Scaling with Strategy in Real Estate with Jim Fredo
Guest: Jim Fredo is a seasoned real estate investor and dynamic entrepreneur based in Pittsburgh. With a diverse background that spans the music industry and the tech sector, Jim embarked on a journey into the realm of real estate, leveraging his wide-ranging skills and experiences. He quickly established himself as an astute investor known for his strategic approach and keen eye for value-add opportunities. Having navigated the challenges of the music industry’s networking-driven landscape, Jim applied his tenacity and resourcefulness to the real estate market. Today, he stands as a testament to the power of adapting and thriving in diverse industries. Jim’s reputation extends beyond his impressive portfolio; he is also dedicated to sharing his insights and knowledge within the real estate community.
Big Idea: Jim Fredo’s remarkable journey in real estate is centered around the concept of scaling through strategic partnerships and embracing value-add opportunities. He has recognized the value of collaboration and the significance of enhancing property value to achieve remarkable growth. Jim’s approach underscores the importance of combining expertise, leveraging resources, and optimizing properties for sustained success in the competitive real estate landscape.
Jim: Sure. So I came here, I started off with single family. I didn’t know the area. I didn’t know the markets. I already had a disastrous first purchase. I lived in California and bought a building in Eastern PA and it was just a mess. So coming to Pittsburgh, don’t want to make the same mistakes. I’ve learned from all that. The first two properties that I bought were actually from the same seller. He carried the note. I still have properties today. You start off with zero percent interest and made sense. When I refinance that and paid him off, it’s worth a lot more than I paid for it. It’s like, “Okay, this worked out well.” And from there, I just-, I did some flips for a little while to build a little pot of money. Way too stressful for me, so I’ve stuck with rental since then. Single families, duplexes had been growing since then, a couple of six units, and I think I mentioned to you we closed on a 28-unit townhome package and a 25-unit, building.
Dan: Nice, congratulations on the scale there. So is that what your whistle now, to no longer want to add single-family rentals to the portfolio? Have you made a transition or is this is a, “Hey, welcome with my arms open. I’m happy to take another duplex, single family. If that feels good, I’m in.” What where you at with that, Jim?
Jim: I try not to do too many, but I have a great relationship with the wholesaler in town, and he brings deals to me, you know, and he knows I close-, if he’s going to buy, I’m going to buy, and no competition. He brings me killer deals. Like okay, fine, I’ll take it, so. I have a crew, so I go to renovation company, management company to support all this. So sometimes I buy stuff just to keep the crew busy for any slow period. So if it makes sense, I’ll buy it but I am focusing on the bigger projects. I’ve got a partner out of Michigan. Were working together on big syndication deals now. He’s got tons of experience. I think he’s purchased 1500, 2000 units syndication deals, so we’ve got one of those working on. But we’re talking about the before the show so.
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Resources mentioned in this episode:
https://www.SpringCapital.Partners/
For Access to Real Estate Deals You Can Buy & Sell for Profit:
https://AccessOffMarketDeals.com/podcast/
Jim Fredo & I Discuss Scaling with Strategy in Real Estate:
- Value-Add Approach: The importance of renovating properties to enhance their value and improve tenant experiences.
- Challenges in Scaling: The complexities of transitioning from smaller rental properties to more substantial syndication deals, including managing partner relationships and operations.
- Managing Maintenance: The significance of preventive maintenance in reducing emergencies and long-term expenses.
- Commercial vs. Residential: A thorough analysis of the pros and cons of commercial and residential real estate investments, exploring property management and tenant expectations.
Relevant Episodes: (There are 228 Content Packed Interviews in Total)
- Unlocking Multifamily Millions: How Vlad Arakcheyev Transformed from Graphic Designer to Syndication Powerhouse
- Joe Fairless on Scaling up to 3,500 Units
- Jim Zaspel on Finding, Funding, & Flipping a Large Volume of Single Family Houses
- Dan Schwartz on Managing Off Market Investor Deal Flow
- REI Diamonds Show with Jim Zaspel on Growing Your Real Estate Business from a Hobby to a Massively Productive & Profitable Business
- REI Diamonds Show with Peter Vekselman on High Volume Investing & Retail Brokerage
The transcript of this episode can be found here.
Transcripts of all episodes can be found here.