Tue, 27 August 2019
In this episode of Real Estate Investing for Cashflow, Kevin welcomes his good friend, Adam Adams, otherwise known as Adam Triple A Adams. Adam is a real estate expert and founder of Real Blue Spruce. Adam is also a fellow podcaster, the co-host of The Creative Real Estate podcast.
In this podcast, Adam talks about his interesting background, how he made a million dollars for his boss in a span of twelve months, and how he eventually focused on multifamily syndication after the financial crisis.
Kevin and Adam discuss multifamily investing and what it takes to succeed in that niche and in other asset classes as well. Adam also breaks down their team’s management structure and strategy at Real Blue Spruce. He also talks about strategies on how to find and properly contact brokers in a given market.
“If you want to get into multi-family and you’re thinking ‘it’s too competitive, it’s too this or too that’, you’ll definitely not do too well at it but if you go into it focused on ‘how can I? What are the ways to do this? How can I align with somebody who’s already doing deals..?’”
“Make sure to learn and educate yourself about the asset class and if you’re tenacious enough, you can build a team.”
“When you’re on the buying side of things, getting in and getting your first deal done whether it be mobile home parks or multi-family or shopping centers, what have you, you could pick any asset class, there’s always an opportunity out there and it’s your job to get in front to that opportunity, be prepared when it presents itself.”
“If you can align yourself with a really good broker, and you’ll give them all the parameters and they can actually print you out something, pages and pages of information which can be a really good resource.”
6:30 Adam’s background and how he got into multifamily investing
11:05 Adam’s work as a property manager
16:16 Is it advisable to get into multi family real estate?
21:30 The team aspect of the business
27:56 Improving and over-improving facilities
39:34 How to find and contact brokers
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Tue, 20 August 2019
Ep #243: Retail is not Dead...Learn How To Capitalize on Neighborhood Retail Shopping Centers! -- with David Puchi
In this episode of the Real Estate Investing for Cashflow Podcast, Kevin brings in real estate and retail expert David Puchi. David is the founder and partner of Baceline Investments, a private real estate investment and management company with a focus on strengthening communities by acquiring and revitalizing neighborhood shopping centers. David has been responsible for raising approximately 300 million dollars for Baceline-sponsored funds.
In the podcast, David talks extensively about the retail sector and how he centered his focus on it. He explains the management structure at Baceline and the stability in their tenant base, which consists of a lot of mom-and-pop retailers. He talks about why it’s actually beneficial to help their tenants succeed.
David also shares the financial strategy behind their business and goes on to explain what physical improvements his team adds to properties to increase value in the market. He shares how their business survived the financial crisis, which circles back to his focus on the retail sector. David shares what the future plans are for Baceline Investments.
“Our company today, really carries on a lot of the traditions that I started with when I broke free from practicing law and primarily, it has never been a transactional type of company, we’ve always been more of an operating company.”
“Our niche in the world is owning and operating multi-tenant neighborhood shopping centers that are primarily unanchored.”
“You know the small mom-and-pop tenants may not be considered credit from a Wall Street perspective, but from a reality perspective they’re actually really good credit because these are family businesses that people fight for everyday.”
“The reason we like to be in the middle of the country is that we find great stability in the cities that we’re in, we also find that there’s less competition…”
“Rolling through the recession, we saw the resilience of our tenant base and then basically turned that to the sole purpose of our company moving forward, as far as investing is concerned.”
7:17 David’s background and getting into real estate
11:01 Asset classes and credit ratings
17:35 Baceline’s geographic focus and seller profiles
21:42 How David adds value to their properties
26:46 Debt, equity and the financial crisis
34:36 SWOT analysis of the retail sector
45:46 Long term plan for Baceline Investments
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Tue, 13 August 2019
Ep #242: How to Successfully Invest in Defaulted Second Mortgages and Junior Liens -- with Jim Maffuccio
In this episode of the Real Estate Investing for Cash Flow podcast, Kevin talks to real estate and note investment expert, Jim Maffuccio. Jim is co-founder and CIO of Aspen funds, an investment fund that provides returns without the volatility of traditional investment options. He is a 30 year old real estate veteran and deeply networked in the secondary mortgage industry.
In the podcast, Jim covers how he bounced from the recession and got into the note business. He talks about secondary mortgages and the profit strategies he and his team employ when capitalizing on note investments. He explains the process of restructuring distressed debt to benefit investors. Kevin and Jim also discuss the dynamics of working remotely and having a headquarters for business.
“Aspen Funds was started in 2012, really kind of born out of the adversity and the lessons that I learned in what debt can do to you if you’re a small developer, a small fish in a big pond. So that’s what launched me into the mortgage space.”
“If you’re gonna buy one offs, you can be picky about what you buy in terms of the equity profile of the deal that you’re buying. At our scale, we have to be ready to pretty much buy everything..”
‘We’re at about 65% of the time, we are able to modify the loan, keep the loan, get it re-performing and sell it to an income fund or another cash flow buyer. Another 10 or 15% of the time we actually get a settlement..”
“We’ve seen the quantity of deal flow has definitely diminished in the residential mortgage space in general. Most of that is first leads where most of the players have been, and margins have shrunk as price points have increased for mortgages in general.”
“If 10% of our loans, at any given time, stop paying, all the metrics of our fund are set up such that the fund investors don’t miss a blip and our management don’t miss a blip. We have that built into our pricing model.”
8:13 Jim’s background and how he co-founded Aspen Funds
14:11 Buying and selling real estate notes
18:41 Different investor profiles
21:10 What would be an ideal loan acquisition?
27:44 How the landscape changed since the crash
34:25 Business and management structure at Aspen
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Tue, 6 August 2019
Ep #241: How to Add HUGE Value By Repositioning Properties to a Higher and Better Use -- with Josh Weidman
In this episode of the Real Estate Investing for Cash Flow podcast, Kevin interviews real estate and property management expert, Josh Weidman. Josh has been an active real estate investor for over 10 years, and has successfully founded and grew Atlas property management into a multimillion dollar firm with his partners, then later sold it to TCS Property Management. He is now director of turnkey investments at TCS Investments.
Josh shares his background in wholesaling row houses in Philadelphia and how he and his partners developed a business model for large scale property management. He dives into the business plan at TCS and how his team drives big value, receiving mostly a hundred percent rent premium by converting single family family homes into three or four unit apartment buildings. Josh also talks about the cost of these renovations, other challenges and future expansion.
“I was introduced to this concept called wholesaling, and wholesaled my property, made thirty grand on my first year and I was like ‘yeah, I could do this all day.’”
“For me the biggest change in hiring was realizing that you get what your pay for and if you don’t know what the role is, you’re never going to find the right person.”
“We can take that 2,500 square foot family [home], gut the thing and rebuild it as a three-unit building and we can do it at a price point that makes a heck of a lot more sense than buying a triplex, gutting it and rebuilding it.”
“We’ve got some areas in the city where we have two or three houses on the block that are boarded up shells, if we can find a way to capitalize on that block, that is a huge impact on that block, on that neighbors, and on the city as a whole..”
“By converting a lot of these properties to functional spaces, it provides a lot of opportunities for the neighborhood’s continued development..”
6:50 Josh’s background and how he got into real estate
11:46 Josh talks about hiring partners and organizing his property management business
20:49 Josh expounds on their unique business plan at TCS
26:13 Costs for renovation and adding infrastructure to single family homes for conversion
30:19 Scalability, geographic targets and challenges
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