Multi-Family Real Estate Investing with CPI Capital CIO August Biniaz

 

Multi-Family Real Estate Investing with CPI Capital CIO August Biniaz

 

Guest: An accomplished real estate investor, August is passionate about teaching and empowering others in the industry. With years of experience in various aspects of real estate, including acquisitions and deal structuring while navigating diverse markets successfully. Dedicated to sharing knowledge and best practices, August helps elevate the success of individuals and teams within the real estate community.

 

Big Idea: Dan and August highlight the importance of mastering four critical decisions that influence deal-making, as optimizing these can boost revenue. It emphasizes collaboration among team members for optimal outcomes and advocates using data from past deals to inform decisions and prevent missed opportunities. Lastly, it promotes a culture of continuous improvement, encouraging team members to reflect on their choices and consider alternative approaches for greater success.

 

 

    

Dan Breslin: Tell me about your 1st spec home deal, because I imagine that was not day one in real estate that was somewhere between day one and where we are today. But I feel like that was probably some leap of faith, some new level, some unknown, that you face there. So maybe that story would be interesting and reveal some lessons about stepping into the next level. Even if someone’s not trying to build spec homes, there is certain times where you have to kind of. Take that next step of faith. If you’re going to grow in the real estate business.

August Biniaz: Yeah, no absolutely great starting point. I had gotten my real estate agent license. This is probably around 1520 years ago, and was trying to kind of make it in that business, which I found it very difficult, and didn’t see it as very scalable. So I had certain concerns, and my partner, who was a pretty, experienced real estate agent. There was a lot that came up for sale, and when I say a lot there was old home on it. But in Vancouver you call anything that’s somewhat old, basically just a lot. It’s just lot value. And it had come for sale for 725,000, and he’s like, Hey, let’s buy this thing and let’s build something on it. And he was convinced me to get into kind of the Spec home development side of the business, and and we bought the property and we started building it.

We actually got a mortgage in my name and was able to get better terms from the banks on a personal type of resident construction which wasn’t on their business, and we went through the process of construction draws building this thing, but my partner was more the one that was involved in the construction process earlier on. But as the project went on I seemed to get more involved, and I was somewhat of a the project manager or site superintendent on that project, and we built the project. We we hadn’t even listed it, and there was a knock on the door from a real estate agent. There was a Chinese family that had moved down the road, and if you don’t know Vancouver, Vancouver has a you know, a mind blowing number of Chinese nationals that live in Vancouver, the city of Richmond, where I was, from which is a suburb of Vancouver, 200,000 population. 70% of the population are actually from mainland China.

 

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://cpicapital.com

 

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

https://AccessOffMarketDeals.com/podcast/

 

August & I Discuss MultiFamily Real Estate Investing with CPI Capital

  • Mastery of Critical Decisions (Timestamp: 00:00:12)

  • Real-Time Collaboration (Timestamp: 00:05:12)

  • Data-Driven Decision-Making (Timestamp: 00:20:18)

  • Continuous Improvement Mindset (Timestamp: 00:37:45)

 

    

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.

Multifamily Strategies for Success with Ava, CEO of CPI Capital

 

Multifamily Strategies for Success with Ava, CEO of CPI Capital

 

Guest: Ava Benesocky is the CEO and co-founder of CPI Capital, a successful real estate investment firm specializing in multifamily assets in the Sunbelt States. Known for her strategic approach and data-driven decisions, Ava focuses on acquiring stabilized properties and implementing targeted renovations to generate significant returns for investors. With a hold time of 3 to 5 years, she leverages growth indicators and business-friendly markets like Orlando, Jacksonville, and Tampa to capitalize on market opportunities. CPI Capital offers attractive preferred returns and provides monthly distributions, while Ava remains committed to delivering consistent results, education and value creation for investors.

 

Big Idea: Join us in this insightful episode as Ava, the CEO of CPI Capital, shares her expertise and experience in multifamily real estate investing. Discover how CPI Capital’s strategic investment approach and data-driven decision-making have led to remarkable returns for investors. Explore the key lessons learned, including the importance of educating investors, building trust, and addressing potential risks. Gain valuable insights into identifying value-add opportunities, navigating market conditions, and maximizing returns. Whether you’re a seasoned investor or new to real estate, this podcast provides actionable strategies and valuable information to unlock success in the dynamic world of multifamily investing.

 

 

    

 

Ava: Yes, I would love to, Daniel. I’m the CEO and co-founder of CPI Capital. It’s a real estate investment firm where our mandate is to really partner with limited partners, passive investors, to acquire institutional Multifamily Assets in the Sunbelt States. When I say institutional, I mean 100-plus stores. Our business model is very black and white. We always look for already built stabilized, cash-flowing assets that are 90% or more occupied. What we really love to do is we love to go in there and be fixing flippers on a large scale. We always look for a value-add component. Nothing crazy. We go for properties that we like to call Class B properties.

We do a lipstick renovation. Take out the flooring, add new floors, paint light fixtures, kitchen appliances. My favorite thing is to add washers and dryers to units that don’t have washers and dryers. Then we turn over the tenants. The 10% that’s not occupied, we renovate those. As we’ve done a unit, we go to the current tenants living there, and we kind of say, “Hey, for a brand-new unit, would you like to move in for a $150 premium?” In most cases, they say, “Yes.” This is where the numbers start to get really exciting for investors because this is what we call our CPI Capital wealth creation system. It’s this forced appreciation aspect of how you can literally take one of these multifamily assets. Do these lipstick renovations, turn over the tenants, and increase the value by millions and millions of dollars in the first one to two years of owning the asset.

Daniel: Good stuff. The washers and dryers, 100 units with washers and dryers does what to the water bill?

Ava: Oh, that’s a good question. I’ll tell you one thing it does. Well, we have a community washer and dryer as it is, right? Everybody has all their laundry in the community washer and dryer. When we put it in the unit, it can actually increase the rent up to $50 to $60 per unit. To put it into perspective, say on a 200-unit, if you’re doing all these renovations and you’re increasing a unit by $150 a unit, you can increase the value by about 10 million dollars in the first two years of owning the asset. That’s just forced appreciation. Now, we also purchase in regions that are significantly growing: job growth, population growth, income growth, and rent growth. You’ve got that natural market appreciation as well. We kind of get the best of both worlds. I like to tell investors when I’m kind of explaining the business model.

 

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://CPIcapital.ca/

 

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

https://AccessOffMarketDeals.com/podcast/

 

Ava  Benesocky & I Discuss Clean Tech Meets Real Estate:

  • The “fixing flippers” strategy: Learn how CPI Capital implements targeted cosmetic renovations to enhance property values and rental rates, generating substantial returns for investors.

  • Market selection and growth indicators: Discover Ava’s investment philosophy centered around identifying markets with robust growth indicators, such as population growth, job growth, income growth, and rent growth. Gain insights into the business-friendly states and regions where CPI Capital focuses their investments.

  • Investment returns and metrics: Understand the distinction between preferred return and annualized return, and the importance of grasping the true metrics of investment performance. Explore CPI Capital’s goal of doubling investors’ money within five years and their pursuit of above-average returns..

  • Portfolio overview and market readiness: Learn about CPI Capital’s portfolio of nearly 1,000 rental units and their cautious approach in pursuing buying opportunities, particularly in the Florida market. Discover the strategies they employ to mitigate risks and avoid capital calls.

  • Capitalizing on distressed assets: Explore the potential for acquiring properties at a significant discount due to distress and motivated sellers. Gain insights into CPI Capital’s investment strategy and their focus on value-add opportunities in the real estate market.

    

Relevant Episodes: (There are 224 Content Packed Interviews in Total)

 

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