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.

How to Bill Your Tenants for Water Usage with Kelly Koontz

 

How to Bill Your Tenants for Water Usage with Kelly Koontz

 

Guest: Kelly Koontz, a seasoned expert in utility submetering solutions tailored for multifamily properties. With over two decades of experience at Submeter Solutions, Kelly has been at the forefront of revolutionizing utility management strategies, empowering property owners to maximize efficiency, enhance property value, and foster tenant accountability. In this episode, Kelly shares invaluable insights into the intricacies of utility submetering, its profound impact on property management practices, and practical strategies for seamless implementation.

 

Big Idea: At the heart of utility submetering lies a transformative approach to utility management for multifamily properties. By accurately measuring and allocating utility costs to individual tenants, property owners can unlock a myriad of benefits, ranging from significant cost recovery and increased property valuation to fostering a culture of responsible resource usage among tenants. Through the integration of modern metering technology and innovative billing methodologies, utility sub-metering not only optimizes operational efficiency but also empowers property owners to proactively manage utility expenses, mitigate financial risks, and elevate the overall tenant experience.

 

 

    

Dan: So Submeter Solutions Inc. Would you mind starting us off here with what your company does and what you’re focused on.

Kelly: Happy to do that, Submeter Solutions, we’ve been in business since about the year 2000 and our whole business niche is all about servicing multifamily or multi-unit properties that are getting a single utility charge at their building but the owners, managers want to figure out how to allocate those charges down to the tenant-resident level. So our business will be in the first part selling you the proper equipment and metering equipment to be able to meter each individual unit. Then our second part of our businesses we can offer monthly utility billing services for those residents on an ongoing basis. So excited to be here today Dan and talk through all the details about how we do that for multifamily owners.

 

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://SubmeterSolutions.com/

 

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

https://AccessOffMarketDeals.com/podcast/

 

Kelly Koontz & I Discuss How to Bill Your Tenants for Water Usage:

  • Introduction & Financial Impact of Submeter Solutions – 1:01: Kelly delves into the core principles of utility submetering and its role in transforming multifamily property management practices.
  • Comparison of Billing Methods – 4:11: Contrasting traditional flat-rate billing, RUBS (Ratio Utility Billing System), and utility submetering, elucidating the advantages of metered billing for property owners and tenants alike.
  • Technical Implementation of Submetering Systems – 10:42: Providing comprehensive insights into the technical aspects of utility submetering, from metering equipment selection to connectivity solutions and data management strategies.
  • Utility Bill Integration with Rent – 20:59: Exploring lease structures and billing methodologies to prioritize utility payments alongside rent.
  • Ideal Clients and Property Types – 29:30: Identifying ideal clients, including self-managing landlords, property managers, and commercial property owners.
  • Alerts & Leak Detection – 40:00: The importance of leak detection, particularly in low-income and emergency housing, alongside active methods for instant alerts on flooding like frozen pipes, leading to significant property damage and renovation costs.
  • Insurance Premiums & Installation Costs – 45:10: Kelly discusses how insurance premium reductions are linked to active leak detection systems, the logistics and costs of installing sensors in multifamily units, and the growing regulatory and market demand for leak management solutions in water-scarce regions.

 

    

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.

Avoid Property Insurance Nightmares with Public Adjuster Andy Gurczak

 

Avoid Property Insurance Nightmares with Public Adjuster Andy Gurczak

 

Guest: Andy Gurczak is a seasoned real estate investor and public insurance adjuster. Starting with a humble duplex, Andy has strategically expanded his portfolio to include a variety of commercial properties. He leverages his construction background and keen market insight to navigate the complexities of real estate and insurance claims, making him a valuable resource for both novice and experienced investors.

 

Big Idea: Andy Gurczak delves into the intricacies of insurance claims for property investors, emphasizing the importance of strategic decision-making and thorough understanding of the process to avoid pitfalls. He also shares his journey from residential to commercial real estate investing, highlighting the lessons learned and strategies for success in the commercial sector.

 

 

    

Dan: Yeah, for sure. We’ve been trying to link up here for a little while to get you on the show. Main topic is going to be insurance claims, and I think it’s valuable for the listeners to hang in there. Whether they’re single-family investors, whether they’re commercial investors, nobody wants to have an insurance claim ever. But when you do, you can really, in my experience, get screwed up by doing it wrong, or maybe even choosing to make the claim in some instances. I know that’s been my issue, claiming something too small. But we’ll get into all the problems and the solutions, and what you do as an adjuster and why that’s something valuable here shortly. Before we do that, Andy, do you want to give us a background on maybe some of your investing career, and then also how you got into and what your adjusting business is today?

Andy: When it comes to the investing game, me and my wife bought our first duplex, this was when we got married, so it’s going to be 10 years ago almost. We bought our first duplex. We lived on one side, rented the other side. So we basically lived for free, had a little bit of income even left over. I was able to scale the business, not pull any money, didn’t need to even make money at that point, was able to reinvest everything. My wife brought enough for groceries and the small stuff. That was under FHA. I think we bought that actually before we got married. Right before we got married, I think we bought that under my name. Then two years later, we ended up buying another FHA under her name. It was another duplex. So we ended up doing only 3.5% down, which was nice. It was a small investment out of our pocket to have two properties that were cashflow and really nice.

From then, we bought a townhouse that was a foreclosure. Then we ended up buying a building that’s in downtown Crown Point where we live that we converted into a commercial now. There’s three tenants in there actually. Then last year, we did our first 1031, where we sold the townhouse, took the money or sold one of the duplexes, took the money, and then bought a seven-unit building. It’s a commercial building. There’s seven suites, about 15,000 square feet. I think that’s it. I know we have a lot. We’re building a home right now. Real estate has been something that we’re always interested in. We’re always looking to buy something different.

 

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.AllCityAdjusting.com/

 

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

https://AccessOffMarketDeals.com/podcast/

 

Andy Gurczak & I Discuss Avoiding Property Insurance Nightmares with Public Adjuster:

  • 5:50 – Details of a 1031 Exchange: Insights into executing a 1031 exchange successfully and the lessons learned from the process.
  • 10:01 – Acquiring a Seven-Unit Commercial Property: The story behind acquiring a prime commercial building and its financial implications.
  • 15:40 – Financing Strategies: How leveraging relationships with local banks facilitated property acquisitions.
  • 18:30 – Property Management and Tenant Relations: Managing properties personally and dealing with tenant issues directly.
  • 27:35 – Critical Timing in Claim Filing: Brother Elijah’s experience highlights the importance of acting swiftly and seeking expert advice to maximize claim value.
  • 29:19 – Settlement Offers and Pitfalls: Andy shares insights into deciphering settlement offers and avoiding potential traps.
  • 35:52 – Commercial vs. Residential Claims: Understanding the dynamics between commercial and residential claims can influence strategy and approach.

 

    

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.

New Silver Fintech CEO Kirill Bensonoff on Blockchain Hard Money Loans

 

New Silver Fintech CEO Kirill Bensonoff on Blockchain Hard Money Loans

 

Guest: Kirill Bensonoff, CEO of New Silver, a groundbreaking fintech lending organization, is at the forefront of revolutionizing real estate investment. With a focus on fix and flip, ground-up construction, and buy-to-rent projects, New Silver provides investors with innovative financing solutions backed by cutting-edge technology. Combining his expertise in technology and a deep understanding of real estate, Kirill brings a unique perspective to the table, unraveling the intersection of blockchain and trust within the industry.

 

Big Idea: New Silver combines financial expertise with advanced technology to streamline the lending process for real estate investors. By leveraging blockchain technology and smart contracts, New Silver offers faster loan approvals and closings, reducing the time and complexity traditionally associated with hard money lending. The discussion revolves around the pivotal role of trust in real estate transactions amidst the rise of blockchain technology. While blockchain promises seamless transactions and tokenization, Kirill and Dan delve into the fundamental necessity of trust in every aspect of real estate, from lending to investment.

 

 

    

Kirill: Yeah, absolutely. So New Silver, I’m a technologist by background. We started New Silver in 2019. And we’re essentially a fintech lender. We think of ourselves as a FinTech, meaning that we have the financial part and the technology part. So the financial part is at the end of the day, we’re a lender for real estate investors. Our typical client would be somebody that’s doing single family residential fix and flip ground up or buy to rent type of a project. Right now we’re in 39 states. And then on the technology side, what we’ve done is we built a pricing engine that helps us value and underwrite deals, meaning you can go to our website, start the application and finish the application under five minutes, get your term sheet, you get your loan pricing and everything else. So it’s really a quick to market type of a process. And then everything else, post close, servicing everything, or the majority of things, we’re working towards everything, but right now it’s the majority of things are web enabled. So we try to make things convenient, kind of convenience is our North Star, if you will. And that’s what we’re trying to drive towards.

Dan: Cool. So let’s stay on the hard money topic for people. We don’t have a lot of hard money lenders on the show and we’ve had some in the past and we still do business with some of them. 39 states, you and I talked about the main markets that Diamond Equity, my company invests in, which is the Illinois area, the New Jersey, Pennsylvania, Delaware, Maryland, tri-state, quad-state area, and Georgia. And you told me that you’re in all of those markets right now. So some of the lenders we had on the show in the past, and I’m hesitant to say that because you might take this back to your lending partners and pull the plug, but we’ve had lenders who would start in Illinois and maybe then they like Georgia. I have one I still do business with. He moved from Illinois to Georgia and stopped lending in Illinois. And we had another nationwide lender as well who we still do close a lot of business with in the other markets also pull out of Illinois. They did not like the foreclosure process timeline. So hopefully that won’t be the case by the time our show goes live in three or four weeks. But I did want to kind of highlight the point that as we’re talking now, you guys are lending in the markets where we have our offices for listeners who know who we are.

 

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://NewSilver.com/

 

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

https://AccessOffMarketDeals.com/podcast/

 

Kirill Bensonoff & I Discuss Blockchain Hard Money Loans:

  • Exploring the Role of Hard Money Lending in Real Estate Investments (02:12): Unpacking the significance of hard money lending as a crucial financing option for real estate investors, offering flexibility and speed in transactions.
  • Demystifying Loan Requirements, Down Payments, and Interest Rates for Profitable Ventures (5:34): Breaking down the essential components of real estate loans, including requirements, down payments, and interest rates, while discussing profitability calculations to empower investors.
  • Effective Strategies for Strengthening Offers and Accelerating the Closing Process (17:01): Offering tactical approaches to enhance offers to sellers and expedite the closing process, ensuring a competitive edge in real estate transactions.
  • New Silver’s Dedication to Tailored Solutions and Building Strong Borrower Relationships (00:20:10): Highlighting New Silver’s commitment to providing customized solutions and nurturing robust borrower relationships to foster trust and long-term success.
  • Blockchain Applications in Real Estate Transactions (25:05): Discussing the potential of blockchain to streamline real estate processes such as property title transfers and asset settlement, enhancing efficiency and reducing transaction costs.
  • Tokenization and Investment Opportunities (30:51): Exploring how blockchain enables fractional ownership of real estate assets through tokenization, opening up investment opportunities for individuals and institutions.
  • Risk and Trust in Blockchain Adoption (39:34): Analyzing the importance of trust in blockchain implementations, highlighting the need for transparency, regulatory compliance, and informed decision-making in blockchain-based investments.

 

    

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.

Transforming Big-Box Retail into Self-Storage: A Conversation with Clint Harris

 

Transforming Big-Box Retail into Self-Storage: A Conversation with Clint Harris

 

Guest: Clint Harris is a seasoned entrepreneur and real estate expert who traded in his medical sales career for a life of financial, time, and location independence through strategic investments in real estate. From implanting pacemakers to converting big box retail buildings into self-storage facilities, Clint’s journey is nothing short of transformative. As the founder of Nomad Capital, he’s known for his innovative approach to reshaping the real estate landscape in the Southeastern United States. Join us in this episode as Clint shares his insights and experiences, highlighting the pivotal moment he decided to break free from the limitations of trading time for money. His story serves as an inspiration for anyone seeking financial independence through strategic real estate investments.

 

Big Idea: Clint Harris offers a groundbreaking perspective on real estate investment, focusing on converting vacant big-box retail buildings into lucrative self-storage facilities. He demonstrates how investors can achieve substantial returns with a unique value-add strategy through strategic acquisitions, in-house construction, and capital raising. Clint highlights the adaptability required to meet the evolving demands of consumers, particularly millennials, within the self-storage sector. He underscores the resilience of this niche market amidst economic fluctuations, advocating for calculated risks to break free from the constraints of trading time for money. Clint’s insights prompt listeners to assess their income ceilings and pursue avenues for greater financial freedom aligned with their long-term goals.

 

 

    

Dan: Nice. So, we were talking a little bit before the show, the big-box retail to storage conversion strategy, I guess maybe we could walk through a case study, perhaps it’s Reidsville, perhaps you have another one and really try to dial down on the numbers. You had this 87,000-square-foot building, what was the net rentable square feet, maybe how many units you got, what were some of the challenges you encountered with zoning, etc. And then maybe we could pull apart construction costs; it cost this and stabilized occupancy is this and just really detail one deal for us to kind of paint the picture of how this works.

Clint: Yes. I’ll actually give you some dichotomy here and give you 2 deals because they’re wildly different from 1 market to the other, right? The driving factor is the average price per square foot of net rentable storage in an individual market. So, we bought that 87,000 square foot Kmart in Reidsville, North Carolina for 1.5 million. This is obviously a big empty square. So, it had a pretty good big conversion rate. Depending on the shape of the building, you’re going to land between 70 to 75% of that gross area being net rentable square feet. The rest of it’s going to be hallways and walkways and offices and stuff like that. So, the choppier the building, maybe it’s 70% if it’s just a big square, maybe it’s a little over 75%, but that’s roughly where it’s going to land.

So, that building was converted to 550 climate-controlled cell storage units. And that’s based upon what’s the demand for the market. Do people want smaller units or larger units? That’s determined by a third party as well as the in-house feasibility study, but again, it really depends on the market. Obviously, the smaller the unit is, the higher the price per square foot. So, you can squeeze in a bunch of small ones. That’s better, but we bought that [inaudible].

 

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://NomadCapital.us/team/

 

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

https://AccessOffMarketDeals.com/podcast/

 

Clint Harris & I Discuss Transforming Big-Box Retail into Self-Storage:

  • Conversion & Challenges of Big Box Retail to Self-Storage (3:34)
  • Optimal Investment Structure and Returns (10:03)
  • Strategic Property Acquisitions: How to leverage prime locations and capitalize on market demand (20:09)
  • Changing Consumer Behavior: Adapting storage offerings to meet the needs of modern renters, especially millennials (25:53)
  • Stabilization and Occupancy: Achieving high occupancy rates through effective marketing strategies and competitive pricing (30:19)
  • Calculating risk in the pursuit of financial freedom (40:13)

 

    

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.

Real Estate Development with Darcy Marler

 

Real Estate Development with Darcy Marler

 

Guest: Darcy Marler is a seasoned real estate investor and developer with over two decades of experience in flipping houses, rental properties, land development, and new construction. From an MIT graduate to a successful real estate entrepreneur, Darcy’s journey has been marked by valuable lessons and insights. Passionate about transforming raw land into subdivided lots ready for construction, Darcy specializes in building and flipping houses, duplexes, and small multifamily properties.

 

Big Idea: In this episode, Darcy Marler delves into the transition from fixing and flipping houses to land development and new construction, stressing the need to align real estate strategies with personal preferences. He outlines risk mitigation and profit maximization strategies, emphasizing the substantial benefits of new construction, including higher returns, better tenants, and efficient management. Darcy highlights advantages such as ease of financing and incentives for developers addressing the housing crisis. He underscores opportunities for smaller investors in smaller-scale projects like multifamily units or residential development. Understanding market demand, leveraging financing, and exploring exit strategies are key takeaways for maximizing returns in real estate development.

 

 

    

Dan Breslin: Yeah, absolutely. I was excited by the topic. I think our listeners will be equally as excited. Most of us listening are probably fixing flipping houses. We are interested in buying and selling real estate. We would improve said real estate to get to that profit. And I think that our discussion today around land and development and making that transition will be a very much well-received topic by the audience and by myself today. So Darcy, would you mind giving us the background and the career evolution to getting where you’re at today?

Darcy Marler: Well, a lot of people, I was an actual IT guy way back in the day, about 23 years ago, I got tired of that. So I wanted to get into real estate and I started flipping and doing long term rentals and that led to some land development and construction. The bird, I’ve done all the strategies I’ve owned, had close to a thousand tenants and 240 renovated units, written a couple of books and then yeah. So now I’m doing a bit of everything, but I keep coming back to new. I like new, I like being creative. I like knocking stuff down instead of fixing it up now. [inaudible].

Dan Breslin: So why don’t we start with an example then this could be your first development deal, or you can not do that one. If that one’s not maybe the biggest lesson and maybe you could pick one that came with a really big lesson that helps us expand our vision from single-family fix and flip or buying duplexes that exist to ground up new construction?

Darcy Marler: Yeah, so actually the first one is a perfect one. So I had this 1950s bungalow. I was just going to flip it. The person next to me passed away, so I bought that as well. I said, ” You know what, I’ve always wanted to build. So what does that look like?” Actually I moved both of the old houses off. I didn’t even demolish them. I actually sold them. They got moved off. I split those two lots into four. I made sure all four lots were serviced and then I built four new homes and I loved it. It was exactly what I wanted. So the big thing that I’m all about too is, is not your personality to your strategy. If you’re not enjoying what you’re doing, what’s a better fit. And I love creativity. I love the pride of watching the stuff come out of the ground. I think it’s awesome.

 

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.hrrealestatementors.com/

 

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

https://AccessOffMarketDeals.com/podcast/

 

Darcy Marler & I Discuss Real Estate Development:

  • Budgeting and Risk Management in New Construction (3:31)
  • Philosophies on Holding vs. Selling Properties (10:02)
  • Pre-Selling Land vs. Building Spec Homes (15:54)
  • Identifying Potential Land for Development & Subdividing (18:21)
  • Evaluating Opportunities in Aging Neighborhoods (23:16)
  • Benefits of new construction for rental properties (36:38)
  • Importance of demographics and location in real estate investment (45:36)
  • The significance of partnerships and operational support in real estate ventures (49:48)

 

    

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.

Storage Yard Real Estate Development with Chris Long

 

Storage Yard Real Estate Development with Chris Long

 

Guest: Join us in this captivating interview with Chris Long, a visionary entrepreneur who transformed a simple solution into a booming real estate venture. Chris, a licensed carpenter, identified a gap in the market and embarked on a journey that led him from the cold capital of Canada to the sunny shores of Tampa, FL, where he currently spearheads Long Yards, a revolutionary concept in real estate targeting an unmet need for affordable storage space.

 

Big Idea: Chris shares his remarkable journey from identifying a market need to building a successful business empire in the real estate sector. He delves into the challenges he faced, the pivotal decisions he made, and the strategies he implemented to overcome obstacles and achieve exponential growth in the storage business.

 

 

    

Chris Long: Yeah. So I’m a licensed carpenter by trade. I was in the construction industry for 15 years and I discovered a problem in the market that didn’t exist and I needed a small affordable space for my equipment, tools and trailers, and you go to a self storage facility, but I needed a yard, but there was a gap in the marketplace. I don’t need a one to three acre parcel that I pay half million, a million dollars with it or I lease it for triple net lease for three or five years. No, I’ve seen a small medium-sized yard month to month that was secure and closed. Sometimes I believe I’m a simple person, simple problems have simple solutions. I’m like, if this doesn’t exist, I’m going to build it and sure enough, no investor would get behind me. They thought I was crazy. So I had to sell both my houses and I only had a small rental portfolio of two duplexes. So to go in on my vision, I had to literally put my mouth where I believed it and sell everything I had and it was a success. So I mean, I spread myself then getting it going. I couldn’t even afford to put the gates on the front, but I had to pre-sell the first units in full to afford to complete the buildout. But since then it’s been off to the races. We leased up completely in Ottawa, Canada. We’re building out central Florida. We have parcels and I built a franchise system, so I’m a franchisor. We have franchisees parcels under our contract in Florida, in Texas. We’re looking at Carolina and we have both five active lois and we’re just looking to expand with great people with a great business.

Dan Breslin: Yeah, it’s pretty cool and it’s timely. We’re going to dig into the 8.9 acres that I currently own that’s owned industrial that I’m deciding what I want to do with it, Memphis, Tennessee a little later in the show. But before we get into that, let’s back up to that first deal. What year was that, Chris?

Chris Long: So I bought it with my brother in 2017. We sat on it for a little bit, being brothers, we just had a different little view and it took about two years to kind of arm wrestle and figure it out. But I cut the rivet in October 1st, 2019, and my first location, Long Yards in Ottawa, Canada. Then I moved out to the states about two years ago to expand internationally.

 

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://LongYards.com/

 

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

https://AccessOffMarketDeals.com/podcast/

 

Chris Long & I Discuss Storage Yard Real Estate Development:

  • Identifying Market Gaps: Chris discusses the inspiration behind Long Yards and the unmet need for affordable storage space. (00:02:51)
  • Strategic Partnerships: The importance of choosing the right partners and maintaining alignment in business ventures. (00:06:48)
  • The Concept of Long Yards: Chris introduces the concept of Long Yards, explaining how it combines land banking with cash flow generation. (00:13:04)
  • SBA Financing Advantage: The competitive advantage of utilizing SBA financing for real estate acquisition and build-out within the Long Yards framework. (00:22:38)
  • Stabilized occupancy rate and turnover: Chris discusses how Long Yards maintains a 90% stabilized occupancy rate, with lower turnover due to catering mainly to small businesses (00:42:41).

 

    

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.