ATX Acquisitions Partner Dan French on $2B in Closed Deals

 

ATX Acquisitions Partner Dan French on $2B in Closed Deals

 

Guest: Dan French is a seasoned real estate investor and entrepreneur with over 20 years of experience, known for his deep insights into long-term goal-setting and capital allocation. With a successful real estate portfolio built through strategic decisions in deal underwriting and market timing, Dan has navigated multiple real estate cycles. In this episode of the REI Diamonds Show, he joins Dan Breslin to share his journey, the importance of mindset in achieving success, and his forward-thinking approach to entrepreneurial goals.

 

Big Idea: In this episode, Dan French emphasizes the critical distinction between short-term and long-term goals, arguing that entrepreneurs often overestimate what they can achieve quickly while underestimating their potential over a decade. He advocates for a high-aiming approach to long-term objectives, highlighting the need to balance growth with life priorities, such as family and personal well-being. Drawing from his extensive real estate journey, French illustrates how yesterday’s goals can impede progress and underscores the necessity of a mindset shift for sustained success. He also delves into the nuances of capital allocation, stressing the importance of avoiding overpaying during market peaks and the wisdom in strategically selling non-core assets during overheated markets. Through disciplined underwriting, conservative deal-making, and a keen understanding of replacement cost metrics, French lays out a blueprint for achieving long-term success in real estate investing.

 

 

    

 

Dan Breslin: Yeah, for sure. I I’m sure some of the listeners probably know your name or the company names and some of your history, and we’re going to get into an intro and pull on the threads there a little bit about that. But I thought we would start with a quote that I saw you post on Twitter recently, and and I quote yesterday’s goals drag us down into the pits of the nether world.

Dan French: Okay. Yeah.

Dan Breslin: How so? How so? And why.

Dan French: Yeah, I I think what I what I meant there was. You know, we have a tendency to get stuck in the past. And when you, when your mind share is is taken up by by what you should have achieved yesterday. You, you don’t focus on the future and what you’re in control of today. So it it’s kind of like a demon, you know. If you, if you look at the Michelangelo painting on the Sistine Chapel that’s called the Last Judgment, and the bottom of the painting is a bunch of demons pulling people down into the the netherworld like hell. And that’s what I was equating yesterday’s goals. So so basically, like, it’s, it’s just a pivoting mindset of having an entrepreneurial you know, fortitude or intestinal fortitude to just say, Hey, you know what? Yesterday’s goals? They don’t matter anymore. Today, like, what are, what are we achieving today? And how are we doing things better today. So that’s what that meant.

 

This Episode of The REI Diamonds Show is Sponsored by the Deal Machine. This Software Enables Real Estate Investors to Develop a Reliable & Low Cost Source of Off Market Deals. For a Limited Time, You Get Free Access at http://REIDealMachine.com/

 

This Episode is Also Sponsored by the Lending Home. Lending Home Offers Reliable & Low Cost Fix & Flip Loans with Interest Rates as Low as 9.25%.  Buy & Hold Loans Offered Even Lower.  Get a FREE IPad when you Close Your First Deal by Registering Now at  http://REILineOfCredit.com

 

Resources mentioned in this episode:

https://www.ATXacquisitions.com/

 

For Access to Real Estate Deals You Can Buy & Sell for Profit:

https://AccessOffMarketDeals.com/podcast/

Dan French & I Discuss Closing $2B Deals:

  • (00:03:29) The 10-year vision: How entrepreneurs can expand their thinking and aim for massive success.
  • (00:10:46) Dan’s early career in real estate:
  • From small multifamily deals to growing a larger real estate portfolio.
  • (00:19:48) Strategic Capital Allocation: The importance of conservative underwriting and aligning capital allocation with market cycles.
  • (00:20:24) The Role of Replacement Cost: Why buying above replacement cost signals a potential market danger and how it influenced their investment strategy.
  • (00:24:18) Post-Great Financial Crisis Lessons: The impact of the 2007–2008 financial crisis on current real estate investment strategies.
  • (00:42:13) Syndication and General Partner Funds in Real Estate: Dan explains how his company leveraged syndication deals and created a General Partner fund to scale their business, detailing the pros and cons of capital structure.

 

    

Relevant Episodes: (200+ Content Packed Interviews in Total)

 

The transcript of this episode can be found here.
Transcripts of all episodes can be found here.

Mastering Real Estate Success with Stoic Equity: Building Strong Relationships & Winning Deals with Jeremy Friedman

 

Mastering Real Estate Success with Stoic Equity: Building Strong Relationships & Winning Deals with Jeremy Friedman

 

Guest: Jeremy Friedman is the co-founder of Stoic Equity Partners, a commercial real estate firm focused on multi-tenant industrial properties. With Stoic’s portfolio nearing $100 million in assets under management and spanning over one million square feet, Jeremy shares insights from his journey transitioning from an institutional bond broker to a leading real estate investor.

 

Big Idea: In this episode, Jeremy delves into the advantages of investing in multi-tenant industrial properties, particularly those offering flexibility in office and warehouse space. He discusses the strategic shift from self-storage to industrial real estate, driven by supply constraints and rising demand, and how adaptive reuse projects have fueled Stoic Equity Partners’ growth. Jeremy underscores the significance of value-add opportunities, demonstrating how his team has leveraged market dynamics with a focus on tenant flexibility, revolving leases, and long-term profitability. He explores the complexities of managing flex space properties, including maximizing returns for both general and limited partners, balancing investor splits, preferred returns, and fixed-rate debt, while addressing market fluctuations, interest rates, and key risk factors that investors should consider.

 

 

    

 

Dan Breslin: All right, Jeremy Friedman. Welcome to the REI Diamond show. How are you doing today?

Jeremy Friedman: Hey, I’m doing great, Dan. Thanks for having me. Looking forward to it.

Dan: For sure. So you’re the co founder of Stoic Equity Partners. Somewhere about to hit the hundred million dollar assets under management mark with a million square feet. So you guys have built some momentum from the research I’ve done before the episode. There’s a little bit of self storage. It looks like it’s kind of hanging on, maybe got bought a little bit in the excitement and the height. I own a lot of storage myself, and we’re certainly not doubling down on that strategy at the moment. We’re like doubling down on our management of the current assets and we’re going to like make those things make money.

Jeremy: We’re in the same place with our storage.

Dan: Yeah. If the right deal comes along, yeah, sure we would do it. But that’s probably not for me, the main hunt and then you’re into the multi tenant industrial space and that’s probably going to be the bulk of our conversation here today. Jeremy, to kind of fill in maybe the holes, maybe you want to talk about the progression of your career in real estate with.. I’ve given you a little bit of an introduction there.

 

This Episode of The REI Diamonds Show is Sponsored by the Deal Machine. This Software Enables Real Estate Investors to Develop a Reliable & Low Cost Source of Off Market Deals. For a Limited Time, You Get Free Access at http://REIDealMachine.com/

 

This Episode is Also Sponsored by the Lending Home. Lending Home Offers Reliable & Low Cost Fix & Flip Loans with Interest Rates as Low as 9.25%.  Buy & Hold Loans Offered Even Lower.  Get a FREE IPad when you Close Your First Deal by Registering Now at  http://REILineOfCredit.com

 

Resources mentioned in this episode:

https://www.stoicep.com

 

For Access to Real Estate Deals You Can Buy & Sell for Profit:

https://AccessOffMarketDeals.com/podcast/

Jeremy Friedman & I Discuss Mastering Real Estate Success with Stoic Equity:

  • Launching Stoic Equity Partners (3:30): How the firm was born during the pandemic, starting with adaptive reuse of an old grocery store into a self-storage facility.

  • Cash Flow and Tenant Diversity (8:10): The benefits of managing properties with multiple tenants and how this strategy enhances cash flow and lease flexibility.

  • Tenant Profile (13:10): What to look for in ideal tenants, highlighting service providers like HVAC contractors, parts houses, last-mile logistics companies, and pest control firms.

  • Investor Returns and Splits (21:24): Jeremy explains the cash-on-cash returns and the IRR targeted for investors. He breaks down the preferred return and the desired profit split.

  • National vs. Local Tenants Risk (31:03): He examines how national tenants may close locations during economic downturns, while smaller local tenants may provide more stability, as they often prioritize survival.

  • Relationship Building (40:00): The significance of relationships with brokers, sellers, leasing agents, tenants, and equity partners in driving business growth.

  • Transparency and Trust (43:00): The value of following through on promises and maintaining transparency in relationships to build trust and reliability.

 

    

Relevant Episodes: (200+ Content Packed Interviews in Total)

 

The transcript of this episode can be found here.
Transcripts of all episodes can be found here.

Shauna the Tax Goddess on Legally Avoiding Taxes

 

Shauna the Tax Goddess on Legally Avoiding Taxes

 

Guest: Shauna the Tax Goddess, is a top-tier tax strategist with over 105 specialists under her wing, focusing on U.S. taxation. Shauna, a CPA with a Master’s in Taxation, and is one of the few Certified Tax Strategists in the country. With her extensive knowledge and experience, Shauna shares invaluable insights on how real estate investors can optimize their tax strategies to keep more of their hard-earned money.

 

Big Idea: Shauna emphasizes the critical importance of tax efficiency in wealth accumulation, particularly for real estate investors. She explains how a specialized tax strategist, instead of a general CPA, can significantly reduce tax burdens through customized strategies tailored to an individual’s unique circumstances, maximizing long-term financial gains.

 

 

    

 

Dan: I am also fantastic. I was excited. I was excited when I saw the booking agents get us on the show. I said, look at this tax strategy. It’s one of these topics that I’ve spent a good chunk of time reading over the 15 years I’ve been in business or so. I’ve had to learn so much of it myself. There’s people that I run into who are like, “I don’t really have anyone. I kind of need the right person.” So I was like, all right, great. We’re going to do this episode here and we’re going to talk a few scenarios. Maybe you are that type of person for people who’ve had that issue. So the big problem that I want to highlight before we get into the show is anyone who’s read The Snowball, Warren Buffett’s biography. One of the big lessons for me in that book was tax efficiency. When you’re not knowledgeable and intelligently structuring your business affairs year over year over year aware of the taxes, the taxes are chopping your gains down so that at the end of 15, 20, 25, 30 years, you may end up with a lot less than your efforts probably should have afforded you. So that’s the big problem that we’re really going to talk about a few of the solutions. I think everybody has a custom scenario here who’s probably listening into the show. So we’ll touch on a few of those. But before we get started there, would you mind giving the audience an overview of the tax goddess?

Shauna: I would love to. Thank you. So, Shauna the Tax Goddess, own a firm, tax goddess. At this point, we’ve got a little over 105 people in 17 different countries in the world, all focused, all trained on U.S. taxation. Now, really, I think the biggest thing and where people kind of get a little confused is, “Listen, Shauna, you’re a CPA. I’m a CPA, master’s in tax. I’ve got a bunch of letters after my name. What’s really the difference between a standard CPA and a tax strategist?” If you look at it from the statistics, according to Google, there are 665,000 CPAs in the U.S. CPAs do all sorts of things. They file taxes, but they’re also auditors, controllers, CFOs, bankers. I mean, they do all sorts of things. As you start to go up the chain specializing in tax strategy, there becomes fewer and fewer and fewer of us that really work on tax mitigation, minimizing that tax burden for business owners, for investors, for anybody involved. So when you start to look at these levels, the 665,000 CPAs, there’s only 60,000 that have master’s in tax. There are 607 that are considered certified tax coaches. As you go further up that chain, there’s only 15, one, five, that are what are called certified tax strategists. So we are the top of the top of the top of the food chain. So when somebody says, what do you do that’s different than other CPAs? Generally, a CPA’s job is to keep you out of jail. File the forms, check all the right boxes, keep you out of jail. It is not their job to deep dive, dig into every strategy, create a customized plan for you. Because as you said, you could be married with kids. I’m single. I’ve got dogs. You have cats. Every piece on the chessboard changes the customized view of a custom tax plan for that individual. Because there are no two sets of facts and circumstances that are identical that just doesn’t exist. So when you want to save the big bucks on taxes, you start looking for a tax strategist versus just your day-to-day CPA.

 

This Episode of The REI Diamonds Show is Sponsored by the Deal Machine. This Software Enables Real Estate Investors to Develop a Reliable & Low Cost Source of Off Market Deals. For a Limited Time, You Get Free Access at http://REIDealMachine.com/

 

This Episode is Also Sponsored by the Lending Home. Lending Home Offers Reliable & Low Cost Fix & Flip Loans with Interest Rates as Low as 9.25%.  Buy & Hold Loans Offered Even Lower.  Get a FREE IPad when you Close Your First Deal by Registering Now at  http://REILineOfCredit.com

 

Resources mentioned in this episode:

https://TaxGoddess.com/

 

For Access to Real Estate Deals You Can Buy & Sell for Profit:

https://AccessOffMarketDeals.com/podcast/

Shauna & I Discuss Legally Avoiding Taxes:

  • Understanding the Role of a Tax Strategist vs. a CPA (02:13): Shauna explains the difference between a standard CPA and a tax strategist, emphasizing the importance of specialized knowledge in minimizing tax burdens for real estate investors.

  • Building a Comprehensive Financial Team for Real Estate Success (05:29) The discussion focuses on the need for a well-rounded financial team, including a tax strategist, CPA, bookkeeper, and other key professionals to optimize tax strategies in real estate.

  • Advanced Real Estate Tax Planning (2.0 Strategies) (11:36): Exploration of more sophisticated tax strategies beyond basic deductions, such as the integration of cost segregation and other advanced techniques for real estate investors.

  • The Security Dog Deduction(12:32): Exploring how real estate investors can write off dogs as a security expense for visiting properties.

  • Maximizing the Masters Exemption (14:13): Utilizing the Masters Exemption to deduct personal vacations as part of real estate operations.

  • Risk Management and IRS Scrutiny (25:08): The importance of maintaining documentation and understanding the risk of IRS audits when implementing advanced tax strategies.

  • Entity Structuring for Tax Savings (37:10): Shauna discusses the pros and cons of different entity structures like S Corps, C Corps, and sole proprietorships for real estate investors.

  • The Power of the Augusta Rule (00:42:03): A look at how the Augusta Rule can be used to write off significant amounts through home office deductions.

  • Importance of Documentation and Compliance (00:47:05): Shauna emphasizes the need for thorough documentation and following the correct procedures to avoid issues with the IRS.

 

    

Relevant Episodes: (200+ Content Packed Interviews in Total)

 

The transcript of this episode can be found here.
Transcripts of all episodes can be found here.