Real Estate Uncovered: Building Success and Weathering the Storm with Doug Faron

 

Real Estate Uncovered: Building Success and Weathering the Storm with Doug Faron

 

Guest: Doug’s extensive experience in the real estate industry, combined with his innovative strategies, has made him a sought-after expert in the field. Throughout his career, he has successfully navigated high-growth markets, mastered the art of property management, and achieved remarkable returns on investments. Join us as Doug shares his invaluable insights, practical tips, and the secrets behind his real estate success.

 

Big Idea: In this episode, we sit down with Doug Faron, a highly experienced real estate investor and operator with a remarkable track record in the industry. Doug provides valuable insights into his journey, emphasizing the importance of maintaining family values while building a successful real estate business. He shares his expertise in navigating the real estate market, even during challenging periods, and highlights the key factors that have contributed to his achievements.

 

 

    

 

Dan: Yeah, for sure. When the booking request came through, I was personally most excited about the operator, developer. You guys have a huge background, Shoreham Capital of very large projects. It seems like from all the research that I’ve done, I probably can’t do as much justice on an introduction as you, so why don’t I give you the floor, allow you to give an intro on kind of your career, [inaudible] capital and what the trajectory of you work guys investment strategy looks like today.

Doug: Sure. Perfect. Well, again, thanks for having me and happy to introduce myself and then tell you a little bit about Shoreham Capital. My name is Doug Feron and I’ve spent most of my career on the institutional investment side of the real estate business. I started my career in investment banking. I then went to work in corporate private equity for a number of years and then transitioned after business school to real estate private equity, working with a firm called the CIM group based out in Los Angeles. I spent about 10 years at CIM, had a really great experience and ultimately was a managing director on their investment team and running their East Coast investment practice. But I had shifted from corporate to real estate really looking at one book, being very interested in the asset class and also being interested in trying to do something entrepreneurial.

One day I felt that in real estate there was a much bigger opportunity for that than corporate private equity. So after about 10 years with CIM, I was doing some family events and otherwise decided it was the right time to take a look and looking for a seed to that thesis or a seed for that business. One of the areas I’ve been really interested in at the firm and we’d been working on a white paper on was single-family rental. I had been pursuing that and through a friend was introduced to one of my partners, Nick Zumas, who’s a sizeable home builder in both New York and Florida. In meeting Nick, we sat down and had the opportunity to sort of flush out a business plan to shift a lot of his forward pipeline from for sale to for rent but along the backs of that, build a larger real estate developer operator investor that would do both traditional multi-family, both ground up and value add, alternatives like build to rent single-family rental senior student, and then also still have an allocation for special situations and the background I had of doing different asset classes, debt and equity, wherever the sort, the opportunistic opportunity is.

 

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://ShorehamCapital.com/

 

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

https://AccessOffMarketDeals.com/podcast/

 

Doug Faron & I Discuss Building Success and Weathering the Storm:

  • The foundation and vision of Shoreham Capital.
  • Successfully managing large real estate development projects.
  • Strategies for weathering the storm in a challenging real estate market.
  • Insights into the cost and yield considerations for real estate projects.
  • The importance of location, entitlement risk, and site plan approval.

    

Relevant Episodes: (There are 234 Content Packed Interviews in Total)

 

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

Tech to Real Estate: A Unique Journey with Kranti Ponnam

 

Tech to Real Estate: A Unique Journey with Kranti Ponnam

 

Guest: Kranti Ponnam, an accomplished engineer with a strong background in technology, embarked on a remarkable journey in the real estate world. Born and raised in India, Kranti’s early exposure to his family’s deep involvement in real estate ignited his passion for the industry. Despite a successful career in technology, he remained steadfast in his belief in real estate as a more reliable investment avenue than the stock market. Kranti’s real estate journey began with the acquisition of small condos and apartments in San Diego. From there, he expanded into the commercial real estate sector and became a limited partner in syndicated deals.

 

Big Idea: Join us for a deep dive into the thriving Atlanta real estate market and discover investment opportunities that extend beyond the city’s limits. Our guest, a seasoned investor, takes us on a journey through different facets of real estate, emphasizing the importance of market selection, effective strategies, and adaptability in achieving long-term financial security.

 

 

    

 

Dan: Yeah, you and me both. You and I were talking before we got to record about me having to cancel and you twice, and I was like so excited and looking forward to the episode once our booking agents started the conversation, like wow, here’s a really cool conversation. We’re going to have multi-family investment syndication in the Atlanta market, which the listeners know. I love the Atlanta market, I’m bullish on it. It’s going to be a great market, I think for another five, 10 years at least into the foreseeable future. But you also had this tech data driven background, which I think is unique, right? For people who come on the show and people who are usually syndicating real estate deals, usually they start flipping houses, maybe buy some things, develop, buy, build a three unit, and now they’re going to buy a 100 or 200 unit apartment building. I think your path was different and that was part of why I was excited. Maybe you could tell the origination story, the brief play by play on how you got to where you’re at and what the business model looks like now.

Kranti: Sure. My background is an engineer, and then came out of college, took a job in a field that was totally unrelated. I went to school for mechanical civil engineering master’s degree and then came out and did work in the technology space. So always was in the technology space. But growing up, and I grew up in India, my dad, my whole family has been in real estate and real estate was more of a second nature. So once I started making money and started building businesses and going into it, I’ve never invested as much in stock market, still don’t believe it one bit. So I have some holdings, but always been a believer of real estate and that’s how I first started buying. I bought my office complex that we basically had our company located. I think we did really well on that particular building and sold it in about a span of eight years for five x the price.

 

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.kipi.bi

 

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

https://AccessOffMarketDeals.com/podcast/

 

Kranti Ponnam & I Discuss Teach to Real Estate:

  • Transition from Technology to Real Estate Investing: Kranti delves into his unique journey transitioning from the technology sector to real estate investing, highlighting how his strong belief in real estate, coupled with a technology background, paved the way for his substantial success in the real estate market.
  • Exploring Different Real Estate Asset Classes: Kranti’s diverse investment portfolio spans various real estate asset classes, from small condos to retail strip centers and multi-family properties. He shares his strategic diversification tactics, showcasing his adaptability and astute investment acumen across diverse segments of the real estate market.
  • Unveiling the Potential of the Atlanta Real Estate Market: Kranti’s enthusiasm for the Atlanta market is fueled by its remarkable potential. He outlines key factors, such as population growth, job opportunities, and affordability, which make Atlanta an enticing and sustainable market for real estate investment.
  • Strategic Scaling: Kranti’s approach underscores the significance of strategic scaling in real estate investment. He provides insights into adding value to non-performing assets, optimizing property performance, and maximizing returns while diligently managing risk factors within a dynamic market.
  • Impact of Market Trends on Real Estate Investments: Kranti shares valuable insights into how market trends can significantly affect real estate investments. He addresses the evolving market dynamics, particularly focusing on factors such as interest rates and rental growth, which play a pivotal role in influencing investment decisions and asset values.

    

Relevant Episodes: (There are 233 Content Packed Interviews in Total)

 

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

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

 

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

 

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

 

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

 

 

    

 

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

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

 

This Episode of The REI Diamonds Show is Sponsored by the Deal Machine. This Software Enables Real Estate Investors to Develop a Reliable & Low Cost Source of Off Market Deals. For a Limited Time, You Get Free Access at http://REIDealMachine.com/

 

This Episode is Also Sponsored by the Lending Home. Lending Home Offers Reliable & Low Cost Fix & Flip Loans with Interest Rates as Low as 9.25%.  Buy & Hold Loans Offered Even Lower.  Get a FREE IPad when you Close Your First Deal by Registering Now at  http://REILineOfCredit.com

 

Resources mentioned in this episode:

https://www.CadiaCapitalGroup.com/

https://www.zeroto100tribe.com/

 

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

https://AccessOffMarketDeals.com/podcast/

 

Mitchell England & I Discuss Navigating Real Estate Investment:

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

    

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

 

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

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

 

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

 

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

 

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

 

 

    

 

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

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

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

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

 

This Episode of The REI Diamonds Show is Sponsored by the Deal Machine. This Software Enables Real Estate Investors to Develop a Reliable & Low Cost Source of Off Market Deals. For a Limited Time, You Get Free Access at http://REIDealMachine.com/

 

This Episode is Also Sponsored by the Lending Home. Lending Home Offers Reliable & Low Cost Fix & Flip Loans with Interest Rates as Low as 9.25%.  Buy & Hold Loans Offered Even Lower.  Get a FREE IPad when you Close Your First Deal by Registering Now at  http://REILineOfCredit.com

 

Resources mentioned in this episode:

https://www.PassiveWealthStrategy.com/

 

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

https://AccessOffMarketDeals.com/podcast/

 

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

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

    

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

 

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