Street Smart Success interviews Real Estate entrepreneurs across all asset classes and all markets. They share their self-made stories including valuable lessons learned from painful mistakes and their paths to success. They share what they're doing now and their perspective on today's Real Estate market and trends.
If you like the podcast, we would love it if you would go to Itunes or Apple Podcasts and subscribe, Rate & Review. This will greatly help in sharing this podcast with others seeking to lean about Real Estate Investing.
Learn more at https://www.streetsmartsuccess.com
393: Paying Low Prices For Distressed Properties Results In Big Profits
In the past few years, great deals for multifamily properties have been few and far between because the prices have simply been too high to make sense. As a result, many inexperienced operators relied on risky financial engineering to make deals pencil and are now paying the price. A lot of these operators are going to lose some, if not all, of their money and take their investors with them. Bruce Fraser, Managing Partner of Elkhorn Capital Partners, has avoided these overpriced assets, and created a smart niche of buying highly distressed properties at deep discounts and turning them around for big profits. Elkhorn Capital oversees over 2000 units across Tulsa and Oklahoma City and plans on further expansion into these markets.
392: Distress Is Starting To Appear In The Market With Great Opportunities For Acquirers
For Real Estate investors who are capitalized enough to acquire properties over the next couple years, a lot of money will be made. Many current operators are over-leveraged and using floating rate debt and are now suffering the consequences. Many of them are losing money and will have to sell at a steep loss. Others are still making money, but not enough to qualify for refinances upon loan maturity, so they will also have to capitulate at a loss. Dan French,
Managing Director of ATX, sold most of a 15,000-unit multifamily portfolio in 2019 when prices were starting to skyrocket. Now he’s back in the market in search of distressed assets.
391: Earn Enough Passive Income To Retire Comfortably
The stock market can be great for long-term appreciation, but it’s unpredictable and doesn’t generate as much passive income as alternative investments like Real Estate, Oil and Gas, Commercial Lending, and others. With alternative investments, you can generate greater than 10% returns on your money paid monthly or quarterly and pave a path to a comfortable retirement. Chris Miles, the anti-Financial Advisor and cash flow expert, consults with clients on how to invest their money in order to earn enough passive income to retire from the 9-5 grind.
390: There’s Great Returns And Less Risk In Preferred Equity Lending
In the past couple years, there’s been an unprecedented amount of new multifamily developments under construction. With so many construction loans coming due over the next couple years, there will be many opportunities to provide preferred equity to developers who need gap funding in order to stay alive in their deals. With interest rates having more than doubled, and lenders requiring less leverage, borrowers will need to bring more outside money to the table. Darin Davis, Co-founder and Principal of Presario Ventures, is a seasoned Texas multifamily operator, who is providing preferred equity to builders of new multifamily apartments.
389: Outparcels Are In High Demand
A sector of Real Estate that remains robust is outparcel developments. The demand for great locations exceeds current supply. Outparcels are attractive because they have great visibility, and they don’t compete with dozens of other tenants. Rents are typically higher, but well warranted based on traffic counts and visibility. Typical tenants are fast food, fitness chains, car washes, and gas stations. Josh Weiner, Principal of KLNB Commercial Real Estate Services, based in Northern Virginia, works with developers, investors, and owners throughout Maryland and Virginia.
388: Small Retail With High Returns
For predictable and consistent cash flow, it’s hard to beat small neighborhood retail with national credit tenants. Rents are secured by some of the country’s largest corporations, and there’s very little to do to maintain these properties. Like most asset classes, it’s still highly competitive, but there are great deals in the $1 million to $5 million range that are too big for a lot of small investors, and too small for larger institutions. Loren Ziff, a three-decade, seasoned investor with experience in most asset classes, currently specializes in smaller retail properties with great cash flow.
An engaging discussion!
Roger has a very good interview style and I enjoy how he engages with his guests. Never overtalking his guests nor competing for attention, Roger is able to summarize points and explain without “mansplaining.” He asks the right questions, so as to keep the valuable insights pouring forth from his guests - some of the brightest strategic minds in the business / entrepreneurial world. I have quickly become a regular listener and appreciate the resource of over 300 past shows on many subjects of interest to me. Highly recommended.
You can tell Roger is a true professional! Super interesting and insightful questions! I’ve learned a lot from this podcast.
I’m enjoying listening Good guests plus
the host Roger asks intuitive simple but effective questions and so it’s a good way to learn and expand knowledge. Keep up the good work!