Short Term Rental Strategy with Danielle & Culin Tate

 

Short Term Rental Strategy with Danielle & Culin Tate

 

Guest: Danielle & Culin Tate went from unemployed to grossing over $1 Million annually through Short Term Rental/Airbnb Investing. Culin used his background in SEO to reverse engineer the AirBNB algorithm to rank their 10 listings on the top page.

Big Idea: Selecting the right properties for your portfolio in a tight geographic region provides the opportunity to better monopolize your chosen market.

 

 

    

Dan Breslin: Sweet. Yeah. So for listeners who don’t know, we’re on the video call. And you could see the host, Coach neon sign in the background. That is Danielle and Culin’s Hosting Company. They have 10 short term rentals that they have operated at what is an above average performance rate compared to what most people probably get out of their short term rentals soon to be 11. They’ve been doing this since 2018, and have written the book, which I believe, is also called Host Coach as well. Plug for the book. Cool. Welcome to the show. Do you guys want to share the backstory? How did you end up doing this, you know, starting in 2018, and maybe what’s the business model look like.

CTate: Yeah, yeah, excellent question. I started real estate the way a lot of people do kind of by accident, meaning that in 2018 I’ve always been a serial entrepreneur. I’ve had many startups, and in 2018 I was part of a startup that would basically shut down shop and just kind of looking at my life thinking. You know, I’ve got a 8 year old, son, am I gonna really go? You know, what’s the what’s the effort level look like starting another startup right? And and everybody that’s done that knows, you know the grind involved, and we had one short term rental at the time and it was, you know, a sideline kind of thing, but it was doing $4,000 a month or so in in gross revenue, and I thought. You know, I’ve always been kind of excited and interested in real estate. I could do easy math, and I can multiply 4 times 2 or 3, and start to see some scale there. And then doing what we do best. We iterated and used all of our background from having various tech companies separately and together, and really started to dig into. How do you make this perform? How do you? Once we had a couple we accidentally bought 3 from different people simultaneously. So we had enough to test some theories and really start to manipulate how we were presenting things and and work on the Airbnb Algorithm to be at 97% occupancy year round.

 

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.HostCoach.co/

 

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

https://AccessOffMarketDeals.com/podcast/

 

Danielle & Culin Tate & I Discuss Short Term Rental Investing:

  • Top Page Ranking on AirBNB

  • Benefits of a highly focused Short Term Rental Portfolio

  • Blue Ridge Mountains, Virginia

  • The Recent Evolution of Short Term Rentals

 

    

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.

Dallas – Fort Worth Industrial Real Estate Development with Michael Tran

 

Dallas – Fort Worth Industrial Real Estate Development with Michael Tran

 

Guest: Michael Tran is an associate vice president in the Colliers International Dallas-Fort Worth real estate office where he specializes in acquisitions & dispositions of industrial properties in Dallas-Fort Worth and throughout Texas. He has a background driving more than $600M in value through leasing and has closed more than 900 commercial real estate deals to date.

Big Idea: Dallas – Fort Worth Texas industrial real estate offers strong opportunities in the Small Bay Industrial flex space asset class. This asset class seems poised for continued cap rate compression & value increases as institutional investors have begun buying in bulk.

 

 

    

 

Michael Tran: Oh, yeah, yeah. You know, we’re we’re probably a little bit over like 9 50. Now, you know, we’ve had a little bit of slow down last year or 2. But you know, we’re a team of 5 guys who been out in the industry for over like 50 years combined. So we’ve got some heavy deal volume. We try to do at least 50 to a hundred transactions a year on the multi 10 industrial side.

Dan Breslin: So I am going to start us in a little bit of a unique philosophical place. If that’s okay, this is this is not going to be like a question. I have a little little bit of verbiage here to package this. So we have on one side of the coin, Sam Zell, and for anyone listening who does not know who Sam Zell is, Sam built a very large, multifamily portfolio. I believe he sold that. He built one of the largest mobile Home Park portfolios in the country. I believe he may have sold that he may still own it or his company, and he was probably the most known recently for timing in the office market and exiting equity office properties. I believe it was in 2017, and looking back, what we all know about office now, I mean, that was like impeccable timing. And unfortunately Sam Zell passed. So that’s Sam Zell and Sam Zell’s philosophy was. There’s way too much risk in developing real estate. There’s way too many assets out here that can be bought.

 

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:

www.FlexBusinessParks.com

 

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

https://AccessOffMarketDeals.com/podcast/

 

Michael Tran & I Discuss Dallas-Fort Worth Real Estate:

  • Uncapped Income Opportunities

  • Development of Small Bay Industrial

  • Buying into the Upward Trend

  • Lower Risk from a Broad Tenant Base

 

    

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.

Selecting the Top Airbnb Real Estate Market with John Bianchi

 

Selecting the Top Airbnb Real Estate Market with John Bianchi

 

Guest: John Bianchi is an experienced entrepreneur specializing in analyzing Airbnb data and helping investors identify profitable short-term rental opportunities. With a background in data analysis, he transitioned from managing rental properties in Chicago to focusing on providing valuable insights and strategies for Airbnb investors.

Big Idea: Understanding Short Term Rental Markets relies on the data. John describes how to do this on the show and even offers his 40+ course on the topic absolutely free.

 

 

    

 

Dan Breslin: So I found in my research for today’s episode that you started off in the Airbnb space with a handful of units in Chicago. Would you mind starting the origination story there and then getting to how your business looks today.

John Bianchi: Yeah, I was just about to get into it. And and mention that I absolutely love Chicago. It’s my favorite place, like Chicago in the summer is one of the best places to live ever right the waterfront, everything you do there so great memories from Chicago. But what the way I got to Chicago was I was actually looking to try and go anywhere in the country that was going to be really profitable for short term rentals right. And as an analyst and data analyst, I looked everywhere like genuinely everywhere. And I thought Florida was the place to be with the way that I was trying to do things I was trying to do rental arbitrage at the time without getting too into it. You rent somebody’s house, and you put it up on Airbnb right? Not a great business model in the long run. I know that nowadays. But Florida was looking amazing. I actually went down to Florida, drove around to 7 different cities over a 1 month period, trying to make it work down in Florida and failed, thought of my face, and just woke up one morning and drove 24 h back to Canada. Like was like, I’m done, and I took off. And at that time I I had actually left and sold another business to go do this. And I thought Florida was going to be it, and it just wasn’t whatsoever.

And so I was trying to figure out like, where do I go now? Right like, where the hell am I supposed to go? I had raised money from people I, you know, told my family I was leaving, and all of a sudden I’m back like, I feel like an absolute loser. And so now I’m like, Okay, where do we go, and the 2 options I had were Chicago or San Diego and, you know, having already gone a quick 24 h away, I’m like, let’s just go to Chicago. It’s a lot closer. We’ll make it make it work up there. And yeah. So anyways ended up in Chicago, figured out where exactly to go within Chicago, which was Lincoln Park. That was like the gold mine when it came to short term rentals specifically 4 bedrooms. If you could set them up proper way. And I, you know, within the 1st 2 weeks had 3 properties ready to go. And or I’d found 3 properties. 3 landlords who are willing to rent it out to me to turn it into short term rentals over the next month and a half. I got those all up, and running ended up after a 2 year period, having about 15 up and running handful of rental arbitrage. Handful of property management. Had my own cleaning company out there as well, and it was it was going well. And then, you know, Covid came around and wiped that all out pretty quickly. Luckily I still had the contract still had the ownership of them, and was able to sell that to somebody else which was its own fiasco. But then the main thing that I really got out of this entire process of what I built up in Chicago was, I realized that I was really really good at analyzing Airbnb data to be able to find properties that were going to work out really well. And that there was a ridiculous amount of people in the Airbnb space that did not know how to do that whatsoever.

So through that realization, I’m kind of an opportunist. And I figured out that I could offer that service of analyzing Airbnb data to people. And I have been doing that for almost a little over 3 years now. And it’s just continued to snowball. And I’ve continued to build a business from 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.strsearch.com/

 

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

https://AccessOffMarketDeals.com/podcast/

 

John & I Discuss the Airbnb Real Estate Market:

  • How Hurricane Helene is impacting the Short Term Rental markets.

  • The risk of Oversaturation in any strong Airbnb market.

  • Get Good at Data to Win in Investing

  • 3 Metrics to Understand Any STR Market

 

    

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.

Property Radar Founder Sean O’Toole on Investor Data

 

Property Radar Founder Sean O’Toole on Investor Data

 

Guest: Former house flipper turned tech company founder Sean O’Toole is the CEO of Property Radar, a property public record data source for business owners and real estate investors.

 

 

    

 

Dan Breslin: Nice nice cool. So I wanna I wanna start if we could. And I know we’ll talk about sort of your real estate experience, and and tying that into property radar, which is the company that you founded. But I thought we’d kind of go through the woods a little bit and start at the age of 14. How did you, I assume, you say professional software developer at 14? How did you manage to get paid to develop software starting at 14 years old, Sean.

Sean O’Toole: Yeah. So my Comp. Parents bought an apple 2 for their business when I was 10 years old, 1978, and I, you know, I just kinda my mom used my. My bedroom was kind of big. It was behind the garage. It was kind of big, and so she used my bedroom when I was off at school as her desk in her office and put the computer on that. And what they didn’t realize was that you know I would spend the next every day staying up till 2, 3, 4 in the morning, if going to sleep at all and playing on this computer and, you know, learn multiple languages, learned how to hack. It even had a modem so learned how to freak for the folks that are into that. And it’s it’s EHRE. A. K. Just just got super into it. And my dad’s friend had an engineering company, and they had a Mini computer that had a maximum of 16 terminals. And his business was growing. And he was having this huge problem in that he couldn’t afford a whole nother Mini computer. And he needed 2 more terminals. And I said, Well, I can write that same software or the software that you need to do the data input, and then I can take away one of your terminals. Set up 3 apple threes. Now you have your 2 more people, plus the one we’re replacing  and then connect it back in using the other terminal connection to put in the data. And so he was able to expand his business from 16 to, I think ultimately, like 40 or 50 people working, using one computer and a bunch of apple iis. And so I designed that and wrote the software forum. And then you know, wrote billing systems for another local company and other stuff and was making a lot of money bought brand new Gti. When I was 16, and bought my 1st house when I was 18, started my 1st software company when I was 18. So it just kind of kept rolling from 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.PropertyRadar.com/

 

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

https://AccessOffMarketDeals.com/podcast/

 

    

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.

Flipping Commercial Real Estate with Sean Katona

 

Flipping Commercial Real Estate with Sean Katona

 

Guest: Sean Katona is a commercial real estate investor with a focus on retail property located in the Phoenix, AZ real estate market. Sean has a background in tech & flipping houses before graduating to & focusing solely on commercial real estate.

 

Big Idea: Sean & I discuss the method of driving 7 figures in value & profit in a single deal by rapidly raising the rent roll & net income.

 

 

    

 

Dan Breslin: So, Sean, let’s start with the origination story. The listeners. We’re gonna touch on commercial real estate retail mostly specifically today. But let’s talk about how you got started in the real estate business.

Sean Katona: My story began in corporate America, I think like a lot of people, you know. Go to school, get a good job. And then I found myself just kind of stagnant, bored, but had saved up maybe 50 grand, and I was like, hey? What am I gonna do with this money? I chose to invest it in real estate cause I read rich, dad, poor dad! I think, like a lot of people out there, and I think what what comes organically to most people is, oh, I’ll go buy a rental house which for me turned into an accidental flip because it was cash flow, negative. And then I made a little bit of money on that I was like, Hey, this, this could be a thing. If I did a few of these a year it almost would replace. You know my salary, and at the time I was working at Microsoft but I was enchanted by, you know, the freedom and the unlimited upside potential. I could do you know, dozens of deals a year in theory, and and be making 7 figures instead of 6, so that fascinated me.

Dan Breslin: Nice. So you were doing house flipping at the time, and you got up to a pretty good volume. I mean, how many years was that that you flipped houses before you transition to commercial, and maybe like what was the last year or 2 where it was like, hey, this thing’s a big thing before you started to wind wind it down…

 

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:

http://SeanKatona.com/

https://www.SimplifiedProperties.com/

 

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

https://AccessOffMarketDeals.com/podcast/

 

Sean & I Discuss Flipping Commercial Real Estate:

  • Phoenix Real Estate Market

  • Big Losses in SFR, Big Profit in Retail

  • Portfolio Cornerstone Properties

  • How to Land a National Credit Tenant

 

    

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.

Equity Warehouse Founder Ian Horowitz on Self Storage Investing

 

Equity Warehouse Founder Ian Horowitz on Self Storage Investing

 

Guest: Ian Horowitz is the co-founder of Equity Warehouse, as self storage and small bay industrial development company. Ian is also the host of the Real Estate Reserve podcast.

 

Big Idea: How to progress from single family house flipping and rentals to commercial real estate investing. 

 

 

    

 

Dan Breslin: for any of our listeners. Ian, who don’t already know about you and Equity Warehouse. Do you want to kind of give us the origination story where you started, what you were doing. And then maybe a reader’s digest of your summary and a career, and and what you’re working on now.

Ian Horowitz: Yeah, you know, we had. We had very humble beginnings. Myself and my business partner. We grew up outside of Philadelphia, and we wanted to be big city firemen, and at the time you had to live in Philadelphia you had to live there your whole career. And we said, Nope, not doing that. And we started taking tests all across the country, and me, my business partner and a few other friends. We ended up in Baltimore City. If you ever watch the wire that’s where we worked. If you watched all the riots that happened, that’s where we worked, we were in the heart of it. And the interesting thing, though, is, we got hired in 7 and 8. Well, why is that important? We all know what happens. The end of the world comes the global financial crisis. And here we are taking government jobs in exchange for security. Right? But then here we are being faced with furloughs, pensions, issues, company closures. Detroit’s going bankrupt. California pension systems are going bankrupt private industry and are going bankrupt.

And then I’m just sitting there going like, what are we doing? Baltimore City is like a half a step above Detroit, like you’re out of your mind. If you think they’re going to be in a better position. So I got nervous about that. And then, you see the guys working there 30, 40 years. They worked there 30, 40 years, and it’s like. Hey? So what are you doing when you retire, lieutenant? I want to go work at home, depot or Walmart, I’m like, well, that’s that’s just dumb like you work 30, 40 years, and you’ll work at Walmart when you retire. And then, you know, the wife wants to have kids. It was just a culmination of everything. Wife wants to have kids. You start to think about legacy, and God forbid! I get killed or incapacitated at work like, how do I survive? And I said, You know, what? How do I make money if I’m asleep? Well, I’m at work right because we work 24 h shifts, and I just kept thinking, I’m like someone’s in my house running it. I am making money every second of the day while they’re there. God forbid! Something happens to me. My wife can hire a manager. She can sell the asset, she can do a multitude of things and take care of my family. As long as these properties are in some sort of performing condition, and that’s what led us down the path to real estate. And just to kind of summarize it, and I’m sure we’ll go through more of the story. But we started in single family. Section 8. Housing. 1st house we ever bought was 25 grand. And today we have almost 70 million dollars worth of real estate, including commercial assets, and the largest deal we’ve done to date is almost 13 million dollars as a 1 time acquisition. So it’s been a heck of a heck of a run. So.

 

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.EquityWarehouse.com

 

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

https://AccessOffMarketDeals.com/podcast/

 

Ian & I Discuss Self Storage Investing:

  • Scaling from SFR to Commercial

  • Flying Planes & Fighting Fire builds real estate skill set

  • $10M deals take as much time as $100,000 deals

  • Small Bay Industrial Development

 

    

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.

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.

Deferring Taxes with Vanguard 1031 Exchange President Brandon Burns

 

Deferring Taxes with Vanguard 1031 Exchange President Brandon Burns

 

Guest: In this episode of the REI Diamonds show, host Dan Breslin welcomes Brandon Burns, a seasoned 1031 exchange expert. With over 4,000 transactions under his belt, Brandon runs one of the 119 1031 exchange companies in the country. His extensive experience and deep knowledge of real estate investment strategies make him a valuable resource for investors looking to optimize their portfolios through tax-advantaged methods.

 

Big Idea: The conversation centers on the strategic advantages of 1031 exchanges in real estate investment. Brandon highlights the geometric average problem and how 1031 exchanges can mitigate tax burdens, allowing investors to preserve and grow their wealth more effectively. By deferring taxes on property sales, investors can reinvest the full proceeds into new properties, enhancing their long-term financial gains.

 

 

    

 

Brandon: Yeah, that’s perfect. I run a 1031 exchange company. There’s 119 in the country. There’s a good amount, but not a ton. I think one of the things you mentioned that makes a lot of sense, even though I’ve been doing this for a while and I’ve been a part of about 4,000 transactions, I’ve still got a deal this year that I’m not going to 1031 exchange, right? I think there’s two points in life, and sometimes they overlap somewhat, but at one point in life, you’re in your wealth accumulation phase, and in another part of life you’re in your wealth preservation phase. One of the nice things about real estate is that there’s so many ways to win, right?

You can potentially get income, you can get appreciation, you can get tax benefits, and so on and so forth. Well, section 1031 of the tax code creates another benefit for people that own investment property, and it’s just another tool for someone to have. There’s actually two parts of the tax code that give benefits for people that own and are selling real estate that’s made money. The first one is section 121 of the tax code, which is if you’re selling your primary residence, if you’ve lived in it 24 out of the previous 60 months, and it doesn’t have to be consecutive, but a minimum of 24 to the previous 60 months, then you get 500,000 tax-free if you’re married, 250,000 tax-free if you’re single. Well, section 1031 says that if you jump over a number of hurdles that we’re going to quickly go over, then you can roll all of that money into all of your profits without paying taxes into one or more properties, which can be really powerful, and the math behind that is really interesting.

 

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://Vanguard1031x.com/

 

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

https://AccessOffMarketDeals.com/podcast/

 

Brandon & I Discuss Deferring Taxes:

  • Understanding Section 1031 and Section 121 of the Tax Code (03:00-07:00): Benefits of Section 1031 for investment properties and Section 121 for primary residences, and leveraging both for tax advantages.
  • The Power of Compounding and Avoiding Geometric Average Losses (07:00-09:00): Impact of compounding interest and geometric average problems, with emphasis on how 1031 exchanges help retain profits.
  • Navigating the Four Major Hurdles of 1031 Exchanges (15:00-18:00): Key challenges in 1031 exchanges—time, value, financial, and property type—and strategies to overcome them.
  • Combining Section 121 and 1031 for Optimal Tax Benefits (20:00-24:00): Scenarios where combining Section 121 and 1031 can lead to significant tax-free gains.
  • Scaling Up and Strategic Property Acquisition (32:00-36:00): Personal experiences on scaling from smaller to larger properties, emphasizing mortgage paydown and property management benefits.
  • Pitfalls in 1031 Exchanges (47:00-50:00): Common pitfalls, including incorrect paperwork and the importance of setting up exchanges before closing deals.
  • Delaware Statutory Trust (DST) Overview (59:00-01:03:00): Explanation of DSTs as an alternative investment for 1031 exchanges, including their benefits and limitations.

 

    

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.