is at its highest value upon completion of construction. Like a new car, it’s a depreciating asset. That’s why you need to invest with operators who have a lot of experience with all aspects of the business to make money. Most syndicators are finance professionals, not operators. Most of the appreciation of multifamily over the past couple decades has been the result of declining interest rates, which will most likely not be repeated in the near future. Isaac Bennett, ...

Aside from the merits of the real estate itself, financing is the other critical component that makes or breaks deals. Securing capital, and how it’s structured, is the underpinning of the deal, and can determine whether the property will be able to withstand fluctuations in the operations, market, and unforeseen economic occurrences. Eric Brody, Founder & Principal at ANAX Realty Partners, utilizes data analytics to guide clients through the intricate process of debt and equity, asset revitaliz...

Although there are challenges in the multifamily space in certain markets, some markets are still flourishing, and the longer-term fundamentals are strong. Demand is still growing, and supply Is not keeping up with demand. Currently, there are great deals being sold by developers on newly constructed properties at below construction cost. This is a once in a decade to fifteen-year opportunity. Michael Zaransky, Founding and Managing Principal of MZ Capital Partners, has been acquiring newer prop...

Although the stock market is trading at all-time highs, it can go higher as investors reallocate money from underperforming bonds and Commercial Real Estate in particular. Many investors specifically prefer allocating much of their portfolio to the S & P 500. Warren Buffett, one of the greatest investors of all time, instructed a trustee to invest 90% of his cash in an S&P 500 index fund and 10% in short-term government bonds. According to Buffett, the market has gotten too efficient and claimed...

With new multifamily supply coming to a standstill, occupancy rates will rise over the next few years and assets will appreciate. In the meantime, multifamily is rife with challenges in most markets. Interest rates have risen dramatically, expenses have skyrocketed, and occupancy has fallen. Despite this downward pressure, prices have still not contracted enough for experienced operators to want to acquire. Cameron Pimm, Co-founder of Stonemark Landings, is a multifamily operator who is looking ...