Mon, 29 June 2020
You may have heard the prediction that unemployment in the US could reach 30%, and that does sound scary. But what do those numbers really mean? And how would that worst-case scenario impact collections? What should we be concerned about as investors in affordable housing?
Damian Bergamaschi is the cofounder of Damris Capital, a money management firm that leverages data analysis to help its investors achieve financial freedom sooner. Damian leads Damris’ optimization research for all investment models and algorithms and serves as the portfolio manager of the firm’s real estate acquisitions.
On this episode of Apartment Building Investing, Damian joins me to explain how his obsession with data led to investments in commercial real estate. He discusses why affordable housing has been insulated from COVID-19, breaking down what the unemployment rate really means and how government subsidies have had a positive impact in the space. Listen in as Damian calculates projected collections in a worst-case scenario and find out why he is bullish on affordable housing as a reliable long-term investment.
The Damris Capital origin story
How Damian’s research led him to affordable housing
What we don’t understand about the unemployment rate
Why affordable housing is insulated from COVID-19
The adverse short-term impact COVID may have on affordable housing
Damian’s promising long-term outlook for affordable housing
The cyclical nature of delinquencies and being paid up
Why multifamily investors need to be thinking about September
Connect with Damian Bergamaschi
Mon, 22 June 2020
No one knows exactly what will happen in the multifamily real estate market as the Coronavirus pandemic continues to unfold. But the heavy-hitters who have been in the game for a long time can predict, with relative certainty, which markets will thrive, when we’ll see new deal flow, and what the capital markets will look like over the next 12 months.
Michael Becker is a Principal at SPI Advisory and Senior Director of Mortgage Origination at Old Capital Lending. A 15-year veteran of commercial real estate banking, Michael has originated and managed portfolios in all the major asset classes. In the six years since he started investing in multifamily, Michael has acquired 10K units and currently manages a portfolio of 6K doors. He also serves as the Cohost of the Old Capital Podcast.
On this episode of Apartment Building Investing, Michael joins me to discuss the post-COVID new normal in multifamily real estate. He explains how the pandemic is impacting his business and offers insight around what the recovery might look like—and what that means for us as multifamily investors. Listen in for Michael’s predictions on multifamily capital markets and deal flow in the next twelve months and learn what you can do to be ready when the market turns!
How Michael’s career has evolved over the last several years
How Michael was able to scale so quickly
The biggest challenges Michael faced as he built SPI Advisory
Why Michael’s uses a third-party property management team
How the pandemic is impacting Michael’s business
Michael’s predictions around the post-COVID recovery
Michael’s predictions around post-COVID multifamily deal flow
What the capital markets will look like for the next 12 months
What work Michael is doing on the acquisitions side right now
Where Michael sees his company going in the next five years
Connect with Michael Becker
Mon, 15 June 2020
Those of us who enjoy success in the real estate business are typically introduced to a model, an investor operating at a scale we never considered, who gives us an idea for what’s possible and a vision for the future. And if we’re smart, we can learn from their mistakes and leverage their knowledge and experience as a springboard, affording us a more direct path to our own financial freedom.
Jacob Blackett is the Founder and CEO of Holdfolio, a platform that connects investors with high-yield investments in the real estate industry, and Syndication Pro, a software company that helps syndicators raise capital and manage investors online. Jacob got his start doing fix-and-flips as a 19-year-old sophomore in college, and today, he has placed over $50M into income-producing real estate, building a portfolio of 600+ units (as the lead sponsor) and a network of 3K registered investors.
On this episode of Apartment Building Investing, Jacob joins me to explain how an infomercial inspired his interest in real estate and share his journey from fix-and-flips to wholesaling to SFH rentals to multifamily. He walks us through the steps he took to scale his real estate business, describing why it’s beneficial to have an in-house property management team and how the technology he built to raise capital online became Syndication Pro. Listen in to understand how Jacob overcame losing $40K on his first deal and learn how to avoid his mistakes by joint venturing with an experienced team early on!
What attracted Jacob to the real estate space
Jacob’s experience with his first fix-and-flip
Why Jacob pivoted from flipping to SFH rentals
Jacob’s first AHA moment around scaling his business
What inspired Jacob’s transition to multifamily
Jacob’s first multifamily deal
What surprised Jacob most about multifamily
Jacob’s background working in property management
The benefits of using in-house property management
Jacob’s first steps for scaling his real estate business
How Jacob scaled his capital raising efforts
How Jacob bounced back from losing $40K
Jacob’s advice to his 19-year-old self
Jacob’s advice for aspiring multifamily investors
Connect with Jacob Blackett
Mon, 8 June 2020
Some real estate investments are riskier than others, especially in an economic downturn. Class A multifamily developers, for example, are likely to lose their tenant base in a recession. So, what can developers do to forecast what the world will look like at the end of a build cycle and make decisions accordingly? And what can we ALL learn from this approach that will help us prosper through multiple market cycles?
Scott Choppin is the Founder of Urban Pacific, a real estate development company out of Long Beach, California. With 35-plus years of experience in the business, Scott has led the development of nearly 1,700 units throughout the Western United States. He is also responsible for a recent innovation known as Urban Town House, a middle-income, multigenerational housing product that serves urban families in California. Scott’s work has been featured in Forbes, The Los Angeles Times and Builder Magazine, among many other media publications.
On this episode of Apartment Building Investing, Scott joins me to explain how he got his start working for a large development firm, describing the wide range of skills and knowledge he picked up before striking out on his own. He discusses how he leveraged joint venture partnerships in the early days of Urban Pacific, what the company is doing to mitigate risk in a recession, and why he is optimistic about the current circumstances. Listen in for Scott’s insight on transitioning from a W-2 to real estate development and find out what YOU can do to survive and thrive in an economic downturn.
How Scott got into real estate development
Why Scott chose another firm over the family business
What Scott learned in working for a big developer
How Scott transitioned into entrepreneurship
The structure of Scott’s early joint venture partnerships
Scott’s advice for shifting out of a salaried position
The challenges around doing development as a side hustle
What kinds of deals Urban Pacific has done
How Scott thinks about mitigating risk in a recession
Why Scott is optimistic about the current circumstances
Connect with Scott Choppin
Mon, 1 June 2020
How do you become a successful multifamily syndicator when you’re not old enough to order a beer? What does it take to overcome objections around being too young and too inexperienced—and raise more than half a million dollars in capital for your very first deal? What’s it like to achieve financial freedom before you turn 21?
Kyle Marcotte is an entrepreneur and multifamily real estate investor with a 119-unit portfolio valued at $5.5M. He was a pre-med student and Division I soccer player at UC Davis when Kyle learned about the potential to generate passive income with real estate. At the age of 20, he raised $600K and closed on his first deal in just four months. Now, Kyle is on a mission to help others become financially free with multifamily investing—regardless of age or experience.
On this episode of Apartment Building Investing, Kyle joins me to explain why he burned the boats and quit college to pursue real estate full time. He discusses how he got brokers and investors to take him seriously despite his lack of experience, sharing what gave him the confidence to keep moving forward through hundreds of no’s—until he finally got a YES. Listen in to understand why Kyle went for such a BIG first deal (a joint venture on 107 units!) and learn what he is doing now to build a personal brand and scale his multifamily syndication business.
What inspired Kyle to get into real estate
How Kyle realized he had the personality of an entrepreneur
What financial freedom means to Kyle
How Kyle got investors to take him seriously at the age of 20
The specifics of Kyle’s first joint venture deal
Why Kyle kept going after hearing hundreds of no’s
Why Kyle went after such a large first deal
The nature of Kyle’s first joint venture partnership
How things changed for Kyle after his first deal
What Kyle is doing to build his investor base
How gave Kyle the confidence to keep moving forward
Connect with Kyle Marcotte