The Best Ever CRE Show

Latest Episodes:

JF3350: Best Ever Roundtable - Cracking the Code: Stress-Testing Deals and Creative Structures in Today's Real Estate Market Nov 06, 2023

Show notes

In this episode, our hosts, Ash Patel, Joe Cornwell, and Slocomb Reed engage in a lively roundtable discussion about the challenges and opportunities presented by the current real estate market, emphasizing the importance of stress-testing deals and being prepared for various scenarios. The conversation touches on topics such as underwriting, creative deal structures, and the shifting dynamics in the Midwest market.

Key Takeaways:

Stress-Test Your Deals: In the current market, it's crucial to stress-test your real estate deals. Factors like rising interest rates, potential vacancies, and unforeseen challenges should be considered in your financial projections.
Creative Deal Structures: To succeed in the competitive market, consider creative deal structures. Whether it's negotiating seller financing, concessions, or exploring unique opportunities, having flexibility in your approach can make a significant difference.
Long-Term Focus: Expect longer hold times for your investments. With uncertainty in the market, planning for a five-plus year window rather than short-term flipping is a prudent strategy to manage risk effectively.

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JF3349: How to Anticipate and Deal with Surprise Vacancies | Bonus Operations ft. Slocomb Reed Nov 05, 2023

Show notes

Bonus Operations is a series hosted by apartment owner/operator and Best Ever Show host, Slocomb Reed. In each five- to ten-minute episode, Slocomb provides his top takes for executing your business plan and maintaining cash flow.

In this episode, Slocomb Reed discusses the crucial signs that property owners and real estate investors should be aware of during the due diligence period when acquiring new apartment buildings. Reed shares 12 red flags that may indicate tenants are likely to vacate soon after the transition in ownership or management. These flags include late rent payments, a lack of concern for property maintenance, sparse furniture in units, intentional damage, subletting without permission, vacant apartments listed on the rent roll, unauthorized pets, and more.

Reed also delves into the significance of non-English speaking tenants within migrant communities and how their relationships with landlords can impact occupancy.

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JF3348: David Lilley - How This Operator Gets a 40%+ Average IRR for His Investors Nov 04, 2023

Show notes

In this episode, we dive deep into the world of multifamily real estate with David Lilley, the CEO of Reap Capital. David shares his journey from single-family rentals to becoming a successful multifamily investor, emphasizing the importance of creativity and tenacity. He provides valuable insights into his unique approach of vertically integrating property management and construction into his investments. Discover how David has consistently achieved impressive returns for his investors and what it takes to thrive in the multifamily market.

Key Takeaways:

Creativity and Tenacity: David emphasizes the importance of thinking outside the box and approaching real estate investments with creativity and tenacity. These qualities have allowed him to succeed and stand out in a competitive market.
Vertical Integration: By bringing property management and construction in-house, David has gained more control over his investments and improved communication within his team. This approach has proven to be a key factor in his success.
Philanthropy and Giving Back: David discusses his commitment to philanthropy, particularly his support for St. Jude Children's Research Hospital. He shares his plans for future nonprofit involvement, highlighting the importance of giving back to the community.

David Lilley | Real Estate Background

CEO, Reap Capital
Portfolio:
- Multiple properties in Texas
Based in: Dallas, Tx
Say hi to him at:
- ReapCap.com
Best Ever Book: The Hands Off Investor by Brian Burke
Greatest Lesson: Your network is your net worth.

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JF3347: Thomas Lorini - Secrets to Cross-Border Real Estate Success Nov 03, 2023

Show notes

In this episode, we delve into the world of cross-border real estate investment with Thomas Lorini, CEO of VentureCo Capital. Thomas shares his experiences and strategies for investing in commercial real estate across the United States and Canada. From diversifying portfolios to vetting partners, his insights are valuable for both seasoned investors and newcomers looking to explore opportunities beyond their borders.

Key Takeaways:

Diversification Across Markets: Thomas emphasizes the importance of diversifying investment portfolios across different markets. While many investors focus on hot markets like California, Thomas has found success in the often-overlooked Midwest, where cap rates are more favorable. He highlights how markets like Cleveland and Columbus are experiencing significant appreciation, offering unique opportunities for cash flow and growth.
Partnering for Success: To mitigate risks and ensure success, Thomas stresses the significance of vetting operators and partners carefully. Whether it's partnering with experienced operators in specific markets or collaborating with developers, understanding the track record and capabilities of your partners is crucial. This due diligence helps protect both your and your investors' capital.
Guidance for Canadian Investors: Thomas offers valuable advice for Canadian investors looking to venture into the U.S. real estate market. He recommends exploring two paths: slow and steady or strategic partnerships with experienced operators. Financing challenges for foreign investors often necessitate careful planning, and Thomas underscores the importance of understanding the differences in regulations, financing options, and tax considerations between the two countries.

Thomas Lorini | Real Estate Background

CEO of VentureCo Capital and Real Estate Coach
Portfolio:
- 400+ multifamily units in a variety of markets across US and Canada
Based in: Irvine, CA
Say hi to him at:
Best Ever Book: The Bible
Greatest Lesson: Surround yourself with people that are better and more skilled than you.

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JF3346: 5 Types of Multifamily Investment Business Plans | Passive Investor Tips ft. Travis Watts Nov 02, 2023

Show notes

Passive Investor Tips is a weekly series hosted by full-time passive investor and Best Ever Show host, Travis Watts. In each bite-sized episode, Travis breaks down passive investor topics, simplifying the philosophy and mindset while providing tactical, valuable information on how to be a passive investor.

In this episode, Travis dives into the different types of multifamily business plans, sharing the risks and needs of each, including core asset, core plus, value add, opportunistic, and ground up construction.

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JF3345: Ben Bauer - A Real Estate Attorney Shares the Biggest Deal Structure Mistakes Nov 01, 2023

Show notes

This episode is brought to you by Presario Ventures, a private equity real estate firm based in the booming Austin, Texas, market. To learn how to invest in the future of Texas with Presario Ventures, visit info.presarioventures.com/bestever.

In this episode, we sit down with Ben Bauer, a seasoned real estate investor and attorney, to explore the intricacies of commercial real estate investing. With a wealth of experience in both residential and commercial properties, Ben shares valuable insights on deal structures, seller financing, and the impact of early exposure to real estate.

Key Takeaways:

Deal Structuring Wisdom: Ben highlights the significance of sound deal structures, particularly in complex commercial real estate transactions. He emphasizes the importance of seeking legal counsel and networking within local real estate investor groups to make informed decisions.
Seller Financing Strategies: When it comes to seller financing, Ben stresses the importance of detailed contracts. He recommends specifying all terms and attaching draft notes and mortgages as exhibits to the purchase contract. This transparency ensures all parties are on the same page, reducing potential conflicts down the line.
Early Exposure to Real Estate: Reflecting on his own upbringing around real estate, Ben underscores the value of exposing young minds to entrepreneurial thinking. Encouraging questions and fostering an environment that promotes independent thinking can lay the foundation for a future in real estate or any entrepreneurial venture.

Ben Bauer | Real Estate Background

Real estate investment lawyer of The Bauer Firm, LLC
Portfolio:
- 8 units from single family rentals and small multifamily properties
Based in: Cincinnati, Ohio
Say hi to him at:
- thebauerfirm.com
Best Ever Book: Snow Crash by Neal Stephenson
Greatest Lesson: Success is all about mindset, courage, and confidence.

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JF3344: Bob Thomas - Why You Should Consider Being Asset Agnostic Oct 31, 2023

Show notes

In this episode, we delve into the world of commercial real estate investing with Bob Thomas, a seasoned investor with over a decade of experience. Join us as Bob shares valuable insights into his journey across various asset classes, the importance of partnerships, and strategies for navigating the ever-changing real estate market.

Key Takeaways:

The Power of Partnerships:
- Bob emphasizes the significance of forming strategic partnerships in real estate investing. Collaborative partnerships allow investors to leverage each other's strengths, pool resources, and pursue larger deals with greater efficiency.
- Aligning incentives and complementary skill sets within partnerships is essential for success. While Bob excels in capital raising and acquisitions, he acknowledges his weakness in construction project management. Partnering with experts in diverse areas can lead to creative and synergistic outcomes.
Thinking Big and Setting Ambitious Goals:
- Bob draws inspiration from Stephen Schwarzman's book, "What It Takes," highlighting the importance of thinking big in real estate. He believes that if you're going to invest your time and effort, it's best to aim for substantial goals that challenge you.
- Setting big, hairy, audacious goals (BHAGs) can push investors in the right direction. Bob's goal is to grow his portfolio to a trillion dollars in assets under management, emphasizing that a big vision drives progress and innovation.
Educating for Financial Literacy:
- Bob's commitment to financial education extends beyond real estate investing. He actively engages in financial literacy talks, teaching both investors and school children about creating generational wealth, passive income, and sound financial practices.
- Recognizing the importance of breaking free from a traditional W-2 mindset, Bob believes that introducing children to alternative paths early in life can help them make informed financial decisions and plan for a prosperous future.

Bob Thomas | Real Estate Background

Chief Investment Officer & Co-Founder of Peak Asset Management
Portfolio:
- ~200 units of multifamily
- ~100k sq ft. of commercial retail/office
Based in: Portland, OR
Say hi to him at:
- peakassetmgt.com
- LinkedIn
Best Ever Book: What It Takes by Stephen Schwarzman
Greatest Lesson: Selecting the right partners is the most critical piece to one's success or failure.

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JF3343: Jay Balekar - Strategies for Growing 400+ Units in Two Years Oct 30, 2023

Show notes

In this episode, we delve deep into the world of commercial real estate with Jay Balekar, a seasoned investor who has scaled his portfolio significantly in just two years. Jay shares valuable insights into strategies for success, market conditions, and tackling the affordability crisis. Whether you're a seasoned commercial real estate investor or just starting, you won't want to miss this conversation.

Key Takeaways:

Adapting to Market Conditions: Jay emphasizes the importance of staying adaptable in today's commercial real estate market, which is seeing rising costs, inflation concerns, and shifting rent dynamics. His strategy involves being patient, underwriting deals carefully, and maintaining a focus on operations to navigate these challenges effectively.
Solving the Affordability Crisis: Addressing the affordability crisis in real estate requires more than just handing out subsidies to tenants. Jay suggests incentivizing developers and private investors to create affordable housing by reducing construction costs in targeted areas. He argues that this approach can lead to sustainable, financially viable solutions.
The Power of Delegation: Jay highlights the value of delegation in real estate investing. He recommends focusing on your strengths, leveraging your team, and improving operational efficiency. By doing so, investors can scale their portfolios and make more informed decisions in the complex world of commercial real estate.

Jay Belekar | Real Estate Background

Founder of Compounding Capital Group
Based in: Cincinnati, OH
Say hi to him at:
- LinkedIn
Best Ever Book: Who Not How by Dan Sullivan
Greatest Lesson: Be careful who you listen to, which guru you choose, which books you read. Don't just look at those feel good YouTube videos about how in one year people quit their jobs and are now driving Lamborghinis. That does not happen. That's not sustainable. So you gotta put in the work.

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JF3342: Andrew Freed - How to Choose a Syndication Structure Oct 29, 2023

Show notes

In this episode, Andrew Freed, an experienced commercial real estate investor, shares his journey from a one-bedroom condo owner to managing a diverse portfolio of multifamily properties. He discusses his innovative syndication approach, lessons learned from past investments, and strategies for maximizing returns while mitigating risks.

Key Takeaways:

Syndication Strategies: Andrew explains the intricacies of syndicating a diverse portfolio of 12 properties with 65 units. He delves into the importance of negotiating a partial release clause with lenders, which allows for the sale of individual properties and offers greater flexibility in managing debt.
Investor-Focused Approach: Andrew's syndication model prioritizes investor returns. He outlines a transparent and straightforward profit-sharing structure, with investors receiving a preferred return and a substantial portion of profits, resulting in higher internal rates of return (IRRs).
Continuous Self-Development: Andrew emphasizes the significance of self-discovery and personal development in the entrepreneurial journey. He encourages aspiring commercial real estate investors to focus on becoming the best versions of themselves to achieve their investment goals.

Andrew Freed | Real Estate Background

Founder of Freedom Management
Portfolio:
- 95 Units - 65 units in New Bedford MA, 29 units in Worcester, 1 condo in Boston
Based in: Worcester, MA
Say hi to him at:
- LinkedIn
- Instagram
Best Ever Book: The Wealthy Gardener by John Soforic
Greatest Lesson: Have an endless desire for self-development and self-discovery.

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JF3341: Tim Little - Helping Military Veterans Diversify and Grow Their Wealth Oct 28, 2023

Show notes

In this episode, Ash Patel interviews Tim Little, a seasoned commercial real estate investor and founder of Zana Investments. Tim shares his journey from the military to real estate investing and offers valuable insights into the challenges and opportunities in the commercial multifamily space.

Key Takeaways:

The Importance of Partner Selection: Tim emphasizes the significance of vetting potential partners when considering long-term commitments in real estate deals. He highlights the need for aligned values and the ability to work cohesively with partners over extended periods.
Managing Investor Expectations Amid Rising Rates: Tim discusses the challenges of managing investor expectations when cash flow is impacted by rising interest rates. He stresses the importance of transparent communication with investors, explaining the reasons behind temporary suspension of distributions and the potential impact on long-term returns.
Diversification and Exploring Other Asset Classes: Tim acknowledges the changing landscape of commercial real estate and the need for diversification. He shares his interest in exploring alternative asset classes like express car washes and self-storage. Tim highlights the importance of educating investors when diversifying into new asset types.

Tim Little | Real Estate Background

Founder of ZANA Investments
Portfolio:
- 693 co-owned units valued at over $90M
Based in: Tampa, FL
Say hi to him at:
- LinkedIn
- zanainvestments.com
Best Ever Book: Atomic Habits by James Clear
Greatest Lesson: Vet your partners sufficiently. These are 3 to 10 year commitments, so you not only need to get along with them, your values need to be aligned and you need to know that you can work with these people for the long haul.

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