Behind The Bricks

Ryan Serhant is most widely known for being the star of Bravo's "Million Dollar Listing New York" and the upcoming show "Sell it Like Serhant." However, Ryan also has some real chops when it comes to residential real estate. He leads the top team at Nest Seekers International, where they have been ranked one of Wall Street Journal's top 5 sales teams nationwide for the past 3 years.

I asked Ryan to be a guest on Behind the Bricks (BTB) because in many ways the NYC residential market influences things to come in the multifamily investment space. When you think of condo sales prices, land values, and where people are choosing to buy and rent, these trends all have big implications for multifamily investors. As we begin 2018, his perspective on the market can be valuable for those looking to make investments this year.

In this episode, we explore the hot neighborhoods that are in high demand right now and why these may not be the best places to invest in today. How technology is changing where people live, the ultra-luxury market, and how to determine the true value of an apartment.

Ryan came to New York City after graduating college as a struggling actor, and after his character was killed off of a daytime soap opera, he found himself out of work and looking for another way to succeed. So we discuss how his acting and performance background has contributed to his business success, where thinking on your feet and communicating effectively are so critical.

With almost 700,000 followers on Instagram (you can find him @ryanserhant), many listen to Ryan's market commentary and I hope you enjoy the ideas we share on this show.

In this show, we discuss:

• What is the state of the New York City market today?
• How the number of homes sold per year is usually unchanged, regardless of the market.
• Are we in a buyer's market?
• Who is buying in the ultra-luxury residential market?
• How to determine the value of an apartment
• Where is the hotspot to buy in NYC today?
• Why it is important not to "follow the leader" when thinking about your next investment
• How a background in acting has assisted in Ryan's success?
• What are the biggest changes technology has had on the residential real estate business?
• Which past Behind the Bricks guest does Ryan say is the definition of a successful real estate investor?
• And much more For more information visit www.behindthebricks.com

In this special episode of Behind the Bricks, I am joined by my partners Joe Koicim, Shaun Riney, and Seth Glasser for an end-of-the-year recap and glance at our predictions for 2018.

As the last release of 2017, I would like to say thank you to our listeners throughout this year – for both your comments and feedback and for helping to make this show the #1 podcast about the NYC multifamily market.

Join us as we discuss how 2017 has compared to our predictions and how we believe 2018 will play out. Unlike other episodes, we will dive into some market metrics here and discuss the dynamics throughout NYC, in Manhattan, Brooklyn, Queens and the Bronx. On a more personal level, we touch upon the individual entrepreneurial backgrounds of the guests as they share stories about their business beginnings. Finally, of course, we conclude with some funny anecdotes about the business of NYC real estate.

I hope you enjoy this episode and are looking forward to all that's to come on Behind the Bricks in 2018! We already have some great episodes planned so stay tuned. Thank you again for listening, and wishing you and your families a happy and healthy new year!

For more information visit: www.behindthebricks.com

Michael Shah is the founder and CEO of Delshah Capital, a NYC-based private equity and asset management firm. He began his career in real estate in 2006, after working as an attorney at one of New York's top law firms. Since then, Delshah's assets under management have grown to almost $1 billion dollars. In this episode, we discuss his circular entrance into the industry. After being exposed to NYC multifamily growing up, Michael had a serious formal education. He graduated with a chemistry degree from Harvard, then moved on to graduate school at the London School of Economics, and finally back to Harvard Law School, where he finished first in his class. With all that schooling, his investing career ironically began with a humble purchase of a rough building in the Bronx. The story goes on from there...

This episode is great for listeners looking for macro investing strategies: We cover the Delshah process for choosing what and when to purchase. We touch upon the retail market and its evolving opportunities, and how the NYC regulated multifamily market has shifted and what new investors should be considering. We also explore Michael's experience in purchasing mortgages, and how that has propelled his firms' growth. Finally, we round out with how he is using technology and various personal anecdotes, including some of his relationship advice.

In this show, we discuss:

• The Delshah process of deciding what and when to purchase
• The 3 levers: Asset Class, Market Cycle, & Timing
• Looking at debt for opportunities
• Why retail may not be as dead as people are predicting?
• What is important to understand when purchasing a note?
• What is the outlook on the multifamily market?
• Why should you sell your rent stabilized building?
• How is technology impacting the real estate industry?
• How to find "real" market data?
• Why did he look to the Israel debt markets for financing?
• And much, much more...

For more information visit: www.behindthebricks.com

Peter Tessler, is one of the most successful Brooklyn owners of 2017. Earlier this year, (along with his partner Rob Bremmer) he sold their 18-building portfolio for almost $75 million which, to date, is the largest Brooklyn portfolio to trade hands in 2017. (Disclosure: we represented him in this sale.)

Our conversation covers the entire lifespan of these investments; from growing a portfolio from the ground up, all the way to the decision to sell, and take chips off the table. In doing so, we cover many relevant topics. For example, what were the initial "buy" signals he noticed in the market? Why did they focus on smaller buildings and what were the benefits that brought them? We discuss how he added value, increased rents, and the changing dynamics of the Brooklyn renter.

On the personal side, we cover the importance of your reputation, the value of having a partner, and what he learned from his experience of splitting with that partner 2 years before the buildings were actually sold.

Finally, we end by discussing the market signals that led him to sell, and what he sees in the future for the Brooklyn market. All NYC investors are fascinated with Brooklyn and I hope you enjoy this information-packed discussion with Peter Tessler.

We address topics such as:

• Why and when should investors sell?
• What market signs indicate a buying opportunity?
• What are some inexpensive value-add strategies to attract renters?
• Why Brooklyn real estate has more character than other NYC boroughs?
• What role does timing play in an investment?
• Why can working with a partner be accretive?
• How a bank's position can be an indicator of things to come?
• For more information visit, www.behindthebricks.com

When multifamily owners no longer want to operate and manage their apartment buildings, what options do they have? Owners ask me, "What can I buy that will improve my quality of life?" This episode explores one answer to that question.

Today we have a special guest, Glen Kunofsky. Glen and his team are the leading investment advisors in the Triple-Net (NNN) property space, nationally.

Triple-Net properties are, in their purest form, investments which require no day-to-day management. If you are an investor who is interested in learning more about these assets, this episode is a great primer. We cover many of the basics, speak about the transition from management intensive buildings to those that are management free, and other considerations surrounding this type of real estate. Ironically, by hearing us talk about what NYC properties are not, you actually get a fuller view of the intricacies of owning in NYC.

As a bonus, we are also joined by a long time owner of NNN properties, Art Weigold. He adds a real world perspective that I thought would be really useful for listeners. This is a unique episode that I had a great time with, and it addresses a topic I get questions about all the time. Let's go behind the bricks...about NNN properties with Glen Kunofsky.

In addition we cover:

• Learning the ropes of the "owner occupancy" rule for NYC apartment buildings
• What are NNN properties, why do they exist and how do they work?
• Who are the sellers of NNN properties?
• How do they come to market?
• Why NNN properties can be part of estate planning?
• How do you evaluate buying a NNN building?
• How do NNN investments compare to multi-tenant retail?
• Why should you evaluate your "return on equity"on an annual basis?
• Ideas on how technology will change the use of retail and other real estate types
• And much more
• For more information visit behindthebricks.com

Jordan Vogel is the co-founder of Benchmark Real Estate Group. Since 2009, (when he started the firm with partner Aaron Feldman) they have acquired over $1 billion of New York City apartment buildings. They have a reputation for unlocking and maximizing potential value in their assets and are incredibly strategic in the locations that they select. Jordan is skilled at distilling down his investment philosophies and conveying them in a simple way. There are many intelligent nuggets you will find useful here, including:

Episode description

• Why this business consistently requires courage
• The massive impact of cap rates on your success
• The difficulties of raising equity for real estate investments
• How they differentiate value between Manhattan locations
• Why running & training for marathons helps clear his head and become more productive
• Why it's important to disconnect from technology for strategic thinking and much more...
• For more information visit www.behindthebricks.com

Jordan Sachs is the co-founder of Bold New York, one of the top residential leasing firms in NYC. He and his partner Todd Jacobs, started Bold in 2010 in the bottom of the economic downturn and have since grown is their company to a powerhouse rental agency with over 100 agents. They consistently achieve top-of-the market rents in many of the buildings they represent. This is particularly noteworthy because the NYC "rental market" has become more diverse and nuanced, and is one of the most talked about subjects in NYC real estate. In the show, we discuss how they do their magic and items such as:

• Starting a Company During a Downturn The Real Value of "Hustle"
• Why Some Believe NYC is the Best Multifamily Investment Market in the US
• How Tech has Changed the Rental Game - (See Peter Diamandis "6 D's" for more)
• How New Supply is Impacting ALL NYC Rents The Long Term Rental Projections for Brooklyn
• Why a 10-Year Business Plan is a Strategic Advantage and much more...
• for more info visit www.behindthebricks.com

Matt Engel is the President of Langsam Property Services, one of the largest management companies in the NYC market. They are responsible for managing approximately 350 buildings with over 10,000 units. Langsam is on the "short list" of who to call when you have tough management assignments which need assistance. They have rescued some very large portfolios on behalf of large investors, and there is a lot of real knowledge he shares with us.

We will cover things like:

• What it is like to manage 10,000 units at once
• His advice on entering the real estate business today
• Why investors love the NYC market
• What NYC borough feels the hottest for investment now
• The Most unusual tenant situation he has encountered
• How should you diligence a NYC building before you buy
• Why it can be difficult to purchase buildings in the market today
• Why in NYC it pays to work with experienced professionals only

For more, go to www.behindthebricks.com

Adam Mermelstein, who co founded Treetop Development, one of the most Active owners/Operators for NYC multifamily in the past several years. I have completed many transactions with his company, and the had developed a reputation for successfully turning around & transforming apartment buildings in NYC's emerging neighborhoods.

In this episode we will learn:

• How he started his business with a $10,000 investment
• The dangers and pitfalls of not knowing your way around NYC tenant situations
• His thoughts on the future of the South Bronx and why he is developing there
• The changing expectations of investors looking to buy
• How technology has impacted the buying of real estate in the last 15 years
• What he looks at when he buys a property
• Much much more

For more, go to www.behindthebricks.com