The Insider's Edge To Real Estate Investing

You are going to be inspired by today's show. Drew Breneman, founder of Breneman Capital, started early. A natural-born entrepreneur, Drew started his first business at 14. He then launched a highly-successful internet business while in high school. His ambition for finding the best investment vehicle for his earnings from his internet business is what led him to real estate, purchasing his first two rental properties at 19 years old. His drive attracted the attention of HGTV, where Drew was featured as an up-and-coming real estate investor. He wanted to share what he had learned and aspired to provide direct real estate ownership opportunities to others.

Drew earned his BBA in Real Estate & Urban Land Economics from the University of Wisconsin-Madison's Wisconsin School of Business — one of the top real estate programs in the nation. Upon graduation, he worked for three national real estate development firms, each of which focused on different product types, affording him a broad knowledge base for the office, retail, market-rate multifamily, and affordable multifamily sectors.

In 2005, he founded Breneman Capital (formerly Rise Invest) and co-founded The Blackhawk Investment Group in 2008, and Dwelle, a Chicago focused real estate investment and property management group, in 2019. He decided to buy a two family property in Madison where he went to school. When I asked him if he had any hesitation, he said no. He told me that he had the money and the numbers made sense. Today Breneman Capital specializes in investing in multifamily in Phoenix, Dallas, and Austin. They have acquired $200M+ of investment property as key/sole GP. To date, he has had a 25%+ average realized IRR on investments sold. Drew's criteria for acquisitions is:

Multifamily real estate:

• $5M-$50M deal size.
• 1980 or newer.
• Core-plus and value-add

How many times have you overthought an investment or talked yourself out of it? Drew talks about having the confidence, but only after you've done your research. If you're as inspired as I was, make sure and check out his podcast the Breneman Blueprint. You can find out more about Drew and his company at: https://www.breneman.com/ or LinkedIn with him at: https://www.linkedin.com/in/drewbreneman/.

On this week's episode, Jamison Manwaring, co-founder and CEO of Neighborhood Ventures, shares about building out his real estate investment firm and his own crowd funding platform. If you're interested in raising from non-accredited investors or how crowdfunding could boost your business, there will be many valuable takeaways.

After years as a tech analyst, Jamison realized that everyone had the same information on Wall Street and it was just a matter of trying to outsmart each other. Whereas with real estate, he could gain an advantage. He also did not like the volatility of the stock market and preferred the stability of holding real estate long term.

In 2020 he was selected as Phoenix Business Journal's 40 under 40. Before Neighborhood Ventures, he served as the Vice President of Investor Relations at LifeLock and assisted the company in its successful sale to Symantec in February of 2017. Before LifeLock, Jamison was a technology analyst at Goldman Sachs where he participated in over a dozen software IPOs including Tableau, Alarm.com, and LifeLock. Jamison graduated from the University of Utah with a BS in Finance.

He began his foray into real estate by purchasing a 10 family in Idaho with his father's help, a residential broker in the area. He was hooked. He has gone on to acquire 15 properties in Arizona with his partner, with all of them being sourced off market. For their first deal together, as an experiment, they tried to raise the money all online without using any of their connections. Through a lot of Google ad words and follow up meetings, they have built a huge following.

One note is that if you do want to leverage crowdfunding, please consult with an attorney. As Jamison will share, this is a highly regulated space so proper filings and disclosures are essential.

What I really like about Jamison's story is how he views his platform as a way for everyday investors to get access to direct real estate investing. You can find out more about Jamison at: https://neighborhood.ventures/ or listen to his podcast at: https://podcasts.apple.com/us/podcast/kiss-my-assets/id1477552013. You can connect with him at: https://www.linkedin.com/in/jamison-manwaring-a8188625/.

In this week's episode, Brian Ker shares with you his story from humble beginnings as a real estate broker to working for City government to owning and operating an industrial portfolio. His company acquired the New Jersey and Connecticut properties valued at $100 million dollars in less than two years!

If you are just getting into investing or looking to get into a new asset class or geography, this conversation will tell you how to do this from the ground up. Imagine amassing such sizeable holdings in such a short period of time? The key if focusing on the fundamentals.

Brian Ker is the Founder and President of Snowball Developments and brings over 20 years of institutional real estate transactional and management experience spanning the private and public sector across multiple jurisdictions. He is convinced that by partnering with local experts, sophisticated tenants and astute investors and utilizing new technological applications that there is a modernized and more transparent approach to entrepreneurial real estate investing.

Brian talked about his early days at CBRE as a sales broker in Montreal and how he was able to figure out how to convert obsolete office building into residential lofts. He was a pioneer in this space. Becoming an expert in a new area and business plan, will help you attract investment and outperform the generalists who are in the market. Brian talks about studying the data. You need to do the same if you're going to own your space!

Lastly, Brian talks about there being no short cuts. It took him 15 years, to become an overnight success. Above all, being trustworthy and a fiduciary to your investors is what Brian attributes the growth of his company. I'm sure you all will agree and get a lot out of this episode.

You can find out more about Snowball Developments at: https://www.snowball-dev.com/ and connect with Brian at: https://www.linkedin.com/in/brian-ker-5024899/.

Lastly, it has been wonderful to get all the incredible feedback on my book The Insider's Edge to Real Estate Investing. It is incredibly gratifying that it has made an impact on so many of you. I greatly appreciate your sharing the word on this book so others too can discover the incredible world of incredible real estate. As always, you can go to jamesnelson.com to get more information on the book as well as helpful white papers and videos to give you the Insider's Edge.

I had the chance to meet John when I interviewed on his podcast and was happy to have him reciprocate and come on my show. John Casmon launched Casmon Capital Group to help busy professionals invest in real estate without taking on a second job. He has helped families invest in over $100M in multifamily apartments to create passive income, reduce their tax obligation, and foster generational wealth. John hosts the Multifamily Insights podcast. In addition, he is the co-founder of the Midwest Real Estate Networking Summit. As a former marketing executive, John oversaw marketing campaigns for General Motors, PepsiCo, and MillerCoors.

He is located in Cincinnati, Ohio, helping everyday professionals invest in apartments in emerging and stable Midwest markets and select parts of the Southeast region. You can find out more information on John at https://casmoncapital.com/. Also, make sure and check out his podcast Multifamily Insights Podcast at https://podcasts.apple.com/us/podcast/multifamily-insights/id1269346577?mt=2

Gino Barbaro is a co-founder of Jake and Gino and the Rand Family of Companies, a vertically integrated real estate company that controls over $250 million of real estate assets. He is a best-selling author of Wheelbarrow Profits and The Honey Bee, and have created an educational company that focuses on multifamily entrepreneurs. He has co-founded the Jake & Gino community to teach others their three-step framework: Buy Right, Finance Right and Manage Right®, and how to become multifamily entrepreneurs.

Today, he is joined with his wife, Julia, who is co-host of the Julia and Gino Podcast. Julia is a homeschooling mother of six children, wife to Gino Barbaro for 25 years. Julia is a Certified Life & Marriage coach and runs Women of Wheelbarrow Profits®, in the Jake & Gino community.

Julia was inspired to become a Certified Life and Marriage coach after witnessing the power of coaching. She felt compelled to give back and motivate others to create a strong marriage, and a healthy family/work balance. Julia is the author of The Cannolis Exploded!, A Gelato Blast!, and Pizza With a Purpose, children's books about decision making and different paths we can take in life.

I had the pleasure of meeting both Gino and Julia at one of Ryan Serhant's Mastermind events. I have since become a big fan of their work. I'm sure you'll enjoy this episode. For more information, you can find out about them at: jakeandgino.com

Today it is my great pleasure to have my friend Carl Wright on the show, Founder & President of Wright Partners. Like many of my past guests, I got to know Carl through Bisnow's Escape conference. I have now been going for over 10 years and Carl was one of the first people I met there who I have stayed in touch with and gotten to know him better over the years. He's also a huge fan of this podcast, so it's always great to have someone who understands the value we are offering here.

Carl started as a Civil Engineering from the University of Delaware and became a licensed Professional Engineer in PA and NJ. He started in the construction trades to work his way through high school and college. After graduation, Carl was hired by URS, a global leader in engineering and construction, leading environmental cleanup projects as a general contractor. Carl then learned the land development business from the inside as a project manager for Nave Newell, a land development engineering company.

Carl founded the Wright Partners in 1998 as a way to combine his passions for real estate, engineering and construction. We spend a lot of time in this discussion talking about his early years and how he unlocked the value of contaminated sites to be able to offer them to some of the top retail brands in the world. He talked about finding out fundamental truth and how to avoid problems down the line with his margin of safety. He also talked about his 100-acre horse farm purchase which he was able to entitle and resell giving him his start.

As some fun facts, Carl has been interviewed by Darren Hardy, publisher of Success Magazine, and has been a repeat guest on Onward Nation Podcast for how business owners Think, Act & Achieve.

In his spare time, he is surfing at the world's best surf spots or training in Brazilian Jiu Jitsu in which he's a first-degree black belt. He completed Ironman Lake Placid in 2014.

Carl has some incredible takeaways here not just to succeed in real estate but in life. He shares about embracing learning, avoiding the trap of comparing, and choosing great partners. I know you will get a lot out of this episode. You can find out more about Carl and his company at: https://www.wrightld.com/ or find him on LinkedIn at: https://www.linkedin.com/in/carl-wright-a264856/

On today's show, Beth Mercante joins me from StackSource, a tech-enabled commercial real estate loan platform that makes it easier and faster to find the right commercial real estate financing for your property, where she serves as Senior Managing Director. She talked about growing up in a real estate family where her father was an incredibly honest developer. She talked about what lengths he would go to, to make good on a project.

Beth has worked in various commercial real estate roles since 1990 after graduating from the University of Washington with a Bachelor of Science in Building Construction. Prior to joining StackSource as Senior VP, Ms. Mercante worked in New York City for the Quantum Fund (George Soros and Paul Reichmann fund) in acquisitions and asset management. She also spent time at AIG Global Real Estate Investment Corp. in their mortgage finance and asset management divisions managing multi-family, office and retail properties. Previously, she was an investment sales broker in Manhattan and won the "Most Ingenious Deal of the Year" award from REBNY. After a successful sales career, Ms. Mercante moved into real estate consulting with Gemini Realty Advisors and then to her own firm where she most recently sourced senior housing and self-storage projects for a partnership including Columbia Pacific Advisors, Wegman Companies and Rembold Companies.

Beth spoke a lot about building consensus whether it is a development deal or financing a deal. She also talked about the importance to spending time on the front line as you look to build your business. Lastly, she talks about the future of financing by leveraging data to provide the best solutions. I'm sure you will enjoy our conversation.

You can find out more about Beth and StackSource at: https://www.stacksource.com/team/beth-mercante or find her on LinkedIn at: https://www.linkedin.com/in/bethmercante/.

For this week's show I had the chance to catch up with Craig Berger, Founder and CEO of Avid Realty Partners (ARP), a commercial realty firm focused on Hotel and MFU Apartment assets nationwide.

Like Sondra Wenger on last week's show, I met Craig at the Bisnow Escape retreat when I had a chance to really get to know him in a relaxed environment. I really appreciated his approach to the business that he started from scratch. After fixing and flipping a dozen homes he tackled a 95 unit apartment building in St. Louis, which was truly baptism by fire. Although he said he wouldn't recommend it, it certainly paved the way for him. That investment to this day remains one of his best. He then went on to improve a 109 unit hotel in Colorado. What amazed me about Craig's story was how he was willing to jump into something entirely new provided he saw an opportunity. Today he has gone on to build a portfolio over a dozen properties with 2,100 units.

Before scaling this Commercial Realty business, Craig spent more than a decade as a top sell-side semiconductor equity research analyst at places such as Smith Barney Citigroup where he won several awards from Forbes and Thomson Reuters, and had numerous media and press interactions including more than 70 appearances on CNBC. He has applied that same research and diligence to real estate which has made him the successful investor that he is today.

Craig talked about his intense focus on value identification and his hands on approach throughout the process. He talked about always doing right by his investors, even prioritizing them above his interests.

I know you will enjoy this episode. You can find out more about Craig and his company at: https://avidrealtypartners.com/management-team/craig-berger/ or find him on LinkedIn at: https://www.linkedin.com/in/craig-berger1/.

In this week's show, I speak with Sondra Wenger, who is Head of Americas Commercial Operator Division for CBRE Investment Management.

Sondra began her career in the commercial real estate industry in 1995 and has sourced, negotiated and closed over $10 billion of transactions in more than 35 cities. Prior to joining CBRE Investment Management in 2021, she served as a senior executive for institutions including CIM Group, General Electric and Equity Office Properties.

I had the pleasure of meeting with her at Bisnow's Escape conference where she led our tribe. We engaged in some incredible discussion about the challenges we face in the market, but, in turn, the opportunities. She is in an incredible position to guide her firm through these unchartered waters.

Sondra begins by telling her story of starting as an accountant but quickly learning that she did not fit the profile. She transitioned to work on the ownership side for some of the most legendary investors out there, including Sam Zell. She also talks about working for larger firms while staying entrepreneurial and ahead of the curve. I love what Sondra has to say about leadership. She has an open and communicative leadership style which serves her well. She loves giving everyone a seat at the table, which she learned through her experience. She also talks about the importance of saying "yes" when learning to take on hard assignments that no one else wants. "That's where you gain real experience and respect." This also means staying open to new opportunities.

I know you will get a lot of this episode. You can find out more on Sondra at: https://www.cbreim.com/people/sondra-wenger or at: https://www.linkedin.com/in/sondrawenger/.

This is what Rod had to say..

"On this episode of the Massimo Show Rod sits down with one of the CRE top producers in North America, James Nelson. Now an author as well as being a speaker, investor, amazing broker and long time Massimo member, James is Principal and head of Tri-State Investments at Avison Young.

With the launch of James' new book, The Insiders Edge to Real Estate Investing, Rod opens by asking why brokers don't also invest in commercial real estate? Does he see that as a conflict or should they be investing? James astutely remarks on the ethical issues and potential conflicts of being a broker and investor. He personally operates with the beliefs that reputation is everything, full or over disclosure is key and don't invest in an opportunity that you're listing or selling as a broker.

Next, Rod explores why James chose to invest in commercial real estate versus other avenues, such as the stock market. James responds by sharing his passion for the business and his desire to acquire all the knowledge he can on the frontlines as a broker. He then postulates, "Why wouldn't you take your expertise and knowledge and parlay that into an investment? Why would we not practice what we preach" about the benefits of buying and long term wealth creation? There are many inefficiencies in real estate, you can use that as opportunities that you just won't see in the public markets.

James continues to share that this is a big part of how he came to his book's title, The Insiders Edge to Real Estate Investing, as this insight, or edge, is "one of the main benefits of real estate" investing. His book details that "you can gain the insiders edge to outperform in the market." Whereas with the stock market, everyone has the same information available to them.

Rod and James go on to discuss how he got his start as an investor 20 years ago, the main deltas on how a professional investor views a deal versus a broker, tips for how to get started in investing with "sweat equity," and what the ideal investment team looks like. James provides a host of information in his book about "having the right specialists" and how "This is the business that's all about having the right people."

With the assistance of James' writing team, he also wrote about how to bring on a well trusted partner for your first investment and the significant differences, with respect to both risk and reward, between a general partner, co-general partner, and limited partners. Lastly, and a big part of the book, James reviews "the most important attribute for a great opportunity, seller's motivation."

To close out their podcast, Rod gets James' thoughts, from his broker perspective, for what he sees as opportunities in the market for 2023 and how he's able to find the time to do so many things."