Today on the Real Estate Asset Management Podcast, we talk to Dustin Miles and Hayden Harrington of Momentum Multifamily about managing risk in the asset management sphere. We discuss the differences when it comes to managing a C-class versus an A-class or a B-class deal, as well the pros and cons of each class respectively. Dustin and Hayden share the ways in which COVID has affected their choices, as well as some of the invaluable asset management-related lessons they’ve learned over the years. Tune in for some useful tips and insights on how to mitigate risk and grow intelligently, instead of just growing for the sake of growing!

Key Points From This Episode:

• Dustin and Hayden briefly introduce themselves and share their professional backgrounds.
• Pros and cons of managing A, B, and C-class deals from an asset management standpoint.
• How COVID affected each asset class respectively.
• How Dustin and Hayden track their assets by inputting financials against the proforma.
• Lessons they’ve learned regarding asset management.
• The importance of working with the right management company in the right area.
• The importance of considering the risk-adjusted return.
• Why Dustin and Hayden have abandoned C-class for the most part.
• How to mitigate risk and grow intelligently, instead of just growing for the sake of growing.
• Why they stick to buying property in the same region and working with the same regional.
• Their asset management superpowers: being detail-oriented, diplomatic, and team-oriented.

Tweetables:

"During COVID, we did see quite a difference. We had more delinquency, more bad debt, and all that on the [C-class] side. [A-class] was just a lot more stable, a lot more seamless, less peaks and valleys." – Dustin Miles [0:02:29]

“We just want to mitigate risk however we can and grow intelligently – not just grow to grow.” — Hayden Harrington [11:57]

“We’re not here to be right. We’re here to do what’s best for the business, for each other, and for our investors. That’s something that we keep a priority here at Momentum [Multifamily].” — Hayden Harrington [15:06]

“It pays dividends to invest in people and understand who you're getting in business with and not just jumping at the first option or the cheapest option that comes along.” — Hayden Harrington [15:39]

Links Mentioned in Today’s Episode:

Dustin Miles on LinkedIn

Hayden Harrington on LinkedIn

Momentum Multifamily

Asset Management Mastery Facebook Group

Asset Management Mastery

Break of Day Capital
Break of Day Capital Instagram

Gary Lipsky on LinkedIn

Best In Class
Garzella Group

Welcome back to another episode of the Real Estate Asset Management podcast! The conversation today centers around a recent deal we sold, covering the whole cycle of ups and downs we faced along the way! We kickstart the conversation with some numbers up front and move through each step from the initial site inspection of this true value-add to the challenges. We talk about taking over just a few months before COVIID, renovation decisions, scaling, and the permit marathon. The listener will also hear firsthand details of the business planning and execution, as well as some tough decisions about changing managers, and the importance of a great team. Rarely is it a smooth ride, and if you want to learn from this excellent example of picking the right markets, truly knowing that market as well, and being a hands-on asset manager, tune in now!

Key Points From This Episode:

• Some upfront numbers about this true value-add, and how we beat others to the punch!
• How the property wasn't managed overly well, but the numbers worked.
• Some difficulties in finding good partners that believed in us and the deal.
• What to do with our webinar to raise capital when the lending cap was reached for that year.
• Changing the name, scaling back on renovations, and effective one-time advertisement costs.
• Getting a permit for the washer dryers; it takes longer than you think.
• Taking time to work through a rough tenant base.
• Challenging managers, and waiting too long to make a change.
• How important it is to have a great team. 
• Outlining the financing, Fanny Green loans, the pitfalls of long-term financing, and more!

Tweetables:

“You want to get a jump on others and, if you can, make a preemptive bid before it goes to a best and final [offer].” — Gary Lipsky [0:02:14]

“You need to be able to trust your property manager, when you cannot then it is time to move on.”— Gary Lipsky [0:08:18]

“Having that extra in reserves gives you options to do [these types of] pivots, as you never know what will evolve over time. And it is great to have that buffer, to have the flexibility.” — Gary Lipsky [0:09:19]

“Even if you are making great strides, let your property management team know that you are not going to get complacent so that they are not going to get complacent.” — Gary Lipsky [0:10:57] 

Links Mentioned in Today’s Episode:

Asset Management Mastery Facebook Group

Asset Management Mastery

Break of Day Capital
Break of Day Capital on Instagram

Break of Day on Youtube

Gary Lipsky on LinkedIn

Best in Class: How to Manage your Multifamily Asset, Avoid Mistakes and Build Wealth through Real Estate
Garzella Group

With each change in administration, come new changes to the U.S. tax bill. This week’s guest on the Real Estate Asset Management Podcast is Brandon Hall, CPA and managing partner of The Real Estate CPA. In our conversation with Brandon, he breaks down some of the tax changes that have been implemented by the Biden administration thus far, what we can anticipate in the coming years, and how the changes may affect real estate investors. We talk about why S corporations will become less impactful for high-income earners under the new tax bill, and how the Biden administration opted for a surtax, rather than a wealth tax. Brandon discusses the rate at which bonus depreciation will be phased out, and the subsequent relevance of Cost Segregation studies. He predicts an increase in audit rates that will follow the significant budget allocation to the IRS and gives advice on how to prepare. Tune in to find out more about how the tax changes will affect the real estate industry, and how you can remain a few steps ahead and win impending audits!

Key Points From This Episode:

• Brandon’s professional background and experience.
• 2021 tax changes: effect on real estate investors.
• October 2021’s “vanilla tax bill”.
• Why S corporations will become less impactful for high-income earners under the new tax bill.
• How bonus depreciation is going to phase down 20% each year from 2023, until it reaches zero.
• The relevance of Cost Segregation studies once bonus depreciation has been phased out.
• How the Biden administration opted for a surtax instead of the wealth tax.
• 2022 tax changes: billions allocated towards IRS taxpayer enforcement.
• Audit rates expected to increase from 2022.
• How the tax loss that comes from Cost Segregation could increase your audit risk.
• What causes people to lose audits, and how to win them by being organized and thinking ahead.
• Why people should take the IRS more seriously in future.

Links Mentioned in Today’s Episode:

The Real Estate CPA

The Real Estate CPA Podcast

Tax Smart Real Estate Investors Facebook Group

The Real Estate CPA on Twitter

The Real Estate CPA on Facebook

Asset Management Mastery

Asset Management Mastery Facebook Group

Break of Day Capital
Break of Day Capital Instagram
Gary Lipsky on LinkedIn
Best in Class: How to Manage Your Multifamily Asset, Avoid Mistakes and Build Wealth Through Real Estate
Garzella Group

Mindset, preparation, and mentorship aren’t necessarily the first words that come to mind when referring to asset management and multifamily real estate. Today’s guest, multifamily real estate investor and author, Chris Bystriansky, is here to prove otherwise. In today’s episode, Chris shares a bit about his professional background and how changing his mindset changed his life. He speaks about the lessons he’s learned from partaking in endurance events, and how they are directly applicable to business. Tune in to discover how life and challenges outside of business can make you a better business person. 

Key Points From This Episode:

• Chris Bystriansky’s professional background.
• A life-changing endurance event Chris took part in.
• How he started trying different things to expand his mindset.
• The power of changing your mindset.
• The difference between smart people and intelligent people.
• What Chris learned during the ‘29029’ event, and the direct application to business and asset management.
• Improving your performance by working with others and asking for help.
• Takeaway lessons that Chris has applied to his multifamily business.
• The importance of loving what you’re doing, even if just a simple aspect of it.
• Chris shares a funny anecdote to emphasize that looks can be deceiving.
• Chris mentions giveaways and resources he’s able to provide listeners with.

Links Mentioned in Today’s Episode:

Asset Management Mastery Facebook Group

Break of Day Capital
Break of Day Capital Instagram

Gary Lipsky on LinkedIn

Chris Bystriansky on LinkedIn

Chris Bystriansky Email 

Renting From My 6-Year-Old

Best in Class

Asset Management Course
Garzella Group
12 Life and Business Lessons from 29029 - by Chris Bystriansky
Renting From My 6-Year-Old – by Chris Bystriansky - 2 Free Chapters

Today’s guest went from running a family-owned pizzeria to being one of the top mentors in multifamily investing. Join us as Gino Barbaro takes us through his 10-minute MBA, and gives us key advice on how to build your business. From defining your core values, to how to structure your business goals and meetings, this episode is a masterclass! Find out how to make your first hire less daunting, and why you should do the tasks that you don’t want to do when you first start your business. We also discuss the books that changed Gino’s life, and how he’s been inspired to write some of his own, including his latest release, the children’s book, The Cannoli’s Exploded! Now What? We hear how entrepreneurs can change the world through financial education, and about the upcoming Multifamily Mastery masterclass. Don’t miss out on this exciting episode!

Key Points From This Episode:

• An introduction to Gino, once a family-run pizzeria owner, now a successful multifamily wealth educator. 
• Why you need to do the parts of the job that you don't want to do.
• How being bored motivated Gino to become an author and scale up his property management business.
• Core values: why you need to define yours. 
• Find out which systems you should be implementing in your business.
• Picking priorities: setting goals and targets throughout your calendar year.
• Why it’s important to set up systems when you are still a small business. 
• How to make the prospect of your first hire less daunting.
• The responsibility of entrepreneurs is to change the world through financial education.

Links Mentioned in Today’s Episode:

Gino Barbaro on LinkedIn

Jake and Gino's Website

Jake and Gino's Books

The Cannoli’s Exploded! Now What? A Story About Three Different Paths You Can Take in Life by Julia Barbaro

The MM4 Masterclass

Can't Hurt Me: Master Your Mind and Defy the Odds by Dave Goggins

The Presentation Secrets of Steve Jobs: How to Be Insanely Great in Front of Any Audience by Carmine Gallo

Vivid Vision: A Remarkable Tool for Aligning Your Business Around a Shared Vision of the Future by Cameron Herold

Asset Management Mastery Facebook Group

Asset Management Mastery

Break of Day Capital

Break of Day Capital Instagram

Gary Lipsky on LinkedIn

Best in Class
Garzella Group

As a multifamily syndicator, your return on investment does not solely rely on your ability to increase rents. There are numerous ways that you can boost your NOI and, in this episode, we cover how interior design can help you do just that! Today’s guest is Lisa Landry, President of Landry Designs and Landry Staging and CEO of Above & Beyond Holdings, a multifamily investment company with over 200 doors under management. In today’s episode, Lisa shares a bit about her personal multifamily syndication experience, which she believes gives her an edge in the industry and helps her provide her clients with greater ROI. You’ll also find out focusing on image and branding can increase interest in your properties and make a B or C class unit sell like an A-class one! Tune in today to learn more.

Key Points From This Episode:

• An introduction to Lisa Landry and her companies, Landry Designs and Landry Staging.
• How her multifamily syndication experience helps Lisa provide her clients with greater ROI.
• Why she believes that she can add value to any size property, big or small.
• The importance of image and branding, from the website to the leasing office and model unit.
• What syndicators should spend on interior design and staging and what ROI they can expect.
• Three key elements: potential residents want to live there, current residents feel pride of ownership, and onsite staff want to work there.
• Learn about the process of working with Lisa and her team, from Zoom call to renovations.
• Lisa shares one of the most interesting properties she has worked on to date.

Links Mentioned in Today’s Episode:

Lisa Landry on LinkedIn

Lisa Landry Email

Landry Designs

Landry Designs on Instagram

Asset Management Mastery Facebook Group

Asset Management Mastery

Break of Day Capital
Break of Day Capital Instagram

Gary Lipsky on LinkedIn

Best in Class
GarzellaGroup

Hello and welcome back to the Real Estate Asset Management Podcast! Today we talk all things underwriting, with co-founder and principal of Lone Star Capital, Rob Beardsley. In this episode, Beardsley shares some of his vast knowledge on all the components that make up the underwriting process, and guides us through the ins and outs of using the analytical tools at your disposal to create a solid evaluation of your real estate investment (hint: a simple but robust underwriting model is crucial). We also get some advanced tips from his new book The Definitive Guide to Underwriting Multi-Family Acquisition, on making it to the other side of your ups and downs so you can get a permanent win. From rent growth to the relationship between cap rate compression analysis and bond yields during rent inflation, we get all the top insights and more... Tune in today and level up your asset management ability!

Key Points From This Episode:

• What inspired Beardsley to write his new book The Definitive Guide to Underwriting Multi-Family Acquisition
• Breaking down the components of underwriting, starting with the T12 and the rent roll, to figuring out its future potential through use of data and a property management partner.
• Finding your own balance with underwriting tools, and keeping it simple.
• Focusing on next level analysis of certain metrics aside from IRR and cash-on-cash.
• What is a debt service coverage ratio, and using that metric to assess risk and future outcomes.
• The Exit Test, and new loans while your old one is maturing.
• Following the huge new trends in cap rate compression due to the effects of the pandemic.
• The relationship between bond yields during rent inflation and lower cap rates.
• The most important piece in acquisitions right now – rent growth. 
• Beardsley's asset management superpower, and realizing the dream of their own in-house property management company, Radiance Living.
• Free underwriting resources available for analyzing property. 

Links Mentioned in Today’s Episode:

Rob Beardsley on LinkedIn

The Definitive Guide to Underwriting Multi-Family Acquisition 

Lone Star Capital

Asset Management Mastery Facebook Group

Asset Management Mastery website

Best in Class: How to Manage Your Multi-family Asset, Avoid Mistakes and Build Wealth Through Real Estate 

Gary Lipsky on LinkedIn
Garzella Group

Thank you for joining us for another episode of the Real Estate Asset Management Podcast! During today’s conversation, Gary Lipsky shares all the details of a deal he closed in early 2021. You’ll hear how, when you focus on a few markets, you can become an expert in those markets, what it was like to close a deal within the seller’s tough time constraints, and how a zoning attorney can be useful. The real work begins when you take over a property, and Gary shares some insights into what that process looked like during this deal. Get a glimpse into the process of successfully closing a deal and everything that comes after that when you tune in today! 

Key Points From This Episode:

• Details of the deal Gary closed in early 2021.
• Why he chose the deal: the price point, the size of the units, and the number of units in total.
• How, when you focus on a few markets, you can become an expert in those markets.
• What time constraints were put on the deal by the seller: to close in 45 days.
• The challenge of changing the use of the property from student housing to multifamily.
• Why it was necessary to work with a zoning attorney to close the deal on time.
• How often you will find that your attorney is not on the same timeline as you.
• Why the real work begins when you take over a property.
• Why Gary needed to hire an engineer to do an IPP (individual parking plan) assessment.
• How they changed one bedroom into a kitchen area.
• Why this is a ‘to be continued’ story: they are close to submitting to the city for phase two.
• How they scaled the staff after the hurdle of turnover they have overcome since July.
• The outperformance of the last few months and the units they still need to attend to.

Tweetables:

“What intrigued me about this deal was the price point, the size of the units, which were big, and the number of units in total, which was right in our sweet spot.” — @garylipsky [0:01:48]

“When you focus on a few markets, you can be [an expert] in those markets and jump quickly on a deal if it makes sense.” — @garylipsky [0:02:03] 

Links Mentioned in Today’s Episode:

Asset Management Mastery Facebook Group

Break of Day Capital
Break of Day Capital Instagram

Gary Lipsky on LinkedIn

Gary Lipsky on Twitter
Garzella Group

Welcome back to another episode of the Real Estate Asset Management Podcast, today’s guest is Andrew Rybczynski. Andrew is a management consultant at CoStar Advisory Services, which is built on top of CoStar, the largest data provider for commercial real estate in the US. They utilize the data to advise institutional clients, banks, pension funds, REITs, hedge funds on investment and commercial real estate, where to do it, and what types have the potential to outperform in the future. Tuning in, listeners will hear about Andrew’s take on the differences in regional and market type performance, rent growth, and the impact of evictions on vacancy. We also talk cap rate compression, interest rates, and so much more! So stay tuned!

Key Points From This Episode:

• More about Andrew and what he does for a living.
• Differences in regional and market type performance and what is being seen out there: tax cost.
• Rent growth, what it’s doing, and how much longer this can continue. 
• CoStar’s projections for rent growth in Phoenix, Arizona; 6-7% in the next 1-2 years.
• How evictions are going to be affected and what will happen to vacancy.
• Cap rate compression, where interest rates may go, and how it affects the tremendous amount of capital chasing the same deals.
• What listeners should know about workforce housing. 
• Andrew shares his favorite cities and what’s important to him about investing there.
• Why it’s important to research and get to grips with what is happening in cities regarding tech-hub growth.

Tweetables:

“The more people in the market, the more attractive it is for those employers.” — Andrew Rybczynski [0:02:45] 

“Workforce — we love it, we like it as an investment class if you’re going into it but building into it is very difficult and that is part of the reason that we like it so much as an investment class —  is that it does not face the same supply pressures that you get at the top of the market.” — Andrew Rybczynski [0:11:45]

Links Mentioned in Today’s Episode:

Andrew Rybczynski

Andrew Rybczynski on LinkedIn

Asset Management Mastery Facebook Group

CoStar Advisory Services

Break of Day Capital
Break of Day Capital Instagram

Gary Lipsky on LinkedIn
Garzella Group 

Today we welcome Brett Swarts to the show, the founder of Capital Gains Tax Solutions. Brett is also a commercial real estate broker, multi-family expert, and he and his company strive to help people who feel trapped by capital gains tax when selling highly appreciated apartment buildings. They like to refer to themselves as the Netflix way of deferred taxes! Joining in today, listeners will hear all about the difference between deferred sales taxes and a 1031, a great explanation on the confidence you can have in their secret recipe, how they deal with the estate “elephant in the room,’ and advice and tips for DST newbies! Stay tuned for all this and more!

Key Points From This Episode:

• More about Brett Swarts and what he does.
• We talk about the differences between deferred sales taxes and a 1031.
• The total dollar amount for transactions that Brett has done so far.
• Hear more about their secret recipe and how they’ve built up their confidence over the years; is it too good to be true?
• Brett shares whether there is a time when it’s not a good fit for a DST.
• Don’t forget about estate tax; Brett shares how they navigate the elephant in the room!
• Advice and tips for DST newbies: work with a qualified intermediary and don’t overpay! 

Tweetables:

“The biggest thing emotionally to overcome for this thing is sometimes the people who help to get you there to the first million or the first 10 million or the first 50 aren’t the same people to help you defer 10, 20, 30, 40, 50% of that tax.” — @1031option [0:11:04]

“We want to provide freedom and flexibility to buy and sell real estate on your own terms not on the 1031 terms.” — @1031option [0:14:45]

“I always say to my investors, clients, and partners — we’re not in the business of selling or buying real estate. We’re not in the business of selling or buying tax deferral strategies. We’re in the business of solving problems.” — @1031option [0:18:46]

Links Mentioned in Today’s Episode:

Brett Swarts

Brett Swarts on LinkedIn

Brett Swarts on Twitter

Capital Gains Tax Solutions

Capital Gains Tax Solutions Podcast

Free EBook

Capital Gains Tax Solutions Phone Number — +1 (916) 886 2986

Expert CRE Secrets

Expert Tax Secrets

Asset Management Mastery Facebook Group

Break of Day Capital
Break of Day Capital Instagram

Gary Lipsky on LinkedIn
Garzella Group