Multifamily Investor Situation Room

After achieving success in his professional career as an attorney, life-threatening illness temporarily derailed him.  Jeff Holst won his fight against leukemia, after which, he made the decision that he would live his best life ever on his terms.  He began to aggressively invest in real estate and is not free to live the way he wants.  In this episode, Jeff takes us through his journey from single-family properties, shopping, and retail investments, to multifamily real estate syndications.  He shares with us some of the earlier mistakes he made, including the biggest one he wishes he had changed early on.

After having achieved financial freedom as a real estate investor, Soddee has had ample time to reflect on some of the challenges he faced in his business, one many of us investors out there can relate to being, how to effectively deal with contractors. Failure to meet your value-add timeline or construction cost overruns could erode away your returns. From contractors not showing up, being inconsistent on work their work schedule, doing shoddy work, or renegotiating price and scope mid-renovation, you want to make sure you have done the best you can to cover you and your investor’s basis. In this episode, Soddess shares with us some tips and best practices that he implements in his business to mitigate risk when working with contractors.

After having achieved financial freedom as a real estate investor, Soddee has had ample time to reflect on some of the challenges he faced in his business, one many of us investors out there can relate to being, how to effectively deal with contractors. Failure to meet your value-add timeline or construction cost overruns could erode away your returns. From contractors not showing up, being inconsistent on work their work schedule, doing shoddy work, or renegotiating price and scope mid-renovation, you want to make sure you have done the best you can to cover you and your investor’s basis. In this episode, Soddess shares with us some tips and best practices that he implements in his business to mitigate risk when working with contractors.

I always have my eyes open for innovative ideas that can save investors money.  If a by-product of that idea also protects the environment, then I am open to learning more.  I was contacted by the assistant to the CEO of Roof Maxx a while ago and had the opportunity to catch up with Mike Feazel and learn more about his business and how they can add up to 15 years of life on an asphalt roof.  We talk about the savings and the positive impact their bio-friendly technology has on the environment.

Many people get started with real estate investing for various reasons.  Perhaps you want to supplement your income so you can take your family on dream vacations, or maybe you want to leave your job and do something more fulfilling.  Frank Patalano was a middle school history teacher for 17 years that always had an interest in finance and real estate investing.  Over the past 15 years, Frank has found and developed his niche strategy in middle-market multifamily commercial properties.  In this episode, Frank discusses some of the early challenges he faced, as well as, some challenges he is currently facing while managing at a distance.

Maurice Philogene is a highly successful man of many talents. Through conscious decision-making, he took a deep introspective look to discover his underlying reasons for investing. He learned what variables ignite his zest for life and realized that he could AND could not achieve his dream by investing in real estate. In this episode, Maurice talks about avoiding the matrix, negotiating your time, and living the best life you are supposed to live.

Deal sourcing is an on-going challenge faced by everyone in the industry, especially for syndicators competing in the multifamily value-add space.  As brokers aggressively pocket more listings, large institutional investors purchase for all-cash and offer a quick close, many non-institutional money-backed new and even experienced operators are finding it increasingly difficult to get off-market properties where the numbers work.  Malon Johnson grounds us and reminds us that deals are out there for the taking, but only those that “hustle” and put in the time will reap the rewards.  Malon walks us through his grassroots deal sourcing process from the perspective of a wholesaler.  He focuses on single-family and small multifamily properties.  However, the fundamentals he applies in his business can be used in our syndication business to significantly improve deal flow.  The challenge: are you willing to shift your mindset to do what is necessary to be the first in front of off-market deals?

A lot of people thinking of purchasing value-add real estate may think of properties that have 85% or greater occupancy, some deferred maintenance, and have some light interior renovations needed on units. Over the past several decades, Pankaj Sharma and his family have been taking on some of the toughest multifamily projects, one of which had occupancy around 20% at acquisition. Pankaj’s real estate investment strategy centered around his company’s motto of “strong, steady, stable” has helped him rebuild communities while achieving incredible success.

Dream big!  If your goal is to scale your apartment investing business to thousands of units, you don’t want to miss this one!   Spencer Gray is a mega heavy hitter in the industry that began flipping houses when he was in high school!  He bought his first 132 unit multifamily property a few years back and then figured out how to quickly scale his business.  Now, he is invested in over 8,000 units as a general partner and is on the way to joining the ranks of the elite billion-dollar AUM multifamily investment group.

Many new investors often ask, “Which business entity should I setup?”  I have heard many say, “should I set up an LLC, partnership, or a corporation?”  Each one of these entities has its advantages, disadvantages, and each investor’s situation has many nuances, so it is always best to seek legal counsel.  In this episode, Elliot Indig provides us with general insight into some of the common business entities used by real estate investors, including their advantages and disadvantages from a liability perspective.  He also tells us about one of the biggest mistakes he has seen new investors make.