Real Returns

From humble beginnings to managing fortunes, Ali Swart and Samantha Spitzer Sheetz of Waldron Private Wealth join Dan and Andrew to unravel the financial journeys that led them to the pinnacle of wealth management.

Ali and Samantha share their unique financial literacy and stewardship paths, discussing how their personal backgrounds have shaped their professional journeys. They describe how they make an impact beyond their firm by creating a podcast called Wealth Simplified to spread financial knowledge to the masses. They emphasize the importance of staying up-to-date with industry trends, including reading the Wall Street Journal, attending conferences, listening to podcasts, and reading blogs like Andrew Kitsis'.

Whether climbing the corporate ladder or looking to master your family's finances, Allie's and Sam's stories will inspire you to redefine Wealth and success!

[00:00 - 07:48] Opening Segment

• How Ali Swart and Samantha Spitzer Sheetz got into finance and wealth management

[07:49 - 14:20] Staying Up to Date on Industry and Market Trends

• The Wealth Simplified podcast was created to provide financial advice and solutions to those who cannot afford it
• It covers debt management, cash flow, retirement savings, caring for aging parents, etc.
• The importance of staying up to date with the current trends

[14:21 - 22:11] Financial Literacy and Education: The Key to Success for the Next Generation

• Ben Carlson and Michael Batnick's Animal Spirits podcast is an excellent source of market commentary
• Setting up education savings funds for young family members is a great way to start them off
• Teaching kids the value of work and Money is important

[22:12 - 28:14] Money Isn't Always the Solution

• Money is not always the solution to stress; it can even be a source of stress if not managed well
• Communication is vital when it comes to money decisions, especially in relationships
• It's essential to work with professionals and build a team of experts to help manage finances
• Holistic financial planning requires a group of at least three people: CFP, CPA, and estate planning attorney

[28:15 - 36:42] Closing Segment

• Get to know Samantha and Ali through the lightning round!
• Connect with them through the links below

Quotes:

"I wanted to be able to help families avoid some of the arguments that I heard my parents have." - Ali Swart

"It's not what you make. It's what you keep." - Samantha Spitzer Sheetz

"Money is earned by doing something. It's not just given to you." - Ali Swart

Connect with Samantha and Ali!

Samantha's LinkedIn: https://www.linkedin.com/in/samanthasheetzcfp/

Ali's LinkedIn: https://www.linkedin.com/in/ali-swart-cfp%C2%AE-mba-9065271a/

Website: https://www.waldronprivatewealth.com

Podcast: https://offer.waldronprivatewealth.com/wealth-simplified

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Joshua Pollard, President and CEO of Omicelo, a mission-driven private equity firm investing in real estate, healthcare, and sustainability sectors, joins us to share his story of growing up in a family of steelworkers and veterans and his experience working at Goldman Sachs. He shares two key realizations that led him to pursue his venture: the need for impact and ownership and the importance of creating meaningful change through one's work. He also explains how he started his nonprofit Omicelo Care to help those who are uninsured or underinsured get access to medical care.

Tune in as Joshua shares how mission-driven businesses can be profitable and successful while positively impacting their communities.

[00:00 - 07:29] Exploring Impact and Ownership

• Joshua's background and career
• He wanted to have both impact and ownership when investing, which led him to start Omnicelo
• Mission-driven means being motivated by a greater goal than money while also recognizing the importance of profitability

[07:30 - 16:49] Investing with a Mission

• More significant goals can connect the company to its partners, clients, and employees more sincerely and firmly than money alone
• 250 community members have been taught how to invest in real estate through programs such as the Real Estate Co-Powerment Series
• Omnicelo focuses on investments in real estate, healthcare, and sustainability

[16:50 - 24:34] Discovering the Seven Pillars of a Sustainable Business

• The concept of 'seven pillars' for sustainable business
• It is vital to have a good strategy and people for a business
• There is a need to have both financial and energy sustainability

[24:35 - 29:13] Closing Segment

• Get to know more about Joshua through the lightning round!
• Final words

Quotes:

"What does it mean to be mission-driven? To me, to be mission-driven means to be motivated by a greater goal than money while simultaneously acknowledging the important role of profitability and achieving that greater goal time and time again." - Joshua Pollard

"If you can be genuine in your mission orientation, it should lead to higher profitability. And that's how we try to operate our business." - Joshua Pollard

Connect with Joshua!

Website: www.Omicelo.com

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This season of the Real Returns Podcast has been meaningful, thanks to the diverse set of guests in various industries. To close this season, Andrew recaps the valuable lessons learned and brings back some highlights to give us a taste of these guests' impact.

[00:01 - 08:37] Episode 10 - 13 Recap

• The importance of focusing on building a team that has diverse skills and focusing on the strengths of each team member
• Rent-to-own type of investing can be a win-win situation for the investors and lenders
• Focusing on three stakeholders for maximum impact
• The heart for caring for a family should also reflect in your tenants

[08:38 - 17:19] Episode 14 - 17 Recap

• Achieving your goals by helping other people achieve theirs
• There are a million ways to invest and even a million ways to make money in real estate, and one of them is buying distressed mortgages
• Vetting your operators to make sure that they are going to be living out your values
• The importance of synergy and how it can add value to your business

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Justin Escajeda is the owner and president of Escajeda Holdings, a company that specializes in identifying and acquiring construction companies.

Listen to Justin's inspiring journey of starting ten years ago with his own masonry business and acquiring roofing, remodeling, and concrete businesses. Hear his process for identifying and underwriting businesses to develop, looking at financials, and considering cultural fit. They discuss trades and electricians and their experiences in painting, masonry, roofing, and protecting buildings from weather damage. Plus, learn how Justin takes an other-centric approach to his business model by helping sellers solve their problems and customers with theirs.

[00:01 - 06:51] Opening Segment

• Justin specializes in identifying and acquiring construction companies that work in building, restoration, and maintenance

• How Justin has his own masonry company and has acquired roofing, remodeling, and concrete businesses

• The process for buying businesses includes looking at 3 to 5 years of financials, feeling if it's right, and finding companies that fit with existing ones

[06:52 - 14:15] Exploring the Factors to Consider When Buying a Trade or Business

• Trades and businesses are worth every dime that you pay for them

• Painting, masonry, and roofing often overlap

• It is essential to inspect buildings and take preventive measures to protect assets

• Justin has purchased businesses through various scenarios, such as seeking them out or opportunities falling into his lap

• When looking at an acquisition target, factors such as culture, finished product, Google reviews, length of time in business, workforce age should be considered

[14:16 - 21:07] How Acquiring Companies Can Benefit Customers and Save Time

• Restoration work in the southern hemisphere is done differently than in the northeast

• Different products are used down south, such as block and stucco, terracotta tile roofs

• When transitioning from a company that is acquired, technology systems and people changes may be necessary

• Synergies are achieved by keeping companies independent but having management conscious of being under one roof

• Customers benefit from having one-stop shop for multiple trades with one phone call and one price

• Impact on customers is saving time and frustration with high-profile projects

[21:08 - 27:08] Learning More About Finance

• How Justin learned about finance the complex and expensive way through firsthand experience

• Constantly monitoring financials and looking at profit and loss statements

• Reading books on finance, such as Cash Flow and Grow by Tyler Broom and The Intelligent Investor

• The importance of learning about finances in the construction industry

• Having a business model that is focused on helping customers and sellers solve problems

[27:09 - 31:01] Closing Segment

• Get to know Justin through the Lightning Round!

• • Biggest win: his kids

  • Favorite movie: Fear and Loathing in Las Vegas

  • Favorite food: tuna steaks

• Connect with Justin through the links below

Quotes:

"The customer's the real boss. And the only way you're going to grow and succeed is increasing your service to them." - Justin Escajeda

Connect with Justin!

Websites:

www.EscajedaMasonry.com

www.ThreeRiversRoofingMD.com

www.HoulahanRoofing.com

LinkedIn: https://www.linkedin.com/in/justin-escajeda-801573247/

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Andrew and Dan welcome Brad Shepherd, founder and managing partner of Sugar House Investments. They dive deep into real estate investing and discuss how it can be a powerful tool for individuals to achieve their goals, such as financial security, tax benefits, and a flexible lifestyle. Brad explains that Sugar House Investments helps investors access commercial real estate's passive income without the hassles usually associated with it. He outlines their typical investment strategy, which involves vetting operators who have done at least a handful of deals already and looking for deals that will offer investors significant returns over 3-5 years while providing 6% income.

The conversation also covers other potential risks like deep value add properties, new construction elements, and hurricanes. Finally, listeners get insight into Brad's diverse set of real estate experiences, including vacation rentals, tourist spots, a hotel in Southern Illinois with retail, hospitality, and art gallery elements, plus his business experience gained from the construction scene in Illinois.

[00:01 - 06:08] Opening Segment

• Introducing Brad to the show
• Brad has been in the real estate space for over 20 years and is passionate about helping individual investors access passive income without the hassle
• Real estate is a powerful tool to help individuals achieve their goals, whether that's more time at home or travel or sending kids to good schools
• Sugar House deals typically involve strip malls, apartment complexes, etc., with 3-5-year-olds and 6% returns

[06:09 - 11:05] Evaluating Operators and Building Trust for Maximum Impact

• Partner with multi-family operators, one in self-storage and one in industrial
• Looking for B-class properties to take to B+
• Geographically focused in Phoenix, Texas, Florida, Carolinas, Georgia
• Equity amounts generally 5-15 million
• Vetting operators based on track record and integrity

[12:06 - 20:06] Lessons Learned from a Failed Real Estate Investment

• Doing background checks and deep vetting of operators
• Making sure they have the funds to cover any surprises
• Finding the right people on the team with financial acumen
• Brad's best deals involve a team sport with a general contractor and designer
• Brad's worst deal was an operator with poor communication systems and hurricane risk
• Do more due diligence and search for the suitable operators

[20:07 - 24:57] Taking Risks and Reaping Rewards

• Focus on accredited investors with a decent chunk of cash at their disposal.
• Experience in hospitality investing in unique markets such as upstate New York, Southern Illinois, Utah, etc
• Built a 3-story building with retail and cafe on the ground floor, hospitality suites on the top floor

[24:58 - 31:27] Closing Segment

• What is your biggest win?
• Brad's favorite movie and food
• A plus content Brad is taking in these days
• Connect with Brad through the links below!

Quotes:

"Operators are not rare. You're not lucky just by being able to write them a check." - Brad Shepherd

"You can't go from a lone wolf house flipper to a successful commercial operator as a lone wolf. You've got to put teams together. Some people are going to be great at finding the deals, the broker relationships, and managing the management." - Brad Shepherd

Connect with Brad!

Website: www.SugarhouseInvestments.com

Twitter: https://twitter.com/bradshep

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Andrew Reichert and Dan Croce sit down with Chris Seveney, an experienced investor who buys distressed mortgage notes. Chris shares his unique approach to impact investing - instead of evicting borrowers behind on their payments, he works to keep them in their homes. He buys loans from banks and hedge funds at a discounted rate and uses a servicing company to handle payments and negotiate new payment plans with borrowers. They delve into buying and selling non-performing loans, with companies acting as middlemen for banks to divest them. Chris also discusses how his company started with a small investment and now manages over $10 million by focusing on distressed debt and providing win-win situations for borrowers by helping them refinance at lower rates.

Join us as we explore Chris's impactful investment strategy that helps people stay in their homes while generating profits for investors.

[00:01 - 07:39] Opening Segment

• Welcoming Chris to the show

• Chris discusses impact investing through distressed mortgage notes

• Buying loans from banks and hedge funds for borrowers behind on payments

• Keeping people in their homes can have a significant effect on wealth creation and property values

• Banks sell loans to hedge funds in bulk, who then pick apart the ones they want to keep and sell

[07:40 - 13:16] Investing in Non-Performing Loans: A Win-Win Strategy for Investors and Borrowers

• Companies can help banks sell non-performing loans

• Whole Loan Trader acts as a broker for banks to divest loans

• Prices for non-performing loans range from 40 to 70 cents depending on state laws

• Loans are typically bought based on spreadsheet data and indicative bids

• The foreclosure rate is low, and it's more profitable to keep borrowers in their homes

• Loans are typically held for two to three years before being sold back on the secondary market

[13:17 - 20:45] Turning $25,000 Into a Successful Note Investment Company

• The company works with borrowers to refinance at a better rate

• The benefits of having multiple exit strategies

• The company manages two funds: Regulation A+ and Regulation D 506(c)

[20:46 - 28:19] Diversifying into Other Asset Classes

• Chris' vision is to stay within the $150-$250 million range with ten employees

• An analytical approach to looking at every loan on a case-by-case basis

• Foreclosure situations can arise due to a borrower passing away or being combative

[28:20 - 33:48] Closing Segment

• Biggest win: overcoming failures and building for the U.S. Army

• Chris' favorite movies, shows, and food

• Current growth edge: being able to step away from the business

• See the links below to connect with Chris!

Quotes:

"Being able to keep somebody in their home can have a significant impact on that individual, their wealth creation, and the neighborhood property values." - Chris Seveney

"Note investing isn't a net sum zero game, there can be win-win situations where you keep the home and it's better for us." - Chris Seveney

Podcast: Creating Wealth Simplified

Website: https://invest.7einvestments.com/

LinkedIn: https://www.linkedin.com/in/christopherseveney/

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Would you rather have all the wealth and knowledge to yourself, or would you rather have a full table and share it with everybody? Tyler Smith will show us why the latter is the key to success.

In this episode, we sit down with Tyler Smith, CEO of Alpha Capital Funds, to discuss his journey in the real estate investment industry. Tyler got his start in wholesaling and flipping houses before building up enough capital to start buying and owning properties himself. He shares his methods for finding distressed properties and helping sellers through a smooth transaction process. Tyler's passion for helping others is reflected in Alpha Capital's community initiatives, like their annual toy drive. He talks about his business strategy of focusing on what works and identifying the needs of his biggest buyer, a hedge fund.

Join us as we dive deep into Tyler's success story and learn valuable lessons that can help you build wealth through real estate investing.

[00:01 - 08:13] Opening Segment

• Introducing Tyler to the show
• His primary business model was wholesaling, but he eventually transitioned to owning properties himself
• He focuses on finding rundown houses and offering a smooth and seamless transaction for the seller
• Alpha Capital is active in 12 different states and 25 different markets, with a team of up to 35 employees

[08:14 - 15:19] Tyler's win-win Solutions

• Hiring people to help with acquisitions and building a work-hard play hard environment
• Social media played a role in their success, as they posted deals and job opportunities on their account
• The importance of helping others reach their goals and sharing knowledge and wealth

[15:20 - 22:16] Expanding Your Business Nationwide

• The Alpha team is involved in the toy drive and other initiatives
• Tyler's business focuses on finding properties that fit a hedge fund's buy box
• They started in Georgia and expanded to other markets by following the hedge fund's lead
• Tyler has a vision for company growth beyond flipping houses

[22:17 - 30:46] Pivoting to Value-add Multi-family Properties

• Tyler has shifted his focus to investing in value-add multi-family real estate
• They use the same marketing efforts to find deals for themselves and other investors
• They plan to bring on investors to scale their business and create win-win scenarios

[30:47 - 35:56] Closing Segment

• Tyler's greatest win: the community he has built
• Tyler's A+ Content: Double Double, Pitch Anything, Atomic Habits, and The Compound Effect
• A good habit to transform your life: just take action
• Final words

Quotes:

"The best way for you to reach your goals is to help others reach theirs." - Tyler Smith

"Money is great, but you have to have a greater purpose. And I think with money, it allows you to make a bigger impact." - Tyler Smith

Connect with Tyler!

Personal Instagram: https://www.instagram.com/tylersmithbuysbuildings/

Alpha Capital's Instagram: https://www.instagram.com/alphacapitalfunds/

Website: www.alphacapitalfunds.com

LinkedIn: https://www.linkedin.com/company/alpha-capital-funds

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We sit down with Madeline and Patrick Gergen, co-founders of American Multifamily Alliance Group, a real estate private equity firm based in Dallas. As we chat with the couple, they share their investment strategies for impact and how they run their business. We learn about the importance of a clear separation between work and home life, with the couple even scheduling weekly date nights to prioritize quality time. We dive into the details of American Multifamily Alliance Group's vertically integrated multifamily real estate business model. The company self-manages its properties while focusing on creating a positive social impact in residents' lives.

Tune in to learn more about socially responsible multifamily investing!

[00:00 - 08:05] Opening segment

• Introducing Madeline and Patrick Gergen to the show

• How they started as single-family home investors and moved into commercial real estate

[08:06 - 16:00] American Multifamily Alliance Group: Creating a Positive Social Impact on Residents' Lives

• Madeline and Patrick have created and maintained boundaries in their work and personal lives

• Their real estate business is vertically integrated and self-managed, with a focus on creating a positive social impact on residents

• They offer free after-school programs, tutoring, resident events, and learning opportunities for residents

[16:01 - 22:49] Dallas-based real estate company prioritizes community engagement and support for residents

• The company focuses on creating community and employment for residents

• Regular events and activities are held to bring residents together

• ROI is seen through lower turnover rates, higher retention, and lower bad debt

• Dallas is a favorable market for investing due to landlord-friendly laws and growth opportunities

• Workforce housing is a preferred class for investment, focusing on value-add opportunities.

[22:50 - 29:39] Multifamily operator prioritizes social impact and community building in their business strategy

• Focusing on value add for excellent, risk-adjusted returns

• Impact programs come down to hiring people with the same mission and vision

• Measure success through crime stats, occupancy rates, renewals, and event attendance

• Prioritizing the company prioritizes empathy and resident satisfaction in the hiring process

[29:40 - 38:59] Closing Segment

• Focus on financial returns and outperforming market

• Self-management helps drive social impact within the organization

• Recommended Content: YPO networking organization, Columbia Business School executive education program, Life Force book by Tony Robbins

Quotes:

"A lot of our impact programs come down to our team. It's who we're hiring; it's who we're bringing on board. They're all having the same mission and vision, and they understand that." - Madeline Gergen

"Our mission statement is to provide a positive social impact in our residents' lives, and then let's lead with that." - Patrick Gergen

Connect with Madeline and Patrick Gergen!

Website: www.multifamilyalliance.com

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Andrew interviews Kyle Stephenson, who was inspired by Donald Trump's real estate success to invest in property. With limited resources, Kyle was able to 1031 exchange his first purchase - a duplex in Patterson, New Jersey - for a million dollars worth of equity over ten years. Kyle shares his journey of growing his portfolio to managing over 4,000 units across multiple states. He talks about how he learned from his experiences, used creative financing strategies, partnered with friends to invest in larger projects, and helped distressed owners during the 2008 market crash by managing their properties and getting lenders current on their mortgages. Tune in now to hear more about Kyle Stevenson's inspiring story!

[00:01 - 14:50] Making a Real Estate Impact with Kyle Stephenson

• Kyle's background and career

• Being inspired by Donald Trump's success with real estate

• Kyle's journey through real estate investing

• Kyle's passion for helping individuals who work hard for a living come home to clean, safe, and affordable housing

[14:51 - 23:38] Respect and Consistency: How to Achieve Successful Property Management and Investor Stewardship

• Respect and respond to everyone the same

• Expense ratios are a function of rent, not race

• The importance of treating tenants with love and respect

• Differentiate from other property managers by providing a positive experience for all tenants

• Investors should be focused on PNLs to ensure accurate returns

[23:39 - 34:29] Property Manager Neurosis

• Surround yourself with people who fill in the gaps and counterbalance each other

• Understand what a healthy culture looks like and have individuals that play well together

• Avoid wasting time on arguments between departments that don't matter

• Be aware of healthy and unhealthy clients

[34:30 - 41:16] Closing Segment

• Lightning round

• Connect with Kyle through the links below!

Quotes:

"The beautiful thing about real estate is that time will heal your mistakes." - Kyle Stephenson

"If we spend less than a thousand dollars a door per year on maintenance, that's a red flag. That means that we're not doing things that we ought to be doing." - Kyle Stephenson

Connect with Kyle!

• www.KRSHoldings.com

Visit our website www.reiturn.com to learn more about High-Quality Recession Resistant Assets for the Everyday Investor

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James Brown is the co-founder of Hybrid Real Estate Investing. He is the host of the show "This Month in Real Estate Investing," and is the author of multiple real estate investing books.

[00:01 - 10:13] An Alternative Approach to Real Estate Investing

• Real Home Solutions matches up people who can't get financing with investors for win-win deals
• They focus on the lease-to-own strategy, which has been given a bad name but can be made beneficial for everyone
• They work with lenders to help buyers fix credit issues and get financing through banks
• The typical timeline for someone struggling to be a homeowner is one to three years, and they usually deal with single-family homes

[10:14 - 21:39] Deal structuring and working with lenders

• The speaker works with any bank that can get approved, but sometimes has to find lenders willing to work upfront and explain the deal
• Finding the right lender is important, depending on the borrower, investor, and the deal
• Most of the properties are out-of-state and Midwest, but a few deals are done in Colorado too
• The speaker predicts future valuations based on data trends, and the returns on this model are good compared to regular rentals

[21:40 - 28:20] Closing Segment

• What is your biggest win?
• First deal in Minnesota
• James' favorite movie?
• Walk Hard
• What is your current growth edge?
• Having a solid mindset and being persistent
• What content or books are you reading right now?
• Waking Up by Sam Harris, Daily Stoic by Ryan Holiday

Connect with James:

Website: http://hybridinvestor.vip/

Social Media: LinkedIn, Instagram, Facebook, YouTube

Quotes:

"We want to give that buyer enough resources to be able to get financing through a bank, because we're helping people that can't get financing through a bank at the moment." - James Brown

Visit our website https://www.reiturn.com/ to know more about High-Quality Recession Resistant Assets for the Everyday Investor

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