Real Estate Investing for Cash Flow with Kevin Bupp

Latest Episodes:

Ep #234: The Who, What, When and Where of Storage Facilities -- with Mitch Stephen Jun 18, 2019

Show notes

This episode of the Real Estate Investing for Cashflow podcast features real estate investment expert Mitch Stephen. Mitch started out buying manufactured homes in mobile home parks that he did not own and has been buying storage facilities for 28 years and currently owns 14 facilities in Texas.

Mitch talks about his background in mobile home parks and why he moved to self storage real estate. Kevin and Mitch dive into the economics behind storage real estate and Mitch's unique niche in boat and RV storage facilities located in Canyon Lake, Texas. Mitch also talks about the risks and challenges in the business and how his company was able to survive the recession.

QUOTES:

"I read a book called Nothing Down by Robert Allen and that guy had the audacity to suggest that I didn't need money to, you know...you could be broke and still be in the real estate game."

"The entrepreneur rarely ends up with the business that he starts, he's always morphing to the most money per least resistance."

"Storages are a perfect way to occupy some very valuable land and get paid while the city is growing to it."

"One thing you never want to say in the storage business is you're full. If you're full then your prices aren't high enough."

"The biggest challenge is water and making sure that the water runs off in the worst case scenario where you have 5 or 8 or 15 inches in a day that it's not gonna override your drainage."

HIGHLIGHTS

6:08 Mitch's background
11:24 How and why Mitch ended up in storage real estate
18:04 Mitch talks about economics behind his storage businesses for boats and recreational vehicles
25:02 Challenges, mistakes and risks in the business
28:35 How the financial crisis affects the boat and RV storage facilities

Job Opportunities with my Team: Click Here

Recommended Resources:

Check out our company and our partnership opportunities by visiting SunriseCapitalInvestors.com
Would you like to partner with us on future MHP deals, call 844-CASH-FLW to learn more or click here to schedule a time on our calendar.
Grab a free copy of our book "The 21 Biggest Mistakes Investors Make When Purchasing their First Mobile Home Park…and how to avoid them click here
Nothing Down by Robert Allen (book)
Forever Cash by Jack Bosch (book)
My Life & 1,000 Houses by Mitch Stephen (book)
Visit www.1000houses.com

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Ep #233: Hotel Investing, Entrepreneurship, and Grit -- with Greg Dickerson Jun 11, 2019

Show notes

In this episode of the Real Estate Investing for Cashflow podcast, Kevin brings in real estate expert Greg Dickerson. Greg is a serial entrepreneur, real estate developer and mentor. Over the past 20 years he has bought, developed and sold over $200 million in real estate, built and renovated hundreds of custom homes and commercial buildings and started 12 different companies from the ground up.

Greg talks extensively about hotel real estate and shares a lot of information about the business, market selection, franchising and financing. Kevin and Greg give tips on how to apply one's self and bring value into any business. Greg also shares a little bit about his inspiring work ethic which is undoubtedly a key to his success.

QUOTES:

"There's no other way to get a gut feeling for the project than besides standing on the site, looking around, taking it in, I'll visit at night, in the morning during the day, that's how you do deals, that's how the business happens— out in the field, on site, boots on the ground."

"The metrics are the same wherever you go, the drivers for hotels are the same for multifamily in anything else you'll need."

"To this day, I do not guarantee debt, I do non-recourse loans."

"What I do is I stay away from deals where I refinance is part of the business plan.

"The process starts with a vision, so it's about being able to create a vision for a project and then leading a team to the finish line and getting that thing." HIGHLIGHTS

4:26 Greg's background
8:44 Greg talks about hotel real estate
14:11 Market selection, scalability and financing
19:47 Kevin and Greg talk about the financial crisis and mitigating risks
26:37 How to bring value to a business

Job Opportunities with my Team: Click Here

Recommended Resources:

Check out our company and our partnership opportunities by visiting SunriseCapitalInvestors.com
Would you like to partner with us on future MHP deals, call 844-CASH-FLW to learn more or click here to schedule a time on our calendar.
Grab a free copy of our book "The 21 Biggest Mistakes Investors Make When Purchasing their First Mobile Home Park…and how to avoid them click here
Visit gregdickerson.com

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Ep #232: Repurposing Old Buildings into State-of-The-Art Self Storage Facilities -- with Scott Krone Jun 04, 2019

Show notes

In this episode of the Real Estate Investing for Cashflow podcast, Kevin brings in self-storage expert, Scott Krone. With a solid background in architecture, Scott co-founded Coda Management Group, an international award-winning design firm which specializes in sustainable building practices.

Kevin and Scott dive into self-storage real estate, which has been Scott's more prominent venture. Scott shares a lot of valuable information about the factors and challenges concerning self-storage and how to identify building candidates for potential adaptive reuse. He also explains other aspects of the market such as financing and some market strategies.

QUOTES:

"The best way to make money in real estate is through the development process because you can control the acquisition price, you can control a lot more from the front end rather than trying to work the numbers backwards."

"The most important demographic that we look for is the amount of square footage of locker per capita."

"To me, the biggest factor in self-storage is not if the market is going up or down but it's how many other facilities are coming into my competition."

"We're looking for a building that's as regular as possible so you don't have any abnormal shapes or configurations that makes it difficult to put lockers in because the whole key to any building whether in self-storage, or apartments, or office is your efficiency and your rentable square footage."

"If we can build and buy below what our competition is, then we have a competitive advantage in terms of what we have to charge in order to get people into the door."

HIGHLIGHTS

5:55 Scott's background in architecture and his first foray into self-storage
12:46 Scott talks about their business model and demographics to look out for
17:40 Other factors and challenges in converting buildings to self-storage
21:30 What is PACE financing?
24:02 More common forms of adaptive reuse of buildings
30:07 Scott shares his longterm strategy

Job Opportunities with my Team: Click Here

Recommended Resources:

Check out our company and our partnership opportunities by visiting SunriseCapitalInvestors.com
Would you like to partner with us on future MHP deals, call 844-CASH-FLW to learn more or click here to schedule a time on our calendar.
Grab a free copy of our book "The 21 Biggest Mistakes Investors Make When Purchasing their First Mobile Home Park…and how to avoid them click here
Visit www.codamg.com

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Ep #231: Trading Portfolios, SRFHub, and the Build-to-Rent Model -- with Michael Finch May 28, 2019

Show notes

This episode of the Real Estate Investing for Cashflow podcast features real estate expert Michael Finch. Michael has been in the real estate business for sixteen years and he founded SVN | SFRhub Advisors, which is the leading SVN commercial real estate brokerage with a focus on single family rental portfolios and build-for-rent investment portfolios.

Michael explains what they do at SVN | SFRhub Advisors and talk about the management of intermingling portfolios and how they have evolved over the years. He also explains what built-for-rent is and all other aspects related to its development and business model. Kevin and Michael also trade perspectives on single and multi-family rental portfolios, the advantages, disadvantages and the strategies involved in investing in either space. QUOTES:

"We really have two divisions here at SFR hub, one is for built-for-rent new construction homes and the other is the existing single family portfolio homes."

"Every portfolio that comes in to our system, not only are we analyzing it from a evaluation standpoint, we utilize the number one AVN (automation valuation model)… but what we do that takes it even a step further is we pull in multiple data sources, we built in some AI in the background to red-flag some discrepancies."

"I've talked to some built-for-rent developers that have been doing this for a while and the recent quote from one said that thirty percent of his tenants have stayed for nine years when he's built some of these communities, you know, back in 2009-2010 and he' still got original tenants in some of them.."

"The biggest inefficiency in the single family world is that when there's issues, the homes are scattered around and you do have more rooftops than one building or two all in one spot but on the flip-side, you have typically greater appreciation in good markets because single family homes appreciate at a higher rate than a multifamily apartment building typically does." HIGHLIGHTS

5:40 Michael's shares his background leading up to founding SFRhub
12:12 Different investment portfolios and how they're managed
17:07 What prompted SFRhub and how does it work
26:10 What kind of financing is available for these portfolios?
31:50 What is Built-for-rent?
40:40 Single versus multi-family home investment

Job Opportunities with my Team: Click Here

Recommended Resources:

Check out our company and our partnership opportunities by visiting SunriseCapitalInvestors.com
Would you like to partner with us on future MHP deals, call 844-CASH-FLW to learn more or click here to schedule a time on our calendar.
Grab a free copy of our book "The 21 Biggest Mistakes Investors Make When Purchasing their First Mobile Home Park…and how to avoid them click here
Download our Cost Segregation Study
Visit www.engineeredtaxservices.com

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Ep #230: Cost Segregation Explained - with Kimberly Lochridge May 21, 2019

Show notes

In this episode of the Real Estate Investing for Cashflow podcast, Kevin, along with his business partner at Sunrise Capital, Brian Spear, talk cost segregation with Kimberly Lochridge. Kimberly is the Executive Vice President for Engineered Tax Services, Inc. (ETS), an industry-leading provider of specialty tax services in the United States. Kimberly's business management skills have positioned her as a big-league tax expert for Fortune 500, ultra-high net worth individuals, single and multiple family offices, architects, engineers, and CPAs nationwide.

In this informative conversation, Kimberly explains what cost segregation is and how it can help businesses. She also answers frequently asked questions asked by Brian to separate fact from myth surrounding cost segregation. The guests also present and discuss a case study to further shed light on how cost segregation works and tackle other topics pertinent to this business practice. QUOTES:

"The difference between the 1040 and a 1040 EV is that the EV is the straight line or what you call the standard deductions and your 1040 is the itemized deductions, well, cost segregation is the 1040 for real estate.."

"Essentially when you sell a building, you're taking what you sold it for minus whatever the purchase price was, which is your gain, but you also have to add in to that gain your accumulated depreciation."

"There are different types of cost segregation studies and as you dig into this, you'll have engineered based cost segregation and that's where we actually rebuild the property from the ground up."

"I think of the CPA as the family practice doctor and EPS is the brain surgeon."

"When working with a third party property management company, you need to ensure that they have the information at the ready so that when they do those capital expenditures and do those capital improvements on your behalf, they're actually handling the depreciation appropriately." HIGHLIGHTS

4:20 Kimberly's background
7:54 Kimberly explains cost segregation
11:13 FAQs about cost segregation
23:14 Brian and Kimberly tackle a case study
33:31 What is the DEERA report?

Job Opportunities with my Team: Click Here

Recommended Resources:

Check out our company and our partnership opportunities by visiting SunriseCapitalInvestors.com
Would you like to partner with us on future MHP deals, call 844-CASH-FLW to learn more or click here to schedule a time on our calendar.
Grab a free copy of our book "The 21 Biggest Mistakes Investors Make When Purchasing their First Mobile Home Park…and how to avoid them click here
Download our Cost Segregation Study
Visit www.engineeredtaxservices.com

Review and Subscribe

Ep #229: Opportunity in Self-Storage Turnaround - with Bill Barnhill May 14, 2019

Show notes

In this episode of the Real Estate Investing for Cashflow podcast, Kevin welcomes real estate investment and self-storage expert, Bill Barnhill. Bill is the president of Omega Properties, Inc; a commercial real estate management and brokerage firm based in Mobile, Alabama. He has over 41 years of experience in the commercial real estate business and has specialized in self-storage for the last 24 years, having brokered over 200 million in self storage transactions.

Bill gives some in depth knowledge as well as some statics about the self storage business. He and Kevin talk about managing self-storage on site and off site and the strategy of buying mismanaged storage facilities. They also discuss consolidations in the market, emerging technology and the future of the business.

QUOTES:

"So storage has a lot of benefits I think, it's lower maintenance, and one nice thing is you can raise your rent, they put a 30 day notice unlike a lot of other sectors in real estate, it's a growing industry."

"Americans have a lot of things and they don't want to get rid of them, you inherit them, then you store them."

"You want to study that particular market, and what you're looking for is a certain population, a lot of houses and an area where it's growing, might be where there's new jobs being created."

"The main mistake I see they [mom-and-pop owners] are making, is they would rather be 95% occupied at a lower rent than be 80% occupied and have a higher rent, they think full is better but what's better is more income."

"28% of millennials use storage."

HIGHLIGHTS

7:21 Bill's background
12:20 Kevin and Bill talk about fundamentals of the self-storage business
18:17 Opportunities in mismanaged facilities
30:02 Consolidations and the remaining mom-and-pop facilities
34:04 Technology and management
46:15 Storage wars and treasure seekers

Job Opportunities with my Team: Click Here

Recommended Resources:

Check out our company and our partnership opportunities by visiting SunriseCapitalInvestors.com
Would you like to partner with us on future MHP deals, call 844-CASH-FLW to learn more or click here to schedule a time on our calendar.
Grab a free copy of our book "The 21 Biggest Mistakes Investors Make When Purchasing their First Mobile Home Park…and how to avoid them click here
Visit Omega Properties' Website

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Ep #228: The Booming Business of Co-Living - with Ellen Parry May 07, 2019

Show notes

In this episode of the Real Estate Investing for Cashflow podcast, Kevin welcomes co-living expert Ellen Parry. Ellen is the director of real estate partnerships at Ollie, an all inclusive co-living setup that use small space design techniques to reduce entry level price points for class A apartments. Residents in Ollie-owned properties enjoy fully furnished units and complimentary hotel style conveniences.

Kevin and Ellen discuss the booming business of co-living, especially in urban America. Ellen talks about many different aspects of co-living real estate and the future of micro-living development in the residential sector.

QUOTES:

"Looking at the housing market, we realized that there's this real mismatch between the multi family units that are available, and what people can afford primarily, and also what young professionals living and working in the city wanted to consume in terms of their lifestyle."

"There's this insight that a lot of multifamily that has been constructed over the last fifty years in the US is repeating the same model that may have worked in that era but isn't evolving and reacting to what urban life in America actually looks like today and what people really need."

"They don't notice that their bedrooms are a little bit smaller than it might have been elsewhere because the functionality is what they're getting."

"It's challenging to convert commercial spaces in to co-living but we're now starting to test some prototypes that could evolve that model."

"If the studios seem to be in higher demand than other unit types, that's a really good indicator because that tells you that there's people who need these more efficient lifestyle solutions."

HIGHLIGHTS

5:29 Ellen explains co-living and Ollie
9:26 What is the price to privacy spectrum
10:57 Who is the typical demographic?
15:20 Ollie's projects
28:00 Matching process in shared units

Job Opportunities with my Team: Click Here

Recommended Resources:

Check out our company and our partnership opportunities by visiting SunriseCapitalInvestors.com
Would you like to partner with us on future MHP deals, call 844-CASH-FLW to learn more or click here to schedule a time on our calendar.
Grab a free copy of our book "The 21 Biggest Mistakes Investors Make When Purchasing their First Mobile Home Park…and how to avoid them click here
Visit Ollie.co

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Ep #227: Expanding a Successful Construction Company from the Culture Up - with Ira Singer Apr 30, 2019

Show notes

In this episode of the Real Estate Investing for Cash Flow podcast, Kevin welcomes real estate investment and construction expert, Ira Singer. With over twenty years of experience in construction, Ira is currently the principal of Mosaic construction and he is involved in new business development, estimating, construction, production, project management of trade partner and vendor relationships.

Ira talks about Mosaic Construction and shares the 'secret sauce' in how his team successfully expanded their market by molding their philosophy, being visible to the community and building relationships then communicating their story effectively.

QUOTES:

"We prefer the design-build methodology, it helps the client, it helps the management team, it helps everybody streamline the construction process which how it all comes together for Mosaic Construction."

"The mosaic way is open communication, transparency, close the loop and when you're doing that in construction and you have clients that understand the value of that so they don't have to babysit the project, they can focus on their investment and their next deals…"

"We're really good at building relationships and working in the community, and having an impeccable reputation. That really helps."

"We have a branding and sales marketing consultant that work with us to make sure that we have a healthy culture, that our team understands what we're trying to accomplish out there everyday."

"Our construction partner is key, and I don't think there's a tremendous amount of decision-making to bring that person early on in the process, when we've pre-walked the final two or three assets that are being considered so we can help with the due diligence process and create real numbers for various components for construction. That's what a good construction partner will do."

HIGHLIGHTS

5:36 Ira's background
9:24 How Mosaic Construction work with clients
12:41 How Mosaic expanded into a national level
18:09 Asset types that Mosaic is more focused on
21:20 How did Mosaic survive at the time of the housing crash?
28:24 Mosaic's transparency
33:04 Merging Ira's window company with Mosaic

Job Opportunities with my Team: Click Here

Recommended Resources:

Check out our company and our partnership opportunities by visiting SunriseCapitalInvestors.com
Would you like to partner with us on future MHP deals, call 844-CASH-FLW to learn more or click here to schedule a time on our calendar.
Grab a free copy of our book "The 21 Biggest Mistakes Investors Make When Purchasing their First Mobile Home Park…and how to avoid them click here
Visit MosaicConstruction.net

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Ep #226: How to Crush It In Apartments and Commercial Real Estate - with Brian Murray Apr 23, 2019

Show notes

In this episode of the Real Estate Investing for Cashflow podcast, Kevin welcomes back real estate investment expert, Brian Murray. Brian is the founder and CEO of Washington Street Properties, a commercial real estate investment and property management company and one of the nation's fastest growing private companies. Bryan is also the author of the best selling book, Crushing It In Apartments and Commercial Real Estate, a definite must-read for anyone who wants to start in the commercial real estate space.

Brian talks about real estate management and how he manages to spread his focus geographically and on different asset types. He shares some insights about multifamily vis-à-vis commercial property real estate. He shares details on how his company re-purposed an old hotel into a thriving apartment complex. Kevin and Bryan also discuss how to find great opportunities and give some advice on how to thrive in these challenging times. QUOTES:

"That first acquisition kind of set the tone in terms of how I developed my own company and it's really based on value adds."

"We'll increase the income, drive those expenses down, create value and then we pull some cash out and grow, but that's becoming more of a challenge now."

"I feel like you've got a lot more control with multifamily, when you're managing a commercial property, it depends on the specific property but many, many times you have a disproportionate amount of rent coming in from individual tenants so if you lose a tenant in a commercial property, depending on the specific property, you may lose ten percent of your rent or even a hundred percent of your rent."

"With our residential tenants, we have primarily workforce housing type tenants, you know, people who are down to earth and frankly, I've been more comfortable dealing with them."

"Cap rates are so much higher in hotels right now than they are in multifamily that I think there's a lot of opportunity out there that people can pursue."

HIGHLIGHTS

6:52 Start of Brian's career in real estate and how it's changed over the years
10:47 Expanding geographical horizons
14:00 Comparing multifamily and commercial real estate
22:18 Brian's hotel conversion project
35:54 Expansion to other asset classes

Job Opportunities with my Team: Click Here

Recommended Resources:

Check out our company and our partnership opportunities by visiting SunriseCapitalInvestors.com
Would you like to partner with us on future MHP deals, call 844-CASH-FLW to learn more or click here to schedule a time on our calendar.
Grab a free copy of our book "The 21 Biggest Mistakes Investors Make When Purchasing their First Mobile Home Park…and how to avoid them click here
Visit Washington Street Properties' Website

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Ep #225: Capitalizing on Overlooked Commercial Opportunities - with Ian Ross Apr 16, 2019

Show notes

This week's episode of the Real Estate Investing For Cashflow podcast features real estate investment expert Ian Ross, founder of Somera Road, Inc; a real estate private equity firm based in New York. Somera takes an entrepreneurial and creative approach to value -add, opportunistic real estate in non-core markets. Since its inception in 2014, it has acquired about 10.5 million square feet in real estate across twenty US cities. Listeners get a glimpse of how Somera operates as Ian shares details on certain projects they're currently involved in. Ian also shares some perspectives on development and execution and how Somera envisions value in real estate. QUOTES:

"If you have grown up around sophisticated, highly complex, large-scale markets like New York city, and you understand how to underwrite those markets, I could take you to Cleveland and we could look at the relevant office buildings and you could figure out supply and demand, how people live, work, play, move, where they want to be, how they want to be there and how they're willing to pay to be there, fairly quickly."

"We're very micro-economic focused and focused on a deal by deal basis."

"We do what we say we're gonna do and I think that by taking that approach, we become a great liquidity provider to a lot of sellers who are looking for surety of close."

"I'm just trying to learn information and input that information to analysis, it's not that hard."

HIGHLIGHTS

5:10 Ian's background
9:04 Ian explains what they do at Somera
21:10 Deals and opportunities
31:54 How does Somera identify opportunity?
39:36 Thoughts on autonomous vehicles

Job Opportunities with my Team: Click Here

Recommended Resources:

Check out our company and our partnership opportunities by visiting SunriseCapitalInvestors.com
Would you like to partner with us on future MHP deals, call 844-CASH-FLW to learn more or click here to schedule a time on our calendar.
Grab a free copy of our book "The 21 Biggest Mistakes Investors Make When Purchasing their First Mobile Home Park…and how to avoid them click here
Visit Somera Road's Website

Review and Subscribe

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