Episódios
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What does it take to manage properties remotely and the unexpected challenges that come with it?
In this episode, Angela dives deep into property management with Gabriel Craft who shares his experiences balancing on-site responsibilities with remote management. The discussion covers the intricacies of creating efficient systems, the importance of hands-on experience, and the reality of dealing with unexpected crises. From personal anecdotes about managing properties while juggling family life to insights on signing complex contracts and training new team members, this episode is a comprehensive guide to the trials and triumphs of property management.
[00:01 - 05:56] The Remote Investor's Dilemma
The importance of building reliable systems and procedures Balancing remote management with on-site presence Handling personal challenges while managing properties[05:57 - 10:13] Learning Through Crisis
Every challenge offers a learning opportunity The significance of hands-on experience in property management Developing respect for on-site staff through personal involvement[10:14 - 15:54] The Legal and Administrative Hurdles
Navigating complex contracts and property management agreements The importance of attention to detail in legal documents Strategies for managing administrative challenges under pressure[15:55 - 21:22] Gut Instinct vs. Data
Trusting gut instincts in decision-making The limitations and benefits of data-driven decisions Effective methods for training new team membersKey Quotes:
"If you haven't found something you dislike in your business, you haven't dug deep enough." - Gabriel Craft
"If you are doing something that you don't like doing in the business, then maybe you expanded and landed too fast and delegated too quickly." - Gabriel Craft
Connect with Gabriel:
Website: https://www.craftcapitalinvestments.com/
Calendar: chatwithgabriel.com
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Have you ever wondered what it takes to keep going when your dreams are on the line and everything seems to be falling apart?
In this episode, Gabriel Craft shares an intense journey through the world of property management, revealing the challenges and triumphs faced while navigating complex deals and unexpected setbacks. From imploding teams to finding the right mentors, Gabriel's story is one of resilience, determination, and learning to adapt in the face of adversity. Join us as we delve into the highs and lows of real estate investing, uncovering valuable lessons on persistence, strategy, and the importance of having a strong support system.
[00:01 - 05:22] The Rollercoaster of the First Deal
Three GP teams were needed to finalize the first deal Navigating through internal conflicts and securing a loan product The crucial role of support and persistence in overcoming obstacles[05:23 - 10:02] Strategies to Handle High-Stress Situations
Developing a strategy to stay productive and focused The concept of the "bowling alley" for maintaining balance Using brainstorming to alleviate panic and depression[10:03 - 15:10] Lessons from Early Real Estate Experiences
Transitioning from residential to multifamily properties The importance of focusing on key tasks and avoiding distractions Overcoming initial challenges with the help of mentors and team support[15:11 - 19:30] The Reality of Onsite Property Management
Facing the unexpected dissolution of a property management company The chaos and drama of onsite management Learning the importance of chain of command and effective communication[19:31 - 23:53] Building and Managing Effective Teams
The benefits of having a co-general partner and a strong management team The concept of vertical integration without the headache of full control Achieving high productivity through direct involvement and effective oversightKey Quotes:
"It's about having a team that believes in you and supports you through the toughest times." - Gabriel Craft
"Staying out of panic mode allowed me to be creative and find solutions even when none seemed possible." - Gabriel Craft
Connect with Gabriel:
Website: https://www.craftcapitalinvestments.com/
Calendar: chatwithgabriel.com
Visit sponsorcloud.io/contact today and unlock $2,000 of free services exclusively for REI Rocks community members! Get automated syndication and investor relationship management tools to save time and money. Mention your part of the REI Rocks community for exclusive offers. Help make affordable, low-cost education summits possible. Check out Sponsor Cloud today!
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How does understanding the intricacies of a local real estate market empower investors to outperform large institutional players?
In this engaging episode, Gabriel Craft, a seasoned real estate investor and entrepreneur, shares his transformative journey from a non-profit educator to a strategic real estate investor, highlighting key moments that shaped his investment philosophy. Listeners will gain insights into the importance of local market knowledge, the advantages of being a scrappy investor, and the tactical approaches to real estate syndication and value-add projects.
Gabriel Craft specializes in identifying value-add opportunities within the B&C class segment, ranging from 85 to 280 units in the Dallas-Fort-Worth market. With a solid track record in both owner-manager and commercial real estate investments, Gabriel has successfully managed smaller properties such as Deacon House and Preacher House in Toledo, OH, while also spearheading large syndication projects like RiverBend Apartments in San Antonio, TX, and the Avanti Apartments in Bedford, TX.
[00:01 - 05:17] From Humble Beginnings to Real Estate Visionary
Gabriel's transition from public sector work to real estate investing The importance of education in real estate Initial experiences and challenges faced in real estate investments[05:18 - 10:37] Scaling Up and Overcoming Challenges
Gabriel's approach to scaling from single-family homes to multifamily units The learning curve associated with managing larger properties Strategies for dealing with operational challenges like tenant issues[10:38 - 15:59] Embracing the Multifamily Market
The strategic shift to multifamily investments and its impact on Gabriel's portfolio Insights into the Dallas real estate market and finding value-add opportunities The benefits of networking and mentorship in real estate[16:00 - 20:55] Mentorship and Market Dynamics
The significance of having a strong mentorship network Learning from others' mistakes and successes in real estate deals Navigating the institutional and syndication landscape[20:56 - 24:15] Future Outlook and Strategic Moves
Gabriel's future strategies in the evolving real estate market The role of personal development in professional success Anticipating market trends and preparing for potential shiftsQuotes:
"Even if you're not living in your market, you should still know your market that well." - Gabriel Craft
"When you take that leverage from the bank and through syndications, you can do very large projects... It made a big difference to me." - Gabriel Craft
Connect with Gabriel:
Website: https://www.craftcapitalinvestments.com/
Calendar: chatwithgabriel.com
Visit sponsorcloud.io/contact today and unlock $2,000 of free services exclusively for REI Rocks community members! Get automated syndication and investor relationship management tools to save time and money. Mention your part of the REI Rocks community for exclusive offers. Help make affordable, low-cost education summits possible. Check out Sponsor Cloud today!
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How can the pursuit of creating a legacy transform your approach to work and life, and what does it take to make such a profound shift in focus?
Today, Christy Keeton discusses the transformative experience of shifting from a corporate job in the oil and gas industry to creating a personal legacy through real estate investing. This narrative isn't just about financial independence; it's deeply rooted in the desire to build something lasting for future generations. The discussion reveals the emotional and strategic layers involved in this transition, highlighting the importance of mindset changes, consistent action, and the impact of personal drive on achieving significant life changes.
[00:01 - 05:31] - From Corporate to Personal Legacy
Recognizing the shift from fulfilling others' dreams to building one's own legacy The emotional fulfillment derived from working towards personal and familial goals The importance of mindset in initiating significant life changes[05:32 - 10:00] - Challenges and Rewards of Independence
Navigating the practical difficulties of self-motivation and discipline The creation of personal structures, like the Monday meetup, to foster consistency The psychological benefits of having control over one’s work and achievements[10:01 - 15:34] - Building Trust Through Consistency
How consistency in professional endeavors builds trust and reliability The impact of routine and systematic actions on long-term success Insights into personal adjustments needed to maintain public engagement[15:35 - 20:48] - The Power of Networking and Coaching
Leveraging networking to sustain long-term relationships and growth The role of coaching in facilitating others’ success without exhaustive costs Sharing expertise to empower others in similar professional paths[20:49 - 26:29] - Sustaining Growth and Handling Setbacks
Strategies for dealing with market fluctuations and personal inconsistencies The importance of adapting business plans to changing economic conditions Emphasizing the human element in business dealings and community buildingQuotes:
“Mindset is one of the biggest things that will help you succeed.” - Christy Keeton
"Consistency is another component of trust." - Christy Keeton
Connect with Christy:
LinkedIn: https://www.linkedin.com/in/christykeeton/
Website: https://www.keetonrealtyinvestments.com/
Visit sponsorcloud.io/contact today and unlock $2,000 of free services exclusively for REI Rocks community members! Get automated syndication and investor relationship management tools to save time and money. Mention your part of the REI Rocks community for exclusive offers. Help make affordable, low-cost education summits possible. Check out Sponsor Cloud today!
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How do seasoned investors handle unexpected challenges and still achieve success in different real estate markets?
In this episode, we delve into the nuanced world of real estate investments across various markets, focusing on due diligence, managing renovation costs, and the impact of local regulations. Christy Keeton shares personal anecdotes from their experiences with mobile homes, single-family houses, and multifamily properties, revealing the complexities and strategies that help navigate these challenges. From dealing with unexpected water leaks to understanding the intricacies of local utilities, this episode is packed with practical insights for novice and veteran investors.
[00:01 - 04:53] Understanding Due Diligence Across Property Types
Mobile home investments often involve lower renovation costs, providing a buffer for due diligence errors Single-family investments require precise cost management due to tighter profit margins Handling unexpected issues like water leaks can significantly impact profitability[04:54 - 08:14] Challenges and Insights from Real-Life Property Flips
The importance of having a dedicated meter for pools to manage water billing effectively The potential financial pitfalls when dealing with utility companies and city regulations The emotional and financial rewards of transforming dilapidated properties[08:15 - 12:35] Leveraging Local Crime Data for Property Evaluation
The importance of assessing local crime rates using tools like SpotCrime.com before investing How crime data influences investment decisions and property values Strategies for effective use of online resources to assess neighborhood safety[12:36 - 16:30] Building Relationships and Managing Contractors
The significance of establishing strong relationships with local brokers and contractors Tips for maintaining top-of-mind presence among professional contacts The challenges and solutions in managing property renovations through contractors[16:31 - 20:59] Investing in Different Market Types and Managing Properties
The dynamics of investing in secondary and tertiary markets The role of market research in identifying profitable investment opportunities Insights into property management and maintaining property standardsQuotes:
"The mobile home due diligence is a little easier... there's room for error where maybe there's not in a single-family or multifamily space." - Christy Keeton
"I like just to see the old things become new again." - Christy Keeton
Connect with Christy:
LinkedIn: https://www.linkedin.com/in/christykeeton/
Website: https://www.keetonrealtyinvestments.com/
Visit sponsorcloud.io/contact today and unlock $2,000 of free services exclusively for REI Rocks community members! Get automated syndication and investor relationship management tools to save time and money. Mention your part of the REI Rocks community for exclusive offers. Help make affordable, low-cost education summits possible. Check out Sponsor Cloud today!
LEAVE A REVIEW + help someone who wants to explode their business growth by sharing this episode.
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Head over to our Facebook Page, Youtube Channel, or website
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What surprising pathways can lead a seasoned oil and gas industry expert into the multifaceted world of multifamily real estate investment?
In this insightful episode, Angel interviews Christy Keeton, a former oil and gas industry analyst who transitioned into multifamily real estate investment. With over 15 years in the oil sector, Christy shares her unique journey from analyzing drilling locations to flipping houses and eventually delving into multifamily properties. This conversation sheds light on the unexpected intersections of career paths and the dynamic world of real estate investment, highlighting how skills from one field can unexpectedly propel success in another.
[00:01 - 04:05] A New Beginning in Real Estate
Leveraging industry experience for real estate analysis The importance of adaptability in career transitions Recognizing new opportunities in unlikely places[04:06 - 08:11] Flipping the Script: From Houses to Mobile Homes
Economic benefits of flipping dilapidated properties Challenges and rewards of mobile home renovation The impact on community improvement through property investment[08:12 - 12:27] Navigating Challenges in Mobile Home Investments
Strategic considerations in choosing mobile homes for investment Understanding regulatory environments in mobile home investing Financial strategies for maximizing investment returns[12:28 - 16:02] Expanding Horizons: Multifamily Investments
Transitioning from single-family to multifamily investments The role of networking in learning and growth Adapting investment strategies to different real estate segments[16:03 - 18:27] A Holistic Approach to Real Estate Investing
The importance of diversification in real estate investments Benefits of having a robust support network Leveraging past experiences and connections for current successQuote:
"I love to watch these old houses that people don't care about, not only because it's the biggest profit on a flip, but it's also making the neighborhood better. It's bringing the house back to life." - Christy Keeton
Connect with Christy:
LinkedIn: https://www.linkedin.com/in/christykeeton/
Website: https://www.keetonrealtyinvestments.com/
Visit sponsorcloud.io/contact today and unlock $2,000 of free services exclusively for REI Rocks community members! Get automated syndication and investor relationship management tools to save time and money. Mention your part of the REI Rocks community for exclusive offers. Help make affordable, low-cost education summits possible. Check out Sponsor Cloud today!
LEAVE A REVIEW + help someone who wants to explode their business growth by sharing this episode.
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Head over to our Facebook Page, Youtube Channel, or website
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How can real estate investors build strong relationships with brokers to win more deals in a competitive market?
In this episode of the podcast, Agostino Pintus shares valuable insights on how real estate investors can build credibility and win more deals by fostering strong relationships with brokers. He emphasizes the importance of creating a professional credibility book, which serves as a high-level business plan that showcases an investor's company, target assets, and team. Agostino also discusses the significance of understanding brokers' needs and structuring deals accordingly, rather than focusing solely on the investor's desires. Additionally, he introduces the PASE (Practical, Action, Social, Emotional) methodology, which helps investors calibrate their communication style to better connect with brokers and build lasting relationships.
Agostino Pintus is a real estate investor, developer, and entrepreneur with more than 17 years of experience in real estate. He currently oversees strategic partnerships, capital development, and platform development for Realty Dynamics Equity Partners, an investment firm specializing in commercial asset acquisition and asset management services.
00:00:00 - 00:02:00 - The Importance of a Credibility Book
- A credibility book is like a high-level business plan that showcases your company, target assets, and team.
- It should be professionally put together and include information about your business, target properties, and team members' bios.
- A well-crafted credibility book can make the difference between getting a call back from a broker or not.
00:02:01 - 00:07:00 - Structuring Deals to Meet Brokers' Needs
- Always call the broker and find out what the seller wants before sending an LOI.
- Structure the deal to meet the seller's needs, which may include terms, timing, or even non-monetary incentives.
- Be mindful of your reputation and avoid submitting lowball offers that could damage your credibility.
00:07:01 - 00:11:00 - Building Your Personal Brand
- The real estate community is tight-knit, and your personal brand is crucial to your success.
- Your personal brand encompasses the way you look, act, speak, and present yourself through marketing collateral.
- A strong, cohesive personal brand can help you win deals, while a disjointed or unprofessional brand can hinder your success.
00:11:01 - 00:17:00 - The PASE Methodology for Effective Communication
- PASE stands for Practical, Action, Social, and Emotional, which are qualities everyone possesses to varying degrees.
- Understanding a broker's dominant PASE trait allows you to calibrate your communication style to better connect with them.
- Adapting your language and approach based on whether a broker is action-oriented, practical, social, or emotional can help you build stronger relationships.
00:17:01 - 00:22:00 - Cultivating More Than Just a Handshake Relationship
- Building strong relationships with brokers is essential for success in real estate investing.
- Remembering personal details about brokers, such as their dreams, kids' names, or unique facts about them, can help create a more meaningful connection.
- By helping brokers achieve their goals, you can leverage the reciprocity bias, making them more likely to help you in return.
Quotes:
"Reputation is everything in this business. And if you lose it, you're done. You're baked. You're done." - Agostino Pintus
"One broker will make you money. Two brokers will make you rich. Three brokers will make you super wealthy." - Agostino Pintus
Connect with Agostino:
LinkedIn: linkedin.com/in/agostinopintus,
Website: agostinopintus.com
Visit sponsorcloud.io/contact today and unlock $2,000 of free services exclusively for REI Rocks community members! Get automated syndication and investor relationship management tools to save time and money. Mention your part of the REI Rocks community for exclusive offers. Help make affordable, low-cost education summits possible. Check out Sponsor Cloud today!
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Are you confused about where to start? Join our community and learn more about real estate investing.
Head over to our Facebook Page, Youtube Channel, or website
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How can aspiring real estate investors effectively network with brokers to secure their first deal and build long-lasting relationships in the industry?
In this episode, Agostino Pintus shares valuable insights on how to approach and build relationships with real estate brokers as a new investor. He emphasizes the importance of doing your own underwriting, practicing your pitch, and targeting the right brokers to start with. Agostino also discusses the significance of having a strong team in place, including a property manager, CPA, and real estate attorney, to establish credibility when approaching brokers. By following these strategies and consistently delivering on promises, investors can secure their first deal and set themselves up for future success in the real estate industry.
Agostino Pintus is a real estate investor, developer, and entrepreneur with more than 17 years of experience in real estate. He currently oversees strategic partnerships, capital development, and platform development for Realty Dynamics Equity Partners, an investment firm specializing in commercial asset acquisition and asset management services.
[00:00:00] - [00:02:59] Laying the Groundwork: Underwriting and Practicing Your Pitch
Do your own underwriting to understand how deals are put together
Practice your pitch with smaller brokers before targeting the top players
Have a credibility pitch deck ready to showcase your team and assets
[00:03:00] - [00:05:59] Building Your Team: The Importance of a Strong Property Manager
A good property manager can help line you up with brokers
Leverage your team's credibility if you lack personal experience
Always treat brokers to lunch or coffee and never let them pay
[00:06:00] - [00:08:59] The Power of Networking and Warm Introductions
Real estate is a networking business, and warm introductions are crucial
Property managers are integral to the business and should have broker connections
Be prepared to sell yourself and your vision to potential team members
[00:09:00] - [00:11:59] Minimizing Mistakes: The Importance of Preparation
Practice your script, know the lingo, and do the work upfront
Minimize mistakes by being well-prepared and presentable
The real estate industry is competitive, and brokers receive numerous calls daily
[00:12:00] - [00:18:59] Securing Your First Deal and Building Long-Term Relationships
Brokers prioritize investors who consistently deliver and close deals
Securing your first deal is the toughest, but subsequent deals come more easily
Assemble a strong team, including a CPA, real estate attorney, and SEC attorney (if needed), to establish credibility with brokers
Quotes:
"This whole business is finance. If you don't understand the intricacies of how financial statements put together, you're going to run into problems and you're going to look like a newbie." - Agostino Pintus
"The good thing about this business is that it is a networking business, right? That's what this is. It's a networking business." - Agostino Pintus
Connect with Agostino:
LinkedIn: linkedin.com/in/agostinopintus,
Website: agostinopintus.com
Visit sponsorcloud.io/contact today and unlock $2,000 of free services exclusively for REI Rocks community members! Get automated syndication and investor relationship management tools to save time and money. Mention your part of the REI Rocks community for exclusive offers. Help make affordable, low-cost education summits possible. Check out Sponsor Cloud today!
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Are you confused about where to start? Join our community and learn more about real estate investing.
Head over to our Facebook Page, Youtube Channel, or website
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How can building relationships and gaining knowledge help you overcome analysis paralysis and land your first real estate deal?
In this episode, Angel Williams sits down with Agostino Pintus, a successful real estate entrepreneur and host of the Cashflow Podcast. Agostino shares his journey from working as a C-level executive in corporate America to finding freedom and success in real estate investing. He emphasizes the importance of mindset, setting clear goals, and building relationships to achieve success in the industry. Agostino also stresses the significance of learning the language of real estate, practicing deal analysis, and maintaining curiosity as an entrepreneur.
Agostino Pintus is a real estate investor, developer, and entrepreneur with more than 17 years of experience in real estate. He currently oversees strategic partnerships, capital development, and platform development for Realty Dynamics Equity Partners, an investment firm specializing in commercial asset acquisition and asset management services.
00:00:00 - 00:08:59 - From Corporate America to Real Estate Entrepreneurship
- Agostino shares his background and how he transitioned from corporate America to real estate investing
- The importance of setting clear goals and having a vision board
- Realizing the finite nature of time and deciding to pursue real estate full-time
00:09:00 - 00:13:59 - Mindset: The Foundation of Success
- Angel shares a personal story about how her mindset shifted and led to new opportunities
- Agostino emphasizes the critical role of mindset in real estate entrepreneurship
- The significance of defining your purpose and living with intention
00:14:00 - 00:17:59 - Mastering the Language of Real Estate
- The importance of learning and speaking the language of commercial real estate
- Practicing deal analysis and underwriting to gain confidence
- Understanding what brokers want and how to establish credibility
00:18:00 - 00:21:59 - Cultivating Curiosity as an Entrepreneur
- Tips for learning real estate terminology and vocabulary
- The role of curiosity in successful entrepreneurship
- Maintaining curiosity and exploring opportunities in real estate
00:22:00 - 00:24:59 - Fiduciary Responsibility and Investor Relationships
- The importance of conservative underwriting and responsible investing
- Building and maintaining relationships with investors, who often become like friends and family
- The necessity of putting in the work and analyzing deals before investing
Quotes:
- "Time is one of those finite things. But as you get older, it hits you like a ton of bricks." - Agostino Pintus
- "The mindset is everything, the mindset is so important. It's not to be trifled with." - Agostino Pintus
Connect with Agostino:
LinkedIn: linkedin.com/in/agostinopintus,
Website: agostinopintus.com
Visit sponsorcloud.io/contact today and unlock $2,000 of free services exclusively for REI Rocks community members! Get automated syndication and investor relationship management tools to save time and money. Mention your part of the REI Rocks community for exclusive offers. Help make affordable, low-cost education summits possible. Check out Sponsor Cloud today!
LEAVE A REVIEW + help someone who wants to explode their business growth by sharing this episode.
Are you confused about where to start? Join our community and learn more about real estate investing.
Head over to our Facebook Page, Youtube Channel, or website
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What crucial factors can make or break your real estate investment, and how can you ensure your property management company is working in your best interest?
In this episode, Angel Williams and Randy Langenderfer discuss the importance of having a strong property management company when investing in real estate. They share stories of how a property management company can impact the success of a deal, from misreporting occupancy rates to failing to pay bills on time. The hosts also delve into the differences between investing in small properties versus large multifamily properties, highlighting the advantages of economies of scale and the value of one's time. Additionally, they touch on the benefits of being a passive investor and the significance of trust in the operator-investor relationship. The conversation also covers the importance of coaching and mentorship in expediting growth and preventing problems in one's real estate journey.
Randy is Founder and President of InvestArk Properties and general partner in 1,500 doors representing $250M in assets under management. He has invested in a total of over 3,000 units in TX, OK, AZ, SC and LA. His investment strategy focuses on providing the passive investor significant returns by improving communities using a safe and time-tested approach. He is passionate about helping the busy professional achieve their goals in real estate and has been a part of several national educational programs and is currently a private multi-family coach.
He is a board member and previously served as the Chief Compliance and Audit Officer for a large academic medical institution in Houston, TX. He has a bachelor’s degree in accounting, Information Systems, an MBA in Finance, and is a CPA.
00:00:00 - 00:05:00 The Importance of a Strong Property Management Company
- A property management company can make or break a deal
- Be aware of potential issues such as misreported occupancy rates and unpaid bills
- Consider the amount of attention your property will receive based on the size of the management company's portfolio
00:05:00 - 00:10:00 Small vs. Large Multifamily Investments: Weighing the Pros and Cons
- Smaller properties may require more hands-on involvement from the investor
- Larger multifamily properties offer economies of scale and potentially less time investment
- Consider the value of your time when choosing between small and large investments
00:10:00 - 00:15:00 The Benefits of Passive Investing and the Importance of Trust
- Passive investing can provide a hands-off approach to real estate investing
- Trust in the operator is crucial for passive investors
- Experienced investors may spend less time reviewing reports as trust in the operator grows
00:15:00 - 00:20:00 Effective Communication and Follow-Up in Investor Relations
- Investors should not expect operators to know everything about every aspect of the investment
- Operators should be transparent about their knowledge and follow up with answers to investor questions
- Utilizing a CRM can help maintain effective communication and organization
00:20:00 - 00:26:00 Investing in Coaching and Mentorship for Long-Term Success
- Coaching and mentorship can expedite growth and help prevent problems in one's real estate journey
- Find a coach that fits your needs and commit fully to the program
- Real estate investing is a marathon, not a sprint, and continued education is crucial for long-term success
Quotes:
- "Just as the operating team can make or break the deal, so can the property management company." - Angel Williams
- "Multifamily is a team sport. You can't succeed without some kind of team effort." - Randy Langenderfer
Connect with Randy:
Website: www.invest-ark.com
Website: www.multifamilymaestros.com
LinkedIn: https://www.linkedin.com/in/randy-langenderfer/
Facebook: https://www.facebook.com/randy.langenderfer
Visit sponsorcloud.io/contact today and unlock $2,000 of free services exclusively for REI Rocks community members! Get automated syndication and investor relationship management tools to save time and money. Mention your part of the REI Rocks community for exclusive offers. Help make affordable, low-cost education summits possible. Check out Sponsor Cloud today!
LEAVE A REVIEW + help someone who wants to explode their business growth by sharing this episode.
Are you confused about where to start? Join our community and learn more about real estate investing.
Head over to our Facebook Page, Youtube Channel, or website
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How can the relationship between the operating team and investors make or break a real estate deal, especially in challenging market conditions?
In this episode, Angel Williams and Randy Langenderfer discuss the importance of trust and relationships in passive real estate investing. They share their experiences with different operating teams and how a strong team can help a deal survive even in tough times. The conversation also delves into the differences between cash and accrual accounting, the pros and cons of vertically integrated property management, and the significance of creating a sense of home for tenants. Throughout the discussion, Angel and Randy emphasize the value of knowing one's strengths and relying on the expertise of others in areas where one may lack knowledge or experience.
Randy is Founder and President of InvestArk Properties and general partner in 1,500 doors representing $250M in assets under management. He has invested in a total of over 3,000 units in TX, OK, AZ, SC and LA. His investment strategy focuses on providing the passive investor significant returns by improving communities using a safe and time-tested approach. He is passionate about helping the busy professional achieve their goals in real estate and has been a part of several national educational programs and is currently a private multi-family coach.
He is a board member and previously served as the Chief Compliance and Audit Officer for a large academic medical institution in Houston, TX. He has a bachelor’s degree in accounting, Information Systems, an MBA in Finance, and is a CPA.
[00:00:00] - [00:02:00] The Importance of Trust in Passive Investing
- Trust in the operating team is crucial for the success of a real estate deal.
- A strong operating team can help a deal survive even in challenging market conditions.
- Building relationships with the operating team is essential before investing.
[00:02:00] - [00:06:00] Cash vs. Accrual Accounting in Real Estate
- New investors should educate themselves on the differences between cash and accrual accounting.
- Accrual accounting aims to smooth out income and expense variations over time.
- Understanding which reports are cash basis and which are accrual is crucial for investors.
[00:06:00] - [00:10:00] Vertically Integrated Property Management: Pros and Cons
- Vertically integrated models, where the property management company is part of the GP team, are becoming more common in larger deals.
- The success of a vertically integrated model depends on the performance of the property management company and the ability to remove them if necessary.
- Some investors prefer third-party property management to avoid potential conflicts of interest.
[00:10:00] - [00:15:00] Creating a Sense of Home for Tenants
- Using language that emphasizes "home" rather than "unit" or "tenant" can help create a sense of belonging for residents.
- Creating a sense of home can lead to lower turnover, increased renewals, and reduced costs.
- The concept of home resonates with people across different classes of apartments.
[00:15:00] - [00:18:00] Leveraging Expertise in Real Estate Investing
- Investors should focus on their strengths and rely on the expertise of others in areas where they lack knowledge or experience.
- Empowering local teams to make decisions is crucial for the success of a real estate investment.
- Partnering with experts in specific markets can help investors navigate unfamiliar territories more effectively.
quotes:
- "You need to 100 percent know that you can trust the operating team because they can make a good deal suck and they can make a bad deal survive." - Angel Williams
- "I think people want to live someplace they're comfortable with and call home. And that just creates less turnover, promotes renewals. Less cost and more benefits”- Randy Langenderfer
Connect with Randy:
Website: www.invest-ark.com
Website: www.multifamilymaestros.com
LinkedIn: https://www.linkedin.com/in/randy-langenderfer/
Facebook: https://www.facebook.com/randy.langenderfer
Visit sponsorcloud.io/contact today and unlock $2,000 of free services exclusively for REI Rocks community members! Get automated syndication and investor relationship management tools to save time and money. Mention your part of the REI Rocks community for exclusive offers. Help make affordable, low-cost education summits possible. Check out Sponsor Cloud today!
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What surprising advice does a seasoned real estate investor have for those looking to invest in multiple markets?
In this episode, Angel Williams sits down with Randy Langenderfer, a seasoned real estate investor with a diverse portfolio spanning several markets. Randy shares his journey from corporate America to real estate investing, discussing the importance of knowing your market, the challenges of investing in tertiary markets, and the value of having strong regional managers. He also touches on the changing dynamics of multifamily investing, the significance of population growth and income growth when choosing markets, and how to utilize self-directed IRAs to get started in real estate investing.
Randy is Founder and President of InvestArk Properties and general partner in 1,500 doors representing $250M in assets under management. He has invested in a total of over 3,000 units in TX, OK, AZ, SC and LA. His investment strategy focuses on providing the passive investor significant returns by improving communities using a safe and time-tested approach. He is passionate about helping the busy professional achieve their goals in real estate and has been a part of several national educational programs and is currently a private multi-family coach.
He is a board member and previously served as the Chief Compliance and Audit Officer for a large academic medical institution in Houston, TX. He has a bachelor’s degree in accounting, Information Systems, an MBA in Finance, and is a CPA.
[00:00:00] - [00:03:00] From Corporate America to Real Estate Investing
- Randy's journey from corporate America to real estate investing
- Starting with single-family flips and hard money lending
- Discovering multifamily and pursuing financial freedom
[00:03:00] - [00:07:00] The Importance of Knowing Your Market
- Angel's advice on focusing on 1-2 markets and knowing them well
- Randy's experience investing in multiple markets and the value of local partners
- The challenges of investing in Houston without being present
[00:07:00] - [00:12:00] Navigating Tertiary Markets and Changing Dynamics
- The skinny margins in tertiary markets and the need for larger properties
- The changing breakeven point for multifamily properties (from 60 to 90+ units)
- The importance of strong regional managers in navigating local challenges
[00:12:00] - [00:18:00] Lessons Learned from Asset Management
- Angel's experience managing a property during a management company dissolution
- Randy's "PhD in the school of asset management, hard knocks"
- The value of overseeing property management without doing it yourself
[00:18:00] - [00:23:00] Choosing Markets and Utilizing Self-Directed IRAs
- The significance of population growth, income growth, and crime rates when choosing markets
- The higher probability of success in larger, growing markets
- Utilizing self-directed IRAs and forming LLCs to get started in real estate investing
Quote:
"There needs to be an angel or somebody that's close that can get to the property in an hour. If it's not me, it's somebody on my team that can get to the property in an hour, no more than an hour." - Randy Langenderfer
Connect with Randy:
Website: www.invest-ark.com
Website: www.multifamilymaestros.com
LinkedIn: https://www.linkedin.com/in/randy-langenderfer/
Facebook: https://www.facebook.com/randy.langenderfer
Visit sponsorcloud.io/contact today and unlock $2,000 of free services exclusively for REI Rocks community members! Get automated syndication and investor relationship management tools to save time and money. Mention your part of the REI Rocks community for exclusive offers. Help make affordable, low-cost education summits possible. Check out Sponsor Cloud today!
LEAVE A REVIEW + help someone who wants to explode their business growth by sharing this episode.
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Head over to our Facebook Page, Youtube Channel, or website
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Can a simple savings program revolutionize the lives of residents in affordable housing?
In this thought-provoking episode, Angel Williams and Alex Cartwright delve into an innovative idea that could transform the lives of residents in affordable housing. Alex proposes a resident savings account (RSA) program, where a portion of the rent is matched and deposited into a savings account for the resident. This simple yet powerful concept could provide a financial safety net for residents, allowing them to handle unexpected expenses without jeopardizing their housing stability. The discussion also touches on the challenges faced by low-income families, the importance of accessible amenities, and the potential for partnerships with banks and investors to make this idea a reality.
Alex conducts macroeconomic analysis on target markets and conducts the underwriting for Vilicus Capital offerings. Alex has also previously worked as a consultant with one of the biggest mobile home - owners in the country.
[00:00:00] - [00:03:00] The Resident Savings Account: A Simple Solution for Financial Stability
- Alex introduces the concept of the resident savings account (RSA)
- The RSA could provide a financial cushion for residents to handle unexpected expenses
- Even a small amount saved can make a significant difference in a resident's life
[00:03:00] - [00:06:00] Understanding the Challenges of Low-Income Families
- Angel shares insights from her experience as a teacher in low-income communities
- Low-income families often face difficult decisions due to limited resources
- The RSA could offer an alternative to sacrificing necessities for unexpected expenses
[00:06:00] - [00:09:00] Making Affordable Housing More Accessible and Affordable
- The discussion highlights the importance of making affordable housing more accessible
- Angel's grandparents' experience with affordable housing is shared as an example
- The RSA could provide longevity for residents who might otherwise have to skip rent
[00:09:00] - [00:12:00] The Potential for Partnerships and Investors
- Alex expresses the need for finding the right banking partner for the RSA program
- Angel suggests the possibility of involving venture capital groups to back the idea
- The discussion emphasizes the importance of understanding the unique challenges faced by hourly workers
[00:12:00] - [00:20:00] Enhancing Affordable Housing with Valuable Amenities
- Alex and Angel discuss the potential for converting hotel spaces into valuable amenities
- After-school care is highlighted as a potential amenity that could attract and retain families
- The long-term benefits of on-site amenities, such as fuel and time savings, are considered
Quote:
"We see opportunity cost everywhere, right? We see costs on the stuff that doesn't have numbers attached to it." - Alex Cartwright
Connect with Alex:
Website: www.Vilicus.Capital
Visit sponsorcloud.io/contact today and unlock $2,000 of free services exclusively for REI Rocks community members! Get automated syndication and investor relationship management tools to save time and money. Mention your part of the REI Rocks community for exclusive offers. Help make affordable, low-cost education summits possible. Check out Sponsor Cloud today!
LEAVE A REVIEW + help someone who wants to explode their business growth by sharing this episode.
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Head over to our Facebook Page, Youtube Channel, or website
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Can providing affordable housing without relying on taxpayer money be a sustainable solution to the housing crisis?
In this episode, Angel Williams and Alex Cartwright discuss the innovative approach of converting hotels into affordable housing units. Alex shares his experiences in offering all-inclusive rental packages that provide stability and convenience for low-income tenants. By eliminating the need for sub-metering and additional fees, Alex's company aims to create a win-win situation for both the residents and the property owners. The conversation also touches on the disproportionate impact of inflation on low-income households and the potential of a resident savings account program to reduce turnover costs and improve the lives of tenants.
Alex conducts macroeconomic analysis on target markets and conducts the underwriting for Vilicus Capital offerings. Alex has also previously worked as a consultant with one of the biggest mobile home owners in the country.
[00:00:00] - [00:03:00] The All-Inclusive Rental Package
- Offering furnished units with utilities, internet, and cable included
- Providing stability and convenience for low-income tenants
- Competing with traditional apartments by offering a single, fixed monthly price
[00:03:00] - [00:06:00] Creating Affordable Housing Without Taxpayer Money
- Renovating hotel units to provide affordable housing options
- Reducing rent for long-term hotel residents by 20-30%
- Generating a free market solution that benefits both tenants and property owners
[00:06:00] - [00:09:00] The Impact of Inflation on Low-Income Households
- Discussing the regressive effects of inflation on lower-income individuals
- Highlighting the disproportionate impact of rising food and housing costs
- Acknowledging the challenges faced by low-income families in the current economic climate
[00:09:00] - [00:12:00] Gamifying Rent Payments and Rewarding Tenants
- Exploring the concept of the Pinata app, which gamifies rent payments
- Discussing the potential of rewarding tenants with points for on-time payments and lease renewals
- Allowing tenants to choose their own rewards based on their preferences
[00:12:00] - [00:18:00] The Resident Savings Account Model
- Introducing the idea of a resident savings account to reduce turnover costs
- Contributing to the account as an incentive for tenants to stay longer
- Providing tenants with the opportunity to save for future goals, such as a down payment on a home or education expenses
Quote:
"I'm so proud. I don't have to take any taxpayers money to do that. That means I don't have to take any anybody else's money to do that. This is just pure free market solution where everybody wins." - Alex Cartwright
Connect with Alex:
Website: www.Vilicus.Capital
Visit sponsorcloud.io/contact today and unlock $2,000 of free services exclusively for REI Rocks community members! Get automated syndication and investor relationship management tools to save time and money. Mention your part of the REI Rocks community for exclusive offers. Help make affordable, low-cost education summits possible. Check out Sponsor Cloud today!
LEAVE A REVIEW + help someone who wants to explode their business growth by sharing this episode.
Are you confused about where to start? Join our community and learn more about real estate investing.
Head over to our Facebook Page, Youtube Channel, or website
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Can converting hotels into apartments solve the affordable housing crisis while providing a lucrative investment opportunity?
In this episode, host Angel Williams sits down with Alex Cartwright, an Associate Professor of Economics at Ferris State University and a real estate investor focused on hotel-to-apartment conversions. Alex shares his journey from traditional multifamily syndication to discovering the untapped potential of converting struggling hotels into affordable housing. He discusses the challenges and advantages of this unique investment strategy, emphasizing the growing demand for workforce housing and the limited supply of old hotels ripe for conversion. Alex also delves into the financial aspects of hotel conversions, explaining how the shift from hotel to multifamily cap rates can lead to significant returns with limited downside risk.
Alex conducts macroeconomic analysis on target markets and conducts the underwriting for Vilicus Capital offerings. Alex has also previously worked as a consultant with one of the biggest mobile home owners in the country.
00:00:00 - 00:03:00 - From Traditional Multifamily to Hotel Conversions
Alex found it increasingly difficult to find deals in traditional multifamily syndication.
He sought a niche where he could be known as the expert and scale his business.
A broker introduced him to the concept of hotel-to-apartment conversions.
00:03:00 - 00:08:00 - The Demand for Affordable Housing and Supply of Old Hotels
Affordable housing is in high demand, but no one is building it.
Hotels have a limited lifespan and struggle to compete with VRBOs and Airbnbs.
Converting old hotels into apartments can unlock their value and meet the demand for workforce housing.
00:08:00 - 00:14:00 - Navigating the Challenges of Hotel Conversions
Cities are often open to rezoning old hotels into multifamily properties to create more affordable housing.
Converting hotels floor-by-floor allows for maintaining cash flow during the process.
Hotels often serve as "proxy apartment buildings" for those on the edge of homelessness or in need of simple, affordable living arrangements.
00:14:00 - 00:16:00 - The Financial Conversion: From Hotel to Multifamily Cap Rates
The real conversion is financial, as hotels trade at a lower cap rate than multifamily properties.
Buying at a hotel cap rate and refinancing at a multifamily cap rate can lead to significant returns.
The lower basis in hotel conversions provides upside potential and downside protection.
00:16:00 - 00:19:00 - A Real-World Example: The Houston Hotel Conversion
Alex's recent Houston hotel purchase was acquired at $28,000 per door, significantly lower than competing multifamily properties.
The low cost basis allows for flexibility in rental rates and a cushion against downside risk.
While finding the right deal takes work, hotel conversion opportunities are not as rare as one might think.
Quotes:
- "Affordable housing is exactly what no one is building, and affordable housing is exactly what disappears every time another syndication group buys the C class property and upgrades it to a B minus." - Alex Cartwright
- "The real conversion is actually a financial conversion because a hotel trades at a cap rate, usually in the low to mid teens, and a cap rate. It's fundamentally some measure about how durable the income stream is on an asset is the income consistent and is the income growing." - Alex Cartwright
Connect with Alex:
Website: www.Vilicus.Capital
Visit sponsorcloud.io/contact today and unlock $2,000 of free services exclusively for REI Rocks community members! Get automated syndication and investor relationship management tools to save time and money. Mention your part of the REI Rocks community for exclusive offers. Help make affordable, low-cost education summits possible. Check out Sponsor Cloud today!
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Head over to our Facebook Page, Youtube Channel, or website
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a
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How can understanding people's unique motivations and experiences help foster stronger connections and more successful business ventures?
In this episode, Angel Williams and Elam King delve into the importance of understanding people's diverse backgrounds, motivations, and experiences when building relationships and navigating business ventures. They discuss how embracing diversity and finding common ground can lead to more meaningful connections and successful outcomes. Angel shares her experiences as a teacher working with students from various backgrounds, while Elam reflects on his journey in the hospitality industry and the challenges of managing short-term rentals. Together, they emphasize the value of empathy, adaptability, and the willingness to learn from others in both personal and professional contexts.
Elam King grew up on an Amish farm but never grew to appreciate it. However, he did like his job in his teens of rebuilding manure spreaders. Yeah, they were dirty!! :) He finds great joy in turning crap into gold. Elam is an Airbnb superhost focused on making Airbnb investments profitable. He bought his first house (a 7 bedroom city home) in 2007 and totally rehabbed it. Elam and his family house-hacked it, by living in 2 bedrooms and renting the other 5 out. To date, this has been one of their best deals. His favorite Airbnb investments are ones that need rehab. It gives him the opportunity to make them what he wants–a unique experience for the guests. Elam grew his Airbnb portfolio to about 3.5 million in 2023 and wants to scale to a lot more in 2024.
(00:00:00 - 00:03:00) Embracing Unique Experiences and Motivations
- Angel shares her family's approach to creating memorable experiences while traveling to conferences
- Understanding and catering to individual preferences is key to building strong connections
- Finding people's "currency" helps in negotiating and creating value
(00:03:00 - 00:06:00) Navigating Business Relationships and Cultural Differences
- Elam discusses a challenging land deal and the importance of taking action and learning from setbacks
- Understanding cultural differences and building relationships is crucial in business negotiations
- Digging deeper to uncover what truly matters to people can lead to more successful partnerships
(00:06:00 - 00:09:00) The Power of Diversity and Soft Skills
- Angel reflects on her economics background and the importance of understanding how people respond to incentives
- Embracing diversity and building connections with people from various backgrounds can lead to more fulfilling relationships
- Soft skills and the ability to empathize with others are valuable assets in both personal and professional settings
(00:09:00 - 00:12:00) Navigating the Challenges of the Hospitality Industry
- Angel and Elam discuss the challenges and rewards of managing short-term rentals and the hospitality industry
- Dealing with the best and worst of people requires adaptability and emotional resilience
- The true nature of hospitality lies in fostering genuine connections and understanding between people
(00:12:00 - 00:17:00) Mindset, Expectations, and the Pursuit of High Margins
- The closer you get to people, the more drama increases, but the type of drama varies depending on the clientele
- Maintaining a positive mindset and managing expectations is crucial in the hospitality industry
- Elam emphasizes the importance of pursuing high margins and being selective in choosing properties for short-term rentals
Key Quotes:
- "Economics isn't the study of money, it's the study of how people respond to incentives." - Angel Williams
- "The true nature of hospitality is two people getting together and just really getting to know each other." - Elam King
Connect with Elam:
Website: www.rewonder.com
Visit sponsorcloud.io/contact today and unlock $2,000 of free services exclusively for REI Rocks community members! Get automated syndication and investor relationship management tools to save time and money. Mention your part of the REI Rocks community for exclusive offers. Help make affordable, low-cost education summits possible. Check out Sponsor Cloud today!
LEAVE A REVIEW + help someone who wants to explode their business growth by sharing this episode.
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Head over to our Facebook Page, Youtube Channel, or website
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How can short-term rental hosts create unforgettable experiences that capture their guests' imaginations and souls?
In this episode, Angel Williams and Elam King dive into the challenges and opportunities of managing short-term rentals. They discuss the difficulties of finding accountants who understand the complexities of the industry and the importance of economies of scale in property management. The conversation also explores the difference between amenity-rich and experience-rich properties, with Elam emphasizing the power of capturing people's imaginations through unique and creative experiences. By focusing on the deeper needs of guests, such as love, joy, and peace, short-term rental hosts can create unforgettable stays that go beyond mere physicality.
Elam King grew up on an Amish farm but never grew to appreciate it. However, he did like his job in his teens of rebuilding manure spreaders. Yeah, they were dirty!! :) He finds great joy in turning crap into gold. Elam is an Airbnb superhost focused on making Airbnb investments profitable. He bought his first house (a 7 bedroom city home) in 2007 and totally rehabbed it. Elam and his family house-hacked it, by living in 2 bedrooms and renting the other 5 out. To date, this has been one of their best deals. His favorite Airbnb investments are ones that need rehab. It gives him the opportunity to make them what he wants–a unique experience for the guests. Elam grew his Airbnb portfolio to about 3.5 million in 2023 and wants to scale to a lot more in 2024.
[00:00:00] - [00:03:00] The Challenges of Finding the Right Accountant
1. Short-term rentals are relatively new, making it difficult to find accountants who understand the industry's complexities.
2. Hosts may spend more time explaining the business to accountants than actually getting their accounting done.
3. The lack of industry-specific accounting solutions can lead to high bookkeeping costs.
[00:03:00] - [00:06:00] Economies of Scale in Property Management
1. As hosts acquire more properties, they need to consider the time commitment required to manage them effectively.
2. Residential properties, even when purchased with a commercial loan, can be more time-consuming to manage than larger, commercial properties.
3. Hosts should evaluate deals based on both the financial numbers and the time investment required.
[00:06:00] - [00:09:00] Creating Destinations and Capturing Imaginations
1. To stand out in the hospitality industry, hosts can create unique experiences that capture guests' imaginations.
2. Properties with themed rooms or creative amenities can become destinations in themselves, attracting guests willing to pay a premium.
3. Hosts should consider the specific needs and preferences of their target audience when designing their properties and experiences.
[00:09:00] - [00:12:00] The Difference Between Amenity-Rich and Experience-Rich Properties
1. While amenities are important, experiences are what truly capture guests' attention and encourage them to open their wallets.
2. Hosts can create experiences by adding elements of mystery, fun, and creativity to their properties.
3. Long-term rentals, such as class B and C apartments, typically focus more on amenities than experiences.
[00:12:00] - [00:17:00] Meeting the Deeper Needs of Guests
1. Beyond physical amenities, guests have deeper needs for love, joy, and peace that hosts can address through unique experiences.
2. By focusing on the soul and emotions of guests, hosts can create unforgettable stays that go beyond mere physicality.
3. Happiest people are not necessarily those with the most luxury, but those whose deeper needs are met through meaningful experiences.
Quotes:
"All of us have deep fears and deep desires, and it's not necessarily physical. Physical is what we see. But really at the root of it, at the root of who we are, we need love, joy, and peace." - Elam King
Connect with Elam:
Website: www.rewonder.com
Visit sponsorcloud.io/contact today and unlock $2,000 of free services exclusively for REI Rocks community members! Get automated syndication and investor relationship management tools to save time and money. Mention your part of the REI Rocks community for exclusive offers. Help make affordable, low-cost education summits possible. Check out Sponsor Cloud today!
LEAVE A REVIEW + help someone who wants to explode their business growth by sharing this episode.
Are you confused about where to start? Join our community and learn more about real estate investing.
Head over to our Facebook Page, Youtube Channel, or website
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Can short-term rentals be more than just a place to sleep, and actually ignite people's souls?
In this episode of the Academy presents Real Estate Investing Rocks podcast, Angel Williams sits down with Elam King, a seasoned short-term rental investor, to discuss the exciting world of hospitality and real estate. Elam shares his journey from purchasing his first foreclosure property in 2017 to now managing a portfolio worth over three and a half million dollars. He emphasizes the importance of creating a unique experience for guests and the potential for short-term rentals to be more than just a place to sleep. Throughout the conversation, they delve into the challenges and opportunities of scaling a short-term rental business, the differences between single-family homes and larger properties, and the various financing options available in this relatively new asset class.
Elam King grew up on an Amish farm but never grew to appreciate it. However, he did like his job in his teens of rebuilding manure spreaders. Yeah, they were dirty!! :) He finds great joy in turning crap into gold. Elam is an Airbnb superhost focused on making Airbnb investments profitable. He bought his first house (a 7 bedroom city home) in 2007 and totally rehabbed it. Elam and his family house-hacked it, by living in 2 bedrooms and renting the other 5 out. To date, this has been one of their best deals. His favorite Airbnb investments are ones that need rehab. It gives him the opportunity to make them what he wants–a unique experience for the guests. Elam grew his Airbnb portfolio to about 3.5 million in 2023 and wants to scale to a lot more in 2024.
[00:00:00] - [00:04:00] From Foreclosure to Financial Freedom: Elam King's Short-Term Rental Journey
- Elam purchased his first foreclosure property in 2017 and house hacked to get started
- He grew his portfolio to three and a half million dollars in just six years
- Elam and his family are now ready to scale their business and acquire millions more in real estate
[00:04:00] - [00:07:00] Scaling Up: The Transition from Single-Family Homes to Larger Properties
- Single-family short-term rentals can work, but they require a lot of energy and are difficult to scale
- Elam is now focusing on larger deals, such as a 280-acre land deal for a $40 million resort and a 32-room motel
- Short-term rentals are a hospitality play, not just about the physical property, but also about creating an experience
[00:07:00] - [00:10:00] The Challenges and Rewards of Running a Short-Term Rental Business
- Short-term rentals come with unique challenges, such as cleaning logistics and the need for constant communication
- Despite the challenges, Elam is excited about the industry and its potential for growth
- Real estate investing, including short-term rentals, is a business that requires an entrepreneurial mindset
[00:10:00] - [00:14:00] Financing Short-Term Rentals: Navigating a New Asset Class
- Short-term rental financing can be more challenging than traditional long-term rental financing
- Banks may require more information, such as occupancy rates and income, which can be difficult to prove for new or unique properties
- Alternative financing options, such as seller financing, can be helpful when traditional bank loans are not available
[00:14:00] - [00:22:00] Three Ways to Make Money with Short-Term Rentals: Arbitrage, Management, and Ownership
- Arbitrage involves renting a property and then subletting it on platforms like Airbnb, but offers less control and no long-term equity
- Managing properties for others can be profitable, but regulations vary by state and the industry is still in its "Wild West" phase
- Owning properties provides the most control and long-term benefits, but requires more capital and hands-on involvement
Quotes:
"Our vision statement is to create a hospitality brand that ignites people's souls." - Elam King
"It is real estate, but it's kind of like McDonald's, they own real estate, but it's not their brand." - Elam King
Connect with Elam:
Website: www.rewonder.com
Visit sponsorcloud.io/contact today and unlock $2,000 of free services exclusively for REI Rocks community members! Get automated syndication and investor relationship management tools to save time and money. Mention your part of the REI Rocks community for exclusive offers. Help make affordable, low-cost education summits possible. Check out Sponsor Cloud today!
LEAVE A REVIEW + help someone who wants to explode their business growth by sharing this episode.
Are you confused about where to start? Join our community and learn more about real estate investing.
Head over to our Facebook Page, Youtube Channel, or website
https://www.theacademypresents.com/jointhesummit36848306.
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How can focusing on your strengths and building a diverse team help you succeed in real estate investing?
In this engaging podcast episode, Matt Faircloth and Angel Williams discuss the importance of recognizing and leveraging your strengths while building a well-rounded team to achieve success in real estate investing. They emphasize the value of admitting your weaknesses and finding people who excel in those areas to complement your skills. Matt shares his insights on retaining good tenants in C-class apartments and the potential opportunities arising from the current market conditions. The conversation also touches on the advantages of investing in single-family homes and the upcoming trends in the real estate market.
Matt Faircloth has been a full-time investor since 2005. In that time he has successfully completed projects involving dozens of fix and flips, office buildings, single-family homes, and apartment buildings.
He has completed over a Hundred Million in real estate transactions and controls thousands of units of multi family. He is a regular contributor and podcast guest on Bigger Pockets.com, has an active YouTube Channel dedicated to educating investors, and the author of the Amazon Best Seller, Raising Private Capital, how to Build your Real Estate Empire with Other People's Money.
[00:00:00] - [00:03:00] Focusing on Strengths and Building a Team
- Recognize and focus on your strengths while admitting your weaknesses
- Build a team based on strengths to grow your business
- Outsource tasks you hate doing to those who excel in those areas
[00:03:00] - [00:07:00] The Importance of Balancing Strengths and Weaknesses
- Differentiate between essential skills and areas where you don't need to excel
- Shift on the spectrum towards improving certain skills, but recognize your limitations
- Pay someone to do tasks you hate once you have the resources
[00:07:00] - [00:13:00] Retaining Good Tenants in C-Class Apartments
- Focus on tenant happiness by keeping rent increases reasonable
- Offer incentives and amenities to create a sense of community
- Prioritize tenant retention over immediate rent increases to avoid vacancies
[00:13:00] - [00:18:00] The Resilience of C-Class Tenants During Economic Downturns
- C-class tenants are more versatile and can find new jobs more easily
- A and B-class tenants may face more challenges in finding comparable employment
- Single-family homes can offer excellent returns with the right tenants and property management
[00:18:00] - [00:22:00] Opportunities in the Changing Real Estate Market
- Short sales may become more common as forbearances increase
- Executing business plans effectively will be crucial for success
- Single-family homes may present overlooked opportunities for investors
Quotes:
"There's certain things you have to do for your financial health or for your physical health or for your mental health or whatever it is." - Matt Faircloth
"Whatever you hate doing, there's someone who loves doing it and could feed their family to get paid to do what you hate doing." - Matt Faircloth
Connect with Matt:
LinkedIn:
https://www.linkedin.com/in/mdfaircloth/
https://www.linkedin.com/company/derosagroup/
Visit sponsorcloud.io/contact today and unlock $2,000 of free services exclusively for REI Rocks community members! Get automated syndication and investor relationship management tools to save time and money. Mention your part of the REI Rocks community for exclusive offers. Help make affordable, low-cost education summits possible. Check out Sponsor Cloud today!
LEAVE A REVIEW + help someone who wants to explode their business growth by sharing this episode.
Are you confused about where to start? Join our community and learn more about real estate investing.
Head over to our Facebook Page, Youtube Channel, or website
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What are the four essential roles every successful multifamily real estate investment team needs to have, and how can you identify which role best suits your strengths?
In this episode,Matt Faircloth breaks down the four critical roles every multifamily real estate investment team must have to achieve success. He explains that these roles are the Hunter, the Analyst, the Money, and the Hammer. Each role plays a vital part in finding, analyzing, financing, and managing deals. Matt emphasizes the importance of self-awareness and understanding your strengths and weaknesses when assembling your team. He also discusses the possibility of having team members wear multiple hats and how these roles can evolve into divisions as your company grows. Additionally, Matt shares his experience with his first 10-unit apartment building and his current 336-unit deal, demonstrating the power of scaling up with the right team in place.
Matt Faircloth has been a full-time investor since 2005. In that time he has successfully completed projects involving dozens of fix and flips, office buildings, single-family homes, and apartment buildings.
He has completed over a Hundred Million in real estate transactions and controls thousands of units of multi family. He is a regular contributor and podcast guest on Bigger Pockets.com, has an active YouTube Channel dedicated to educating investors, and the author of the Amazon Best Seller, Raising Private Capital, how to Build your Real Estate Empire with Other People's Money.
00:00:00 - 00:02:00 The Four Essential Roles of a Multifamily Investment Team
- The Hunter: Finds and secures deals
- The Analyst: Lives in spreadsheets and analyzes deals
- The Money: Attracts investors and assembles financial wherewithal
00:02:00 - 00:04:00 The Money's Role and the Importance of the Hammer
- The Money explains complex concepts simply to investors
- The Hammer drives the business plan and ensures success
- All four roles are necessary for a successful investment
00:04:00 - 00:06:00 Assembling Your Team Based on Strengths and Weaknesses
- Identify which role speaks to you the most
- Find team members who complement your strengths
- Roles can overlap, but separate as the company grows
00:06:00 - 00:09:00 Additional Team Members and Matt's First Apartment Deal
- Other essential team members: brokers, attorneys, property managers, etc.
- Matt's experience with his first 10-unit apartment building
- The importance of disclosing unique property features to tenants
00:09:00 - 00:13:00 Scaling Up to Larger Deals and Increasing Returns
- Matt's current 336-unit apartment complex deal
- Adding amenities and upgrading units to increase rents
- Achieving high cash-on-cash returns through simple improvements
Quotes:
"If you are self aware, if you take personal inventory for yourself, and if you have the courage to look at your strengths and also your weaknesses you can assemble this for yourself and figure out where you sit on this bus." - Matt Faircloth
"As much as your ego may tell you, you can do all this stuff yourself and you're good at everything. You may not be, you might need a team around you that can help you do some of the awesome, some of the awesome stuff that needs to happen in real estate." - Matt Faircloth
Connect with Matt:
LinkedIn:
https://www.linkedin.com/in/mdfaircloth/
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