Real Estate Investing for Cash Flow with Kevin Bupp Kevin Bupp

Larry Lieberman is the president and founder of the Barrington Group. For more than 40 years, The Barrington Group's company philosophy has been to provide excellent quality maintenance service, good clean, well-manicured grounds, well-prepared apartments, friendly courteous professional staff members, and a genuine real concern for the health, safety, and well-being of their residents.  
The Barrington Group believes in long-term ownership.  They do not “build and sell” or “flip” their properties; in fact, they still own and manage most of their original portfolio. 
An excerpt from their website, which I think will provide some additional context to the type of company Barrington is - “We know our residents, they know us…. we strive to have the same staff at a property year after year. Our residents are not subject to “new management” with changing rules and fewer quality standards. Because we are long-term owners, we must pay attention to keeping our properties in excellent physical condition…. to prevent them from aging… we spend considerable resources on keeping our properties beautiful. 
 

Quotes: 

“There were companies out buying everything in sight, but we couldn’t compete because we wanted cash flow absent of the tax benefits. We weren’t players. We weren’t out building and developing and buying because we couldn’t compete with the tax credit mentality.” 

“The basic components that we adhered to, to turn properties around in the ’60s, was I believe in giving a good, well maintained and clean apartment for a reasonable price. And for which, I expect my rent, and I expect it on time. We adhere to that, and we’ll do our part first so that you’ll do your part second.” 

Highlights: 

5:22- Larry tells us about his background and how he found his way into real estate 

13:39- Larry shares how prior to 1987 he kept from falling into the trap of bad deals due to inflation 

18:53- Larry tells us about changes in his property management style that helped him manage his business more efficiently in the 60s after acquiring 2000 assets 

21:23- Larry shares the struggles he has faced in his career and how he has overcome them 

27:04- Larry tells us how he makes determinations in large rehab projects as to not over renovate  

30:40- Larry talks about the best-valued lifestyle commodities in communities 

32:27- Larry tells us about shifts and changes he’s made due to COVID 

Guest Website: 

http://www.bgiapartments.com/  

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Janine Yorio is head of the real estate group at Republic. 

Republic is a leading alternative investment platform open to all investors and has closed over $150 million in investments in 200+ companies throughout 100 countries. Republic is backed by both strategic capital partners and traditional venture capital firms including Binance and Passport Capital. Founded in 2016, Republic is based in New York City and has 50 employees. 

 

Quotes: 

“This is a platform where people are looking to fill their bucket with alternative investments. Different people want to see different things. They don’t come to Republic looking to invest in public equities and stocks, but they do come to Republic looking for unique investment opportunities that are uncorrelated. Some of which have really high potential risk rewards that would be very difficult to find in a public market type of platform.” 

 

Highlights: 

3:40- Janine tells us about Republic, what they offer, and her background 

6:54- Janine tells us about how cross-pollination in their userbase with niches and sectors 

8:23- Janine explains what separates the Republic platform from the multiple other real estate crowdfunding platforms that exist today 

17:50- Janine gives her viewpoint on trends and patterns in her business due to COVID 

23:00- COVID impacts on different industries 

Guest Website: 

https://republic.co/real-estate  

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Joe Muratore is the co-CEO of Grace-ada Partners. 

Grace-ada is a commercial real estate investment firm that specializes in Large-Scale Value-Add Commercial Real Estate in California’s Central Valley. More specifically, Grace-ada focuses on Central Valley office buildings and shopping centers and currently has over $150 million in assets under ownership and $300 million under 3rd party management. 

Quotes: 

“It’s a negotiation, but our job is to start, like with any negotiation, with letting our tenants feel heard. We can’t force them into a box and if we do, it will backfire.” 

“Success favors the bold. There is a lot of value in just taking that next step. There is a great book called The Hard Thing About Hard Things and the core value there is if it were easy to get from A to B, that’s a commoditized thing and it’s going to pay very poorly. In this business, there is very rarely a clear path from A to B, but after a while, you develop 4 or 5 different bread crumbs that you’re able to spot, and you’re able to make a path from A to B that others can’t see.” 

Highlights: 

4:04- Joe tells us about his background and how he found himself in real estate  

14:50- Joe tells us if he thinks that COVID is the nail in the coffin for traditional retail and why 

23:56- Joe shares how he approaches his tenant’s intentions to continue working and innovate through COVID 

27:44- Joe explains what things look like from the lending side of things 

35:39- Joe shares and direct impacts that correlate to his investors 

 

Guest Website:

https://www.graceadapartners.com/  

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Ajay and Manu Gupta are the CEOs and managing directors of Indus Communities. 

Indus was founded on a simple, yet powerful idea: to transform neighborhoods and lives. Since 2002 their team has been committed to making neighborhoods stronger and safer by revitalizing communities in the greater Houston area. As a family-owned business, we have made a conscious choice to pay our success forward by helping our residents who live in our properties along with their family and friends. This philosophy also extends to our employees who proudly own 25% of the business.  

 

Quotes: 

“We’re closing on a 400-unit property, 396 exactly. It’s a great opportunity. We actually looked at this property in March and had it under LOI and not because of the Corona Virus, but because of property taxes here. Their property taxes tripled this year, so the underwriters couldn’t underwrite it anymore so we had to drop it and things got mitigated and things got better, so we got the deal. So, there is some action out there, and we think in the next 6 months it will improve and there will be more transactions.” 

“Don’t stretch yourself too thin. Invest only what you can invest. Don’t re-mortgage the house, don’t take out a second loan. Sometimes you see that investment and it looks great, but you have to be careful because at the end of the day you have to make sure that you're comfortable and safe in your financial planning.” 

 

Highlights: 

4:47- Ajay and Manu tells us about themselves and their backgrounds 

9:19- Ajay and Manu tell us what asset class they typically buy 

13:43- Ajay and Manu share if they saw a downtick after stimulus checks ran out  

18:54- Ajay and Manu explain how their business has changed on the acquisition side of things 

23:06- Ajay and Manu give a prediction on how the commercial market will fair through COVID in Houston 
 

Guest Website: 

https://www.induscommunities.com/  

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Yoann Hispa is the CEO and co-founder of Landgate.com. 

LandGate is an open Property Rights Marketplace that provides free listings of mineral assets, wind, water, solar, timber, cell tower rights, and more.  

Prior to founding Landgate, Yoann was President of Optimix Energy Corp where he worked as COO for Private Investors, Private Equities, and small E&P companies in their oil and gas evaluations, acquisitions, divestitures, and drilling operations. Yoann has 15 years of experience in the oil and gas industry mainly with Operators in various technical roles from Geoscientist to Reservoir Engineer. 
 

Quotes: 

“We need to calculate how many resources are in place and how much can be exploited, how many more wells can be drilled to exploit that resource. And, when those wells will likely be drilled based on recounts and activity from operators. Then, based on SEC reserves, we need to tie these future cash flows to a reserve category and risk them. At the end, you just add up all of those cash flows and you end up with the market value.” 

“Diversify your portfolio with a lot of real estate investors and get some actual resources in there.”  

 

Highlights: 

4:27- Yoann gives us his background, tells us about landgate.com, and how it came about 

14:50- Yoann tells us the likelihood that landowners have some type of mineral or water under their land that increases the value and what the evaluation method looks like 

19:32- Yoann tells us how much accuracy he’s able to tell how much oil can be exploited from a location that has never been drilled 

25:35- Yoann compares his services to buying gas stock  

31:31- Opportunities in solar and wind investments  

 

Guest Website: 

https://landgate.com/home  

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Matt Faircloth is a Real Estate Investor and founder of the Derosa Group. 

Under Matt’s leadership, DeRosa has completed over 30 million in real estate transactions including apartments, mixed-use buildings, office buildings, fix and flips, and tax lien investments.  Matt has extensive expertise in connecting passive investors to lucrative investment opportunities through syndications, private loans, and joint ventures.  
 

Quotes: 

“With the smaller deals, it was easier in that sense because once they filled out the form, it’s a smaller base, it’s manageable. I can close in a day. With 85 investors, it’s just more heads to manage. In some ways, it becomes like herding cats. You have to respect that when investors want to invest a significant amount of money with you, $50,000 is a ton of money. And so, they are going to want to discuss that with you. So, you have to set aside the time to have those calls. With larger raises, you have to set aside more time. “ 

“Don’t quit. When things get tough, don’t quit. Just try on something new. Have faith, and just try something new to get you to where you want to go. When times get tough, it’s not a time to drop your goals. It’s a time to just try a different method to get there.” 

 

Highlights: 

4:02- Matt tells us about his background and how he got into real estate 

8:34- Matt talks about transitioning from a small or medium to larger assets 

15:32- Matt tells us about the steps he took to double his revenue 

20:27- Matt shares his methods 

23:41- Matt tells us about the changes he made to increase the number of investors that are interested 

44:45- Matt shares about changes in the way he runs his business as we roll through COVID.  

 

Guest Website: 

https://www.derosagroup.com/ 

Learn About Investment and Partnership Opportunities with Kevin and His Team