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.

Navigating Market Turbulence: Lessons from Brock Holliman’s Real Estate Success

 

Navigating Market Turbulence: Lessons from Brock Holliman’s Real Estate Success

 

Guest: Brock Holliman, a resilient real estate entrepreneur, shares his remarkable journey from humble beginnings in Memphis to becoming a prominent figure in Florida’s real estate market. Starting with a lawn mowing business during the real estate depression, Brock’s tenacity and adaptability propelled him into various facets of real estate investing, ultimately leading to his expertise in the build-to-rent space.

Big Idea: Brock’s story underscores the significance of seizing opportunities amidst adversity and continuously evolving strategies to thrive in the ever-changing real estate landscape. From navigating market downturns to pioneering innovative investment models like build-to-rent, Brock’s journey exemplifies resilience, adaptability, and strategic vision in achieving success in real estate.

 

 

    

Dan Breslin: All right, welcome to the REI Diamond Show. Brock, how are you today?

Brock Holliman: I’m doing great, Dan. Thank you for having me on.

Dan: Yeah, absolutely. So we were talking about a little location stamping, and I do that often for the listeners. Just kind of give people context of where you live and what markets you’re kind of operating in. Would you mind maybe starting off your backstory with some of the locations you’ve been to where you’re at now and a summary of your business?

Brock: Yeah, sure. Yeah, I started this off, or I started my journey in Memphis. That’s where I was born and raised. I had a little lawn mowing business there that was mowing foreclosures for the bank because it was in the middle of the great real estate depression. Yeah, that was my first business and really how I made my first little couple of thousand dollars. At the same time, I had a job at IHOP. This was in high school. My father was always in construction. Well, all different types of construction, but he was really bored and all of his friends and everybody in construction at the time in the building industry was either going bankrupt or just semi-retired or whatever because the industry was dead. But I remember back then he told me that I should check into these foreclosure auctions. I remember still being in high school, he had a speeding ticket that day and I didn’t expect to see him. But I was down at the courthouse skipping school and checking out these auctions just like he told me. And here I see him walking up the steps so he could go to his speeding ticket court date. We locked eyes and that was a funny situation there. I was a little nervous, that he’d be upset, but it turned out he was super proud, and that was like a nice sense of affirmation, like you may be doing the right thing here, even though he told me to do it.

 

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://HollimanCapitalGroup.com/

 

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

https://AccessOffMarketDeals.com/podcast/

 

Brock Holliman & I Discuss Navigating Market Turbulence:

  • Innovative Investment Models (6:15): We discuss Brock’s pivotal role in introducing build-to-rent projects and partnering with a hedge fund highlights the significance of innovative investment models in capitalizing on emerging market trends.
  • Navigating Market Uncertainties (10:15): Brock’s approach to scaling back in response to market uncertainties emphasizes the importance of enhancing operational efficiency and leveraging data analysis for informed decision-making during volatile market conditions.
  • Utilizing Market Data for Informed Decisions (13:47): Discussion on leveraging resources like HUD and Zillow for data analysis highlights the significance of utilizing market data to navigate challenges and make strategic investment decisions.
  • Exclusive Focus on Florida’s Real Estate Market (18:52): Brock’s exclusive focus on Florida’s real estate market and his insights into promising investment potential compared to historical trends in other regions emphasize the importance of market research and strategic geographical focus.
  • Competing with National Builders and Building on Infill Lots (21:57): Challenges of competing with national builders and the necessity of building on infill lots due to funding limitations highlight the importance of strategic positioning and resource optimization in real estate development.
  • Advantages of New Construction Build-to-Rent Properties (29:03): Discussion on the investment strategy of using new construction build-to-rent properties for long-term value appreciation emphasizes the advantages such as lower maintenance costs, higher tenant quality, and increased property value, highlighting the potential of innovative investment strategies in the real estate market.
  • Maintaining Quality Standards in Construction (35:08): Emphasis on maintaining high-quality standards in construction, resisting pressure to compromise quality for quantity, and leveraging technology for online property viewing underscores the importance of prioritizing quality and embracing technological advancements in real estate development.

 

    

Relevant Episodes: (200+ Content Packed Interviews in Total)

 

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

Empowering Wealth Creation: A Deep Dive into Real Estate with Wyatt Simon

 

Empowering Wealth Creation: A Deep Dive into Real Estate with Wyatt Simon

 

Guest: Wyatt Simon is a seasoned real estate investor renowned for his transformative approach to achieving financial freedom through strategic property investments. With a background rooted in leveraging the power of real estate assets, Wyatt has successfully built a remarkable portfolio, starting from humble beginnings. Through innovative strategies like the Burr method (Buy, Renovate, Rent, Refinance, Repeat), Wyatt has demonstrated a knack for maximizing returns while minimizing initial capital investment. His dedication to empowering others and sharing valuable insights has made him a sought-after figure in the world of real estate investing.

 

Big Idea: In this podcast is the transformative power of real estate investing in achieving financial freedom. Wyatt Simon emphasizes the importance of aligning investments with personal goals and values, leveraging the right strategies, and adopting a growth mindset to succeed in the competitive real estate market.

 

 

    

Dan: Wyatt, one of the things I’ve also learned, observed, maybe it’s an opinion, but you got like West Coast real estate and you have East Coast real estate, we could say Sunbelt real estate, Sunbelt and West Coast seem to be boom and bust, right? For the last five years, everyone wanted everything in the Sunbelt. Florida, Austin, Texas, Dallas, Georgia, Atlanta, Georgia, all the way up in the Carolinas, Tennessee, et cetera. A lot of those markets have seen a tremendous amount of apartment development. There’s… I forget like 80,000. I don’t remember the number, but a ton of new units are coming online, and starting to hear people gripe and complain about, well, now the rents aren’t, they’re not growing like they were. In fact, they’re even falling as a lot of this inventory comes online and we probably have a pipeline of new construction apartment inventory for another, I don’t know, deliveries for another 12 to 24 months to maybe impress that market. The reputation that the Midwest would get, right? Chicago real estate. They did not put up the volume of apartment buildings that they did in the Atlanta, Georgia market or in Florida is that we don’t see that boom and bust. We don’t see the rapid growth, but we also don’t see the rapid decline. There may be a more subtle wave, if you will, wave function in the growth. Does Omaha operate like kind of the Midwest reputation of apartment real estate?

Wyatt: Absolutely. Yeah, I saw a crazy fact. I know you’re talking about apartments, but I’ll say this. I saw a crazy fact from 2006 to 2008, the Omaha housing market dropped 6%. You had Vegas, Phoenix, and other markets dropping 60%. But we’re very insulated. I would say we lag behind a lot of the curves. On that note, too, in quarter three and quarter four last year, I believe it was the quarter three last year when we were starting to see rent decline across the nation, Omaha was actually the number one for apartment rent growth in the nation in either quarter three or quarter four last year. We are lagging behind the nation on that front. Now, we do have some waves going on. I can tell you, during COVID, we didn’t build and I think a lot of the nation didn’t build, right? Then the year after COVID, we saw a lot of construction permitting taking place. Now, we’re seeing half of that has halted as interest rates have gone up. We’re still seeing our rent continue to go up, but it’s not going up as fast as they were. They’re not decreasing like the rest of the nation here.

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://fcequitypartners.com

 

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

https://AccessOffMarketDeals.com/podcast/

 

Wyatt Simon & I Discuss Empowering Wealth Creation:

  • Wyatt and I discuss Rental Market Trends, Growth, and Regional Market Conditions (7:13): Explore current rental market trends and factors, including interest rates, driving rent growth for strategic real estate investment decisions in the Sunbelt and Midwest regions.
  • The Importance of Resilience in Omaha’s Housing Market (00:11:39): Analyze the factors contributing to Omaha’s housing market resilience during economic downturns for insights into market stability.
  • The Direct-to-Seller Approach (00:17:55): Learn about strategies for building relationships with property owners and negotiating deals outside traditional market channels in real estate acquisitions.
  • House Hacking and FHA Loans (00:34:50): Explore how to leverage FHA loans for house hacking, a strategy for reducing living expenses through rental income.
  • Scaling to Multifamily Properties (00:35:21): Discover insights on transitioning from single-family homes to multifamily properties for increased scalability in real estate investments.
  • Tax Benefits and Depreciation (00:42:32): We delve into tax benefits and cost segregation in real estate deals, with approximately 35% of the purchase price returned to investors in depreciation in year one. Discuss the allocation of depreciation and alignment of interests between investors and operators.
  • Reflection and Wisdom (00:46:37): Wyatt reflects on personal growth and shares his wisdom, emphasizing the importance of avoiding absolutes and maintaining a positive mindset. Discuss the power of language in shaping beliefs and outcomes, drawing parallels to spiritual teachings and personal experiences.

    

Relevant Episodes: (There are 241 Content Packed Interviews in Total)

 

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

Bob Bernotas on Building & Flipping Franchise Businesses for Huge Capital Gains

 

Bob Bernotas on Building & Flipping Franchise Businesses for Huge Capital Gains

 

Guest: Bob Bernotas boasts over three decades of immersion in the franchise industry, beginning his journey in 1986 when he opened his first West Coast Video franchise. Since then, he has owned multiple franchise concepts and units, with some achieving remarkable success. Bob’s experience extends beyond ownership; he has also served as the CEO of a national chain and transitioned into franchise consulting, guiding companies towards growth strategies. Over the last decade, Bob has exclusively focused on assisting franchisees in finding the perfect fit, securing financing, and navigating the complex path to successful franchise ownership. With a wealth of hands-on experience and a deep understanding of the franchise landscape, Bob is a trusted advisor for investors seeking to explore the opportunities within this dynamic sector.

Big Idea: In the realm of franchising, timing is crucial, with successful brands quickly saturating markets and presenting lucrative investment opportunities. Semi-passive franchise models offer scalability and impressive returns, making them an attractive option for investors seeking to diversify their portfolios.

 

 

    

Dan: Nice. For the audience who does not know, they probably know from the title that we select… I’m sure that you’ll have to do with franchising businesses. Some of the listeners will remember some of our other past discussions around why real estate investors specifically might be interested in the franchise as an option to supplement to cash flow and things of that nature. Before we dive in and pull apart that piece of the topic, tell me, Bob, how did you arrive at your place in life now as a franchise consultant?

Bob: Oh, my goodness. I’ve been a franchise investor, owner operator since 1986. I’ve owned multiple franchise concepts and multiple units with each that I’ve built and sold over the years. Some with a great deal of success and some not with as much success. Also, was CEO of a national chain and I’ve been consulting, I guess for a couple decades now. Originally, I was consulting mostly on the franchise side, helping companies position for growth over the last 10, 12 years, have morphed exclusively onto the franchisee side, helping people or groups find the right franchise fit, help them acquire financing for that and help them move forward.

Dan: We were talking before the show started and I mentioned West Coast Video. I wonder if some of our listeners remember that place.

Bob: They’re going to need to be the older ones, but hey, everybody knows what happened in that industry. Not around anymore, but yeah, that was my foray into franchising. December of 1986, opened my first West Coast Video franchise on Wayne and Shelton Avenues in Germantown.

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://FranchiseWithBob.com/

 

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

https://AccessOffMarketDeals.com/podcast/

 

Bob Bernotas & I Discuss Building & Flipping Franchise Businesses for Huge Capital Gains:

  • Importance of timing in franchise investment
  • Semi-passive franchise models and their scalability
  • Strategies for financing franchise investments
  • Vertical scaling through service-oriented franchise businesses

    

Relevant Episodes: (There are 240 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 Development: Insights from Brandon Cobb

 

Navigating Real Estate Development: Insights from Brandon Cobb

 

Guest: Brandon Cobb is a seasoned real estate developer with a keen eye for opportunities and a strategic approach to navigating the market. With a background in both new construction and land development, Brandon brings valuable insights into the evolving landscape of real estate development. You can view his previous REI Diamonds Episode Here: Nashville Tennessee Real Estate Development

 

Big Idea: Brandon shares his journey into land development and the success of his strategy in selling finished pads to builders, highlighting the importance of adaptability in the face of changing market conditions. He emphasizes the shift towards focusing on entitlement of land for lower risk and higher returns, while also exploring opportunities in developing and selling pads with pre-contracted buyers.

 

 

    

Dan Breslin: Brandon Cobb, welcome back to the REI Diamond Show. How are you doing today?

Brandon Cobb: Hey, I’m back on the show, so I’m doing fantastic. Thanks for having me.

Dan: Nice. In preparation for today’s episode, I’ll reference that buyers can go back and check out your previous episode. The title was Nashville, Tennessee Real Estate Development, and that was in June of 2022. Rather than have you do the origination story and how you got to the place that you’re at today, that’s all on that original episode. But what we were talking about at the time, you were very excited about new construction. You guys had some projects going, and I believe we were in the papering engineering design phase of a land development deal. I don’t remember how many lots it was 10, 20. It was not like a three-lot development, but you were essentially going to put the curbs in here. For the listeners, this is like the Nashville, Tennessee market, Tennessee market in general. You were talking about putting the curbs in and then selling off those pads, I think to individual builders or maybe the national builders. But maybe you could pick up where we left off last time and give us a report on maybe that early or those early development deals with the curbs and the build-ready pad sites went, Brandon.

 

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.hbgcapital.net/

 

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

https://AccessOffMarketDeals.com/podcast/

 

Brandon Cobb & I Discuss Navigating Real Estate Development:

  • Transitioning from new construction to land development.
  • Strategies for selling finished pads to builders.
  • Assessing market conditions and adapting development strategies.
  • Balancing risk and profitability in real estate development.
  • Exploring opportunities in the entitlement of land and pre-contracted sales.

    

Relevant Episodes: (There are 239 Content Packed Interviews in Total)

 

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

Skylines and Strategies: Navigating New York City Real Estate with Bob Knakal

 

Skylines and Strategies: Navigating New York City Real Estate with Bob Knakal

 

Guest: Join us in this episode as we sit down with Bob Knackal, Head of the New York Private Capital Group at JLL, a seasoned investment sales broker with a 40-year career in the dynamic New York City real estate market. Bob shares insights into his impressive journey, highlighting his role in transforming the skyline through strategic land deals and development projects.

 

Big Idea: Bob Knakal takes us on a journey through his four-decade-long career in the New York City real estate market. From the early days as an investment sales broker to leading the New York Private Capital Group at JLL, Bob shares key strategies for success, highlighting the importance of expertise, data-driven decision-making, and product specialization. The discussion delves into the nuances of the market, examining recent corrections, development opportunities, and the unique challenges and advantages of navigating the complex world of New York City real estate. Bob’s insights provide valuable lessons for both seasoned professionals and those looking to make their mark in the ever-evolving real estate landscape.

 

 

    

Dan Breslin: All right, Bob Knakal, welcome to the REI Diamond Show. How are you doing today?

Bob Knakal: Great, Dan, thanks so much for having me on.

Dan: Yeah, when the booking agents had gotten the request I said, “Oh, wow, this is cool.” Bob Knakal just applied to be on the show. We’re going to approve that one, and then they finally got our schedules to Massey, and here we are. So I was excited to have you on the show, but maybe for listeners who don’t know the name, Bob Knakal, you could give a Reader’s Digest version about who you are and the highlights of your career today.

Bob: Sure, absolutely. Well, Bob Knakal, I currently am the head of the New York Private Capital Group at JLL. I’ve been an investment sales broker in New York City for 40 years now. For 26 of those years, from 1988 to 2014, I owned and ran a company called Massey Knakal Realty Services. We were investment sales in New York. Co-Star started tracking the marketplace in 2001. And in 2001, we were surprised to see that we had sold more buildings than any other company. And from 2001 to 2014, the number two company in New York sold a little over 1300 buildings. Massey Knakal sold over 4000. So we lapped the field by more than three times. Sold the business to Cushman and Wakefield in 2014 for $100 million. And I was three and a half years at Cushman, five years now at JLL. I think Dan, the thing that I’m most proud about our firm was that number one, we focused on culture training servant leadership mentality. And that has very tangibly manifested itself. Today, in New York City, there are 29 investment sales brokerage companies or divisions of companies that are either owned by or run by people who learned the business at Massey Knakal. So the legacy is significant and something I’m very proud of. Last week, I closed transaction number 2321. It’s about $22 billion worth of sales. And fortunately, even though I’m in year 40, I still love this business as much today as I did the day I started. And that’s what keeps me going.

 

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.us.JLL.com/

 

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

https://AccessOffMarketDeals.com/podcast/

 

Bob Knakal & I Discuss New York Real Estate:

  • Expertise and Differentiation: Bob emphasizes the importance of becoming an expert in a specific niche of the market, using statistics rather than adjectives to answer key market questions.
  • The Map Room Advantage: Bob discusses the creation of the Map Room, a unique data set that tracks every building under construction and potential development site in New York City, providing a competitive advantage in selling land.
  • Product Specialization: Bob talks about the shift from geographic orientation to product specialization in recent years, focusing on specific property types such as land transactions and multifamily properties.
  • Market Correction Dynamics: Bob provides a detailed overview of the New York City real estate market’s recent corrections, emphasizing the autonomy of different product types and the changing behavior of lenders in response to market conditions.
  • Development Opportunities: Explores ongoing development opportunities in various sectors, including the challenges and prospects in the condo land market, the impact of rezoning projects, and the transformation of the hotel market.

    

Relevant Episodes: (There are 238 Content Packed Interviews in Total)

 

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

Inside the Self-Storage Industry with Jacob Vanderslice of Van West Partners

 

Inside the Self-Storage Industry with Jacob Vanderslice of Van West Partners

 

Guest: Jacob Vanderslice is a real estate investor and entrepreneur with over 15 years of experience in the industry. He is the founder of Van West Partners, a real estate investment firm that specializes in self-storage facilities. Jacob has an extensive background in residential fix and flips, multifamily, adaptive reuse retail, and town-owned development, but his passion lies in the self-storage business. Jacob explains the reasoning behind his shift towards storage, the company’s investment philosophy, and how they create value in their facilities.

 

Big Idea:  Real estate investor and entrepreneur Jacob Vanderslice shares his expertise in self-storage investment. Jacob discusses his journey in real estate investing and how his company, Van West Partners, moved from single-family rentals to self-storage investments. He emphasizes the importance of creating value through income streams and optimizing unit mix for maximum revenue. Jacob also talks about his investment philosophy, which centers around value-add investments in growing markets.

 

 

    

 

Dan: This is a pretty quick return, right? 6 months later, here we are. I don’t recall if we did it when we were on the call live recording or when we were spending some time before or after the episode, but we were talking about a fund you had set up for self-storage that had a pretty big dry powder dollar amount looking to allocate. I think my comment was, “Do you think you can actually allocate that?” I think that might be a good place to start so you can divulge the details as you see fit there and some adjustments to the playbook for VanWest going forward to get us started.

Jacob: Yeah, well, hopefully, six months ago my answer was the same as it is now. Because we could start to feel the shift back then. We had targeted a pretty large equity allocation when we launched this in January of 2022, which might as well have been 10 years ago relative to the history of the real estate market. Not much has changed, but we’ll end up closing the fund with 11 assets, just over 80 million in total capitalization leverage in the low 60s. We love the assets we’ve bought. We started acquiring in April 2022, and our last acquisition was in June of this year, so we’re raising our final round of capital. We’re going to close out the fund by 1231. Really, the reason for that is, first of all, we’re a closed-ended fund, and we’ve been open for a little while. Secondly, deal flows have substantially diminished. The bid asks spread is still very wide. It’s been widening, it feels like the last year or so. Sellers are just not transacting and you’re not seeing as many deals come to market. Buyers are having a harder time making their assumptions work, just give them what the interest rate environment has done. Bank financing is more difficult to get. You’ve got this incrementally declining transaction volume, and I think it’s going to just continue through the end of the year and we’ll see what 2024 looks like, but I think there’s going to be some opportunity coming up.

 

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.VanWestPartners.com

 

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

https://AccessOffMarketDeals.com/podcast/

 

Jacob Vanderslice & I Discuss the Self-Storage Industry:

  • The evolution of Van West Partners’ investment strategy
  • The state of the US real estate market and the impact of COVID-19
  • The role of technology in the real estate industry
  • The potential impact of government policies on the market
  • The outlook for the real estate market in the near future

    

Relevant Episodes: (There are 232 Content Packed Interviews in Total)

 

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

Insights from Crowdfunding Expert Adam Gower

 

Insights from Crowdfunding Expert Adam Gower

 

Guest: Adam Gower, a seasoned real estate crowdfunding and syndication expert hailing from Central Coast California, has embarked on an extraordinary journey in real estate finance. His diverse experiences, from dwelling in Beverly Hills to navigating the California Coast’s tumultuous waters, have uniquely sculpted his perspective on real estate investing. Within his captivating background lies an intriguing PhD thesis, delving into the historical intricacies of banks underwriting financing during the 1904-1905 Russo-Japanese war. Adam’s profound knowledge of financial history and its practical application to real estate investment is genuinely enlightening.

 

Big Idea: In this episode, Adam Gower, a real estate crowdfunding and syndication expert, discusses the evolving landscape of real estate financing, emphasizing the importance of risk management, adapting to changing market dynamics, and leveraging syndication and crowdfunding opportunities for real estate investors.

 

 

    

 

Dan: That’s right. So, Adam, we’re going to get into GowerCrowd, Crowdfunding as our main topic. But before we do it, I thought a cool place to start would be where we are talking about right before we hit record. You have this PhD in an interesting topic. Would you mind briefly describing that?

Adam: Sure. I wrote a thesis that examined how banks underwrote their financing of Japan during the 1904 and 1905 Russo-Japanese war. Oh my goodness, how obscure could that be? What I found interesting about it, why I ended up writing this thing was that when you look at, it’s called the historiography, when you look at how people have reported this particular period in American banking history. The way they reported it was that Kuhn Loeb was headed up by – oh they complete it with JP Morgan. And this was in the day of the railroad barons and the robber barons, they were called. And Jacob Schiff and Kuhn Loeb, and JP Morgan, all these guys, they were all part of that party. The historiography says that Kuhn Loeb took really huge unnecessary risks, and I just didn’t believe it.

When I got the idea to write this PhD, I was working for East West Bank. I was brought in during the global financial crisis, so 2007-2008. I just thought, no, banks don’t take risks like that. They don’t just randomly invest because, whatever, some kind of wacky political points of view, which is what everybody said Kuhn Loeb had done. So, I decided to dive into it. And so, what I did was, it was really cool actually, Dan, seriously, I mean, I was able to access all the telegrams that went back… It was a syndicate of banks, the finance Japan. I look to handwritten letters, telegrams that went back and forth, and contracts. They were all handwritten in those days. It was really, really cool. I read all of this stuff that they never anticipated. They never thought anyone will ever read this. I got into all of this stuff. I figured these guys, they were really, really diligent on not only underwriting the risk but making sure, a couple things, one, they made absolutely sure that their investors were going to get their money back. Even if whether Japan won or lost. If you read between the lines here, you can see how this applies to real estate investing. But they were very, very sure that their investors would get their money back because they had guarantees from the Japanese government. And number two, even more importantly, as bankers, and I”ll extend this to real estate sponsors today, they were also extremely careful in the way they structured their deals that they made money, didn’t really matter if anybody else did at the end of the day.

 

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://GowerCrowd.com/

 

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

https://AccessOffMarketDeals.com/podcast/

 

Adam Gower & I Discuss Crowdfunding:

  • Market Migration Trends: Exploring the migration of people from California to Florida and its potential impact on the real estate market.
  • Risk Management: Drawing lessons from historical financial practices to highlight the crucial role of risk management in modern real estate investing.
  • Changing Real Estate Dynamics: Understanding the impact of fluctuating interest rates, insurance costs, taxes, and other factors on real estate investments.
  • Principal-Agent Conflict: Emphasizing the importance of active management and hands-on involvement in real estate deals to maximize returns.
  • Syndication and Crowdfunding: Exploring the legal aspects and online visibility needed to attract investors through crowdfunding and syndication, along with strategies for scaling real estate businesses.

    

Relevant Episodes: (There are 231 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.