Street Smart Success

The largest asset class in the world is single family homes in the United States. It represents over $200 Trillion dollars. That’s a lot of money. Today’s guest, Dani Beit-Or, founder of Simply Do It Real Estate Investments, owns several of his own single family rentals and has helped advise hundreds of his clients in investing in single family homes in some of the country’s best rental markets for buy-and-hold, long-term investors.

After several years of consistent growth in the multi-family market, several markets continue to have strong projected gains in population growth, job growth, and appreciation. This growth, combined with rapidly increasing building costs, can be the perfect storm for even greater rent growth and appreciation in the years to come. Brian Burke, CEO and President of Praxis Capital, is always cautious, but remains bullish for multi-family at the right price, in the right markets, and with the right opportunities.

With over 11 million families behind on rent or mortgage payments and the fed pumping six trillion into the economy, today’s guest has a wait-and-see perspective on investing in today’s Real Estate market. There’s just too much uncertainty on top of already historically low cap rates and inflated prices. That’s why Jeremy Roll, President of Roll Investment Group has lots of cash on the side and is waiting patiently to see how things pan out over the next couple years.

You can get great appreciation in coastal markets like NYC and San Francisco, but it’s virtually impossible to get cash flow. That’s why many investors seek opportunities in other parts of the country. Today’s guest started his real estate career in single family and apartments In Brooklyn before venturing out to other parts of the country. Since then, Mike Zlotnik, Fund Manager of Tempo Growth Management, has run transactional funds, hard money funds and funds that invest in multifamily, office, retail, and hotel conversions.

No matter what a situation looks like from the outside, you can’t know everything until after you get the keys. Today’s guests’ second multifamily deal was a 37-unit he bought with his dad. After some painstaking years at the beginning with a lot of unexpected Capex, the property has performed incredibly well. Since then. Brian Hamrick, CEO of Hamrick Investment Group, has gone on to syndicate larger deals and has invested in Self-Storage, Office and non -performing notes. His most recent project is a 100 unit ground up apartment project he’s doing in downtown Grand Rapids.

In this hot Real Estate market, you need to be extra careful how much you pay for properties. Some experts think there's extra risk in Class C right now because the valuations don't support the risk. A lot of these properties have functional obsolesce that some operators aren’t prepared for. Today’s guest, Bill Ham, is COO of Broadwell Property Group in Atlanta. Bill invests in and syndicates properties within an hour plane ride of Atlanta that provide at least 6% cash-on-cash on the front end of the deals.

When the market is overheated, it takes unusual discipline to be patient and only insist on getting great deals. Today’s guest will still only buy deals at a deep discount. As such, he’s still doing multifamily, but he’s also doing a hotel conversion to multifamily and also ground-up construction. James Kandasamy, CEO of Achieve Investment Group, has done incredibly well with off-market, heavy value ad deals in San Antonio, TX, one of the most recession-proof markets in the country.

Many syndicators favor the reliability of Class B properties because of their performance in all economic cycles. When the economy turns, Class A tenants move down to Class B but Class B tenants mostly stay put. Although the properties are older, they’re still relatively current and nice places to live, especially after value-add upgrades have been made. Today’s guest Ellie Pearlman, Founder and CEO of Blue Lake Capitol, has built a great portfolio of B class properties in great markets.

When starting out in Real Estate, it’s hard to underestimate the value of education and the people you meet. By persistent networking, today’s guest found a great mentor and he also found a business partner who he’s building a great company with. Reed Goossens, co-founder of Wildhorn Capital, has syndicated eleven large, multi-family value-add properties and has a new offering in the red-hot Austin, Texas market. Reed has become an expert at creating business systems and operational efficiencies that enhance NOI and the value of properties.

Slow and steady wins the race. That’s why it’s been great to invest in stable markets in the Midwest. Today’s guest is based in Cedar Rapids, Iowa and has generated great returns for his investors for many years. Darin Garman, founder of Heartland Real Estate companies, is a conservative and paranoid investor who knows how to mitigate risk and optimize the operations of his properties to get the highest cash-on-cash and internal rate of return for his investors.