Private Money Lending Masterclass with Dan Breslin

 

Private Money Lending Masterclass with Dan Breslin

 

Guest:  This is a presentation on Private Money Lending by Dan Breslin, host of the REI Diamonds Show.

 

Big Idea:  Private Money Lending can be an effective and reliable source of above average returns for those with some cash. It is also an effective method to scale a fix & flip business.

 

 

    

 

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.DiamondEquity.com

 

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

https://AccessOffMarketDeals.com/podcast/

 

I Discuss Private Money Lending:

  • How to Become a Private Lender

  • Earning 10% Returns by Investing Passively

  • Underwriting Private Money Loans & Borrowers

  • Finding Private Lenders

 

    

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.

Gino Barbaro on Large Multi Family Real Estate Investing in 2024

 

Gino Barbaro on Large Multi Family Real Estate Investing in 2024

 

Guest: In this episode, we sit down with Gino Barbaro, co-founder of the Jake and Gino brand and a titan in the multifamily real estate space. Gino shares his incredible journey from running a small family restaurant to managing over $350 million in assets. Gino Barbaro is a seasoned real estate investor, entrepreneur, and co-founder of Jake & Gino, a multifamily real estate education company. With years of experience and numerous successful deals under his belt, Gino is dedicated to educating others about the intricacies of passive investing and multifamily real estate management.

 

Big Idea: Gino Barbaro emphasizes the importance of education, mentorship, and strategic partnerships in achieving success in multifamily real estate. He shares how investing in personal growth and building a strong network can transform a small business owner’s career into that of a real estate mogul. Gino highlights the importance of understanding the key pillars of passive investing: the sponsor, alignment of interests, and the deal itself. By focusing on these aspects, investors can make more informed decisions and avoid common pitfalls, leading to more stable and profitable investments. The key to success in multifamily real estate is viewing properties not just as buildings, but as revenue-generating businesses. Gino emphasizes the importance of systems and processes in managing properties, whether they are small six-unit buildings or large 97-unit complexes. He also highlights the significance of deal flow, broker relationships, and understanding market cycles to seize opportunities and maximize returns.

 

 

    

 

Dan: Why don’t we start with the origination story, like how did your career develop to where it’s at now? And we’ll do the Reader’s Digest version. We don’t have several years to experience the whole thing.

Gino: I got to take you back to when I got into business after college because that’s where it starts for me. I got into the restaurant business because my dad owned the restaurant and I went to college and I sat in a cubicle working at AIG back in 1992 on John Street in New York City, and that sucked and I’m like, “I can’t be doing that anymore.” And I went and bought a business, a restaurant with my family, and I loved it for years. You could actually earn an upper middle class income with a small business with 3 families eating from a seventy seat, a little Italian place in New York. Yes. That was the team, and the dream was alive in the 90s and even the early 2000s. In 2007 my dad passed away and I had to assess my life. I had to say, I’m I living his dream or am I living my dream?

I have to be honest with myself, I loved working with him, and I think the thought of working with him at the restaurant was greater than the thought of me scaling and building this restaurant thing, and in 2008 came, the great recession sort of wiped out a lot of people. I was working harder, making less. I got introduced to T. Harv Eker’s book, Secrets in the Millionaire Mind. I put off bookshelf, I start reading it and I’m like, “Damn, this guy’s a dick.” But he wasn’t, I was the dick. Everything he said in that book was the truth. Your fruits are in your roots. My fruits were non-existent. I couldn’t create value for the people. My roots were shallow.

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://JakeAndGino.com/

 

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

https://AccessOffMarketDeals.com/podcast/

 

Gino Barbaro & I Discuss Large Multi Family Real Estate Investing in 2024:

  • First Steps in Multifamily Real Estate (03:14): How Gino partnered with Jake to start their first multifamily deal and the challenges they faced.
  • Importance of Mentorship and Education (10:43): The value of mentorship and continuous learning in overcoming initial fears and scaling up.
  • Three Pillars of Passive Investing (00:14:31): Explanation of the jockey (sponsor), saddle (alignment of interests), and horse (the deal) framework.
  • Loan and Financing Strategies (33:57): Gino discusses using community banks for 80% loan-to-cost financing, including renovations, and how he and his partner funded their deals.
  • Market Cycles and Investment Timing (36:03): The discussion covers market cycles, cap rates, and why certain assets are better investments during different market phases.
  • Interest Rates and Investment Viability (38:00): Gino explains why interest rates shouldn’t deter investors if the deal’s fundamentals are strong.
  • Advice for New Multifamily Investors (43:06): Gino provides advice for those looking to transition from single-family homes to multifamily properties, stressing the importance of mentorship and community.
  • The Role of Community and Networking (47:34): The value of joining groups and attending events to gain insights and build relationships with experienced investors.
  • The Importance of Autonomy in Financial Success (1:00:29): Understanding the relationship with money and its role in achieving freedom and autonomy.

 

    

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.

Redeveloping U.S. Malls Part 2 with Brait Fund Saul Zenkevicius

 

Redeveloping U.S. Malls Part 2 with Brait Fund Saul Zenkevicius

 

Guest: Saul Zenkevicius is a personal friend and prior business partner of mine.  We used to flip houses together in Chicago & Miami. Now he’s moved on to redeveloping underperforming Malls with his partner Rafik and their team. 

 

Big Idea: The biggest opportunity in commercial real estate is leasing up large amounts of vacant space.  This is how to earn profits exceeding $10,000,000.  The key to doing this is building a business focused on attracting tenants and building an ecosystem of tenants that will bring traffic to those properties over a long period of time.

 

 

    

Dan: Saul Zenkevicius, welcome back to the show. How you doing?

Saul Zenkevicius: Good. How are you, Danny?

Dan: Good. For listeners who’ve been around a while, March 1st, 2019, Saul was on the show. We talked about leveling up in real estate, and he was just getting into industrial properties, and I think getting out of the house, flipping business. Saul and I were also partners in the Miami market, and we did quite a bit of business together in the Chicago market before the focus became commercial. Saul is the founding member of Z Equity. Do you have another company or any other company associations at this point we know.

Saul: Yeah. I am also managing partner in Braid Fund where Rafik Morris is my partner over there and we’re buying malls with that company.

 

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.Zequitygroup.com

 

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

https://AccessOffMarketDeals.com/podcast/

 

Saul Zenkevicius & I Discuss Redeveloping Commercial Real Estate:

  • Climbing Mt Kilimanjaro
  • Leasing 300,000 sq. ft. in 15 months
  • Creating $10M in value in that same period
  • Simplifying Life instead of Chasing Money Exclusively

 

    

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.

Redeveloping Dying Malls with Brait Capital Founder Rafik Moore

 

Redeveloping Dying Malls with Brait Capital Founder Rafik Moore

 

Guest: Rafik is a seasoned commercial real estate operator with extensive experience in retail & industrial property.  His company, Brait Capital is now focused on very large retail & industrial assets.  Recently, he has closed on 3 shopping mall properties with large vacancy and is in the process of repositioning those assets.

 

Big Idea: Commercial real estate success is found in 3 components.  First, finding an asset at a favorable cost basis. Second, assembling the capital to buy & redevelop that asset. Finally, and perhaps most important, operating the business of leasing at a high level to quickly fill the asset with paying tenants – tenants who draw the missing traffic back and bring that asset back to life.

 

 

    

Dan: Yes, smart. I like that. Why don’t we start with a little bit of a back story, right? How did you get in real estate? How did your real estate career developed to the point where we’re taking down and running 200,000 plus square-foot dead boxes and bringing them back to life?

Rafik: I started with a job as a credit analyst at a bank. So, my approach into this industry came from the finance or ability to borrow money to buy real estate. As an underwriter, I worked for two years, learned a lot about credit analysis and what banks to look at when they want to borrow your money. It was a very critical experience in my understanding of how to get banks to lend me money later. After being a credit analyst, I became a sales guy. At first, I was an account executive, sales guy for the mortgages, and then ultimately, became a mortgage broker in 2003. From 2003 until 2008, I was a mortgage broker. We had about four shops and over 100 people, and that basically was my full-time job.

But my part-time job was flipping houses and starting from one house duplex after that and that flopped on a couple of first houses. It’s so hard to believe that starting with that and to sort of fast forward to what we’re doing today, which is four and a half million square-feet of real estate all over the country it’s just mind-boggling and very, very exciting and I guess, humbling. I have been very blessed to have met a lot of friends along the way. I’m all about building long-term relationships with long-term people. But yes, after flipping houses… Oh, by the way, when things collapsed, I started flipping houses professionally. We do 50 to 60 houses a year for about seven to 10 years and in 2012 and parallel, I bought my first commercial warehouse building which was a life-changing event. On that first deal, we made a million dollars, me and my investors. And we continued flipping houses, but commercial real estate became a thing for me, first thing. So, my partner continued running flipping business while I got into commercial full time.

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.BraitCapital.com

 

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

https://AccessOffMarketDeals.com/podcast/

 

Rafik & I Discuss Redeveloping Dying Malls:

  • The Evolution from Flipping Houses to Buying Malls
  • The System for Creating Astonishing Leasing Velocity
  • Creating a “product”, as opposed to doing a “deal”
  • Managing 700 Commercial Tenants

 

    

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.

Living by the Water: Real Estate Insights with Roger King on Waterfront Investments & Tax Benefits

 

Living by the Water: Real Estate Insights with Roger King on Waterfront Investments & Tax Benefits

 

Guest: Roger King, an experienced real estate investor now residing in Puerto Rico, joins us on the REI Diamond Show. With a career spanning over 30 years, Roger’s expertise ranges from residential to commercial real estate, with a particular focus on waterfront properties and leveraging the tax advantages of Puerto Rico. His journey from aspiring musician to a successful investor provides a wealth of knowledge and inspiration for those navigating the real estate landscape.

 

Big Idea: Roger King highlights how waterfront living enhances property value and personal well-being, sharing his own experiences of moving to Puerto Rico. The island offers a unique blend of scenic beauty and lifestyle benefits, complemented by substantial tax incentives such as the elimination of capital gains taxes and lower property taxes. This strategic move not only improves his quality of life but also bolsters his wealth-building efforts, showcasing the powerful synergy between lifestyle choices and financial planning in real estate.

 

 

    

 

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.RogerKing.com/

 

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

https://AccessOffMarketDeals.com/podcast/

 

Roger King & I Discuss Real Estate Insights on Waterfront Investments & Tax Benefits:

  • Introduction and Background (00:00:26)
    Roger shares his current life in Puerto Rico and the positive influence of ocean views on his well-being and lifestyle choices.
  • Roger’s Real Estate Journey (00:13:54)
    Roger recounts his first real estate deal in Orlando and subsequent ventures, illustrating his progression from wholesaling to flipping properties and beyond.
  • Lessons from a Major Deal Gone Wrong (00:34:12)
    Roger discusses a challenging investment in a church property in Savannah, detailing the lengthy foreclosure and bankruptcy process and the valuable lessons learned.
  • Selecting and Managing High-Quality Partnerships (00:38:56)
    Roger emphasizes the importance of choosing reliable partners who bring complementary skills, sharing insights on joint ventures and ensuring all partners have a stake in the success.
  • The Value of Continuous Deal Flow (01:00:07)
    Roger explains the necessity of maintaining a steady stream of new deals, even in difficult times, to offset past losses and sustain momentum in real estate investing.

 

    

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.

Lease Option – Rent to Own Real Estate Investing with Adam Zach

 

Lease Option – Rent to Own Real Estate Investing with Adam Zach

 

Guest: Adam Zach, is a seasoned real estate investor, with over a decade of experience in real estate. Adam brings a wealth of knowledge and shares his remarkable journey from humble beginnings in North Dakota to building a diverse portfolio spanning multiple states, highlighting the importance of leveraging unique advantages and taking calculated risks to achieve success in the dynamic world of real estate investment.

 

Big Idea: In the episode, Zach and I delved into the strategic approach to real estate investment and risk mitigation. Zach emphasized the significance of leveraging unique advantages and taking calculated risks to build a successful portfolio. From implementing innovative strategies like guarantor bond policies to minimize risk in rental processes to scaling real estate syndication through strategic partnerships and digital marketing, our discussions highlighted the importance of forward-thinking, disciplined decision-making, and adapting business models to evolving market conditions. Through his own journey and experiences, Zach underscored the critical role of strategic foresight, disciplined execution, and risk management in achieving long-term success in the dynamic world of real estate investment.

 

 

    

Adam: Yeah, I am in North Dakota, right now I’m in Fargo. I grew up in the western part of the state in a town of about 10,000 people. So now I moved to the quasi-big city here in Fargo, which is 100,000 people, which is pretty much one square mile around you. It’s probably about the same density spread out over 500 square miles here in North Dakota. I’ve been here my whole life and that’s where I first started doing investment properties and now have investment properties in 57 cities in 25 states, doing some long-distance investing, and just love everything real estate.

Daniel: Nice. I think from your bio, what’s it been like 13, or 14 years? It’s been a while since you’ve been doing this.

Adam: Yeah. The first property I ever owned was a house hack in 2012. Took a little bit of a hiatus, but didn’t start gearing up then until 2016, or 2017. The last five years were probably the greatest growth. So I’ve been doing real estate I could maybe stretch it and say a dozen years but since that was the first property. But I would say mostly it’s been the last seven years.

Daniel: Okay. You’ve been buying, let’s say in the last 36 months since 2021. You’ve bought a few properties in this period?

Adam: Yeah. So I would say in the last 36 months, we have bought, I don’t know the exact number in the last 36 months, but I would say probably 52 homes. We’re probably averaging at least one a month and now the goal for 2024 is one home under contract per week.

 

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://HomeEquityPartner.com/investors/

 

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

https://AccessOffMarketDeals.com/podcast/

 

Adam Zach & I Discuss Lease Option – Rent to Own Real Estate Investing:

  • Business Model Evolution: Transitioning from traditional rental properties to lease option models for sustainable cash flow and reduced turnover. (00:04:07)
  • Guarantor Bond Policies: Exploring how Guarantor policies work and their impact on tenant screening and security deposits. (00:13:29)
  • Syndication Funds: Exploring the structure and returns of syndication funds for investors, including preferred returns and profit splits. (00:23:00)
  • Tax Benefits and Depreciation: Adam elaborates on the tax advantages passed on to investors through syndication deals, including depreciation benefits. (00:30:35)
  • Chess as a Brain Development Tool: Adam reflects on the parallels between playing chess and developing strategic thinking, risk assessment, and delayed gratification from an early age.(00:39:51)
  • The Power of Partnerships: Insights into the benefits of strategic business partnerships in mitigating risks, sharing resources, and aligning interests for mutual success. (00:44:15)

 

    

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.

Navigating Real Estate Investment: From Young Enthusiast to Mobile Home Parks with Mitchell England

 

Navigating Real Estate Investment: From Young Enthusiast to Mobile Home Parks with Mitchell England

 

Guest: Mitchell England is a dynamic real estate investor and entrepreneur known for his strategic prowess in property investments. With over a decade of experience, Mitchell’s journey in real estate began during his teenage years when he was inspired by “Rich Dad, Poor Dad.” He has since built a diverse portfolio spanning multiple states and property types, with a particular focus on mobile home parks. Mitchell’s investment philosophy revolves around long-term holds and leveraging smart debt, all in pursuit of his vision for generational wealth and financial freedom through real estate.

 

Big Idea: Mitchell England shares his journey into real estate investing, starting as a young enthusiast inspired by “Rich Dad, Poor Dad.” He discusses how he began with single-family properties, the importance of cash flow in his investment strategy, and his transition to owning and managing mobile home parks across the United States. Mitchell emphasizes the advantages of mobile home parks, such as stable cash flow and lower maintenance costs, and highlights the challenges of managing tenant-owned units. He also delves into the concept of good debt and how it has evolved over time, the ideal characteristics of a perfect mobile home park, and strategies for handling tenant turnover in older communities.

 

 

    

 

Dan: Okay, cool. So as our origination story, maybe you can kind of touch on how you got in real estate and sort of how you evolved into the space that you’re in now, and then kind of a summary of where you’re at now, just to get us started.

Mitchell: Yeah. So I started really young. I stumbled upon Rich Dad, Poor Dad, which I know a lot of people listening to this probably have a similar story. But I read that book and it changed my whole perspective on life and how to provide value, and it made me start to question everything. I probably read the book at 16 years old. I was in high school at the time, and I was watching the run-up happen. That was like 2004, 2005, right in there. I was watching a lot of people make a lot of money in real estate. And so, that book paired with this huge run-up in the market, I was like, “Man, I got to get in this game.” I know you’re laughing, right? Because what happens next? But that was my first like, “Hey, what is this thing? How do I get into the game?” And I started asking that question. So early on, I jumped in, I bought a couple of pieces of property, thinking, “Hey, I’m going to go make some money on these things.” A couple of bare pieces of property, actually like vacant land. And you know what happens next, right? Oh, [inaudible] and I’m holding the bag, right? I’m holding these two properties going like, “Huh, maybe I don’t really understand this game as close as I thought.” And so, throughout my 20s, I was really interested in real estate. And I dove into a couple of other land deals, a couple of smaller duplex, single-family type stuff. And for me, the big aha was like when I got my first cash flow property, I thought, “Oh my gosh, someone else can pay for this. This is pretty amazing.” I probably should have been a faster learner than that, but it took like six or seven years to figure out like, “Oh, I could put a renter in. This is pretty incredible.” But I got addicted to the cash flow real estate. I just got addicted to it because I thought, “Well, gosh, this could give me not only like pay for my real estate, but also give me freedom.” And so, that first cash flow property was sort of a house hack. And from there, I started to buy some other single-family duplexes, kind of some smaller stuff. And then during that time, I was also working my corporate job. I was working at a med-tech company. And so, life was really busy, but I started to see real estate as like this escape, this thing that I could do. I could build up cash flow properties and slowly leave my job. And so, that was really like the catalyst.

 

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.CadiaCapitalGroup.com/

https://www.zeroto100tribe.com/

 

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

https://AccessOffMarketDeals.com/podcast/

 

Mitchell England & I Discuss Navigating Real Estate Investment:

  • Ideal Mobile Home Park Characteristics: Mitchell discusses the key attributes of an ideal mobile home park, including city utilities, paved roads, and tenant-owned units.
  • Tenant Turnover and Value-Add Strategies: The challenges and strategies associated with tenant turnover and value-add opportunities in mobile home parks.
  • Good Debt and Financing: Exploring the concept of “good debt” in real estate investing, emphasizing the benefits of non-recourse loans and favorable terms.
  • Investment Philosophy and Long-Term Hold Strategy: Mitchell’s investment philosophy centered around long-term holds, cash flow, and building a portfolio that’s inflation-resistant.
  • Challenges in Mobile Home Park Investments: Addressing the complexities of managing older and newer homes in the same community and finding solutions to attract new tenants to older park communities.

    

Relevant Episodes: (There are 230 Content Packed Interviews in Total)

 

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

Taylor Loht: Navigating Multifamily and Self-Storage Real Estate Investments

 

Taylor Loht: Navigating Multifamily and Self-Storage Real Estate Investments

 

Guest: Taylor Loht is a seasoned real estate investor specializing in multifamily and self-storage properties. He hosts the “Passive Wealth Strategy” podcast and has a diverse investment portfolio spanning various markets, including Dallas, Houston, Atlanta, Phoenix, and mid-Michigan. Taylor employs syndication models to raise investor capital for strategic property acquisitions. His approach emphasizes value-add strategies to boost net operating income and property value. Taylor’s insights highlight market selection, the importance of a well-executed business plan, and considerations of interest rate trends. Through his podcast and expertise, he offers valuable guidance to real estate investors of all levels.

 

Big Idea:  In this podcast episode, Taylor Loht, a real estate investor and host of the Passive Wealth Strategy podcast, shares insights into his investment strategies in multifamily and self-storage properties. He discusses the importance of choosing the right markets and property types, emphasizing a preference for B-plus multifamily assets and larger self-storage facilities. Taylor also highlights the impact of rising interest rates on investment decisions and the need to make sound financial plans, cautioning against relying too heavily on Internal Rate of Return (IRR) metrics.

 

 

    

 

Dan: So do you want to give us a reader’s digest of your business model right now, Taylor?

Taylor: Sure, absolutely. So I invest in multifamily and soft storage deals. Again, pretty well spread out around the country. We do the syndication model where we raise investor capital to buy these properties. Our investors invest their equity and ride along with the investment for whatever the hold period is. Historically, there were a lot of folks holding in the say, three to five-year range, especially when the market was very hot and interest rates were falling, everything like that. Now that we find ourselves in a higher interest rate environment, shall we say, I think hold times are generally going to get more extended maybe five to seven years. But that’s probably a topic for another part of our conversation here. So investing in commercial multifamily and self-storage deals with a value add strategy. So your listeners are probably familiar with flipping residential real estate.

I understand that’s what you do. Well, this model is similar but different in many ways. Our hold periods are much longer, which changes the capital gains tax and everything around that situation. But that’s not the only reason. The value add strategy in commercial real estate is really based around raising a net operating income of the property. So in the case of multifamily, getting into a property with say, 100% classic interiors, old outdated interiors where tenants in the area would be willing to pay more for updated interiors, maybe improve the management, improve the exteriors, things that would make somebody be willing to pay more in rent for the units. Get in there, fix ’em up, raise the net operating income, and that in turn raises the value of the property. And depending on the strategy of the deal, you can either refinance and return capital to investors or just choose to sell lock in your gain, and move on to the next one.

So some folks look at it as flipping commercial real estate. Generally, there are some key differences. The timelines are longer, we generally look to cash flow from the property as well while we hold it, rather than having it all vacant and fixing it up. We need to be producing income in order to demonstrate that the value of the properties are going up. But they are pretty straightforward and I think well-proven business models as long as it’s implemented properly with the correct financing and reserves and everything around that.

 

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.PassiveWealthStrategy.com/

 

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

https://AccessOffMarketDeals.com/podcast/

 

Taylor Loht & I Discuss Navigating Multifamily and Self-Storage Real Estate Investments:

  • Market Strategy: Navigating Secondary and Tertiary Markets for Success
  • Property Preferences: Maximizing Returns with B-Plus Class Multifamily Investments
  • Interest Rate Impact: Capitalizing on Current Interest Rate Trends in Real Estate
  • Investment Strategy: Crafting Effective Business Plans and Deal Rationality in Real Estate

    

Relevant Episodes: (There are 229 Content Packed Interviews in Total)

 

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

Scaling with Strategy in Real Estate with Jim Fredo

 

Scaling with Strategy in Real Estate with Jim Fredo

 

Guest: Jim Fredo is a seasoned real estate investor and dynamic entrepreneur based in Pittsburgh. With a diverse background that spans the music industry and the tech sector, Jim embarked on a journey into the realm of real estate, leveraging his wide-ranging skills and experiences. He quickly established himself as an astute investor known for his strategic approach and keen eye for value-add opportunities. Having navigated the challenges of the music industry’s networking-driven landscape, Jim applied his tenacity and resourcefulness to the real estate market. Today, he stands as a testament to the power of adapting and thriving in diverse industries. Jim’s reputation extends beyond his impressive portfolio; he is also dedicated to sharing his insights and knowledge within the real estate community.

 

Big Idea: Jim Fredo’s remarkable journey in real estate is centered around the concept of scaling through strategic partnerships and embracing value-add opportunities. He has recognized the value of collaboration and the significance of enhancing property value to achieve remarkable growth. Jim’s approach underscores the importance of combining expertise, leveraging resources, and optimizing properties for sustained success in the competitive real estate landscape.

 

 

    

 

Jim: Sure. So I came here, I started off with single family. I didn’t know the area. I didn’t know the markets. I already had a disastrous first purchase. I lived in California and bought a building in Eastern PA and it was just a mess. So coming to Pittsburgh, don’t want to make the same mistakes. I’ve learned from all that. The first two properties that I bought were actually from the same seller. He carried the note. I still have properties today. You start off with zero percent interest and made sense. When I refinance that and paid him off, it’s worth a lot more than I paid for it. It’s like, “Okay, this worked out well.” And from there, I just-, I did some flips for a little while to build a little pot of money. Way too stressful for me, so I’ve stuck with rental since then. Single families, duplexes had been growing since then, a couple of six units, and I think I mentioned to you we closed on a 28-unit townhome package and a 25-unit, building.

Dan: Nice, congratulations on the scale there. So is that what your whistle now, to no longer want to add single-family rentals to the portfolio? Have you made a transition or is this is a, “Hey, welcome with my arms open. I’m happy to take another duplex, single family. If that feels good, I’m in.” What where you at with that, Jim?

Jim: I try not to do too many, but I have a great relationship with the wholesaler in town, and he brings deals to me, you know, and he knows I close-, if he’s going to buy, I’m going to buy, and no competition. He brings me killer deals. Like okay, fine, I’ll take it, so. I have a crew, so I go to renovation company, management company to support all this. So sometimes I buy stuff just to keep the crew busy for any slow period. So if it makes sense, I’ll buy it but I am focusing on the bigger projects. I’ve got a partner out of Michigan. Were working together on big syndication deals now. He’s got tons of experience. I think he’s purchased 1500, 2000 units syndication deals, so we’ve got one of those working on. But we’re talking about the before the show 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/

 

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Resources mentioned in this episode:

https://www.SpringCapital.Partners/

 

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

https://AccessOffMarketDeals.com/podcast/

 

Jim Fredo & I Discuss Scaling with Strategy in Real Estate:

  • Value-Add Approach: The importance of renovating properties to enhance their value and improve tenant experiences.
  • Challenges in Scaling: The complexities of transitioning from smaller rental properties to more substantial syndication deals, including managing partner relationships and operations.
  • Managing Maintenance: The significance of preventive maintenance in reducing emergencies and long-term expenses.
  • Commercial vs. Residential: A thorough analysis of the pros and cons of commercial and residential real estate investments, exploring property management and tenant expectations.

    

Relevant Episodes: (There are 228 Content Packed Interviews in Total)

 

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