Multifamily Investor Situation Room

Jedi Hill experienced success leading up to the 2008 financial crisis, and then took a turn to the downside like many other investors during that tumultuous period. Now, after returning to the investing space, he is making incredible progress and is quickly growing his business to include investments in multifamily apartments and mobile home parks. He believes our current market is full of opportunities, but people are getting taken because they don’t know their numbers.

After serving as a Broker for his own firm for many years, and his company merging with SVN, Reid Bennett is currently the National Council Chair for the Multifamily Division of the firm. With 225 offices around the country and 266 multifamily focused advisors, Reid has a good grasp of the multifamily market all over the country. Reid sees many parallels between 2008 and our current economic environment. In this episode, we discuss how he sets seller and buyer expectations, rent collections strategies, and why he feels now is the best time to get started in real estate.

After completing his engineering degree in university, Fernando Angelucci began work in the corporate world to quickly realize that the corporate track was not a good fit. He turned to real estate at the age of 23 and after achieving success inside of 13 short months, he quit his full-time job and began investing in real estate full-time. He was heavily investing in both single-family and multifamily apartment buildings, when after managing for a period, he learned the State where he held his portfolio was too tenant friendly. After spending nearly a year trying to evict a professional tenant, he decided to pivot and focus on self-storage. In this episode, Fernando shares with us the benefits of self-storage, or as he puts it, the reasons why he prefers to store things, versus housing people.

Abel Pacheco is the Principal of 5t CRE, a multifamily real estate investing company. He is currently invested in over 800 units on both the passive and active side. Abel is an investor that believes in taking action and that actions come from confidence developed from competence, which is attained through education. His first major investment in his real estate education came at a cost of $20,000, which he later found the course syllabus was incongruent to his investment goals. He later discovered alternative ways to get the education he needed that allowed him to scale from 8 units to over 800 units in a short two year period. In this episode, Abel shares how you can best maximize your returns on real estate education, whether it is paid, or unpaid.

Kevin Gardner is the managing director of Multifamily Utility Solutions, a company that helps multifamily property owners across the country to increase revenues and reduce expenses. Kevin’s experience has resulted in his company negotiating favorable terms for telecommunications access and utility agreements. In this episode, Kevin shares with us how they help multifamily property owners tap into a not so commonly known additional source of revenue.

Upon learning about the syndication model when his company was hired to work on a multifamily job site for another investor, Jorge Abreu decided to dive straight in.  In the past three years, Jorge has rapidly scaled his business and is currently invested in more than 3,200 doors and has a goal of reaching 10,000 doors by the end of 2021.  In this episode, we talk about his reason for switching to the syndication model, his critical scaling variable, and his outlook on the multifamily industry given the current economic environment.

There are many ways to get involved with real estate, wholesaling, fix-and-flip, rentals, and property management to name a few. After graduating from university, Jimmy Murray wanted to get rid of his 9-5 and go into real estate. He began with house hacking and then transitioned into wholesaling. He quickly realized that wholesaling was not for him, but he was very adept at speaking with and getting through to tired landlords. He pivoted and started a property management company as a means for him to get on track to achieving his dreams in real estate. In this episode, Jimmy shares why he feels on a net basis, property management is a great alternative, how he is leverage technology, and some best practices for developing a solid team to improve profitability.

His favorite book is “The Intelligent Investor” written by Benjamin Graham, a book that discusses value investing and is the foundation upon which investing titan Warren Buffet built Berkshire Hathaway.  After leaving his career in financial services for the stability and tax benefits, Carlyle Tiller began to study more of the economics of areas, specifically focusing on wealth migration to essentially follow the money and determine areas where he can find undervalued assets.  In this episode, he shares with us his thought process and reason for going after smaller undervalued multifamily deals.

Property management companies are not having honest discussions with building owners about their ability to manage smaller projects resulting in unresponsive management and higher tenant turnover.  Some of the larger investment groups tend to bring in their own property management, but find their offering to be slightly misaligned with the submarket resident demand.  

In this episode, David shares with us one of the critical success factors he has found that allows smaller operators in his market thrive when larger out of state operators enter the market and underperform.

Jason Postill was a professional baseball player for 5 years before an injury pushed him into sports retirement.  He had always dreamed of getting into real estate, thought getting a brokerage license was the way to do it, and so he did.  He ended up working for Marcus & Millichap where he focused on multifamily investment properties.  He later decided he wanted to pursue his long-term vision which was to create his own full-service brokerage and investment firm, which he did last year.  In this episode, Jason walks us through his transition and one of the most important lessons he has learned over the years; narrowing your focus.