Passive Income Through Multifamily Real Estate

Latest Episodes:

Episode #167: From Niche to Normal: The Rise of Mobile Homes with Jonathan Tuttle Jan 18, 2021

Show notes

Once considered a fringe investment, mobile home real estate wasn’t the go-to for property investors and waned in the shadow of the more profitable multifamily. Today tells a different tale, though. Roughly 60 million Americans need affordable housing, and there are around 12 million mobile homes to service that need. According to Jonathan Tuttle, this is an opportunity. As today’s guest Jonathan talks to us about the rise of mobile home parks in the United States, and why they’re a great investment in today’s real estate. We kick off the episode by learning about his background in mobile homes. Growing up in the 80s, he spent a lot of time around his father, a general contractor, and was exposed to the ins and out of the business. It was during this time that Jonathan also grasped the resilience of real estate, considering its recovery from the savings and loan crisis during that time. These days, Jonathan is a fund manager at Midwest Park Capital which is a private real estate investment firm providing accredited investors with exclusive access to high yield investment in the mobile home park vertical. As our conversation progresses, he guides through the subtle, and perhaps strange nuances of mobile homes, touching on grandfather laws and Fannie and Freddie financing. To get your fill on mobile home park investment, be sure to pull in for this episode!

Key Points From This Episode:

We take a moment to introduce today’s guest and explore his professional background.
Jonathan talks about how his interest in real estate started.
Find out what Jonathan finds most exciting about mobile home real estate.
Discover some of the unusual nuances and virtues of investing in mobile home parks.
Hear about Jonathan’s opinions on third-party management companies.
Jonathan explains his typical business plan.
Learn about the tax benefits that come with mobile home investment.
As an asset class, mobile homes have been very resilient during the months of pandemic.
Although limited, there is still scope to adding value to these parks.
How adding to an existing park could be a huge value add.
Jonathan talks about Fannie and Freddie financing in mobile homes.
Treating evictions is very similar to evictions in multi-family.
Flipping mobile homes and the nuances attached to them.
Dive into our Final Four Questions with Jonathan.

Links Mentioned in Today’s Episode:

Jonathan Tuttle on LinkedIn

Midwest Park Captial

Midwest Park Capital Fund

Mobile Home Wealth Academy

M. Shapiro

Wells Fargo

Blackstone

Apollo Commercial Real Estate Finance

21st Mortgage

Lalita Mitchell on Facebook

Kyle Mitchell on Facebook

APT Capital Group

APT Capital Group on YouTube

Passive Income Through Multifamily Real Estate Facebook Group
Bullpen

Episode #166: Asset Management Friday: Tertiary Markets with Nic Espanet Jan 15, 2021

Show notes

Welcome to another Asset Management Friday segment, focused on educating operators, building better systems, and becoming a best in class operator. Today’s guest is Nic Espanet, a Principal at Thrive Multifamily LLC and a multifamily real estate investor based in Fort Worth, Texas. Nic has been passively investing in multifamily assets since 2016 and has been a multifamily syndicator and asset manager since 2018. He has worked as a licensed physical therapist since 1996 and has run his own private practice since 2012. His experience as a small business owner combined with his detail-oriented personality has equipped the strong growth of Thrive Multifamily, a Texas-based multifamily syndication company. Nic is currently an asset manager in 3 multifamily syndications totaling 452 units, and is a passive investor in an additional 1780 units at 7 properties. In this episode, Nic shares a bit about himself and his syndication business, his experience of asset management in tertiary markets, and some of the challenges therein. He also talks about building in economic vacancy in tertiary markets and explains how he mitigates tax and insurance increases, so make sure to tune in today!

Key Points From This Episode:

Nic introduces himself and his syndication business and explains how he got into real estate.
Asset management in tertiary markets like Abilene versus DFW – Nic shares his experience.
The challenges of asset managing are putting together contractors and boots on the ground.
While underwriting on lease-ups isn’t a challenge, Nic always builds in a little more economic vacancy in tertiary markets.
How Nic mitigates tax and insurance increases in Texas, by using a skilled tax consultant.
Nic advises asset managers to look at rental, collections, and delinquency, but to also focus on expenses, income, and work orders too.
The number one problem Nic’s mentees face when they come to him about asset managing.
Nic says his asset management superpower is persistence and getting positive feedback.

Tweetables:

“On the main asset management side, it’s trying to put together contractors. Our property management company handles the biggest part of that.” — Nic Espanet [0:03:20]

“In the end, it’s what’s going in the bank is what’s important. Your NOI can be great but if your Cap X is over spending at that point and you’re not putting what you want into the bank, you’re not going to have money to distribute it. You're not going to have money to make the debt payment.” — Nic Espanet [0:07:59]

Links Mentioned in Today’s Episode:

Nic Espanet on LinkedIn
redIQ

Nic Espanet Email

Passive Income Through Multi-Family Real Estate Facebook Group

Garzella Group

Episode #165: How to Work with Brokers When You're Not Local with Logan Freeman Jan 11, 2021

Show notes

The best way to find a commercial opportunity for sale in an out-of-state market is to work with a broker local to that market. They will have access to internal listings and listings coming on to the market, as well as connections with local operators and investors. Today’s guest is Logan Freeman, a real estate investor, developer, and agent who has found his niche in the industry, acting as an investment property specialist and actually representing buyers instead of sellers in the transactions process. Logan has also completed multiple joint venture projects and equity partnerships and works as a developer. Completing over 120 transactions in less than a year, Logan has found a process and relies on his most valuable priorities to guide his profit-producing activities. In this episode, Logan shares a bit of that process with listeners and outlines some of the best ways to find the best broker to work, and establish relationships with them, as well as how to maintain those relationships. While nothing beats face-to-face, investing time and energy upfront is going to make all the difference, especially in today’s post-COVID world, where Zoom calls have become standard practice. Logan also has some tips for standing out, creating a strong presence, and getting on broker’s A-lists, as well as the importance of vesting brokers and finding someone who believes they will benefit from your success, so make sure not to miss today’s episode!

Key Points From This Episode:

Logan shares a bit about himself, his background, and what he does currently.
The best ways to establish relationships with brokers, starting with setting clear expectations.
When finding a broker to work with, go with number two on the Top 10 list – not number one.
Where most beginner investors get it wrong when starting a relationship with a broker.
If you don’t have a track record, don’t act like you do – authenticity is key.
A key strategy for maintaining a relationship with a busy broker is to get in their pocket.
Nothing beats face-to-face, but be willing to invest time, effort, and energy upfront.
Being willing to do what others aren’t will set you apart from the pack.
Elevating yourself through a strong online presence and adding value for brokers.
Getting on a broker’s A-list is just about time, but the more relationships you build, the more deals are going to be in front of you.
Logan warns against the scarcity mindset of exclusivity agreements with buyer brokers.
Just as much as you need the broker, the broker also needs you.
The process of vesting a broker – do they believe they will benefit from your success?

Links Mentioned in Today’s Episode:

Logan Freeman on Twitter

Logan Freeman on LinkedIn

Logan Freeman on YouTube

Logan Freeman on BiggerPockets

Live Free Investments

Live Free Investments on Facebook

LoopNet

The MLS

Syndicated Deal Analyzer

Postable

Exactly How to Sell

Sizing People Up

Bullpen

Episode #164: Scaling Up with Frank Roessler Jan 08, 2021

Show notes

Being an asset manager can require you to keep track of hundreds of issues — and that’s just for one property. If you don’t have the right systems in place as you scale your business, then managing your portfolio becomes an agonizing task. Today we speak with Ashcroft Capital founder Frank Roessler, whose company manages over one billion dollars of assets. Our conversation opens as we explore Frank’s business model and how he runs his asset management department. A common challenge when scaling, Frank shares his insights on when you should hire people and why you need time to make each hire. We then dive into the nitty-gritty of how Frank tracks his deals and properties through clever spreadsheeting and constant vigilance. After highlighting the importance of managing people, Frank discusses the software that he uses to develop his property metrics. We ask Frank to talk about some of his early mistakes and his answer highlights how business plans unfold over years and that communication is key in sticking to your plan, especially as new people are brought on. Near the end of the episode, Frank reflects on his asset management superpower. A must-listen for any company intent on scaling, tune in to hear more on this topic from the mega-successful businessman, Frank Roessler.

Key Points From This Episode:

Introducing Frank Roessler and the business model of his company, Ashcroft Capital.
How Frank’s asset management department operates.
Why Frank hires asset managers just before he needs them.
The importance of tracking the small details in every one of your deals.
Using meticulous spreadsheets to monitor your properties.
Why managing people is an integral part of successful asset management.
Hear about the software that Frank uses to develop his property metrics.
The challenge of communicating your business plan as it unfolds over years.
Frank’s asset management super-power; working with talented people.

Links Mentioned in Today’s Episode:

The Garzella Group

The Garzella Group Quote

Frank Roessler on LinkedIn
redIQ

Frank Roessler on Twitter

Gary Lipsky on LinkedIn

Kyle Mitchell on LinkedIn

APT Capital Group

APT Capital Group on YouTube

Passive Income Through Multifamily Real Estate Facebook Group

Episode #163: Passively Investing with the End in Mind with Chris Soignier Jan 04, 2021

Show notes

Even the most successful W-2 workers can find themselves trapped in toxic work environments that affect their wellbeing. For Chris Soignier, today’s guest, real estate investing was a way for him to earn the financial freedom to live a more balanced life with his family. We talk about how Chris left his 20-year corporate career to become an investor within only a year of discovering real estate. Now, he’s a passive investor in 27 multifamily syndications. Chris shares his motivations for leaving his job and how reading Robert Kiyosaki inspired him to leap, feet-first, into real estate. We discuss his start in investing and the sacrifices that he made during this transition, including how he sold his BMW M3 to finance his projects. Chris opens up about his first real estate lessons and that, although he was financially astute, marketing was an unexpected skill that he needed to learn. He tells us about his first deal, how to make sure that your first investment is the right choice for you, and how he tracks how his many deals are performing. Near the end of the episode, we ask Chris which investing tool he can’t live without, his biggest mistake, and what he needs to do to grow his life and career. Chris’s journey into real estate is filled with insight and advice. Tune in to learn more about his investment career.

Key Points From This Episode:

Chris’s path from working in the corporate world to becoming a fully-fledged investor.
How Robert Kiyosaki’s CASHFLOW Quadrant inspired Chris’s leap into real estate.
Being creative with your finances and assets to finance your first investing steps.
How his previous career working for Dell benefited his real estate business.
The importance of marketing within real estate; a skill that Chris had to learn.
How investing has given Chris greater freedom over his finances and time.
Risks that Chris took to land his first multifamily deals.
Chris’s advice on making sure that your first investment is the right choice for you.
How Chris keeps track of all of his investments and focuses on the high-end numbers.
Why you should always vet your sponsors; Chris shares a story about a bad sponsor.
Why Google Drive and Evernote are Chris’s top real estate tools.
Hear Chris’s private lending horror story and why you should never let your guard down.
How Chris wants to grow his business and how he likes to give back through mentoring.

Links Mentioned in Today’s Episode:

Chris Soignier Linktree

Chris Soignier LinkedIn

APT Capital Group

Passive Income through Multifamily Real Estate Facebook Group

APT Capital Group on YouTube

Free Call with Kyle or Lalita

EXP Realty

The CASHFLOW Quadrant: Rich Dad's Guide to Financial Freedom

Episode #162: Financial Analysis with Prashant Satoskar Jan 01, 2021

Show notes

Financial analysis is a critical aspect of asset management because that is where the data comes from, and today’s guest is an absolute whizz when it comes to this side of the business. With a past life in tech, Prashant Satoskar is a skilled systems thinker, and his real estate career has seen him invest in single-family, and more recently become an LP and GP in the multifamily space as well. Today he is a managing partner of Catalyst Equity Partners which has 700 doors under management. In this episode, Prashant drills down on his policy for financial analysis, getting into some of the hidden, below the line costs involved in asset management. For Prashant, his analysis starts top-down, going from NOI and occupancy collection and ending up on cash flow. Along the way, Prashant keeps an eye on things like P&R, R&M, cash flow statements, AP aging statements, and balance sheets, as well as ROI on marketing and traffic, all of which he mentions today. He also talks about some of the apps and platforms he uses to help him track and log this data. From there, we talk about Prashant’s gift for big picture thinking and understanding the nuances and moving pieces involved in real estate. For all this and more on the topic of financial analysis from today’s great guest, tune in today.

Key Points From This Episode:

Prashant’s background in tech and transition from single into multifamily real estate.
KPIs in Prashant’s financial analysis, from occupancy collection and NOI to P&R, R&M, and cash flow.
You can think your NOI is great but it actually isn’t because of missed hidden costs.
Getting to grips with cash flow by looking at cash flow statements, AP aging statements, balance sheets, etc.
Lessons Prashant learned as a passive investor about the hidden costs of assent management.
Other hidden KPIs to look out for as far as ROI on marketing and traffic.
Prashant’s use of ResMan and Excel and his plans for further future optimization.
Understand the moving parts of asset management: Prashant’s superpower gleaned from his tech career.

Tweetables:

“You can have a great NOI but if there is stuff below the line in your books that eats into all of that cash that you generated then your cash flow can be zero.” — Prashant Satoskar [0:04:28]

“We start top-down and dig deeper into these various aspects of the financials to truly understand what is our financial position.” — Prashant Satoskar [0:05:18]

“In my past life really I was used to dealing with various functions within the company like marketing, sales, consulting, operations and how all of these things tie together and asset management is really the same thing.” — Prashant Satoskar [0:09:21]

Links Mentioned in Today’s Episode:

Prashant Satoskar on LinkedIn

Prashant Satoskar Email

Catalyst Equity Partners

ResMan
redIQ

Excel

The Garzella Group

Request a Quote From Garzella Group

Passive Income Through Multifamily Real Estate on Facebook

Schedule a Call with Kyle Mitchell

Episode #161: Syndication 101 with Vinney Chopra Dec 28, 2020

Show notes

If you play the game right and keep your attitude positive, syndication can be easy, but don’t expect everything to fall into place overnight. Joining us today to talk about his inspiring journey into syndication and how he has achieved so much success in this space is Vinney Chopra. Since coming to the US more than 40 years ago with only seven dollars in his pocket, Vinney has excelled in many areas, including marketing, sales, motivational speaking, and real estate investing. Over the past 12 years, he has honed his skills and has done 29 successful syndications, 14 of those being in just the past three years. Today, Vinney shares his inspirational story, a true rags to riches tale fueled by his relentless positivity that earned him the middle name ‘Mr Smiles’ along the way. Vinney shares his method for scooping up deals in such a competitive market, his philosophy of treating his staff with immense respect, and the ultra-conservative underwriting strategies he implemented after COVID hit too. Some major takeaways from our chat with Vinney are the value of building impeccable relationships with brokers and investors, the ins and outs of his systems-oriented approach to running his businesses, and many golden nuggets about the profitability of positivity. Tune in to get it all.

Key Points From This Episode:

Vinny’s amazing story: Arriving in the US with seven dollars to syndicating for 4,400 units.
How Vinney got the middle name, ‘Mr Smiles’, thanks to his positive attitude after arriving in America.
Vinney’s method for finding success in syndication by doing things the right way.
How Vinney has closed so many deals by having good relationships with brokers.
Vinney’s secrets for building a great legal team and syndication partnership.
Why multifamily survived so well during the 2008 crash and the same his happening now.
Building relationships with investors and remembering syndication success does not happen overnight.
How Vinney oversees the systems in his businesses; why he is called the systems guru.
Vinney’s fun-loving approach and secrets for keeping his employees content in their jobs.

Links Mentioned in Today’s Episode:

Vinney Chopra

Moneil Investment Group

Berkeley

UCLA

George Washington University

Apartment Syndication Made Easy

Positivity Brings Profitability

APT Capital Group

Passive Income Through Multifamily Real Estate on Facebook

Schedule a Call with Kyle Mitchell
Bullpen

Episode #160: Initial Due Diligence with Matt Owens Dec 25, 2020

Show notes

Investing in multifamily real estate is a numbers game in many ways, so being good at math will stand you in good stead. Today’s guest is Matt Owens, here to talk about how he handles his due diligence as well as some of his secrets for managing and operating properties. With a background as a CPA, Matt knows how to analyze the financials of his prospective properties so he can get better deals and put them to the best use. Matt gets into some of the main things he looks at before going ahead with a deal, mentioning how he arrives at his purchase price after doing a few calculations on an initial figure defined by the market rents for that area. We talk to Matt about how deep he goes into his underwriting when he prefers ‘back of the napkin’ versus full spreadsheet approaches, and how helpful his team is for sifting through deals to find the best ones. From there, we chat with Matt about why he likes value-add strategies for raising rents, his definition of deal-breaking details during underwriting, and what he learned about efficient management from owning a management company himself. Wrapping up, Matt drills down on why the financial side of operation is his superpower, and he talks about how important it is to have a solid understanding of the numbers behind a deal as far as helping it to perform optimally.

Key Points From This Episode:

How Matt’s background as a CPA aids him in real estate, and the different niches he works in.
Two things Matt looks at as far as due diligence: Market rents, and the area he buys in.
How Matt switches between ‘back of the napkin’ and full spreadsheet approaches to underwriting.
The value of having a good team to underwrite many properties well and find the best deal.
Different analysis strategies depending on the asset and why Matt focuses on value-add strategies.
The need to value-add on under rented properties before raising the rents and finding investors.
Underwriting deal breakers: Tenants thrown in with a deal, faults kept secret, and more.
Lessons Matt learned about efficient management through owning a management company.
Separating cap-ex from repairs, using a management company, and watching the numbers.
Matt’s asset management superpower: Analyzing the financials to structure the best use of his equity and properties.
How Matt uses seller-finance strategies for smaller assets with lower balance loans.

Tweetables:

“It’s a lot of fun, a lot better than doing taxes and auditing for a CPA firm but you know, the skillset there plays perfectly into real estate investing in multifamily because it’s all math, of course.” — @OCGProperties [0:01:33]

“The first thing that I look at when I am analyzing a new deal is what are market rents at.” — @OCGProperties [0:02:10]

“You’re always looking at what is my highest, best use of my equity, what is the highest, best use of that property at the time.” — @OCGProperties [0:13:37]

Links Mentioned in Today’s Episode:

Matt Owens on LinkedIn

OCG Properties on Twitter

OCG Properties
redIQ

The Garzella Group

Request A Quote From The Garzella Group

Passive Income Through Multifamily Real Estate on Facebook

Episode #159: Is COVID-19 a Springboard for Student Housing? with Zach Feldman Dec 21, 2020

Show notes

Due to the COVID-19 pandemic, on-campus accommodation is facing some unique challenges, and there is increased demand for private student housing that not only has desirable amenities, but takes students’ health and wellness into consideration. Today’s guest, Zach Feldman, is the VP of Development at Aptitude Development, which is one of the nation’s top student housing firms. Aptitude currently owns 1,500 beds with another quarter million dollars of student housing under construction or set to break ground. Prior to Aptitude, Zach launched Enjoy 77 Holdings, which is a real estate investment company specializing in student housing and multifamily investment in the northeast and is still active today. In this episode, Zach shares his perspective on safe and affordable student housing, why COVID has been a tailwind for their business, and how Aptitude stays competitive. He also weighs in on metrics for multifamily versus student housing, building ground-up as opposed to buying existing, and how Aptitude uniquely designs their buildings with students in mind. Tune in today!

Key Points From This Episode:

Zach shares a bit about himself, what he does, as well as how he got into student housing.
The student housing landscape pre-COVID – Zach saw it heading in the right direction.
Why COVID has been a tailwind for the private student housing industry.
Zach’s thoughts on why college education will never go 100% online.
What operators can do to protect their downside – know the risks, be prepared, have a plan.
Being in roll-out-of-bed locations from colleges – how Aptitude stays competitive.
Student housing metrics are similar to multifamily, but things like enrollment growth and occupancy rates must also be considered.
Considering the student body’s needs and how Aptitude designs buildings.
The importance of a leasing office and to-scale models when it comes to student housing.
If you properly underwrite, manage construction, and have realistic timelines, you should never have occupancy issues.
Ground-up versus buying existing – rather build and sell at a 5 cap than buy at a 5 cap.
While student housing is similar to multifamily, it is uniquely designed with students in mind.
Why the one tool Zach can’t do without is his iPhone; beware the paralysis by analysis mentality.
Zack attributes his success to keeping his head down and being confident in what he’s doing.

Links Mentioned in Today’s Episode:

Zach Feldman on LinkedIn

Zach Feldman Email

Call Zach Feldman

Aptitude Development

Rich Dad, Poor Dad

The 4-Hour Workweek

Lalita Mitchell on Facebook

Kyle Mitchell on Facebook

APT Capital Group

APT Capital Group on YouTube

Passive Income Through Multifamily Real Estate Facebook Group
Bullpen

Episode #158: SyndicationPro with Jacob Blackett Dec 18, 2020

Show notes

Systems are key to effective asset management. Joining us today to shed light on SyndicationPro, a streamlined, simple syndication platform, is its founder, Jacob Blackett. As an operator himself, Jacob conceptualized SyndicationPro from his own pain points. This inside, hands-on knowledge has gone a long way in helping them stand out from the rest. In this episode, we hear more about the advantages of this software, including database centralization, time-saving, and effective communication. We also discover how SyndicationPro is integrated with other platforms, like CRMs, and their constant drive to innovate. If you’re looking to take your asset management to the next level with cutting-edge software, this is the episode for you.

Key Points From This Episode:

Get to know Jacob, his real estate journey so far, and founding SyndicationPro.
Benefits of SyndicationPro for asset managers.
Standing out — What separates SyndicationPro from other investor portals.
How being a real estate operator has helped Jacob deeply understand his clients’ needs.
The importance of integration and how SyndicationPro accommodates other software.
Other important things operators should know about SyndicationPro.
Jacob’s asset management superpower: His super sheets.

Tweetables:

“I spend my days in the software and product company while at the same time, raising money, managing my own portfolio and running a real estate firm.” — Jacob Blackett [0:02:03]

“We realize is that our users resonate better with the platform. It’s really a one-of-a-kind tool that our customers use and we put a lot of focus in design and ease of use.” — Jacob Blackett [0:05:15]

“We’re definitely your best technology partner in terms of just staying on the forefront of innovative things you are able to do.” — Jacob Blackett [0:08:09]

Links Mentioned in Today’s Episode:

Jacob Blackett Email

APT Capital Group on YouTube

APT Capital Group Monthly Meetup