13 episodes

Patrick Antrim, Founder and CEO of Multifamily Leadership, Producers of the Multifamily Investment Summit, the Multifamily Innovation® Summit, the Multifamily Women® Summit and the Best Places to Work Multifamily® bring you the Wealthy Apartment Investor Podcast to help Multifamily Investors better understand Financing, Due Diligence, Proforma Deal Analysis, Syndications, Developments, and the Capital Stack.

You will better understand the process and fees associated with Multifamily Investments. We help people that are winning in Multifamily win even more as we extract success strategies from top Multifamily Investors and those thriving in the industry and showcase them on our platform. We hope to empower people with the resources and knowledge to become a better Multifamily Investor.

Family office and Wealth Managers subscribe to better understand the Multifamily Investments they direct. Investors with 1031 exchange north of 1 Million, Ultra and high net worth individuals, and those who experienced a liquidity event attend our events to protect investment capital. We help you understand the not so obvious that will give you the competitive advantage to attract and retain premier investor capital.

The Wealthy Apartment Investor Podcast Patrick Antrim

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Patrick Antrim, Founder and CEO of Multifamily Leadership, Producers of the Multifamily Investment Summit, the Multifamily Innovation® Summit, the Multifamily Women® Summit and the Best Places to Work Multifamily® bring you the Wealthy Apartment Investor Podcast to help Multifamily Investors better understand Financing, Due Diligence, Proforma Deal Analysis, Syndications, Developments, and the Capital Stack.

You will better understand the process and fees associated with Multifamily Investments. We help people that are winning in Multifamily win even more as we extract success strategies from top Multifamily Investors and those thriving in the industry and showcase them on our platform. We hope to empower people with the resources and knowledge to become a better Multifamily Investor.

Family office and Wealth Managers subscribe to better understand the Multifamily Investments they direct. Investors with 1031 exchange north of 1 Million, Ultra and high net worth individuals, and those who experienced a liquidity event attend our events to protect investment capital. We help you understand the not so obvious that will give you the competitive advantage to attract and retain premier investor capital.

    Why Investors Should Pay Attention to Secondary Markets

    Why Investors Should Pay Attention to Secondary Markets

    Patrick Antrim, Founder and CEO of Multifamily Leadership, Producers of the Multifamily Investment Summit, the Multifamily Innovation® Summit, the Multifamily Women® Summit and the Best Places to Work Multifamily® bring you the Wealthy Apartment Investor Podcast to help Multifamily Investors better understand Financing, Due Diligence, Proforma Deal Analysis, Syndications, Developments, and the Capital Stack. You will better understand the process and fees associated with Multifamily Investments. We help people that are winning in Multifamily win even more as we extract success strategies from top Multifamily Investors and those thriving in the industry and showcase them on our platform. We hope to empower people with the resources and knowledge to become a better Multifamily Investor. Family office and Wealth Managers subscribe to better understand the Multifamily Investments they direct. Investors with 1031 exchange north of 1 Million, Ultra and high net worth individuals, and those who experienced a liquidity event attend our events to protect investment capital. We help you understand the not so obvious that will give you the competitive advantage to attract and retain premier investor capital.

    • 9 min
    Why Averages Lie

    Why Averages Lie

    Patrick Antrim, CEO of Multifamily Leadership says he was trained by a developer, and they tend to have a long-term view of things. A syndicator might not bother to fix long-term problems, which affects the brand. Now, Tanner Bickelhaupt is starting developing work.
    Mark Taylor was the manager for the first deal Tanner Bickelhaupt ever syndicated. 
    “We kind of take things from different management companies. Each one has a different strength. But Mark Taylor with data in particular… it just can provide some clarity sometimes when things are out of skew,” said Bickelhaupt.
    (3:54) – Averages from deal points can get lost in the mix. 
    From the investor perspective, Bickelhaupt gave the example of LP investors who ask for a track record. 
    “They get it, but they’re not really sure what they’re looking at. Some companies will boast, ‘We’ve had a 30% IRR’ – I’m just making that up, but a round number. But when you go through an you look, there’s anomalies in there.”
    He’d rather track NOI growth.
    “I will look at deals, underwrite deals, and it’ll be 10 million dollars more but the NOI hasn’t changed. In fact, sometimes it’s gone a bit different where expenses have gone up a bit. But because of the cap rate compression, they’ve been saved. So that can be tough.”
    (6:00) – Make sure you have a firm view of the project. Look at all the averages. 700 square feet for a unit isn’t a universal measurement – it could mean you have a lot of hallways, or a lot of open space.
    (7:18) – Just don’t count on average numbers.
    “We joke all the time with the brokers, it’s always roses,” said Bickelhaupt. “There’s always a story, whether it’s mismanagement or what have you. ‘They’re so low, for no reason!’ There’s always a reason.”
    (8:00) – Right now, brokers are pumping out Broker Opinion of Values (BOVs) all the time. That’s the how the Tanbic Company can fish for off-market deals.
    “They can’t even necessarily talk about averages anymore. It used to be you’d get skeptical on a BOV – if the high BOV was too high, that could be a bad experience,” said Bickelhaupt. 
    Bickelhaupt suspects brokers have been smothering their BOVs for a few years. 
    (9:45) – Of course, you also have to think about unit size. A lot of brokers will churn out smaller units because they can. Renters are just looking for what they can get for their total available income, not necessarily price per foot.

    • 11 min
    Using Data to Reduce Bias in Real Estate - John Carlson

    Using Data to Reduce Bias in Real Estate - John Carlson

    Using Data to Reduce Bias in Real Estate
    John Carlson, President of Mark Taylor Investment Management  
    John Carlson is responsible for strategy, operations, new business development, and property portfolio performance for over 19,000 luxury apartment units across Arizona and Nevada for Mark Taylor. Jeff Mark and Scott Taylor founded the company in 1985. Today, Mark Taylor is the largest multifamily developer in the state of Arizona; the company has built more than 20,000 units there. 
    Decades of Data (1:44) – Today, about 82% of Mark Taylor’s apartment units are managed by third parties.
    “What you have to know about Jeff and Scott is, a lot of their decision making over the course of those three plus decades has been translated through the lens of data. A lot of it through Scott’s background – he’s a CPA by trade,” said Carlson. “He really had to, from the ground up, understand the fundamentals of Phoenix, understand how the metro ticked from jobs to population growth, to what markets mattered from a multifamily perspective.”
    He used that background to build a data set that’s now grown for decades. That, combined with intuition, has led to their success over time.
    (3:40) – The market is as hot as ever, and Phoenix continues to be a huge target. 
    Before 2008, Mark Taylor mostly went for garden-style communities. That’s about 15 units to an acre. After the recession, they started to elevate different styles. They started building upward, so now there are about 40 units to an acre. 
    “We talk about the arms race to amenities,” said Carlson. “You look at the fitness centers, the amenities, the common areas are tremendous. So if you compare multifamily product to single-family home product in 2008, it was significantly different. Today, I’d argue that you can go to any multifamily deal that’s been built ‘15 and beyond and argue the finish levels are comparably better with amenities and locations you want to be in from a lifestyle perspective.”
    (5:35) – Mark Taylor has the benefit of being able to look at things through the lens of developer-owner and manager.
    (7:24) – Mark Taylor believes deeply in the Phoenix metro, even when the market tanked. They also feel they should always strive to be better.
    “We really focused on how could we be better and create a product, a management, a lifestyle, that residents would want and seek? We focused a lot on that aspect at that time, and truly believed the market would come back,” said Carlson, adding that Mark Taylor has been around for so long, they’d seen crashes in the past and knew what to expect and how to handle things. 
    (8:45) – Why Phoenix? 
    “We think about Phoenix as having a large funnel over the metro of capital investments or cash and it’s spitting out chunks of money. You just can’t find enough deals. There’s so much appetite and demand for so many reasons,” answered Carlson.
    One thing to consider is why people are leaving the markets they are and heading to Phoenix instead. A lot of people are heading out of coastal communities or areas that don’t have enough job growth, and they want to be in the Sun Belt. 
    Phoenix has one of the top three STEM schools in the nation, and the advancement in education can propel the work force. It also already has a lot of hot markets, like the largest semiconductor manufacturer for Apple. Carlson calls it the “open for business state.” The final key is that taxes remain at a competitive rate. 
    (12:25) – Birth rates matter for multifamily, for obvious reasons. Changes in birth rate decades ago affect things way down the line.
    Understand What the Consumer Wants (13:35) – Crisis can create opportunity, as we saw during the pandemic. 
    Before coronavirus, Mark Taylor had a model consistent with years of success from an overall operations standpoint. They learned they can make operations work even with doors closed, since video tours and self-guided tou

    • 1 hr 8 min
    Understanding the Multifamily Investment proforma and avoiding pitfalls of assumptions

    Understanding the Multifamily Investment proforma and avoiding pitfalls of assumptions

    • 11 min
    Protecting Investor Wealth During Market Downturns

    Protecting Investor Wealth During Market Downturns

    Protecting Investor Wealth During Market Downturns
    Tanner Bickelhaupt, CEO and Founder of the Tanbic Company  
    Tanner Bickelhaupt has been investing, developing, and looking at new deals for the full cycle. He owns and operates a management company and has been successful across several asset classes in different markets. He’s also made it through different economic cycles and come out on top. 
    Just Because the Market is Good Doesn’t Mean You Don’t Need to be Cautious (1:30) – Right now, the markets are at a high. It’s normal to talk about how to protect investor wealth during a downturn, but you can’t forget about precautions during the good times. 
    Bickelhaupt says some syndicators are in the mindset that they have capital and want to spend it right now in a get-rich-quick scheme. The healthier viewpoint is just to invest and preserve capital. 
    “Basically, how can I have enough runway? Because the things that never happen, happen all the time,” said Bickelhaupt. The pandemic was the perfect example of that, but it proved people always need to live somewhere. “We like what we can control, but we like the peace of mind knowing we’re owning real good real estate that’s being operated really well and we don’t have a lot of surprises.”
    (4:20) – Growth for investors is very aggressive right now. Cap rates are the lowest they’ve ever been. People are buying up C and B class properties. There’s a huge demand along with a slowdown in ability to build, so right now it seems like things are only going to continue to grow. That’s especially true in the markets Bickelhaupt operates in, like Scottsdale, Arizona. 
    “The brokers will tell you, I’ve cost myself. I started locking in debt 2 years ago, 10-year, with the anticipation that rates are going to go up, but I just liked the fix that it provided a large fluctuation of cash flow,” said Bickelhaupt. “I would never even talk about bridge debt 2 years ago, but the bridge debt terms in that market have changed so much that we do talk about it. We’re looking at a deal right now where that might be the play. We feel there’s some low-hanging fruit that we can change stuff very quickly, we do not want to lock in that long-term debt but I will lock it in as quickly as possible. So the business plan would not be take it, flip it; it would be ‘Let’s create the value then go put more debt on it, and we’ll keep it.’” 
    Bridge financing can increase investor returns, so syndicators like it. You can hit 85% LTV, compared with a Fannie-Freddie set up where you’d get 65% or 75%. 
    “I really have to believe in the up-story to do that. Those deals are still out there, they’re just harder to find.”
    (8:44) – Coming out of the pandemic, Bickelhaupt set up in an office in one of the apartment units Tanbic Company owns in North Scottsdale. Tanbic focused on what it already has and focused on rent collections. 
    “I think we had a lot of investors watching. We sent quarterly distributions, we didn’t miss a cash flow. Now, we were down 30-35% on what the expectations were, but I think a lot of groups said, ‘Hey, we’re pausing all distributions, we’re going to stockpile cash’ and that’s a great strategy. I’d be lying if I said we weren’t thinking about that. But, we were sitting on plenty of reserves.”
    Tanbic Company cash flowed then spent that on capital improvements. 
    They’d help residents with rent assistance if they needed. Of course, there were some people abusing the system, and that was a challenge. They countered that by paying residents to leave.
    “It’s just counterintuitive of, ‘Hey, you owe $3000 on your rent, you’re behind, you have this new car and you’re telling me you can’t afford it, here’s $500 if you move out in two days.’ Because the problem was, you had new residents that wanted to come in that wanted to lease the one bedroom, but you didn’t have the one bedroom. So yo

    • 42 min
    Multifamily Outlook Danny Court

    Multifamily Outlook Danny Court

    Multifamily Outlook
    Danny Court, Partner and Senior Economist with Elliott D. Pollack & Company  
    Danny Court is part of a group of economists focused on economic forecasting and how that plays into real estate. For multifamily, Elliot D. Pollack & Company is more involved with the planning and development part of things – scoping out sites, navigating regulatory or political issues, helping with zoning conflicts. They’ll get involved in government if necessary.
     
    Data for Multifamily (2:10) – Court’s team has found that the economy is recovering very well, which he attributes to vaccinations. There’s a lot of pent-up demand, and plenty of people who kept their jobs and built up income but didn’t have anywhere to spend it. Overall, there’s a great outlook for the next few years.
    “We didn’t have a real recession,” explained Court. “There was a recession, we lost a lot of jobs, but this was not because of the economy, it was a government-induced shutdown for Covid-related pandemic reasons. The economy was in really good shape at the start of 2020 and had to forcibly shut down, and so again, we had those dynamics, no imbalances in the economy going into it, and now everybody just sort of waiting until they can fully recover and recover all those jobs. So there’s lots of pent-up demand, lots of money waiting to be deployed.”
    (4:30) – So how do you know when the economy is in good shape? Objective data sources, and a wide variety of them, will help you get a good feel for what an accurate consensus is. In multifamily, real estate focuses on local markets. 
    (5:40) – Inflation is a concern right now. Short-term, we’re seeing the highest numbers to have come forth in a while. There is some hope that will subside, but Court says it’s an important indicator to keep an eye on, since it affects interest rates. Inflation matters for downside risk, even though all other indicators have been quite positive.
    You can track inflation through the CPI or the Fed. The number is publicly available and published frequently. 
    “There’s an overall inflation that adds some more volatile products in there, and then sometimes they’ll strip that out and say, ‘Here’s base inflation’ and things like that.”
    (7:45) – It’s also a good idea to keep an eye on jobs numbers. Right now, the unemployment rate is misleading. As long as jobs are growing, we should be good.
    “When people stop looking for jobs, they’re removed from the unemployment rate,” said Court. “So you see a lot of jobs being created but then the unemployment rate stays the same. Why is that sticking up so high? It’s because more people are looking for work, so they’re added back into the unemployment rate.”
    That’s tracked through a survey. 
    (10:15) – Some real estate sectors are in a flux. Brick and mortar retail and physical office space are the prime examples.
    “The rule of thumb used to be 250 square feet per employee, private offices, things like that. Then it started trending down toward closer to 115 square feet per employee. That’s an open office concept,” said Court. “This pendulum has swung to, ‘Go ahead, if you’ve got an internet connection and we’ve got our database in the cloud and our files in the cloud, you can fully work at home.’ We’ve now come to understand that technology has caught up. A Zoom meeting can take the place of a physical meeting. It can also take the place of business travel.”
    Court thinks at least a portion of that shift will remain permanent. Many companies are offering the option to work at home as a benefit. 
    (14:07) – Overall, there’s a labor shortage right now. Companies might start thinking outside the box to remedy that, but a lot of things in the new era come down to cost savings. The data around personal preference that is starting to come out will also be interesting – some people want to work from home, others want to socialize in an offi

    • 43 min

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