103: How Vertical Integration Can Take Your Real Estate Investments to the Next Level with Jorge Abreu Real Estate Runway

Jorge Abreu, CEO of Elevate Commercial Group, is a full-time multifamily real estate investor with $450M+ assets under management. He focuses on 100+ unit properties, new developments, and due diligence/renovations through his construction company, JNT Construction. With 6,849 doors, he aims to reach 10,000 doors by 2022 through strategic partnerships and systems. He is known for his strong points in deal location, due diligence, CapEx execution, equity raising, and network growth.
 
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[00:01 - 07:46] The Advantages of Vertical Integration in Multi-Family Syndication
Jorge Abreu is the founder and CEO of Elevate Commercial Investment Group, based in Texas
Elevate Commercial Investment Group owns its own construction firm, J&T Construction, which handles all new construction and CapEx projects
Jorge pursued a career in real estate after studying to be an electrical engineer and has experience in single-family, new construction, small multi-family, and large multi-family deals
Jorge's decision to vertically integrate was driven by negative experiences with unreliable contractors
 
[07:47 - 15:01] Navigating Real Estate Downturn
Vertical integration provides more control over renovations and a better cost structure, leading to higher profitability
In any finished product, the three pillars are cost, schedule, and quality, and it's important to prioritize two out of three
Due diligence and having a detailed scope of work upfront can prevent costly mistakes and ensure a successful project
In today's environment, an acquisition strategy should focus on cash-flowing assets, good lender relationships, and avoiding adjustable rates or negative cash flow situations
 
[15:02 - 22:02] Making the Most of Downtime in Real Estate
The two biggest risks in real estate are running out of time or money, so it's important to plan carefully
When buying a property, look for cash flow that's already in place rather than relying solely on pro forma projections
Uncovering unknowns about the seller can provide insights into their motivation and help with negotiations
To finance a deal, consider options like seller carryback and private/JV equity
 
[22:03 - 30:11] Closing Segment
The housing shortage is only getting worse, and rising interest rates will motivate more people to enter the market
Focus is critical in real estate investing, and it's important to stay attuned to the market and be ready to seize opportunities
 
Connect with Jorge:
Website: http://www.elevatecig.com, www.JNTConstruct.com
Social Media: Facebook,LinkedIn
 
Quotes:
 
“Time is money in this business“ - Jorge Abreu
 
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Real Estate Runway Podcast is all about alternative business and investment strategies to help you amplify life, and maximize wealth! Click here to find out more about the host, Chad Sutton.