Multifamily Insights

Best Ever CRE Network
Best Ever CRE Network
  • 4.9 (281)
  • Investing
  • Updated Semiweekly

Each week, John Casmon speaks with real estate pros and marketing specialists to provide useful tips for multifamily investing. Listen and learn insights for market research, finding deals, attracting capital, and growing your portfolio.

  1. 6d ago

    The Tax Mistake Quietly Costing Real Estate Owners Six Figures with Tom Brodie, Ep. 809

    Tom Brodie is a National Account Executive with CSSI, the nation's premier engineering-based consulting firm specializing in tax law surrounding commercial buildings. With over 23 years of experience and more than 65,000 studies completed, CSSI has a proven track record of delivering significant tax savings without triggering a single audit. Tom spent 27 years at Shell Oil before taking early retirement and moving into the scuba industry, where he worked for a Houston-area scuba retailer. Wanting work that was less dependent on discretionary spending in an oil-driven local economy, he found cost segregation and assumed every building owner already knew about it. Most did not. Today, based in Houston, Tom works with commercial and multifamily owners to reclassify building components into faster depreciation schedules and to correct costly errors buried in existing depreciation schedules. Most building owners have never run a cost segregation study, and many who have are still leaving money on the table. In this episode, Tom Brodie of CSSI walks John through what a study actually does, why a CPA cannot perform one, and the land valuation error he keeps finding on depreciation schedules that quietly costs owners six figures. Tom shares two real examples, explains how recapture and 1031 exchanges change the math, and clarifies when it is too late to act.     Make sure to download our free guide, 7 Questions Every Passive Investor Should Ask, here.     Key Takeaways Break a building into 5, 7, and 15-year asset classes instead of one 27.5 or 39-year schedule Claim 100% bonus depreciation on anything a study identifies with a life under 20 years Audit your depreciation schedule for an inflated land value, because land can never be depreciated Hold at least 3 to 5 years after a study, or use a 1031 exchange, so recapture does not erase the benefit Use a change of accounting method to catch up missed depreciation without amending prior returns     Topics What Cost Segregation Actually Does A study divides a building into faster-depreciating asset groups instead of one straight-line schedule The structure stays at 27.5 years for residential or 39 for commercial; interiors and site work move to 5, 7, or 15 years Parking lots, irrigation, security systems, lighting, landscaping, and flagpoles all fall in the 15-year bucket Why the Strategy Stayed Obscure Cost segregation dates to the late 1990s but was originally priced for owners of skyscrapers CSSI brought the cost down far enough to study buildings valued from $200,000, excluding land Tom says most CPAs lack the time and resources to do it, and many never raise it with clients Why It Takes an Engineering Study Counting every window, door, appliance, and countertop across a portfolio is an engineering exercise CSSI delivers dollar totals by asset class for the CPA to plug into the depreciation schedule Tom notes CSSI does not prepare returns, so the handoff stays clean A Medical Office Building Example A 53,000 square foot medical office building completed in December 2023, valued at roughly $12.9 million Straight-line depreciation for that first month came to $13,790 The study identified about $1.1 million in tangible personal property and $3.1 million in land improvements At the 80% bonus rate then in effect, that produced roughly $3.4 million of first-year depreciation The Land Value Error Hiding in Depreciation Schedules A Colorado rental carried $500,000 in land value against a county assessment of $125,000 Reallocating the $375,000 overage lifted the building basis from $522,384 to roughly $897,000 The owner had held the property four years without knowing the error existed Tom recommends validating land value against county records, or a commercial realtor's opinion as of the purchase date Correcting Past Years Without Amending Returns A change of accounting method form allows a catch-up deduction in the current tax year The IRS treats the filing as an automatic acceptance, so prior returns stay untouched CSSI prepares the form as part of every study for the CPA to submit Recapture, Hold Periods, and the 1031 Exchange Selling soon after a study can let recapture consume the entire savings Tom recommends holding at least 3 to 5 years so reinvested savings outrun the recapture A 1031 exchange defers the gain entirely and is the cleanest way to avoid recapture What Qualifies and What Does Not Personal residences do not qualify; commercial and investment property does An owner-occupied duplex can be studied for the rental portion only A vacation rental is prorated based on the owner's personal use during the year Cost Segregation Inside a 1031 or a Syndication Tom recommends a study on both the relinquished and the replacement property Carryover basis reduces the new study's base, and the benefit still holds In syndications and JVs, depreciation flows by ownership percentage under the partnership agreement When It Is Too Late, and the Biggest Mistake Properties owned under ten years are worth evaluating; past twenty, there is usually little left to accelerate CSSI runs no-cost, no-obligation estimates before any commitment Tom says the biggest mistake is simply failing to pursue every tax benefit in the code He notes 100% bonus depreciation returned with no scheduled phase-out, unlike the version that stepped down after 2022     📢 Announcement: Learn about our Apartment Investing Mastermind here.     Round of Insights Failure that set Tom up for success: On one of his first large projects he accepted the stated land value without questioning it. Looking back, he believes he could have saved the client more, and he now scrutinizes land allocation on every study. Digital or mobile resource: LandGlide, a mobile app that pulls public ownership records for a parcel while you are standing on the property. Book recommendation: Building a StoryBrand by Donald Miller. Daily habit: Working from a CRM pipeline that shows every project's stage visually, so the day's priorities and next actions are clear at a glance. #1 insight for using a cost segregation analysis: Have one done. Request a no-cost, no-obligation estimate and let the numbers decide. Favorite restaurant in Houston, TX: Gringo's Mexican Kitchen.     Next Steps   Reach out to Tom Brodie directly at tom.brodie@cssiservices.com Learn more about CSSI here. Pull your depreciation schedule and check the land-to-building allocation against county records Request a no-cost estimate before committing to a study Confirm your hold plan, since selling within a year or two can erase the benefit Ask whether a change of accounting method applies to properties you already own     Thank you for joining us for another great episode! If you're enjoying the show, please LEAVE A RATING OR REVIEW, and be sure to hit that subscribe button so you don't miss an episode.

  2. Sep 8

    Why Success Starts With Who You Become With Jonathan Berryhill, Ep. 808

    Jonathan Berryhill is a former US Army infantry sergeant and law enforcement officer turned real estate entrepreneur, broker, and multifamily investor. He has built multiple seven and eight figure businesses, three real estate brokerages, and a team of over 50 agents. Today he specializes in multifamily investing, real estate growth, leadership, wealth building, discipline, and entrepreneurship. Jonathan grew up dirt poor in a broken home, served in the Army, worked narcotics in law enforcement, and walked on to play linebacker at the University of North Alabama at 25. He moved into medical sales, became a chief operations officer, then launched and sold his own medical device company. He and his wife now live on their farm in North Alabama with six children and four grandsons, and he leads America's Outdoor Realty and Elite Properties of the South across Alabama and Tennessee. His first book, Warrior to Wealth, is releasing this fall. In this episode, Jonathan Berryhill breaks down how he rebuilt his marriage, his identity, and his finances after filing for divorce at 25 with no money and no plan. He explains why alignment at home comes before growth in business, how he wrote down the man he wanted to become and started acting like him, and what separates people who commit from people who try. Jonathan also shares the failure that redirected his real estate career and previews his upcoming book, Warrior to Wealth.     Make sure to download our free guide, 7 Questions Every Passive Investor Should Ask, here.     Key Takeaways Define your why clearly enough that it survives setbacks Fix your home life before trying to scale a business Act like the person you want to become, starting now Pay for mentorship through books, podcasts, and lunches Surround yourself with people operating a level above you Know what you are bad at and move toward what you do well     Topics From a Mobile Home Floor to a Vision Jonathan grew up dirt poor with plywood covering holes in the floor of his father's mobile home He could visualize a businessman version of himself and refused to repeat what he grew up in The Turning Point at 25 His marriage was in shambles and he and his wife had filed for divorce He called her in Hawaii and promised a life she could only dream of, with no idea how He left law enforcement and walked on to play linebacker at the University of North Alabama Building the Entrepreneurial Track Record Jonathan moved into medical sales and became a chief operations officer He launched his own medical device company and sold it a few years later He and his wife started buying land 14 years ago, which led him into land sales Pick Your Hard Fear of returning to poverty drove him for the first decade of his career He let it go after realizing that being poor is hard and building wealth is hard, so you choose which Alignment Comes First Jonathan frames every area of life as either in line or out of line, starting with home His wife has been his biggest supporter since they reconciled Comfort kills progress in relationships, business, and fitness Motivation vs. Discipline He runs a self-audit: do my daily actions match the goal I say I want Discipline means doing the work on the days you do not feel like it Mentorship and Finding Your Tribe Most people will not spend on a book, a podcast, or a lunch that could change their trajectory Jonathan still seeks mentors at 49 and joins a weekly entrepreneur networking call Weak relationship building is what stalls most people at the next level Forge the Identity, Then Do the Work He wrote down who he wanted to become and started doing what that man would do His advice to an aspiring CEO: study who that CEO knows and what he does daily, then copy it You become the athlete before the recruitment, not after Warrior to Wealth The book is built on three statements: find your mission, forge your identity, build your legacy Jonathan writes openly about his biggest failure, being unfaithful in his marriage He aims to give readers belief that his path is repeatable It Happens Because of You Trying something for 30 to 90 days is not a commitment Jonathan rejects "I have done all I could do" as an escape route Success, a strong marriage, and results all happen because of you Serving Veterans on the Farm Jonathan hosts fishing, hunting, and rodeo events for veterans on his family farm Ruck and Rawhide, supported by the Alabama Department of Veterans Affairs, raises awareness for veteran suicide       📢 Announcement: Learn about our Apartment Investing Mastermind here.     Round of Insights   Failure that set Jonathan up for success: House flipping. His last flip ate his lunch, which pushed him into flipping land instead. He became a land broker and was named broker of the year out of more than 140 offices in his first year. Digital or mobile resource: Podcasts. Download a podcast app and fill your drive time and work hours with positive, influential voices. Book recommendation: Atomic Habits by James Clear, Rich Dad Poor Dad by Robert Kiyosaki, and How to Win Friends and Influence People by Dale Carnegie. Daily habit: Speaking gratitude out loud before getting out of bed, naming at least a dozen things he is thankful for. #1 insight for maintaining a positive mentality: Start with gratitude, then guard what you feed your eyes, ears, and mouth, because that input shapes your mind and your thinking. Favorite restaurant in North Alabama: Cotton Row in Huntsville for family dinners, and Catfish Cabin in Athens for a quick bite.     Next Steps   Preorder Warrior to Wealth and learn more about Jonathan here: jonberryhill.com Write down the identity you want to build, then list what that person does daily Audit whether your current actions actually match the goal you claim to want Find one person ahead of you in your industry and buy them lunch Join or build a group of entrepreneurs operating a level above you Get your home life and foundation aligned before scaling anything else     Thank you for joining us for another great episode! If you're enjoying the show, please LEAVE A RATING OR REVIEW, and be sure to hit that subscribe button so you don't miss an episode.

  3. Sep 1

    Buy, Sell, or Hold? How I'm Navigating Multifamily Right Now, Ep. 807

    This week, learn how John evaluates the current multifamily market and decides whether to buy, sell, or hold. John opens with the question he hears most often from investors in the current portfolio: what is the outlook, and where does the firm stand as a buyer or a seller today? John explains what has changed. Higher interest rates raised the cost of capital and made it harder to find deals that pencil, while higher savings rates gave investors a low risk alternative that did not exist a few years ago. He walks through the framework he uses in response: separate what you cannot control from what you can, start with operations and the value add upside still available, then weigh that against the runway left on the loan. He also makes the case for thinking like a trader of assets, explains why leverage determines who wins a trade, and shares why he believes multifamily fundamentals remain healthy despite the short term pressure in the market.     Make sure to download our free guide, 7 Questions Every Passive Investor Should Ask, here.     Key Takeaways Stop spending energy on variables you cannot control Evaluate every deal individually before making portfolio decisions Weigh the value add upside still available against the time left on the loan Never put yourself in a position where you are forced to sell Treat assets as trades and know where your leverage sits Expect forced sellers over the next 12 to 18 months to create buying opportunities     Topics What Investors Are Asking Right Now Investors want to know the outlook and whether the firm is buying or selling Most deals in the portfolio are cash flowing, though not at past distribution levels Why the Market Has Changed Higher interest rates raised the cost of capital and thinned the pool of deals that pencil High yield savings accounts now pay a decent return for far less risk Investors are more cautious after deals that did not perform as projected Focus on What You Can Control John tracks the economy, the Treasury, and the value of the dollar without fixating on them Interest rates in 2027 and election driven policy changes sit outside any operator's control Awareness informs the projection; energy goes toward internal execution Operations Come First Every deal gets reviewed individually for performance, cash flow, and remaining upside If rents can still be pushed and demand is strong, keep executing the business plan Once the value add is captured, the deal moves into a second phase Loan Term Drives the Exit Decision A short runway with the value already captured points toward selling sooner A longer runway with upside remaining supports holding the asset Most deals fall between those two cases and require weighing both factors Selling on Your Terms John is a seller at the right price but wants to stay in control of the timing He expects some operators to be forced to sell over the next 12 to 18 months Groups already exiting at a loss will create opportunities for prepared buyers Why Multifamily Fundamentals Remain Healthy Population growth and the housing shortage have not gone away New construction starts have tapered off after several heavy supply years Midwest markets such as Cincinnati saw smaller swings in both directions The Trade Mindset Brokers talk about assets trading, and John applies the same framing as an investor The mindset centers on a clear business plan and a defined exit instead of an indefinite hold John compares the approach to running a sports team as a general manager Leverage Wins Trades Owning an asset other buyers want is what creates leverage Anyone forced to offload a deal rarely gets the number they wanted Positioning for competition, demand, and a strong story protects value at exit Reading Market Sentiment What buyers are willing to pay matters more than John's own view of value The firm buys when the business plan works and the price makes sense Evaluation is continuous, not a position set in stone       📢 Announcement: Learn about our Apartment Investing Mastermind here.     Next Steps   Explore the Apartment Investing Mastermind and request more details here. Join the free Investor Insights community on Facebook to continue the conversation Review each deal in your portfolio for the value add upside that is still available Map the time left on every loan against the value you have already captured Identify where you hold leverage and where you could be forced to sell Track what buyers in your market are willing to pay, not only your own valuation     Thank you for joining us for another great episode! If you're enjoying the show, please LEAVE A RATING OR REVIEW, and be sure to hit that subscribe button so you don't miss an episode.

  4. Aug 25

    The Capital Raising Mistake That Nearly Killed Their Firm With Richard McGirr, Ep. 806

    Richard McGirr is the co-founder and CEO of Property Llama and Property Llama Capital, an income focused fund sponsor that helps accredited investors move underperforming real estate equity into passively managed, cash flowing investments. He also hosts Unlimited Capital on the Best Ever CRE network, where he covers capital raising, fund operations, and the business of building an investment platform. Richard and his partner Chris Lopez launched their own firm roughly two years ago, after raising about $55 million in 18 months at a previous shop. The first twelve months were a grind. Today the firm runs about $42 million in its own debt fund, raised $24 million last year, and treats capital raising as a measurable sales and marketing operation rather than a relationship exercise. Richard McGirr returns for part two to open the books on capital raising. He starts with why debt funds reshaped his business. Carried interest is collected every month rather than at a sale, which turns a raise into recurring revenue instead of a run of acquisition fees. With rates elevated, investors have pulled in their time horizons, and a fund that distributes within 60 days is a far easier sell than an equity deal that pays on exit in year five. From there Richard walks through the machinery. He explains why launching his own firm nearly failed once the low hanging fruit ran out, why weekly dials are the leading indicator he manages against, and why he pays for access to trusted distribution instead of building an audience from scratch. He also lays out his full funnel, from a single webinar to a 50 email drip to a same day phone call triggered by a link click.       Make sure to download our free guide, 7 Questions Every Passive Investor Should Ask, here.     Key Takeaways Debt fund carry is collected monthly, which turns a raise into recurring revenue Higher rates shorten investor time horizons and favor shorter lockups Manage weekly dials and new qualified leads, because both sit inside your control Buy access to trusted distribution rather than building an audience from scratch One webinar delivered repeatedly outperforms ten new ones Call every investor who clicks a link, the same day     Topics Why Debt Funds Became the Engine of the Business Carried interest is collected monthly, not at a sale About $42 million in the fund throws off just under $2 million a year in carry At their previous firm, the debt fund quietly covered company payroll Why Debt Funds Sell Faster Right Now Higher rates pull investor time preference in LPs receive a first distribution within 60 days Lockups run 18 to 24 months, with monthly loan payoffs providing liquidity Why the Launch Nearly Failed The easy network at the previous firm was already tapped Every personal network runs out eventually Messaging, product selection, sales management, and email drips all had to be rebuilt Dials Are the Metric You Control Sales results are input driven, and inputs are the only controllable variable Richard's team makes 200 calls a week Moving from 25 to 100 dials a week tripled soft commits within two weeks Lead Quality Over Lead Volume Minimums are $100,000, with no exceptions Two paid Best Ever webinars raised $1 million each, at roughly half a percent media cost of capital A webinar swap with an estate planner produced 600 registrants and zero closes Large audiences skew toward broad content and non-accredited viewers Brand Transfer From Paid Webinars Presenting on a trusted platform borrows that platform's credibility Investors arrive already willing to listen, so there is less convincing to do The result is a higher conversion rate in less time Earned Media vs. Paid Media Earned media costs nothing and converts well, but the ceiling is low Richard hosts on Best Ever CRE and Chris Lopez hosts on PassivePockets Paid webinars buy speed, volume, and control over timing One Webinar, Delivered Repeatedly The Intro to Private Lending webinar is the only one they run Staff are tasked with sourcing groups and pricing webinar slots Fear the operator who has delivered one webinar 10,000 times Go Where Buyers Already Gather Publishing content and waiting to be found rarely reaches your ideal investor Target communities built around passive income and financial independence Capital raising is a two sided market, and plenty of people are already looking to deploy Richard's Funnel, Start to Finish A webinar form on the site leads to the replay and a 50 email drip Any link click notifies the sales team on Slack and triggers a same day call Of 25,000 contacts, roughly 100 are actively in market at any given time Winning the Attention Battle Investors triage hundreds of emails a day, and your offering sits at the bottom Rank your list by opens and clicks before you start dialing Ask for a specific commitment, such as watching the webinar within three days Interested investors rarely call to say they are on the fence, they simply go quiet     📢 Announcement: Learn about our Apartment Investing Mastermind here.     Next Steps   Learn more about Property Llama Capital here: capital.propertyllama.com Watch the Intro to Private Lending webinar linked on the Property Llama Capital homepage Hear part one with Richard in episode 804, including his Round of Insights Track weekly dials and new qualified leads as your two core capital raising metrics Rank your lead sources by close rate rather than by volume Pitch communities that already invest passively instead of general audiences Build one webinar that converts, then get it in front of more qualified people Call the investors who open and click your emails, the same day     Thank you for joining us for another great episode! If you're enjoying the show, please LEAVE A RATING OR REVIEW, and be sure to hit that subscribe button so you don't miss an episode.

  5. Aug 19

    If AI Can Handle Leasing Tasks, What Happens to Leasing Teams with Jacob Kosior, Ep. 805

    Jacob Kosior has over ten years of experience in the multifamily housing industry, spanning operations, marketing, and centralization efforts across conventional, student housing, affordable housing, and build-to-rent communities. He previously served as Vice President of Centralized Services at Cardinal Group Management and has held leadership positions with BH Management, The Dinerstein Companies, and CA Ventures. In 2022, while founding a centralized services team at Cardinal Group, Jacob began testing AI tools across the housing space and co-developed a delinquency AI product for rent collection with the EliseAI team. Today he is at EliseAI, where he works with operators of all sizes to implement AI tools, manage the change required for the technology to stick, and rethink how work gets structured across a portfolio. In this episode, Jacob Kosior breaks down how multifamily operators are actually deploying AI, where to start, and what agentic AI changes about the way workflows get built. Drawing on a decade in operations before moving to the technology side, Jacob explains why leasing is the natural entry point, why speed is becoming the metric that matters more than conversion rate alone, and why owners who call their own properties tend to misjudge voice AI. He and John also work through the harder question operators face once automation is in place: what the human team should be doing instead.     Make sure to download our free guide, 7 Questions Every Passive Investor Should Ask, here.     Key Takeaways Start with leasing, where the tasks are repetitive and already documented Build AI workflows on the same follow-up cadence you train your onsite teams on Track speed alongside conversion rates, because faster cycles compound Decide where human touchpoints serve the customer, not just the org chart Redeploy the hours AI frees up into experience or revenue generating work Ask questions early, since lacking internal AI talent is the most common barrier     Topics From Operations to the Technology Side Jacob spent over a decade in multifamily operations before moving into AI Founding a centralized services team at Cardinal Group in 2022 pushed him to demo every tool available He co-developed a delinquency AI tool and a centralized call center product with EliseAI before joining the company What Agentic AI Actually Changes Generative AI answers prompts; agentic AI follows a workflow toward a defined goal Goals map to work teams already do: book the tour, collect the rent, sign the renewal Operators now control the steps the AI follows, mirroring how they train staff onsite Why Leasing Is the Place to Start Leasing represents the repetitive, high-volume work teams handle every day The old five point follow-up has become 8 to 9 touches per prospect to convert AI works the weekend leads so agents start Monday on tours instead of backlog Who EliseAI Serves The platform crossed 6 million units earlier this year, roughly 1 in 6 US apartments Clients range from top 50 operators to regional operators with a few hundred units Over a billion AI conversations give the platform context on industry edge cases Speed as the Metric Owners Miss The industry tracks conversion rates closely and speed almost not at all A 20% lead-to-tour rate achieved in two hours beats the same rate in two days An assistant manager calls one delinquent resident at a time; AI calls the building Faster cycles give owners earlier visibility into collections, renewals, and leasing velocity Rethinking the ROI Question Operators who never calculated the ROI of a leasing agent struggle to value the AI doing that work The 2025 conversation was about ROI; the 2026 conversation is about creating value Freed capacity opens the door to restructuring teams, not just cutting tasks Deciding Where Humans Step In Human Touch Automations let operators choose where staff enter the customer journey One example is a personal call two hours before a scheduled tour The test is whether the customer wants that touchpoint, not whether the team is used to it Automating administrative work finally gives teams room to deliver the service they advertise The Voice AI Misconception Owners calling their own properties judge voice AI against old press-one phone trees Consumers using AI daily are increasingly comfortable talking to it on the phone Voice AI routes callers to the right person instead of forcing them through a menu Regional dialects lifted both engagement and tour bookings in beta testing What Voice AI Replaces After-hours answering services and overflow call centers become optional Call scoring rates every leasing agent call against a rubric, replacing quarterly mystery shops Self-learning feeds those conversations back into the AI to improve automation rates     📢 Announcement: Learn about our Apartment Investing Mastermind here.     Round of Insights   Failure that set Jacob up for success: Charging ahead on change initiatives without bringing his team members along, which rubbed people the wrong way. It taught him that change management requires as much communication with counterparts, ownership groups, and regional managers as it does with onsite teams. Digital or mobile resource: IBM's YouTube channel for understanding AI concepts, use cases, and terminology. Book recommendation: Deep Work by Cal Newport, which broke his belief in multitasking. Daily habit: Stretching and morning mobility work before starting the day. #1 insight for implementing AI into your business: Ask questions. Most operators have never done this before, and a recent 350 person survey found 28% named a lack of internal talent as a barrier to adoption. Favorite restaurant in Chicago, IL: The Izakaya.     Next Steps   Learn more about EliseAI here: eliseai.com Explore EliseAI case studies, change management toolkits, and industry surveys Audit which onsite tasks are repetitive enough to hand to AI Document your follow-up workflows before you automate them Start tracking response speed alongside conversion rates Decide where human touchpoints genuinely improve the customer experience Ask vendors questions early instead of waiting to build internal expertise     Thank you for joining us for another great episode! If you're enjoying the show, please LEAVE A RATING OR REVIEW, and be sure to hit that subscribe button so you don't miss an episode.

  6. Aug 11

    Why Property Appreciation May Actually Be Hurting Your Returns with Richard McGirr, Ep. 804

    Richard McGirr is the co-founder of Property Llama and Property Llama Capital, an income focused fund of funds sponsor that helps accredited investors turn underperforming real estate equity into passively managed, cash flowing investments. He also hosts Unlimited Capital on the Best Ever CRE network, where he covers capital raising, fund operations, and the business of building investment platforms. A lifelong entrepreneur, Richard started his first company in college and later spent eight years in China building a software engineering services firm to more than 85 employees. Wanting assets that worked for him instead of headcount, he moved into single family rentals and eventually partnered with Chris Lopez to launch Property Llama. Today his firm invests exclusively in debt funds, using a fund of funds structure to convert idle equity into contractual monthly income. Richard McGirr joins John to explain why so many long-term single family landlords are sitting on millions in equity while earning almost nothing in cash flow. Using data from roughly 6,000 rentals inside the Property Llama platform, where the average return is negative 1% cash on cash, Richard breaks down how a decade of appreciation and debt paydown quietly eroded return on equity. From there, the conversation turns to debt funds. Richard explains how hard money lending to flippers works, why six month loan terms and LTV cushions change the risk profile, and where the real danger sits. He also walks through the fund of funds structure behind Property Llama Capital, the fee discount he negotiated by committing scale, and the operational audit he runs on any lender before placing a dollar with them.     Make sure to download our free guide, 7 Questions Every Passive Investor Should Ask, here.     Key Takeaways  Re-underwrite your rentals at today's values, not your purchase price  Track return on equity, not just cash flow, as debt gets paid down  Debt funds pay contractual cash flow from day one, backed by an LTV cushion  Shorter loan terms shrink the window for things to go wrong  Fraud, not default, is the risk that wipes out lenders  Diversify across a loan pool instead of funding one deal at a time     Topics From Software Founder to Real Estate Investor  Built a software engineering services firm in China to over 85 employees  Left a headcount driven business in search of cash flowing assets  Partnered with Chris Lopez by adding value to an already established operator Why the Average Single Family Rental Returns Negative 1%  Roughly 6,000 rentals in the Property Llama system average negative 1% cash on cash  Rents are flat or falling while insurance, vacancy, and CapEx climb  Richard's own Colorado Springs rent fell about 30% after a supply wave The Return on Equity Problem  The education industry teaches investors how to buy, not how to reassess what they own  A property bought at a 7 cap can become a 3.5 cap when values outpace rents  80% LTV becomes 20% LTV, and returns slide from the high teens into single digits The Equity Rich, Income Poor Landlord  Typical client holds 3 to 8 rentals with several million in equity near retirement  Most target $10,000 to $20,000 a month and sit closer to $3,000  Cash out refinances no longer close the gap at current rates Debt Funds 101  A pool of performing loans secured by title on real property  Hard money lenders fund flippers who need high LTV and five day closings  Fully loaded returns run 15% to 18% including origination Why Hard Money Risk Is Structurally Lower  Six month terms limit what can go wrong versus a ten year horizon  A 25% LTV cushion rarely erodes inside six months  Single family homes are the easiest real estate asset to liquidate Fund Investing vs. Lending on Your Own  Private lending demands underwriting, fast closings, draw management, and workouts  A single Denver flip loan can require $1.3 million of capital  $100,000 into a fund buys a slice of 50 loans instead of one Lending Is a Real Operating Business  Lenders run origination, marketing, servicing, and accounting departments  On a 50 loan book, roughly 8% pays off every month and must be replaced  Richard's largest lender partner employs 40 people Building the Fund of Funds Model  Property Llama Capital launched asset light and headcount light by design  Raising capital for another sponsor's deal without a license is a serious violation  Committing $5 million earned a 30% fee discount, split evenly with LPs How Richard Audits a Lender  Request written credit box, servicing, and draw processes  Sample 20% of the loan tape and match a document to every step  Verify title at the county and confirm payoff wires in the bank account     📢 Announcement: Learn about our Apartment Investing Mastermind here.     Round of Insights   Failure that set Richard up for success: Launching his first fund with his partner Chris after an earlier partnership ended, assuming they could raise what they had raised before. The raise collapsed and the business nearly folded. Bringing in consultant Lauren Brychell of Equity Elevated exposed how large the sales and marketing gap actually was. Digital or mobile resource: Claude Code. Book recommendation: $100M Offers, $100M Leads, and $100M Money Models by Alex Hormozi. Daily habit: Working from home, which he considers a genuine performance advantage. #1 insight for investing in debt funds: Fraud is the number one risk, whether committed by the borrower or against the lender. It is catchable with proper due diligence, and it is the scenario that wipes you out. Most other bad outcomes cost you 10% to 20%, not everything. Favorite place to grab a bite in Denver, CO: Torchy's Tacos.     Next Steps    Learn more about Property Llama Capital here: capital.propertyllama.com  Connect with Richard McGirr on LinkedIn  Listen to Unlimited Capital every Monday on the Best Ever CRE network  Run your portfolio through Property Llama and re-underwrite at today's values  Calculate return on equity across every property you own, not just cash on cash  Compare your current monthly income against the goal you actually set  Audit any debt fund's written processes, loan tape, and title records before investing     Thank you for joining us for another great episode! If you're enjoying the show, please LEAVE A RATING OR REVIEW, and be sure to hit that subscribe button so you don't miss an episode.

  7. Aug 4

    Don't Quit Your Day Job for Real Estate with John McNellis, Ep. 803

    John McNellis is a veteran real estate developer and founding partner of McNellis Partners, where he has spent more than four decades developing over 100 properties across Northern California, primarily supermarket anchored shopping centers. He started as a journalism major, went to law school, and practiced litigation for less than a year before shifting into real estate law, where he learned to structure large transactions and met the people who would fund his first deals. John built his first shopping center in 1983 alongside an older developer client and has worked with the same two partners, Beth Walter and Mike Powers, ever since. He is the author of Making It in Real Estate: Thriving as a Developer, now in its third edition, and writes a monthly column for the San Francisco Business Times and The Registry. ​​In this episode, John McNellis walks through 43 years of development, starting with a duplex he bought at 24 and ending with a firm that uses no outside capital at all. He explains how a law career gave him a shortcut into large deals, why he stopped raising money after his financial partners walked away during the early 1990s recession, and what he learned from losing a Sacramento shopping center in foreclosure. He also makes an argument most real estate podcasts avoid: keep your day job, because the failure rate in development is high and the cash flow takes years to arrive.     Make sure to download our free guide, 7 Questions Every Passive Investor Should Ask, here.     Key Takeaways Learn large deal mechanics on someone else's payroll before risking your own capital Partner for the skills you lack, and accept that good partnerships can still end Weigh the control you surrender before accepting outside capital Owning 100% of a small deal can beat owning 1% of a large one Do not overpay, over leverage, or over develop     Topics From Journalism to Law to Development Practiced litigation for less than a year before moving to real estate law Legal work exposed him to eight figure deals, entity structures, and capital contacts Early Deals That Funded the Career Bought a duplex at 24 for $25,000 with roughly $1,500 down Traded up to a fourplex and turned $1,500 into $90,000 in about two years The First Shopping Center Partnered with a developer client who had construction expertise but could not sell John raised $1 million in equity at $25,000 per investor and handled the legal work Built in 1983, still owned today, mortgage paid off and renovated twice Why That Partnership Worked, and Why It Ended  The partnership ran 5 or 6 years, until neither needed the other  Beth Walter and Mike Powers joined in 1983 and remain his partners 43 years later The Developer as Conductor  John says he still knows nothing about construction after 80 odd buildings  Development requires an orchestra of partners, consultants, and contractors The Capital Ladder and Its Ceiling  Friends and family money is a booster rocket, useful until you run out of friends  Institutional capital costs more and carries total control over timing and exits What Non-Recourse Actually Means  Deregulation of savings and loans pushed money into commercial real estate in the 1980s  Financial partners walked away mid-project during the early 1990s recession  Non-recourse protects you from them and protects them from you Moving to Their Own Capital Only  John chose owning 100% of a small deal over a minority stake in a large one  The firm buys junk, fixes it, sells it as antiques, and funds the next deal Why He Tells Developers to Keep Their Day Job  Development can take three to six years before a property cash flows  John practiced law through his first ten years of investing  He cites a failure rate above 60% for development firms in their first decade       📢 Announcement: Learn about our Apartment Investing Mastermind here.     Round of Insights   Failure that set John up for success: A Sacramento shopping center bought with his first partner. They overpaid, overleveraged with a savings and loan that funded 103% of the purchase price, and tried to over develop the site. The deal ended in foreclosure about ten years later and taught him not to overpay, over leverage, or over develop. Digital or mobile resource: Google Earth. Book recommendation: The Elements of Style by Strunk and White. Daily habit: Getting out of bed before 7 a.m. and getting to the office. #1 insight for making it in real estate: Persistence first, risk evaluation second. Real money requires real risk, but too much risk ends the business and none of it leaves you consulting. Favorite restaurant in Palo Alto, CA: Evvia.     Next Steps   Reach out to John via email: john@mcnellis.com  Connect with John McNellis on LinkedIn, where he reposts his monthly columns Read Making It in Real Estate: Thriving as a Developer, available on Amazon and Barnes & Noble Follow his columns in the San Francisco Business Times and The Registry Audit whether your current capital structure gives you the control you need Pressure test purchase price, leverage, and development scope before you commit Identify the operating partners you need instead of trying to cover every role     Thank you for joining us for another great episode! If you're enjoying the show, please LEAVE A RATING OR REVIEW, and be sure to hit that subscribe button so you don't miss an episode.

  8. Jul 21

    Why He Left Tesla for Mobile Homes with Leo Young, Ep. 802

    Leo Young is the founder and managing partner of Cornell Communities, a private equity real estate firm revitalizing manufactured housing communities across eight states. He studied finance in college, then moved into sales at Tesla to build the communication skills he knew he was missing, working his way up to top regional salesperson before leaving to pursue real estate full time. After earning his real estate license, working in brokerage, and investing passively in apartments, Leo launched his own firm. Cornell Communities acquires and operates middle market mobile home parks, expanding access to affordable housing while delivering risk managed returns to accredited investors.     Make sure to download our free guide, 7 Questions Every Passive Investor Should Ask, here.     Key Takeaways Stack skills deliberately, since finance, sales, and operations compound over a career Vet the operator harder than the pro forma, because execution drives returns Buy in the middle market where institutions with cheaper capital are not competing Underwrite infrastructure first, since older parks carry hidden CapEx risk Create value through expense discipline and rent normalization, not unit renovations     Topics From Finance to Tesla Sales Leo studied finance but could not hold a presentation or speak in front of a room He joined Tesla to fix that weakness and became the top regional salesperson Why He Left a Dream Job for Real Estate Sales income required constant output and did not build lasting wealth A first passive apartment investment and distribution check convinced him to go all in Manufactured Homes vs. Mobile Homes Manufactured housing is the legal term tied to federal HUD construction standards Roughly 20 million Americans live in these communities, across a wide quality range Buying in the Middle Market Institutions and REITs with cheaper capital absorb the top quality assets Leo targets workable properties where his team can execute a clear value add What He Underwrites First Infrastructure leads: water, sewer lines, and roads on parks 50 to 70 years old Purchase price, location, and regulations follow, then his own team bandwidth How He Vets Sponsors as a Limited Partner Most decks oversell the property and undersell the team He asks for case studies and how the sponsor responds when a deal goes wrong Why the Economics Work Residents own their homes, which lowers the operating expense ratio and lifts NOI Heavy land improvement creates more depreciable value in a cost segregation study Lot rents sit at the low end of the housing market, so demand stays strong The Two Main Value Levers Expenses: rebuild vendor contracts and move home and utility costs to residents Rent: normalize lot rents toward market while keeping the value proposition intact Site improvements like roads, fencing, signage, and lighting support resident relations Why Homes Rarely Move Relocating a home can cost $7,000 to $10,000 and risks damage in transit Most residents sell in place and cash in the equity they built Community and Retention Turnover runs near 5%, compared with roughly 50% in apartments Private yards and driveways make the setting closer to a subdivision than a building     📢 Announcement: Learn about our Apartment Investing Mastermind here.     Round of Insights   Failure that set Leo up for success: His co-founder leaving the firm. It was a painful wake up call that forced him to build systems and put the right people in the right seats from the ground up. Digital or mobile resource: Claude.  Book recommendation: Elon Musk by Walter Isaacson. Daily habit: Listening to recorded mantras and affirmations after waking, on the view that the first thoughts of the day shape the day, the week, and the life. #1 insight for investing in mobile home communities: Back the operator above everything else. Anyone can make a model or a pitch deck look good, but the operator drives the returns. Favorite restaurant in New York City, NY: Rao's.     Next Steps   Learn more about Cornell Communities and join the investor waitlist Check out Leo's website and connect with him on LinkedIn and Instagram Ask sponsors for case studies on comparable projects before you invest Underwrite infrastructure and deferred CapEx before you underwrite price Review which operating expenses belong to residents rather than ownership Benchmark lot rents against comparable housing in the same municipality     Thank you for joining us for another great episode! If you're enjoying the show, please LEAVE A RATING OR REVIEW, and be sure to hit that subscribe button so you don't miss an episode.

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Each week, John Casmon speaks with real estate pros and marketing specialists to provide useful tips for multifamily investing. Listen and learn insights for market research, finding deals, attracting capital, and growing your portfolio.

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