Passive Income Through Multifamily Real Estate

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Free Call with Kyle or Lalita

APT Capital Group

Passive Income Through Multifamily Real Estate Facebook Group

Episode #126: Generating Income with Ben Suttles Aug 28, 2020

Show notes

It is so important to explore every avenue when trying to generate more income from your properties. This requires creativity and outside of the box thinking. Today’s guest, Ben Suttles, of Disrupt Equity, is here to share some of the top strategies he and his team use to increase their property returns. In this episode, Ben sheds light on why implementing RUBS is a huge boost to property revenue. He walks us through the time frame and other specifications of rolling RUBS out. Ben also shares other tactics for increasing returns, like pet rent and trash and pest fees. When introducing these fees, it is crucial to understand whether your tenant base can support them. This is why it’s important to draw on your property management team’s knowledge of the area and the fees other properties are charging. We also discuss how to get on the same page as your property management team, why you should stagger the introduction of additional fees, and how tighter management itself produces more income. This was a great show, so be sure to tune in today!

Key Points From This Episode:

Learn about Ben’s background and what he’s currently involved with.
Find out why billing back utilities is Ben’s number one incoming-boosting strategy.
Implementing RUBS, how long it takes and important things to keep in mind.
Two lesser-known strategies Ben uses to increase income: Pet rent and pests and trash.
How tight management goes a long way in boosting overall income as well.
The importance of aligning your underwriting the property management’s budget.
Why it’s not possible to have a fixed percentage expectation of other income for properties.
Ben’s superpower and final takeaways from the show.

Tweetables:

“Look at doing the water and sewer reimbursements with your tenants, and I think you'll see it as a big boost for your property.” — Ben Suttles [0:04:26]

“It's very important that you work with your property management company prior to takeover in aligning your internal underwriting budget with what they can actually do on the property.” — Ben Suttles [0:14:43]

Links Mentioned in Today’s Episode:

Ben Suttles on LinkedIn

Ben Suttles’s email

Disrupt Equity

Feras Moussa

Free Call with Kyle or Lalita

Garzella Group

redIQ
APT Capital Group

Multi Family Zone (The Jake and Gino Show)

Episode #125: Buy Right, Manage Right, Finance Right with Gino Barbaro Aug 24, 2020

Show notes

When it comes to investing and managing a large portfolio, fortune definitely favors those who know when to take risks but more importantly, when to exercise diligence and caution. Today on the show we were lucky to speak about all the ways that we could become better multifamily syndicators with the famous Gino Barbaro! For listeners newer in the game, Gino has over $100 million, or 1400 units in real estate under management, is a bestselling author, successful coach, and also co-host of The Jake and Gino Show! We hear from Gino about how he threw in the towel with his restaurant business and took a few risks early on to grow a small portfolio with his partner Jake. He speaks about all the lessons he learned while studying to be a personal coach, and how this fed into his approach to real estate thereafter. Gino has many wise sayings he shares with listeners today. Putting them to work will help you learn how to buy and invest smartly so that when things go south (like they are now!) your deal structure is fortified enough for you to not have to sell. Joining this discussion, you’ll also hear Gino share some of his best practices for self-managing, such as at which scale you should stop outsourcing, what software to use, and how to structure tenant leases. For all this and a whole lot more from a legend in the business make sure you tune in today!

Key Points From This Episode:

How Gino broke into real estate and started his show after owning a restaurant.
The amount of help coaching school gave Gino for overcoming limiting beliefs.
Scaling from 200 units initially to 1400 and knowing when to slow down.
The role that software plays in monitoring and managing a scaled portfolio (KPIs).
Tips for catching delinquencies which becomes more important as you scale.
Why Gino brought property management in house and grew that side of his business.
At which point in your scale using a property management company stops being effective.
Benefits of self-managing for investor assurance at the expense of less revenue.
How Gino’s ‘buy right...’ motto helps him walk from deals and weather the current storm.
Letting go of wanting to do everything yourself; hiring right as you scale.
Advice for new syndicators who want to learn the game: college and shadowing.
Deposit and software-related creative habits of Gino’s from a management standpoint.
Ultimate goals for Gino: it’s not about the money, but keeping ego in check and loving Florida.
Gino’s favorite tool, biggest mistake in real estate, and tips for growing a business.
Identifying with the right people to influence you toward a growth mindset.

Links Mentioned in Today’s Episode:

Gino Barbaro

Jake and Gino

Institute of Professional Excellence in Coaching

Ray Dalio

Zoom

AppFolio

Passive Income Through Multifamily Real Estate Facebook Group

Lalita Mitchell on Facebook
APT Capital Group

Passive Income through Multifamily Real Estate Group on Facebook

Episode #124: How to Treat your Residents with Jamie Gruber Aug 21, 2020

Show notes

With all the different concerns that go into real estate investing and the multifamily business, the human element can sometimes be understated. After all, managing a residential property is first and foremost about providing people with a place to stay! This is the attitude of our guest today, Jamie Gruber, who has a strong philosophy of putting people first. This does not mean that he is not business-minded or focussed on making money and shrewd decisions, rather that he does so with a strong emphasis on the human element and what the effect will be on the residents of his properties. Jamie tells us how he aims to treat residents as he would like to be treated and tries to have as much meaningful communication with them as possible. This means surveying their needs and desires, providing good maintenance services, and reasonable notice on rent increases. We get into some examples of issues that can be encountered in the game of multifamily and Jamie shares his ways of dealing with potential hurdles. So for all this and a bunch more useful info for your business, join us on this edition of Asset Management Fridays!

Key Points From This Episode:

Jamie's current professional set-up and how real estate fits in.
The tenant experience Jamie tries to provide on his properties; safe, clean and affordable.
Rent-raising plans for Jamie and handling this in a sensitive and sensible way.
Using average rent as a KPI when addressing a new property's residents.
Issues that arise with residents and ways to deal with these in a people-first manner.
Jamie's asset management superpowers! Relatability and understanding.

Tweetables:

“It is about the people aspect and it is about not even calling them tenants, but more residents.” — @TheJamieGruber [0:01:44]

“We try to create a sense of community within the units by communicating effectively, meeting with folks face to face, meeting them in the common areas.” — @TheJamieGruber [0:02:09]

Links Mentioned in Today’s Episode:

Jamie Gruber

Multi-Family and More

Jamie Gruber on Twitter

Garzella Group
redIQ
APT Capital Group

National Association of REITs

Episode #123: Self Storage with Kris Benson Aug 17, 2020

Show notes

Self-storage is a fast-growing sector of commercial real estate that has been called ‘recession-resistant’. Today’s guest is Kris Benson, a Chief Investment Officer for Reliant Investments, which is a subsidiary of Reliant Real Estate Management and was named one of the top 30 commercial self-storage operators in the US in 2018. Investing in real estate has been in Kris’s steadfast path to passive income and he is passionate about inspiring others to change their mindset around investing for their future. In this episode, Kris unpacks what he thinks makes self-storage recession-resistant, and what attracted him to this asset class in the first place. We also discuss some of the challenges when investing in self-storage and how Kris’s company adds value to their self-storage units, depending on the client. Kris goes into detail about rent increases, ground-up developments versus existing properties, and the existing lending structures for self-storage, and we end off the show with the final four questions from Lalita to get to know Kris a little better. Tune in today!

Key Points From This Episode:

Kris introduces himself and explains how he got into self-storage.
The reasons Kris was attracted to the self-storage asset class.
What about self-storage makes it a ‘recession-resistant’ asset class.
Some of the challenges when dealing with self-storage.
Kris’s sweet spot in terms of the size of self-storage units.
How Kris’s company adds value to self-storage properties, depending on the client.
The frequency and cost of rent increases.
Purchasing existing properties and expanding vs. ground-up developments.
Existing lending for self-storage.
The one tool Kris cannot do without as a real estate investor.
Kris’s biggest mistake in real estate investing and the main takeaway for listeners.
What Kris needs to do now to grow his life to the next level.

Tweetables:

“I think [self-storage is] a little bit unique in that it’s very much an operating business first, with a real estate component” — Kris Benson [0:11:11]

“The best descriptor of us is we’re opportunistic… if we can make it make sense for us and our investors, we are going to do our best to make it work” — Kris Benson [0:17:55

“I am a huge believer that when you are investing in real estate you are essentially investing in the people” — Kris Benson [0:20:32]

Links Mentioned in Today’s Episode:

Reliant Investments

Kris Benson on LinkedIn

Wayne Patton’s Asset Protection
APT Capital Group

Andrew Campbell on LinkedIn

Episode #122: Managing Renovations with Andrew Campbell Aug 14, 2020

Show notes

Today on the show we welcome Andrew Campbell, the co-founder at Wildhorn Capital, a multifamily operations group in Central Texas. Currently, they have 1,800 units that are all value ad and within the B to A-minus asset class range. Andrew shares with listeners how they have been doing in-house renovations with great success, partly due to the savings they make on bulk purchases and focusing on those renovations that give you the most bang for your buck. He also discusses the advantages of having the products on hand and using the same ones across all their assets, and why they choose vinyl flooring throughout all their apartments. We switch to discussing the importance of communication between the asset manager, on-site manager, and GCs, and Andrew also gives advice about value add renovations in general.

Key Points From This Episode:

Learn about the Wildhorn Capital operations group and its number of units.
How Andrew and his team manage the renovations on properties in-house.
Buying flooring, light fixtures, sinks and other fittings in bulk to use across all assets
The major advantages of having the necessary products on hand.
What operators can save by buying renovation products from China.
The importance of good communication between asset manager, on-site manager, and GC.
Hear which renovations Wildhorn makes the most money on and the timelines involved.
Why Wildhorn opts for vinyl flooring throughout all their units, including the bedrooms.
Advice for newbies about potential challenges when doing value add renovations.
Hear which reporting tools they use to track renovations and communicate with role players.

Tweetables:

“I think the biggest bang for your buck, I think for us will probably be flooring. We’re a group that does vinyl flooring, we do it throughout the unit, including bedrooms, living rooms, and on upper floors.” — Andrew Campbell [0:03:59]

“I think really being on top of it at the beginning of the process both as you are defining the scope but then as you start that execution to make sure it is sort of unfolding like you think it should” — Andrew Cambell [0:17:12]

“I think being a good asset manager is about being a good communicator with your eyes and ears on sight, which is your management team.” — Andrew Campbell [0:07:40]

Links Mentioned in Today’s Episode:

Wildhorn Capital

Passive Income through Multifamily Real Estate Group on Facebook

Garzella Group
redIQ
APT Capital Group

Episode #121: The Bullpen Platform with Mason Fiascone Aug 10, 2020

Show notes

With a ratio of four million employees to two million companies, the commercial real estate industry in the US is highly bifurcated. Some of the larger firms have over two million employees though, meaning there are a considerable amount of companies that only have a staff count of one or two. Hiring full-time specialist staff in such a climate can be difficult for the smaller firms, but our guest for today joins us to speak about the work he is doing to remove that pain point. Mason Fiascone is the head of sales and marketing at Bullpen, an online marketplace that connects smaller real estate firms to commission-based analysts. Mason covers Bullpen’s mission and its distinctiveness compared with more general virtual assistant platforms. From there, he talks about the different areas of real estate underwriting that Bullpen analysts do, the most common phases in deals they work on, and how the company goes about vetting new analysts before including them in the platform. We also talk to Mason about how Bullpen manages pricing and contract types, before closing off hearing about his biggest life lessons and tips for having a more successful business. At a time like this, a platform like Mason’s could bring a lot of value to both analysts and firms, so tune in to find out more.

Key Points From This Episode:

How deal flow varies but hiring is fixed, making smaller firms vulnerable.
The mission at Bullpen; connecting smaller real estate firms to commission-based analysts.
Underwriting services Bullpen analysts could do in the multifamily space.
Differences between Bullpen and virtual assistant platforms; specificity and specialist talent.
Backgrounds and skillsets of Bullpen analysts and how Bullpen helps them work freelance.
How Bullpen handles vetting and quality control by conducting rigorous skills assessments.
Pricing structures on the Bullpen platform and their relation to skill level or job difficulty.
How Bullpen analysts handle proprietary information by signing contracts.
Different contract types offered by Bullpen and the most commonly used ones.
Typical stages in deal timelines that Bullpen analysts tend to get hired to underwrite.
How many teams don’t know they need an analyst despite the value they can bring.
Mason’s biggest mistake in real estate that taught him the value of focusing.
The number one thing Mason believes is important for growing his life.

Tweetables:

“It’s expensive to hire someone if you’re a one-person shop or even a five-person shop.” — Mason Fiascone [0:02:48]

“Bullpen is a marketplace that tries to flip hiring on its head by connecting employers with quality talent on an hourly, a part-time, or full-time basis.” — Mason Fiascone [0:03:14]

“As a team, you oftentimes aren’t aware that you have the need for something like outsourced expertise.” — Mason Fiascone [0:15:04]

Links Mentioned in Today’s Episode:

Mason Fiascone

Bullpen

Asana

Wayne Patton’s phone number

Passive Income Through Multifamily Real Estate Facebook Group
APT Capital Group

Passive Income through Multifamily Real Estate Group on Facebook

Episode 120: Leasing with Drew Kniffin Aug 07, 2020

Show notes

Our guest for this episode, Drew Kniffin, is the president of Nighthawk Equity, a syndication group focused exclusively on buying C plus and B class multifamily assets. The topic today is leasing, and as an expert in this field, Drew shares what a good leasing strategy should look like, including the performance indicators for leases and leasing agents and how they have had to temporarily adjust their approach amid the COVID-19 outbreak. He talks about their trusted formulation and striking the balance between maximum rent versus maximum occupancy, and how they go about getting property managers on the same page. In terms of hiring the right people for your team, he encourages listeners to look for those guys who are adept at selling who will ensure that your properties get leased out.

Key Points From This Episode:

Learn about our guest’s role at Nighthawk Equity and the asset classes they focus on.
Drew’s leasing formulation: maximum rent versus maximum occupancy.
The asset manager’s role in communicating the leasing formulation with property managers.
Other key performance indicators for leases and leasing agents.
Nighthawk Equity's target numbers in terms of conversion and closing rates.
What Drew and his team are doing to optimize their leasing strategy.
Advice for newbies at the leasing game — spoiler alert — keep track of the data!
How the COVID-19 crisis has impacted their team’s leasing strategy.

Tweetables:

“When we’re looking at leasing, we want to be about 95% occupancy on our properties.” — @DrewKniffin [0:02:05]

“Leasing is the fountainhead of our industry. Everything flows from it and if your leasing is great, mostly everything else will fall into place.” — @DrewKniffin [0:05:25]

Links Mentioned in Today’s Episode:

Drew Kniffin on LinkedIn

Drew Kniffin on Twitter

Drew Kniffin Email

Nighthawk Equity

Garzella Group
redIQ
APT Capital Group

Episode #119: Begin with the End in Mind with David Gwilt Aug 03, 2020

Show notes

Where do you want to be in ten or twenty years from total monthly income perspective? Are you interested in passive real estate investments that will allow to live off the money you make on them in the meantime, while also continuing to increase in value? Today’s guest is David Gwilt, an active duty USAF Officer, Realtor, Real Estate Investor, and financial analyst for an apartment investing firm. David and his wife, Tasha, purchase apartments to create passive income and generational wealth, and they’re helping others do the same. Find out about David’s real estate journey, and why he chose to get into multifamily real estate in the first place. He also shares with us what he looks for when choosing to make an investment and some possible red flags that might cause him to pass up on a deal. Tune in for some great advice on beginning with your end financial goal in mind!

Key Points From This Episode:

David gives us a glimpse into his background and his multifamily real estate journey.
Concerns prior to investing in multifamily syndications.
Why David and his wife chose multifamily real estate.
Adjusting projections as investments progress based on actual returns.
David tells us about his first passive multifamily investment and what attracted him to it.
Delayed distributions during the pandemic from a passive investor’s perspective.
David discusses some red flags and potential reasons to pass on a deal.
How David decides on other investment criteria like property class.
What retirement looks like for David and his wife.
Active versus passive investment in real estate.
David shares with us his biggest mistake in real estate investing and what he learned.

Tweetables:

“In the multifamily space, we can scale a lot quicker, so we can do more passive investments, we can do bigger passive investments” – David Gwilt [0:06:40]

“That’s… [what] really got us into this space, is the ability to have an asset that throws off cash that we can live off of and enjoy while the asset is also increasing in value, so it gives us something of a legacy to leave to our family” – David Gwilt [0:09:52]

“The operators, for me, are key. A good operator can take an average deal and make it great. A bad operator can take an excellent deal and make it bad” – David Gwilt [0:16:04]

Links Mentioned in Today’s Episode:

APT Capital Group

APT Captial Group on Facebook

Schedule a call with Kyle Mitchell

Powell Chee – MultiFamily Masters

The Lifetime CashFlow Through Real Estate Podcast with Rob Khlief

Wayne Patton

Call Wayne Patton – (877) 727-109

Episode #118: Value Add Strategy with Gary Lipsky Jul 31, 2020

Show notes

With the right approach to your value-add strategy, you can be sure that your dollars are being well spent, you’re up to speed with your competition, and that you’ll lease up faster! Today on the show, Kyle interviews Gary and the two talk shop about best practices for value-add! It’s important to start your value-add process from the very beginning, and Gary tells us that he’s already thinking about it from the time he receives the EOM. Another great tip Gary mentions is to keep touring your comps, even after a deal closes. Constantly assessing metrics like ROI and staying in the know about where you sit in relation to your competitors is vital! Equally important is how to know when to deviate from a value-add plan, and our hosts have a few golden nuggets to share in that regard. Gary also suggests that investors should focus on exterior renovations first, and shares a few of his top-performing cosmetic additions, such as billboards, paint jobs, and amenities. Lastly, we get into some ways that you can know whether your value-add strategy is working, and Gary lists a few very clear indicators, such as if you’re successfully bumping rents! Tune in for some amazing pointers for your next value-add strategy today!

Key Points From This Episode:

Gary’s entrepreneurial childhood and road into real estate investing with Kyle.
The beginning of a value-add strategy starting with the EOM, comps, and pictures.
Typical players Gary involves in his value-add strategies.
Gauging comps and the current environment, and when to deviate from a value-add plan.
Constantly watching comps and other facets of asset management.
The three most impactful strategies for getting tenants: signage, paint, and extra amenities.
How to assess a value-add strategy and tell it’s working: rent bumps and conversion rates.
Being vigilant by tracking data and reassessing return on investment constantly.
Gary’s asset management superpower: being a numbers guy.

Tweetables:

“You're constantly evaluating. You’re dealing with market conditions, and being able to pivot is so important to your business plan.” — @garylipsky [0:04:17]

“We push our property management team to provide the best customer experience for our tenants and the best investor experience for our investors. That means we’re constantly staying on top of all the facets of asset management.” — @garylipsky [0:05:00]

Links Mentioned in Today’s Episode:

Gary Lipsky

Gary Lipsky Email Address
APT Capital Group

Passive Income Through Multifamily Real Estate Facebook Group

redIQ