Land Entitlement Process for Multi Family Development with Reed Goossens

 

Episode: Land Entitlement Process for Multi Family Development with Reed

Guest: Reed Goossens is the host of the popular podcast “Investing in the U.S.” and also author of the book by the same name.  Reed was an engineer with experience in large scale development including infrastructure for the London Olympics in 2012.  He now focuses on buying, building, & operating large multi-family assets throughout the U.S.

Big Idea: “Even though a lot of institutional dollars have started to become big, big players in the game-we’re still selling to a group that is more entrepreneurial like we are.  We left meat on the bone”  Reed describes being able to sell the deal for MORE money than if he were to complete the renovation on the other 70% of the units.  A better bang for the buck by NOT finishing the deal.

 

    

Dan: I was listening to a multifamily investing podcast the other day and one of the members that was a, I guess on the show, I cannot remember what show it was, had 4 or 5,000 units. He sounded like he was probably in his late 60s or early 70s. So he had this nice solid multifamily career and he was looking back and he said that around the area now from what he is hearing, like the big names Blackstone and these are private equity Wall Street types. They are not afraid of the floating rates. They do not think that rate risk is going to be a realistic threat certainly at any point in time 2, 5, 7, or 10-year term that these big smart money investors are supposed to be doing business.

So he kind of shared the same sentiment as you and just did not view that as much of a risk. I mean, who knows who is right. So 12 deals in what? What is your exit strategy? Do you end up selling these at any point? Have you sold any of the deals that you have done or are you still in hold periods on everything?

Reed: No, good question. We start our first deals were in 2000, 2016, early 2017. I have been involved in multifamily as a Co-GP prior to that. So probably 2 or 3 years prior to that early 2014 I got started, but I really started my own shop at the end of 2016. So I have been into the 8 years in syndication space and then in terms of your exit strategies, yes, we are actually coming to exit a couple of deals right now, and they are the deals that have the most flexibility on the debt, right?

The deal we just spoke about that it was speaking to you back and previously in 2018. I cannot exit that deal because I have gone over big prepay, right? Unless someone to come and assume the deal, the deal is not sucking wind by any means of making money from my investors, making cash flow. So just keep it, we write out the prepay, but we have another two sets of deals. The billboard as a portfolio and we have to bridge on those deals and we have had them for about two and a half years now. We are going to, we sort of popped your head up thinking, okay, we can refile here or we can sell. We popped her head up and did a bit of an off-market type of shop around and we have got the number we wanted to hit and for this time period they give a good pretty solid return for investors and we decided to execute on the sale.

If no one had taken bit at the number we wanted, then we would have gone for a refi, but the opportunity to exit at multiple points along the deal is exactly what we assess every single day on over to go but on a very consistent basis to understand where the markets out and particularly with cap rate compression, compressing as interest rates continue to go lower that is you seen that shock wave across the country in terms of multifamily particularly in our area of Central Texas. So yes, we constantly look at what is the best opportunity to exit for deal for investors. A little bit selfishly, we as a company, myself, my business partner Andrew and I, as we are growing to 12 and hopefully going to go double the portfolio in the next 3 to 5 years, people are starting to ask.

Where is your schemes on the wall, where your runs on the board, and that is where you go to start pointing to the cycle deals, and how would it go, what was the returns, and we are really happy to say that we have finally come into the first set of deals that are selling and got to make a nice healthy little profit for all our investors involved?

 

Episode Sponsored by the Deal Machine:

Driving for Dollars Software to Build a Team of Drivers, Manage Routes, & Even Automate Marketing.  Free Access at  http://REIDealMachine.com/

Resources mentioned in this episode:

www.ReedGoossens.com

 

Reed & I Discuss the Land Entitlement Process for Multi Family:

  • Finding the Right Lawyer to Prepare your Zoning Application

  • Understanding the Political Factors in the Zoning Process

  • Timeline of the Land Entitlement approvals

  • How to do Your First Land Entitlement deal


    

Relevant Episodes: (There are 186 Content Packed Interviews in Total)

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

Anchorage Alaska Real Estate-Developing Million Dollar Homes with Joe Bell

The Anchorage, Alaska Real Estate Market-the Land of Opportunity?

Joe Bell is a real estate agent and investor in the Anchorage, Alaska Real Estate market. The population is less than 300,000 people. Compare this with the metro population of Chicago at 8 million, or even Atlanta with 6 million, and you might wonder just how much opportunity could exist in a smaller city like this.

Episode:  Anchorage Alaska Real Estate-Developing Million Dollar Homes with Joe Bell

Guest: Joe Bell is the author of Assets, Acquisitions, & Abundance: A Guide to Building True Wealth & Legacy through Real Estate. Joe is also a Real Estate Agent from Anchorage Alaska. Joe used to run a billion dollar/year brokerage business before dedicating his primary focus to investing, building new homes, and helping others find the way to long term wealth

Big Idea: “You’re in the Business of Real Estate to BUY REAL ESTATE.” Joe’s experience running a billion dollar brokerage business revealed too many agents generated solid commission income their entire career, but found themselves without assets later in life as retirement loomed. He developed Legacy Beyond Listings to help real estate professionals see the opportunity in buying & selling instead of simply transacting.

Of course this comes with some risk. This past March, Joe was preparing to break ground on a million dollar new construction deal. As Covid began shutting down the world, his $900K in funding disappeared, leaving him holding the bag on the half-started, high stakes project. Think he was able to pull it off? You’ll have to check out the episode to find out!

 

  

Episode Sponsored by the Deal Machine:

Driving for Dollars Software to Build a Team of Drivers, Manage Routes, & Even Automate Marketing.  Free Access at  http://REIDealMachine.com/

 

Real Estate Transactions are Like Crack. Do it Once & You Can Never Stop…

Fix & flip investors, wholesalers, & even real estate agents typically begin their career by closing a deal. That’s where it all starts. Then they discover they have to close another deal, and yet another to keep the income machine moving. It’s like being on a treadmill where you can never stop running. If you stop doing transactions, the income also stops. I know this because it’s my experience.

I’ve been in the business of flipping houses since 2006. This past year we bought & sold 283 houses. We are running FAST on that treadmill to keep the income machine working. Contrast this “transactional” method with that of buy & hold investor whose goal is purchasing and controlling real estate or the long term.

The buy & hold investor eventually reaches a certain scale and can stop a acquiring new deals. Over time, as rental rates rise, the buy & hold investor reaches a point where they can sit back and simply manage the portfolio and live on the income. My path in real estate investing provides plenty of income, but automatic momentum if I were to stop doing transactions. I’m hooked, and I will not stop. Truth be told, I LOVE flipping houses & transforming neighborhoods. For me, this business stopped being about the money a long time ago.

Buying & Holding Assets is Like a Healthy Diet & Exercise

When I was in college I had a friend with a wealthy father. I grew up broke and assumed anyone who was rich just had a lot of money. When I asked him, “How much money does your dad have?” He answered, “It’s not about how much money you have. It’s about how many assets you own & operate effectively” It’s taken me years to fully grasp the truth here. Now my goals aren’t solely around how much income I can generate, but how I can acquire assets to create opportunities for myself later in life.

For example, a few years ago I decided to invest in a package of 5 houses throughout Philadelphia. I bought them for two reasons. First, I hoped the houses would appreciate in value. Second, I believed that those houses would be a better place to park my savings than a bank. I thought that in a few years I could sell the houses for a bit more than I paid and use the money to pay for my daughter’s education.

The results came much faster. I sold two of the houses 1 & 2 years after I bought and cleared a $35,000 profit on each. No renovations necessary. Worth noting, I bought them tenant occupied and sold them as the tenants moved. To this day, I still own 3 houses and am in good shape to profit once the tenants move. It would be important to note that I paid fair market value for all 5 houses. It actually felt like I overpaid at the time. But the rents have risen along with the values.

These deals work much slower than my fix & flip deals. The flips generate $35K in just 6 months or less, while I waited a year or two, or even three or more for the same profit. The flips are fun where the rentals are a bit boring. That’s why they’re like the healthy diet & exercise. Just like the diet & exercise are activities that payoff in the long run, so too do my rentals produce a feast at some point in the future when I sell or refi.

Assets, Acquisition, & Abundance-Spotting the REAL Money in Real Estate

The example I shared of my own 5 house package came as a result of me overcoming a few limiting beliefs around real estate ownership. Although I flipped quite a few houses before I purchased those houses, I hated the idea of owning rentals. I thought that every tenant would beat me on the rent. Like-no one would pay once I owned the house. While I have had a few evictions in my portfolio, most of the tenants have paid. But that fear stopped me from building my portfolio earlier-which would have set me much further ahead than I am now. Maybe you can relate.

Joe witnessed many agents with similar limiting beliefs while running the billion dollar brokerage business. It was the reason he wrote the book: Assets, Acquisition, & Abundance. Joe’s philosophy of Legacy Over Listings aims to help those “Transactional” minded agents into spotting the REAL money being made in real estate. Flipping & holding real estate long term, when correctly executed, pays out substantially over simply listing & closing deals.

 

Resources mentioned in this episode:

www.LegacyBeyondListings.com

 

Joe Bell & I Discuss Anchorage Alaska Real Estate:

  • How Many Houses Could Possibly Sell in Alaska Each Year?

  • Who are the Buyers in the Alaska Real Estate Market?

  • How to Transform Beyond a “Transactional” Mindset to Investing

  • Integrating the Will to Win with Business & Real Estate


  

Relevant Episodes: (There are 181 Content Packed Interviews in Total)

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

How to Make $100K or More Per Deal with Tucker Merrihew

Tucker & I Discuss:

  • Covid 19 & the Silver Lining for Real Estate

  • Designing & Building Multi-Million Dollar Homes

  • Getting into Neighborhoods BEFORE the Development Train

  • Detaching Your Home Pricing from Comparable Sales


Listen Now:

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Relevant Episodes: (There are 149.5 Content Packed Interviews in Total)

Resources Mentioned in this Episode:

www.TTMDevelopmentCompany.com

www.TheRealDealzPodcast.com

 

Do You Know Anyone Else Who’s a Real Estate Investor? 

Do You Think they’d Also Enjoy this Episode?

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Sign Up for the REI Diamonds Weekly Podcast Your Copy of “Become a Wholesale Real Estate Master”

Just Go to www.REIDiamonds.com to Download a Copy & Check out Recent Popular Episodes.

Matt Faircloth on Leveling Up to a 195 Unit Value-Add Apartment Deal

Matt & I Discuss

  • How to Raise Millions of Dollars in Private Money

  • Changing Your Mindset to Level Up to Larger Deals

  • Capital Structure of a Multi Family Deal

  • How Much to Offer Investors to Fund Your Deal


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Moving Up from Flipping Houses to Flipping Multi-Family

Matt started out buying a duplex outside of Philadelphia with a $30,000 private loan.  He has since built an empire including a portfolio of rental houses, a house flipping division, and most recently a multi-family value add division buying and stabilizing properties throughout the U.S.   He has a cutting edge method of raising capital allowing him to quickly commit and fund millions of dollars in just a few weeks.

 

Relevant Episodes: (There are 118 Content Packed Interviews in Total)

Resources Mentioned in the Episode:

www.DeRosaGroup.com

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Ryan Wright on Funding Fix & Flip Deals

Ryan & I Discuss

  • The WRONG Deal to Try and Use Hard Money

  • How to Fund that first Deal (it IS the hardest deal)

  • Sources of Deals

  • Guiding You through the First Few Deals


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From Flipping Houses to Funding YOUR Flips!!

Ryan is a longtime real estate investor who had been named the “Real Estate Rookie of the Year” and “Best In State” in Utah by the time that he was 22. After becoming an investor, he soon found that it was difficult to obtain funding for his investments quickly, let alone from reputable lenders. With that in mind, he founded Do Hard Money, a hard money company that offers safe, reliable funding to investors via peer to peer lending.

Relevant Episodes: (There are 117 Content Packed Interviews in Total)

Resources Mentioned in the Episode:

www.DoHardMoney.com

Do You Know Anyone Else Who’s a Real Estate Investor? 

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Matt Skinner on Multi Family & Multi Million Dollar New Const.

Matt & I Discuss

  • Assembling a $100 Million Dollar Portfolio

  • Commercial Development

  • Orange County Beach Front New Construction

  • Up & Coming U.S. Real Estate Markets


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DealMaker Society

Best known as the leader of the controversial, secret real estate club, “DealMaker Society,” Matt Skinner is a DealMaking expert, apartment investing expert, real estate magnate, and the host of the live TV show, MattSkinner.TV. He’s founded multiple successful companies, although most famously Empire West Investments and DealMaker Enterprises. Over the years, he’s share his penchant for real estate, real estate investment, and business as a university lecturer (most recently Harvard University) and lead multiple real estate investment groups throughout the United States.

Matt says, “I’m all about teaching people to reach their full potential through real estate. Real estate has been a passion of mine for about 20 years now and it’s allowed me to do things and live a life I never thought was possible. I’ve also come to realize that it can give ANYONE the leverage to BE anyone they wanted to be, DO anything they ever wanted to do and HAVE anything they want by using real estate as their vehicle, regardless of their level of passion. I’m about helping other unlock that potential that they’ve yet to realize they have and break their believes that you have to have money to make money, be educated/smart, or have a license to make money in real estate.”

Matt is the host of the Alt Investments Podcast which features experts in Real Estate, Crypto Currency, Gold & Silver, Start Ups, and Technology. He is also an expert speaker on topics concerning apartment building investing, sales and sales motivation, and identifying undervalued properties.

Relevant Episodes: (There are 116 Content Packed Interviews in Total)

Resources Mentioned in the Episode:

www.DealMakerBook.com

www.EmpireWestInvestments.com

Do You Know Anyone Else Who’s a Real Estate Investor? 

Do You Think they’d Also Enjoy this Episode?

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Sign Up for the REI Diamonds Weekly Podcast Your Copy of “Become a Wholesale Real Estate Master”

Just Go to www.REIDiamonds.com to Download a Copy & Check out Recent Popular Episodes.

John Matheson on How to Access Commercial Credit

John & I Discuss

  • System for Approaching the RIGHT Bank for Your Loan

  • Where to Get Financing-Even When Banks Aren’t Lending (2009)

  • John’s Favorite Deal Turns $300K into $3 Million

  • How to Develop Land WITHOUT Building a Single Structure


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Commercial Developer & Financing Oracle

John is the managing member of J. Healy Development, LLC. The company specializes in developing new projects into sustainable properties. John has been in the property development business for 26 years, and has been involved in transactions for developing, permitting, and/or financing of completed projects totalling over $50 million. Through J. Healy, John focuses on making multifamily, mixed-use, storage, and other commercial development properties more green and sustainable, lessening a property’s footprint while increasing its value.

John Matheson is also the CEO of Commercial Loan Success, a so­ftware and education platform designed to help small business owners and property investors make more informed financing decisions. Using the Commercial Loan Success loan analysis so­ftware platform, commercial borrowers and commercial lenders are able to communicate more e‑effectively, and borrowers are able to approach commercial lenders more confidently, already knowing that their transactions are lendable. Through Commercial Loan Success, John hopes to provide the resources and educational materials that small business owners, entrepreneurs, and real estate investors can use to confidently obtain financing and grow their businesses profitably, all without being at the mercy of the predatory lenders.

Relevant Episodes: (There are 114 Content Packed Interviews in Total)

Resources Mentioned in the Episode:

web.CommercialLoanSuccess.com/diamonds

 

Do You Know Anyone Else Who’s a Real Estate Investor? 

Do You Think they’d Also Enjoy this Episode?

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Just Go to www.REIDiamonds.com to Download a Copy & Check out Recent Popular Episodes.

REI Diamonds Show Peter Pasternack on Real Estate Investing AFTER Starring on A & E’s Flip this House”

Real Estate Investing

Peter & Dan Discuss:

  • Selecting Million Dollar Opportunities in the Red Hot Atlanta Market

  • Sourcing Off Market Deals to Feed a Hungry Fix & Flip Machine

  • Alternate Sources of Income for High Caliber Fix & Flip Investors

  • Prediction About a Possible Price Correction Coming Down the Pike


Listen Now:

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Resources Mentioned in this Episode:

Real Estate Connections ATL

www.FoundationsLLC.com

 

Relevant Episodes: (There are 72 Content Packed Interviews in Total)

Do You Know Anyone Else Who’s a Real Estate Investor? 

Or Maybe they’re Trying to Become a Real Estate Investor?

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Sign Up for the REI Diamonds Weekly Podcast Your Copy of “7 Sources of Off Market Deals”

Just Go to www.REIDiamonds.com to Download a Copy & Check out Recent Popular Episodes.

Josh Inglis on Building New Construction & Selecting Rentals on Chicago’s South Side

Building New Construction

Josh & Dan Discuss:

  • Josh’s Recent Transition to New Construction Deals

  • Identifying the Characteristics of Better Rental Neighborhoods in Any City

  • How to Quickly Sell Your Flips for FULL PRICE in RECORD TIMES


Listen Now:

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Most Popular Episodes: (There are 67 Content Packed Interviews in Total)

Do You Know Anyone Else Who’s a Real Estate Investor? 

Or Maybe they’re Trying to Become a Real Estate Investor?

Do You Think they’d Also Enjoy this Episode?

Please Forward this Link & Tell Them to:

Sign Up for the REI Diamonds Weekly Podcast Your Copy of “7 Sources of Off Market Deals”

Just Go to www.REIDiamonds.com to Download a Copy & Check out Recent Popular Episodes.

REI Diamonds Show with David Krulac on Creating HUGE Value through Subdividing Residential Acreage

Subdividing Residential Acreage

David & Dan Discuss:

  • How NOT to Lose when Buying at an Auction

  • Making a $1,000,000 Profit on a 36 Month Land Deal

  • Finding Overlooked Opportunities by Mastering “Perk Testing”

  • David Krulac’s Book: “How I Started with Nothing & Made $12M in Real Estate”


Listen Now:

Resources Mentioned in this Episode:

David Krulac’s Company

www.CentralPennLots.com

Do You Know Anyone Else Who’s a Real Estate Investor?  Or Trying to Become a Real Estate Investor? Do You Think they’d Also Enjoy this Episode?

Share the link and tell them to:

Sign Up for the REI Diamonds Weekly Podcast Your Copy of “7 Sources of Off Market Deals”

Just Go to www.REIDiamonds.com to Download a Copy & Check out Recent Popular Episodes.