Tue, 31 August 2021
Johnny Wolff is a real estate and co-living expert.
Johnny's love for real estate investing and living with roommates motivated him to start HomeRoom in 2017. As CEO and Founder of HomeRoom Co-living, Johnny has helped lead one of America's fastest growing co-living companies. And over the past year alone, his company did numbers boasting 99% on-time rent payments, full occupancy, and zero evictions.
“We call it ‘roommate living with luxury apartment amenities’ or ‘concierge service’
“We are the platform, right? Our goal is to, over time, become similar to an airbnb but for the living space.”
“With co-living we can get up to 70% more in a single-family home, versus as its being rented by one person. So that extra revenue allows investors to make quite a bit more money.”
02:05 - Johnny tells us more about himself and how he found himself in this part of real estate.
04:57 - Johnny tells us more about different aspects of his business model.
06:27 - Johnny talks about his experience with online co-living events before and during the pandemic.
07:18 - Johnny discusses HomeRoom’s role in the real estate space.
07:50 - Johnny gives an overview of what co-living operations look like.
10:15 - Johnny provides insight into what the average increase return looks like for Home Room.
12:40 - Johnny lists the criteria that allow a co-living home to be successful.
14:10 - Johnny provides us with an overview of the next few years for Home Room.
16:27 - Johnny tells listeners one thing he wants you to know about the advantage of co-living investing.
19:21 - Johnny explains the regulatory risks to this business model.
Tue, 24 August 2021
#337: Blockchain, The New Future of Asset Classes, Hospitality Investments, and So Much More! -with Stephane De Baets
Stephane De Baets is a real estate, hospitality, and blockchain expert.
Stephane is a Belgian investment, real estate, and hospitality entrepreneur. He has 20 years of experience in asset management, financial structuring, and M&A. Currently, Stephane is the founder and president of the international asset management firm, Elevated Returns, which controls commercial properties transnationally.
As a pioneer in blockchain-based real estate, Stephane and his firm have facilitated the first major commercial real estate transaction using blockchain technology to sell ownership stakes in the Aspen St. Regis Resort.
“…what we realized along the way, we realized that the world of commercial hospitality investing is really very incestuous. You have only a couple of players that really know each other and it's a special investment club.”
“…we kind of looked and said: why isn’t there a democratic way for people to buy a piece of ownership of the asset that they love?”
02:09 - Stephane offers us insight into his background, how he got into investing and the real estate space, and how he got involved in blockchain.
05:26 - Stephane dissects what it means for consumers and merchants to use blockchain for asset investments.
07:19 - Stephane discusses the primary reasons behind going down the blockchain route.
09:54 - Stephane gives us his thoughts on the future of the hospitality space in a post-COVID world.
11:53 Stephane tells us what his firm anticipates around distress purchase and future opportunity.
13:30 - Stephane tells us the challenges and thoughts behind tech and blockchain becoming a widespread tool.
17:06 Stephane tells us his ideas on the use of blockchain.
18:48 - Stephane talks about the secondary market for those who want to sell off their fractional piece.
20:18 - Stephane gives an overview of projects Elevated Returns is working on.
22:45 - Stephane tells us the regulatory risks and downsides associated with Blockchain and security token in the U.S.
24:12 - Stephane gives a prediction of the security token space in 10 years.
Tue, 17 August 2021
#336: Sobriety Living Homes, Scaling Business Models, Accreditation, and So Much More! -with Sherri and Frank Candelario
Sherri Candelario, Ph.D. is a pharmacologist from the University of Washington Medical School, becoming an expert in how opioids affect the brain and is a federally registered patent counsel for numerous biotech companies.
Frank Candelario is an experienced broker skilled in zoning, acquisition, and identifying and financing housing for multi-use.
After experiencing sober living recovery homes with a family member, and assessing the pitfalls of current this recovery approach, Sherri and Frank decided to take matters into their own hands. They developed a business model that enabled people in recovery to regain control of their lives.
In 2016, Sherri and Frank founded Kate’s House Foundation, the first nationally accredited sober living homes in Washington State. Together, their mission in real estate is to end homelessness for disadvantaged women and veterans.
Frank: “What realized quickly is that… that to own beautiful property we needed to get much higher cashflow so ironically all these things meshed at one time to where if you lease by the bed for a clean and sober program you can get tremendous—2-3x the normal cash flow.”
Frank: “…our goal is not to rent to a husband, wife, two kids, and a dog. Our goal is to have a home that if necessary we could sell to a husband, wife, two kids, and a dog. Our business model created great cash flow that enabled us just to keep growing.”
Sherri: “I would say if you want to scale this appropriately, is [to] do what we are always doing which is trying to find the talent in the house to manage it.”
Sherri: “I think from day one we realized that a lot of people didn't really know how to live together in a house because they hadn’t had one growing up… so when we look at the tragedies that people have gone through, you have to be sensitive to it but then you have to realize that you are providing a home for the first time and you’re providing a basis for people to launch into a wonderful life.”
02:46 - Sherri and Frank tell listeners about their experience with addiction & recovery, what ultimately helped Kate maintain sobriety, and how they got into the real-estate space.
05:32 - They tell us how the last sobriety house Sherri’s daughter, Kate, lived in differed from other sobriety houses she first lived in. Sherri also delves into how she and Frank came about their first sobriety housing model.
09:12 - Frank tells us about the cash flow of their first sobriety property.
12:09 - The two talk about day-to-day operations at their properties.
15:10 - Frank and Sherri answer the question: how do you determine what the demand is for recovery group homes in a given area?
18:46: Sherri tells us about the accreditation process for sobriety housing and the way their homes are utilized.
24:15 - Frank and Sherri talk about the price point they’re aiming for on their prosperities.
26:46 - The two discuss how they handle NIMBY syndrome.
29:22 - Frank and Sherri tell us if they have any personality clashes within their housing arrangements.
30:39 - They discuss their biggest challenges of scaling out models.
34: 22 - Frank and Sherri go over some of the downsides/negatives to this sort of business model.
38:38 - They talk about the regulatory risk associated with this sort of business model.
Tue, 10 August 2021
Tony Morgan is a real estate expert and founder and CEO of Broadwell Property Group.
Tony has over 30 years of experience leading startup and high-growth companies in a number of different industries. Tony has a proven track record of taking a project from concept, through reality, through operational challenges, and ending with a financially positive exit.
Tony previously worked in the tech industry where he founded and operated NationalNet, a global technological real estate provider for 20 years. Here, Tony led the company, hundreds of employees, and thousands of clients in achieving their goals and objectives.
“I got to tell you, companies don’t matter. I’m in real estate right now but it's just another company. You treat it the same way… eventually, they’re going to be exactly the same, it’s just what we are selling that’s different.”
“We’ve been lucky in that we are not having to draw up investors like a lot of sponsors have to do… there has never been an investor in any of our deals larger than me and so that helps. I’m asking for investors to invest alongside of me.”
“We could spend two podcasts just going over my failures. I’ve got plenty… but the truth is, what’s most important is what you learn from them—is what you gain from them… I believe that with every failure comes a gain.”
“Mistakes were made way before that…mistakes were made in the fact that I let emotions get in the way of a deal.”
01:34 - Tony gives us insight into his background and how he got involved in real estate
05:09 - Tony tells us the lessons he’s learned and the similarities and differences between the LP space, the GP space, and the internet space.
07:01 - Tony talks about what made him choose the multifamily sector of real estate.
08:42 - Tony talks about how he has been able to find opportunities in today’s competitive landscape.
12:15 - Tony tells us what he thinks other multi-family buyers are doing differently than his company.
15:10 - Tony gives insight into the locations his company focuses on and the markets they are looking to expand into.
17:33 - Kevin asks Tony if there is anything his company does differently when setting out to find and raise capital as well as what its like vetting as a GP.
19:54 - Tony provides us with details on a deal he made that never met his expectations.
24:35 - Speaking to the GP side, Tony gives another example of a real estate deal that never met his expectations.
30:09 - Tony offers us his golden nugget piece of advice for our listeners.
Tue, 3 August 2021
#334: Management Technology, Portfolio Expansion, Getting Started in Real Estate, and So Much More! -with Kent Ritter
Kent Ritter is a real estate + multifamily expert, and a Senior Director for Birge & Held.
Kent co-leads the Private Select Portfolio within Birge & Held and specializes in many of its social, economical, and analytical facets in order for it to run smoothly. He has a passion for how technology can change multifamily investing and is spearheading the adoption of PropTech across the portfolio.
Kent is also a leader in the multifamily space. He hosts a podcast titled Ritter on Real Estate, where he untangles complex topics to empower others to invest. Additionally, he hosts a monthly multifamily investor networking event and has been a featured speaker at many industry conferences and podcasts.
Prior to joining Birge & Held, Kent was a successful real estate investor with a multimillion-dollar portfolio. And before falling in love with real estate, Kent spent 12 years as a management consultant.
In regard to the markets his company is attracted to: “Job growth and rent growth are correlated 1:1… we like job growth, job diversity, and job diversity among jobs that are non-cyclical…if you look at Birge and Held’s entire portfolio, we are in cities like Indianapolis, Columbus Ohio, Minneapolis.. these cities all share common traits: there’s a huge healthcare base, there's a huge higher education base.”
“The goal is to create efficiencies in these smaller properties that usually wouldn’t exist.”
“Just get started, real estate is the right place to be…and then improve through iteration, don’t expect to be perfect the first time.”
02:19 - Kent dives into his background in business making, real estate investing, building his portfolio, and consulting.
09:55 - Kent gives us insight into being a senior director at Birge and Held as well as running his own subsidiary, Private Select, at the company.
15:03 - Kent gives us a general sense of the underlying fundamentals of tertiary markets and the types of markets attracts his company.
18:24 - Kent tells us about the expansion of Birge and Held’s portfolio.
22:00 - Kent goes through his thoughts on technology and how that plays in the efficiency of managing smaller properties.
38:40 - Kent talks about two barriers he’s met when getting into the industry.
49:00 - Kent offers listeners his two golden nugget pieces of advice for those who are pursuing their own real estate investment careers.