23 episodes

Apartment Investors Club is for everyone whose passion is investing in apartment buildings. Whether you’re a passive investor or an active deal sponsor, the newest newbie or an investor with decades of experience, our in-depth interviews with top real estate professionals from across the spectrum will teach you something valuable in every episode.

Apartment Investor's Club Podcast Jonathan Twombly

    • Business
    • 5.0 • 6 Ratings

Apartment Investors Club is for everyone whose passion is investing in apartment buildings. Whether you’re a passive investor or an active deal sponsor, the newest newbie or an investor with decades of experience, our in-depth interviews with top real estate professionals from across the spectrum will teach you something valuable in every episode.

    Navigating Multifamily Investing in a Rising Rate Environment w/ Veena Jetti of Vive Funds

    Navigating Multifamily Investing in a Rising Rate Environment w/ Veena Jetti of Vive Funds

    📌 Multifamily Wealth Project Conference, Apr 26 - 28, 2023
    The Multifamily Wealth Project connects you with influential leaders, deal makers, investors, brokers and peers in the multifamily industry. 👉 Book your spot HERE:
    http://multifamilywealthproject.com/

    Veena Jetti is the founding partner of Vive Funds, a unique commercial real estate firm that specialises in curating conservative opportunities for investors. With a degree in Finance and over a decade of real estate experience, Veena is an expert at driving corporate strategy. She’s heavily involved in the industry as a frequent speaker, panellist, and guest on various shows. Veena is also an avid philanthropist, serving on several boards, and was one of only three women to receive the Politico Woman of the Year award for the efforts in aiding a grassroots Hurricane Harvey disaster response.

    In this week’s episode, we explore the following:

    1. How to navigate a market in which interest rates are rising quickly and cash flow is getting constrained
    2. The advantages of working with a private lender compared to going to traditional lending routes
    3. The benefits of partnering with another company to scale in the real estate business.

    "Demand is still high for multi family. With inflation going up, multi family is also a great hedge against inflation. We do think that we're going to start seeing interest rates slow down in how quickly they're rising.”

    Some key points:

    (02:28) Many real estate investors have had a lot of trouble getting deals to go through in recent times. Rising interest rates are killing the cash flow of many assets; also the amount of leverage you can deploy has become more limited. Despite this, the demand for multi family is still very strong, due to a combination of factors
    (07:22) If we see a rise of interest rates of about another 75 basis points, how will this affect the prices for multi-family? Veena believes cap rates will expand; rent prices will continue to go up. We are becoming a nation of renters.
    (13:55) Where does the new rate environment leave retail investors?
    Investors will be seeking more clash-flow up front and forego the upside potential in the end
    The preference will be determined by the specific investor demographic though
    (18:49) Veena breaks down the structure of Vive Funds
    (20:46) Partnerships are the key to scale in the multi family business. Vive Funds is busy hiring for in-house talent
    (24:56) Everybody tends to have key functions that they are good at and not so good at. One thing Veena doesn't like is asset management. Veena enjoys the tax, legal and investor relations side of things.
    (26:49) Any business, in order to be a success, has to cover the basics of operation really well, in addition to the visionary and entrepreneurial side of things
    (30:37) How Veena's partnership came together
    (35:54) How to reach out to Veena and Vive Funds

    🌎Reach out to Veena Jetti
    Website https://vivefunds.com/home-2/about-us/
    LinkedIN: https://www.linkedin.com/in/veena-jetti/

    🌎Reach out to Jonathan Twombly
    LinkedIn: https://www.linkedin.com/in/jonathandtwombly

    Loved this episode? Leave us a review and rating on Apple podcasts by clicking here.

    Make sure to also check some of our previous episodes:

    Going From Working In Hospitality To Multifamily Investing & Hotel Conversions With Charlie Rushton

    Hotel Conversions To Multi Family Housing With David Peters

    🎤 Podcast production Everglade Media

    • 37 min
    Building A Multi Family Real Estate Empire Armed With Skills in Engineering & Sales w/ Matt Faircloth of DeRosa Group

    Building A Multi Family Real Estate Empire Armed With Skills in Engineering & Sales w/ Matt Faircloth of DeRosa Group

    📌 Multifamily Wealth Project Conference, Apr 26 - 28, 2023
    The Multifamily Wealth Project connects you with influential leaders, deal makers, investors, brokers and peers in the multifamily industry.
    👉Book your spot HERE www.http://multifamilywealthproject.com/ 

    Matt Faircloth has been a full-time investor since 2005. In that time he has successfully completed projects involving dozens of fix and flips, office buildings, single family homes, and apartment buildings.  He has completed over a Hundred Million in real estate transactions and controls thousands of units of multi family. 
    He is a regular contributor and podcast guest on Bigger Pockets.com, has an active YouTube Channel dedicated to educating investors, and the author of the Amazon Best Seller, Raising Private Capital, How to Build your Real Estate Empire with Other People's Money.

    In this week’s episode, we explore the following:

    1. How and why do people with engineering backgrounds excel in real estate investing
    2. What is the best team structure for a successful real estate business? Keep it lean!
    3. How can entrepreneurs use their personality traits to their advantage when building a real estate business?
    4. Why you should avoid giving up equity in your business too easily and hire help instead, whenever possible
    5. Some key ways to engage and convert your potential investors by using email outreach

    "Besides coming equipped with maths skills, people with backgrounds in engineering are natural problem-solvers, which lends itself well to working in the real estate world.”

    Some key points:

    (01:47) Who is Matt Faircloth? From engineering, to sales, to reading Rich Dad Poor Dad and meeting his wife, who is a great RE investor in her own right
    (04:45) Why are so many people with engineering backgrounds involved in real estate?
    Many have backgrounds in maths, which is obvious; and many have a bug for entrepreneurship, which is surprising, but very common all the same
    (07:30) Engineers are natural problems solvers, which carries over well into real estate
    (09:30) Matt manages to make practical use of his knowledge of thermodynamics when working in real-estate problems
    (11:04) Once your business grows, you can "fire yourself"  from a lot of the daily duties, and instead become the guy with the veto power
    (12:41) Matt breaks down the composition of people in his team
    Matt handles marketing and sales himself, his other two partners handle acquisitions and operations
    (14:12) Initially, Matt brought in too many partners. His recommendation: don't give up equity unless you have to; hire instead of partnering
    (15:59) How to decide which functions should remain at the partner level, which ones at the employee leveI. In Matt's view, you need 3 key functions: someone to find the deals, someone to do analysis, and someone to do the funding
    (19:05) It's good to have a mix of introverts and extraverts on your team
    (21:57) The stuff you find yourself procrastinating on is the stuff you are (probably) not good at and should outsource
    (25:56) Matt's high-level system for raising money and getting investors
    Matt makes use of InvestNext
    (28:41) Getting eye-balls on your project is all about solid emails: collect emails and engage your audience with persistence
    (31:06) Matt explains the JAB-JAB-JAB-HOOK method for getting people's emails and doing outreach
    (03:27) The conversion rate for a list of potential buyers is around 5% to 10%
    (35:31) The current environment for raising capital
    (38:44) Matt's plans for the next 3 to 5 years: multi-family will remain the core; Matt is also consider adding some other real estate classes into to mix
    (40:14) How to reach out to Matt

    🌎Reach out to Matt Faircloth
    Website https://derosagroup.com/team/
    LinkedIN: https://www.linkedin.com/in/mdfaircloth
    IG: https://www.instagram.com/themattfaircloth/?hl=en
    Matt on YOUTUBE: https://www.youtube.com/@Abundantking/videos

    🌎Reach out to Jonathan

    • 42 min
    How to Reduce Risk by Choosing the Right Location For Your Real Estate w/ Drew Whitson of Endurus Capital

    How to Reduce Risk by Choosing the Right Location For Your Real Estate w/ Drew Whitson of Endurus Capital

    📌 Multifamily Wealth Project Conference, Apr 26 - 28, 2023
    The Multifamily Wealth Project connects you with influential leaders, deal makers, investors, brokers and peers in the multifamily industry. 👉 Book your spot HERE

    Drew Whitson has been purchasing investment properties since 2007 and has extensive experience in the Twin Cities and mid-Atlantic markets. Prior to investing in real estate, Drew was a finance executive for a Minneapolis based Fortune 50 company. Drew received an Economics and Finance degree from Bethel University and later an MBA from the University of Minnesota’s Carlson School of Management. In addition to Endurus Capital, he is currently a Professor of Finance at Bethel University in St. Paul and lives with his wife and four kids in Mahtomedi, Minnesota.

    You will learn:

    1) How Endurus Capital, a Minnesota-based real estate investment firm, was able to formalise their partnership after working together for years.

    2) How the three partners behind Endurus Capital, with different skills and interests, bring different value to their team.

    3) What Endurus Capital is doing to professionalize their operations by developing back-end systems and bringing on staff to support their work.

    "We saw really early that working together we can do a lot more than us working separately.”

    Some key points:

    (01:22) Introduction to Endurus Capital, from Drew himself
    Serious branding efforts is something the company undertook only recently
    (04:45) Drew and his partners worked together for a LONG time before formalizing their partnership officially
    (06:14) How Drew approaches solving disputes within partnerships: all of the primary partners are full-stack syndicators, who think long term. Drew likes to emphasise that as individuals we get less done, much more in a partnership. 
    (08:19) Of the 3 main partners at Endurus could get the job done on their own, but how do they compliment each other in terms of skills? Todd has contractor experience, Matt has systems management and networking experience. Drew himself brings his investment banking and finance experience.
    (11:08) The on-going effort to professionalise the operation and Endurus
    (12:39) The in-house  file organisation system that Endurus uses: Institutional investors do their due diligence when it comes to back-end information processing
    (13:54) How Endurus manages their staff: which roles have been brought in-house and which ones are external partners?
    (17:54) How has Drew's role changed within the company since more and more people have been brought on? There is more time to get involved at the physical locations
    (19:12) Less risk in terms of the property LOCATION. The location is the only problem you can't really slave with more money.
    (20:36) Drew defines what it means for a property to be well located:
    The way you make money in this business is by finding a dodgy building in a good neighbourhood
    (21:53) Markets that Endurus currently focuses on: Lexington, Louisville, and Memphis
    Older housing stock, stable and diverse, many available renters. Areas need to be accessible to the company team: Either fly direct or drive 2 hours max to your property
    (26:13) How much of the Endurus portfolio consists of assets from before the company was formed?
    (27:30) At 3000 units and total value of around 300 to 400 million, Drew considers the company to be a mid-size player, on the way to the big leagues
    (30:48) How to reach out to Drew

    🌎Reach out to Drew Whitson
    Website https://www.enduruscapital.com/
    LinkedIN: https://www.linkedin.com/in/drew-whitson
    Twitter https://twitter.com/dswhitson

    🌎Reach out to Jonathan Twombly
    LinkedIn: https://www.linkedin.com/in/jonathandtwombly

    Loved this episode? Leave us a review and rating on Apple podcasts by clicking here.

    Make sure to also check our previous episodes:

    Going From Working In Hospitality To Multifamily Investing & Hotel Conversions With Charlie Rushton

    🎤 Podca

    • 32 min
    A Look Into Real Estate In Assisted Living And Memory Care Service Businesses w/ Loe Hornbuckle

    A Look Into Real Estate In Assisted Living And Memory Care Service Businesses w/ Loe Hornbuckle

    📌Multifamily Wealth Project Conference, Apr 26 - 28, 2023
    The Multifamily Wealth Project connects you with influential leaders, deal makers, investors, brokers and peers in the multifamily industry.
    👉 Book your spot HERE
    Loe Hornbuckle, 40 of Dallas Texas, is the CEO and founder of Sage Oak Assisted Living and Memory Care.  Founded in 2015, Sage Oak isn’t just another assisted living company, Sage Oak is “the boutique assisted living company” with 5 locations in Dallas and a total of 40 beds. Sage Oak provides small, intimate, home settings that allow those who need a little extra care to receive the love and dignity that they deserve. 

    Sage Oak also has two ground up boutique assisted living/memory care developments now open in Texas and Louisiana totaling just under 300 beds with an estimated dollar value of 45mm dollars

    "I don't think assisted living or memory care, in most cases, is a real estate play. It's a service business with a real estate component.”

    In episode #20 of Apartment Investor’s Cub, you will learn the following:

    1. How did Loe Hornbuckle stumble into his passion for assisted living and memory care? A story of his own family having a negative experience in the pas
    2. What is the difference between independent living, age restricted communities, skilled nursing, and assisted living/memory care
    3. The particular economics of real-estate in the assisted living space: increased labour costs, the need to focus geographically and problems of scaling

    Some key points:

    (02:35) Low operates both in the assisted care scene as well as the multifamily markets. How did he get into it in the first place?
    Loe shares a personal story of his family's poor experiences with assisted care facilities which led Loe to look into the area
    (04:59) From initial idea to actual execution: Loe is mostly self-taught in the business. He also made use of mentors and connections and ultimately used his skills in leadership to get things off the ground.
    (08:39) Some considerations when it comes to dementia care in particular: an area that requires you to relate to not only those who are affected by directly but also their families
    (10:30) Defining assisted living and memory care
    Assisted living isn't strictly speaking an real estate play, it's a service business with a RE component
    (13:23) What's the actual difference between age-restricted apartment communities and assisted care facilities? Assisted living provides in-house services for people that need help; in independent living, the same services would need to be provided by a third party
    (15:20) Compared to something like multifamily, assisted care is VERY labour intensive
    (17:19) Paying for assisted living services: Loe's clients are primarily wealthy clients who make private payments. Medicaid can help those who are unable to meet private pay demands. The services may not be as high quality though
    (19:37) The economics and cost structure of assisted living real estate. For every dollar you bring in, expect to spend 30-50% on labour.
    (21:12) Loe has taken the leap and started developing his own properties:Assisted-living properties need to be developed with specific architectural considerations in mind, so taking control of the process gives you optionsAssisted living also enables Loe to practise conscious capitalism and provides him with a way to impact people's lives in a meaningful way
    (30:47) Loe's vision for the future: expansion! You don't want to stay a midsize company for too long. Loe goes over the the pros and cons of trying to franchise an assisted care service business
    (36:51) In Loe's mind, to sell a business like his, one needs to achieve SCALE first
    (44:35) How to reach out to Loe & closing thoughts

    Reach out to Loe Hornbuckle
    Sage Oak Website https://thesageoak.com/our-team/ AND https://www.thesageoakcompanies.com/
    Loe’s Personal Website: https://loehornbuckle.com/
    LinkedIN: https://www.linkedin.com/in/loe-hornbuckle-76b6ab

    • 46 min
    Unlocking Real Estate Wealth w/ Paul Moore: Investing in Funds, Raising Capital & Dealing With Taxes

    Unlocking Real Estate Wealth w/ Paul Moore: Investing in Funds, Raising Capital & Dealing With Taxes

    📌 Multifamily Wealth Project Conference, Apr 26 - 28, 2023, Apr 26 - 28, 2023
    The Multifamily Wealth Project connects you with influential leaders, deal makers, investors, brokers and peers in the multifamily industry.
    👉 Book your spot HERE: http://multifamilywealthproject.com/
    Discover the insider secrets to setting up a successful investment fund and start making a profit today!

    Today's guest is Paul Moore. After a stint at Ford Motor Company, Paul co-founded a staffing firm where he was 2x Finalist for Michigan Entrepreneur of the Year. After selling to a publicly traded firm, Paul began investing in real estate. He launched multiple investment and development companies, appeared on HGTV, and completed over 100 commercial and residential investments and exits.

    In this episode, you will learn the following:
    What advice does Warren Buffett have for real estate investors?
    How did Paul Moore set up his first fund and raise money for it?
    How do fund investors avoid taxable events when the fund has sale events?

    "Investing should be boring. It should be like watching paint dry or watching grass grow. If you really want excitement, take $800 and go to Las Vegas!”

    Some key points:

    (01:17) Who is Paul Moore? In his own words
    Speculation vs true investing: Paul learned how good investing should be BORING above all else. Avoid a gambler's mindset.
    (07:11) Paul breaks down each of the funds he operates
    From self-storage, mobile home parks to outdoor shopping centres and multifamily deals, RV parks
    (08:32) How Paul allocates capital - some tactics
    (13:02) How to go about raising capital for a fund as a BEGINNER
    (17:08) Explaining the tax situation with fund activities
    (20:11) How does the fun profit from their work
    (20:59) How to find investors: Paul shares an inspiring story. You can catch a fish with a spear, or you can be a BEAR standing in the waterfall
    (25:47) How to drive further traffic to your offering
    (27:24) Some pitfalls to avoid when raising money. Don't chase shiny objects 
    (30:27) Paul's 3 to 5 year plan: combating human trafficking
    (33:43) Paul's advice for operating in the current market conditions
    (36:12) How to reach out to Paul and his company

    Reach out to Paul Moore
    Website https://www.wellingscapital.com/about
    LinkedIN: https://www.linkedin.com/in/paul-moore-3255924
    Twitter https://twitter.com/paulmooreinvest?lang=en

    Reach out to Jonathan Twombly
    LinkedIn: https://www.linkedin.com/in/jonathandtwombly

    Loved this episode? Leave us a review and rating on Apple podcasts by clicking here.

    Make sure to also check our previous episodes:

    Going From Working In Hospitality To Multifamily Investing & Hotel Conversions With Charlie Rushton

    • 38 min
    S01EP18: Acquisitions, Asset Management and Investor Relations for a Full Service Multifamily Syndication Company w/ Drew Kniffin

    S01EP18: Acquisitions, Asset Management and Investor Relations for a Full Service Multifamily Syndication Company w/ Drew Kniffin

    📌 Multifamily Wealth Project Conference, Apr 26 - 28, 2023
    The Multifamily Wealth Project connects you with influential leaders, deal makers, investors, brokers and peers in the multifamily industry.
    👉 Book your spot HERE: http://multifamilywealthproject.com/

    Drew Kniffin is the President of Nighthawk Equity.  In that role he is proud to lead and serve a team that oversees the acquisitions, asset management, and investor relations for a full-service real-estate syndication company. Together, Nighthawk has acquired  2,700+ units, managed $280 million of assets, and $90 million of investor capital.   

    When the economic tide turns, Drew must rely on his operational excellence to survive the real estate market and be a beacon of hope for LP investors.
    You will learn how to unlock new levels of syndication success with operational excellence.
    "When the tide goes out, and the markets get tough again, you find out who's been swimming naked.”

    In this episode, you will learn the following:
    What does the return to normalcy in the real estate market look like?
    What is the profile of people most at risk in the current market?
    How can investors identify operators who have operational excellence?
    And much more!

    Some key points:

    (01:45) Drew's take on the current state of the real estate market
    Drew believes we are returning to normalcy and that multifamily will remain a solid investment
    (03:46) The long-term outlook for real estate is attractive, but right now we are facing challenges in the short term.
    The people in some trouble right now are those with high leverage and those with no operational capabilities
    (06:05) Those who are well positioned can take advantage of opportunities in the market
    (09:38) The current situation with LP investors
    (15:03) How to define operational excellence and how to tell which LPs have it or don't
    (19:07) What makes Nighthawk stand out when compared to other syndicators?
    (20:42) How did Drew get into the multifamily business to begin with?
    (23:23) Drew breaks down his first syndication deal
    (27:21) What does it take to run syndication deals as a professional business
    (31:31) Don't be too quick to jump into business partnerships with people you just met
    (35:17) Nighthawk in the next 3 to5 years
    (38:43) How to get in touch with Drew

    Reach out to Drew Kniffin
    Website https://nighthawkequity.com/
    LinkedIN: https://www.linkedin.com/in/drewkniffin
    Twitter https://twitter.com/drewkniffin

    Reach out to Jonathan Twombly
    LinkedIn: https://www.linkedin.com/in/jonathandtwombly

    Loved this episode? Leave us a review and rating on Apple podcasts by clicking here.

    • 39 min

Customer Reviews

5.0 out of 5
6 Ratings

6 Ratings

Veena Jetti ,

One of the Best Podcasts with a Great Host!

Jonathan is a great host who does his work beforehand to know what questions to ask for his audience. He really gets to the specifics with his guests. I highly recommend his show!

Bronson Hill ,

Great show!!

Jonathan asks great questions and provides a ton of value. Highly recommend!

Hugh Byrne ,

Brilliant listen for any level of investor

Jon does an amazing job at articulating and providing insight along with his great guests, into the things that would otherwise seem daunting or complex about investing in the Multifamily and commercial spaces. Do yourself a favor and jump into an episode!

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