Thomas McPherson is a real estate entrepreneur and U.S. Navy veteran with extensive experience in multifamily investing, distressed assets, and sustainable development. After serving in the Navy and Marine Corps, he transitioned into real estate, excelling as a broker before becoming a principal investor. He now focuses on ground-up development and private debt funding, creating high-performance, sustainable communities.

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Key Takeaways:

• Transitioning into real estate can be smoother by keeping expenses low and working within the industry.

• High-quality assets tend to perform better during economic uncertainty compared to lower-class properties.

• Distressed debt offers opportunities to work with borrowers and lenders to find creative solutions.

• Sustainable development aligns with market demand, leading to higher rents, occupancy, and tenant retention.

• Small, intentional efforts in property management and development can create a sense of community and increase property value.

Topics:

Transitioning from the Military to Real Estate

• Thomas's journey from the Navy to real estate brokerage and later becoming an investor.

• The importance of controlling expenses and finding industry-related jobs to gain experience.

Investing in Distressed Assets and Debt

• Definition of distressed debt and how Thomas approaches these opportunities.

• Strategies for working with borrowers to resolve financial challenges.

• The importance of over-communicating with lenders and investors when facing financial distress.

Sustainable Development and Community Building

• How Thomas incorporates sustainability into his developments, including solar energy and water conservation.

• The concept of value graphics over demographics—attracting tenants based on shared values.

• The financial benefits of sustainability, including higher retention, occupancy, and rents.

Lessons in Investing and Risk Management

• Thomas's experience with leverage and risk early in his investing career.

• The importance of controlling investments rather than relying on external factors.

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Round of Insights:

• Apparent Failure: Leveraging debt to trade options early in his career, which led to a major loss but valuable lessons in risk management.

• Digital resource: Prefers books over digital tools

• Most recommended book: Investing in Duplexes, Triplexes, and Quads by Larry Loftis.

• Daily habit: Time blocking and eliminating distractions for focused productivity.

• #1 Insight for being a successful developer and distressed debt investor: Stand out in a crowded market—whether through sustainability, branding, or personalized outreach like handwritten letters.

• Favorite place to grab a bite in Phoenix, AZ: Chelsea's Kitchen.

Next Steps:

• Learn more about Thomas's work at Lukrom.

• Consider how sustainability and community-building can improve investment performance.

• If you're facing a distressed asset situation, focus on early communication and finding creative solutions.

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