Today, we’re joined by Mat Simmons, Founder and CEO of SIMM Capital, as he shares valuable insights from his 20 years of real estate experience. Whether you’re a new or seasoned investor, Mat offers practical tips on thinking like an investor, taking meaningful action, and leveraging mentorship to fast-track your success in the real estate world. EPISODE HIGHLIGHTS: * Mat's Real Estate Background: Since 2006, Mat has acquired over $420 million in real estate across nine states, totaling 4,200 doors, and completed $700 million in transactions since 2014. * Philosophy on Real Estate Investing: Real estate is not a "get rich quick" scheme but a reliable, long-term investment strategy. * Regions for Investment: Mat focuses on Southeast states like North and South Carolina, and Georgia, where he's closing a $45M deal. He also targets Midwest states, including Tennessee, Oklahoma, and North Texas, for strong growth opportunities. * Multifamily Investments: Focus on larger properties in regions with population and economic growth, avoiding areas with tenant-friendly laws. * Affordable Housing Investments: Primarily smaller properties, such as single-family homes, duplexes, triplexes, and smaller apartment complexes. * Affordable Housing Dilemma: The zip code-based FMR system represents a significant shift in affordable housing, with potential unintended consequences for tenants reliant on subsidized housing programs. * Broader Challenges in Affordable Housing 1. Crime and Tenant Safety 2. Inefficient Housing Authorities 3. Infrastructure Costs 4. Balancing Demand and Profitability * Affordable Housing Lessons for Beginners 1. Avoid Starting Here: Complex processes, delayed cash flow, and government bureaucracy make this niche challenging for first-time investors. 2. Myths vs. Reality: Guaranteed Rent: Only partial rent is guaranteed; tenant shares can be hard to collect. Fair Market Rent: FMR is a cap, not guaranteed, and depends on various factors. 3. Management Challenges: High maintenance for single-family homes. Tenant issues and lengthy eviction processes in tenant-friendly areas. 4. Strict Inspections: Minor issues can cause costly delays; oversight is demanding. * Multifamily Investment Strategy: Their strategy focuses on value-add Class C+ and B properties, avoiding new development and mixed-use due to high costs and vacancies. Class A opportunities are considered if financially viable. * Affordable Housing Fund Structure: The GPLP fund requires a minimum $50,000 investment, with an average of $200,000, and targets $50M to acquire 2,000 units at $105K–$108K each. * Multifamily Fund Structure: The GPLP partnership requires a $100,000 minimum investment, averages ~$500,000 per investor, typically raises $100M, and allows investors to choose properties rather than pool funds. * Personal Homes as Investments: Mat and Mallory share the same belief that a personal home is not an investment as it usually costs money rather than generates income. * The Importance of Detaching Emotionally: It is important to separate emotion from real estate investment decisions. Real estate is a numbers game—focused on making money, not personal attachment. * Advice to New Investors: 1. Educate yourself without spending too much. 2. Take action. 3. Start investing early or do "house hacking" * Book Recommendations: "Think and Grow Rich" and "Rich Dad Poor Dad" * Seeking Mentorship: When seeking a mentor, don’t just ask for free advice. Instead, bring value to the mentor. * The Value of Time: Time is money, and mentors won’t spend theirs on you if they see you aren’t willing to invest the effort and research to learn what they do and what value you can offer. Mathew Simmons Website: https://www.simmcapital.com/ Mallory Meehan Website: https://www.inspirewealthmgt.com/ Spotify: https://podcasters.spotify.com/pod/show/prof-mallory YouTube: https://www.youtube.com/@MalloryInspiresWealth For collaborations: ruby@inspirewealthmgt.com
