Real Estate Risk Report: Recent Episodes
Lance Pederson
In real estate investing, risk is worth talking about. Hear timely insight from real estate pros as they unpack the critical role risk plays for passive investors. Learn to assess it, mitigate it, and embrace it. Real estate analyst Lance Pederson hosts clear and candid conversations with active real estate sponsors. Each episode demystifies a particular element of risk, helping investors better incorporate it into their real estate investment strategy.
Peter Christiansen of Builders Trust Capital joins lance to discuss his journey to private lending in real estate. As a 15-year veteran in the financial services industry, Peter has a deep understanding of investor and borrower needs that enables him to link sophisticated sources of capital with appropriate borrower and collateral profiles. Peter and Lance dive into the inherent risks that are present in private lending and what his firm does to mitigate those risks.
Kevin Kim of Geraci Law Firm joins Lance on the show to discuss how he got his start in the real estate industry. Kevin Kim leads Geraci LLP’s corporate & securities practice. His expertise lies in fund formation, private placements, and other securities offerings for private lenders, real estate developers and investors of all sizes. Kevin's passion lies in serving his clients as a pragmatic advisor, focusing on real world solutions, mitigating potential risk and elevating the investor experience.
Andy McMullen, Partner at Legacy Acquisitions, joins Lance on the show to discuss his journey to real estate investing. Legacy Acquisitions is focused on partnering with world class operators while delivering white glove service to its investors. Andy stresses the importance of building strong relationships and that setbacks can truly be a set up for success.
Matt Belcher, CEO and Co founder of CalTier Realty joins Lance to discuss his journey to multifamily investing. Matt is a seasoned executive, business developer and entrepreneur engaged in many aspects of real estate, technology, Foreign Direct Investment (FDI), large-scale complex real estate transactions, and commerce both into and out of the US. Matt and his team focus on accessibility and having a broad range of offerings that are open to both accredited and non-accredited investors. Matt and Lance dive into what it takes to operate a real estate investment firm and the amount of grit it requires to become successful.
*An offering statement regarding this offering has been filed with the SEC. The SEC has qualified that offering statement, which only means that the company may make sales of the securities described by the offering statement. It does not mean that the SEC has approved, passed upon the merits or passed upon the accuracy or completeness of the information in the offering statement. You may obtain a copy of the offering circular that is part of that offering statement form. You should read the offering circular before making an investment. There is no guarantee of success, and there is potential loss of your investment.
JP Albano of SignificanLC joins Lance to discuss how he entered the real estate world. Starting with the multifamily strategy, JP found his stride and has continued to gain momentum throughout his journey. Everything changed when he met his now mentor Howard Primer, a multifamily veteran, who has ultimately helped his company establish a sense of belonging within their multifamily units without having the renter/tenant dynamic. Building communities where people feel seen, valued and heard has made all the difference in retaining members of their communities. SignificanLC prides themselves on their personal approach in multifamily real estate
Ryan Parson of formally known "Mile Marker Club", joins Lance rebranded as "Sunlight Peaks", a registered investment advising firm. For Ryan and his team, investment advice is all about a comprehensive list of issues that impact all clients, such as charitable giving, estate planning, business succession planning, self directed IRA's and so many more financial situations that requires Ryans firm's expertise. A major component of wealth planning is having clear communication. Ryan and Lance drive home the importance of transparent and consistent communication as a key ingredient to living your best life.
Chris Hanson of Hanson capital group joins Lance to discuss his journey in the real estate industry and the myriad of services that Hanson Capital Group offers. Hard money lending as well as value add real estate are just two of the services Chris' group offers their investors. His firm's goal is to have offerings that suit any investors' portfolio needs - ranging from low to high risk. Chris's philosophy is to focus on the risk rather than what can go right - this mindset has helped his firm yield strong results.
Tim O'Brien of Urban Asset Advisors, joins Lance to discuss multifamily and more specifically, ground up development. Tim is a visionary who is able to see the forest through the trees. If you spend any amount of time with Tim, you can tell that he is very passionate about ground up development and building a thriving community for tenants. Lance and Tim dive into what it takes to build a successful multifamily community - having the right people in place to execute the vision is paramount!
Brett Bowman and Ryan Hill of Suncrest Capital join Lance to discuss the "darling" manufactured communities asset class. Ryan and Brett dive into how they source deal flow - with experience, sponsors have greater access to higher quality deals! The three discuss how weather in different areas can effect these communities, and what steps they are taking to mitigate the risks that are out of their control. Lance, Brett and Ryan discuss cost segregation and the exciting tax benefits of investing in manufactured communities.
Ryan Parson of Mile Marker Club, joins Lance once again to discuss what "living your best financial life" looks like. With so many deal sponsors on the market offering a variety of investment opportunities, how does one decide what deal is right for them? Lance and Ryan dig into what needs to happen prior to making any investment and the importance of keeping an open mind about investing in a wide array of deals.
Alan Rosca, Securities lawyer at the Goldman Scarlato firm, joins Lance to talk about the important role he plays in risk mitigation. His main focus is on victims of ponzi schemes and investment fraud. Lance and Alan dive into the red flags of a ponzi scheme and what happens when an investment product goes wrong.
Lisa Hylton, host of the Level Up REI podcast, joins Lance to discuss her journey in real estate investing. Lisa discusses the importance of knowing a sponsor's track record before attempting to transact. Investors need to perform their own due dilligence to make sure the sponsor has sufficient experience in the particular asset class they are attempting to transact in. Lisa and Lance explore just how important it is to have the right team in place to execute a strategy successfully.
Solomon Gorlick, President of Red Tower Capital, joins Lance to discuss his journey from software developer into private lending in real estate. Red Tower Capital is based out of San Fransisco and primarily focuses on residential and commercial property investment and rehabilitation. Solomon discusses how his firm has gotten into the cannabis industry and how this industry has been popular for his firm to lend in. With banking regulations within the cannabis industry, Solomon discusses how his business handles this unique situation.
Sam Hales, CEO of Saratoga Group joins the show to discuss mobile home park investing. Mobile home parks are an interesting asset class that relies heavily on community to become a thriving place for all residents to call home. Growing up in a mobile home park himself, Lance knows just how important the community aspect is for residents. Sam and Lance dive into what Saratoga Group has done to revitalize these mobile homes and their "secret sauce" to keeping tenants happy.
Mark Hanf, Founder and CEO of Pacific Private Money, joins Lance for the 100th episode of the Real Estate Risk Report! Mark Hanf has a total of 35 years of expertise in the real estate industry and continues to thrive in the private lending space. His company launched in 2008 and is now one of the fastest-growing companies in the private capital market space. Lance and Mark take a closer look at the private lending space, diving into the meaning of leverage and the implications it has for investors.
Hillary Seiler of Financial Footwork joins Lance to give listeners a few pointers on what it means to be "financially fit". In 2016, Hillary launched a new financial education program through her first company, Seiler FEC, for pro-athletes which is now in use by 7 NFL teams and hundreds of athletes across the US from all major sports. She emphasizes, "it's not how much money you have, it's how you manage the money you do have." Lance and Hillary discuss the importance of discipline as a means of achieving your financial goals and ultimately, financial freedom.
Jason Riley of Fairway Asset Management, joins Lance to discuss the importance of diversification in alternative investing. Jason shares his evolution from a naval officer, his passion for economics and explains the benefits of alternative investing through real estate. Lance and Jason dive into the inherent risks involved in real estate investing and how one can mitigate risk by education and conducting proper due diligence.
Jacob Vanderslice of VanWest Partners joins Lance to discuss the booming self-storage asset class. VanWest Partners is a Denver-based real estate investment firm focusing on the acquisition and management of self-storage centers and other opportunistic real estate throughout the United States. Jacob and his team enjoy self storage because of its proven ability to withstand catastrophic economic events. Jacob and Lance dive into the intricacies of self storage and what it takes to be successful in this particular asset class.
Heather Dreves of Secured Investment Corp, joins Lance to discuss how she climbed the ranks in the RE industry. From Loan officer to director of funding and servicing, Heather has found her stride in educating others on just how rewarding real estate investing can be. Secured investment Corp specializes in residential fix and flip lending and have been able to gain momentum in their business during the pandemic. Heather and Lance dive into how their firm has remained relevant throughout uncertain times.
Kent Ritter of Hudson Investing joins Lance to discuss his criteria for alternative investing. His two main goals for investing passively are income and appreciation. The two dive into the importance of connection and mentorship as a stepping stone for success in the real estate industry. Kent explains why he is bullish on investing in the midwest and his strategies for tenant retention.
Josh Ferrari of Greenlight Capital joins lance to discuss how he got his start in RE. His journey started 2 1/2 years ago when he bought his first multifamily property which was a fourplex. Josh shares his unique story about how he met his two business partners and emphasizes real estate investing as a team sport. Josh and his team enjoy operating in the value add space, because provides them with more control over the outcome. The three operate mainly in Alabama with the goal of acquiring 1,000 units!
Ryan Parson of Mile Marker Club joins Lance once again to provide listeners with a holistic view of financial wellbeing. Some questions investors should consider: What are your values? What are your goals of investing? What's your overarching wealth strategy? What are some of the key critical relationships in your life? Ultimately, what does living your best life look like? Lance and Ryan dive into what it takes to be successful in making your best life a realty, the importance of transparency and how one can create lasting impact in their communities, while building wealth.
Todd Pigott of ZINC Financial joins the show to discuss why he is so passionate about real estate investing, specifically real estate lending. ZINC considers themselves a private money lender and emphasizes the importance of selecting a high quality, sophisticated borrower that fits their specific criteria. Todd and Lance dive into how his firm consistently mitigates risk and how he's remained successful in his 20 years of real estate experience.
Whitney Elkins-Hutten of Goodegg Investments started her real estate journey to create time freedom and financial independence. She started her career in Epidemiology, but then realized real estate investing was the direction she wanted to go and hasn't looked back ever since! Lance and Whitney discuss the importance of education, saving money with a goal of investing passively and the proper steps to evaluate risk before transacting.
Shawn Muneio of BeQuest Funds started his real estate journey while he was working a corporate career in IT Sales. After realizing he didn't see longevity in IT sales, he dug into the world of note investing. Reading a book about note investing sparked a fire inside of Shawn which prompted him to contact the author, who is now his business partner at the firm. BeQuest strongly believes in relationship building as a core value of their business.
Ruben Izgelov and Andrew Schnissel from We Lend join Lance to discuss their journey to private hard money lending. Ruben and Andrew attended law school together, which propelled them into their real estate partnership. We Lend operates nationwide and prides themselves on taking the appropriate precautions to mitigate risk. Their firm tends to look for seasoned sponsors; those who have a proven track record and those who haven't been involved in fraudulent activity. Andrew and Ruben dive into why they only lend in the multifamily and residential asset classes.
David Berneman of Golden Bee Properties, joins Lance to discuss how he formed his firm and how at it's core, is a family business. Golden Bee operates in the mid-market, value-add space, doing renovations to improve apartment homes built in the 50's and 60's. They pride themselves on having a hands-on approach that helps their firm mitigate risk.
Randy Langenderfer of InvestArk Properties joins Lance to discuss how he balances his W2 career, while investing passively in real estate. Randy has a passion for educating real estate investors on the risks that are inevitable, but can be mitigated with proper due diligence. He and Lance dive into the importance of asking the right questions before transacting and why knowing the team matters.
Seth Teagle of The Stream Group and a Minot, North Dakota native, joins Lance to discuss the Ohio multifamily market. Seth is a full time fire fighter and a multifamily syndicator that has found his stride in balancing both occupations to build financial freedom through passive real estate investing. Lance and Seth discuss the importance of long term relationships and how doing business with operators who are thorough ultimately leads to a positive outcome!
Stefen Tsvetkov of Pepela Equity Partners is a financial engineer turned multifamily investor. He joins Lance to discuss why he made the switch to pursue real estate investing . Stefan unpacks why he is bullish on the Boise, Idaho market and how roughly 80% of multifamily operators operate in both Florida and Texas because their proven track record of withstanding challenging economic events. Stefan emphasizes the importance of knowing the historical track record of an area before attempting to transact.
Martin Saenz from BeQuest Funds joins Lance to discuss how he ventured into the real estate space and how that eventually led to forming BeQuest Funds. After some soul searching, Martin explains how purpose and conviction play a massive role in the success of their business. Note buying is a unique asset class, and Martin seeks to educate passive investors on how this asset class can be a lucrative endeavor.
Tyler Deveraux of MF Capital Partners joins Lance to discuss how his humble beginnings sparked his curiosity for passive RE investing. He explains how a single family property is a riskier investment and why he is a proponent of MF investing. Tyler's maxim is, "If you take care of tenants, the bottom line always benefits." He and Lance dive into the intricacies of operating in the multifamily asset class and the due diligence that passive investors should be conducting prior to making an investment.
Brothers and business partners, Aj Shepard and Chris Shepard of Uptown Syndication join Lance to discuss the Portland multi-family market and why they are bullish on this particular market. Chris emphasizes one of their main strategies of mitigating risk is being selective in their buying process and their ability to do their own property management. They dive into how the create tenant retention and their ability to add value that ultimately keeps their properties operating at maximum occupancy.
Bob Fraser and James Maffuccio of Aspen Funds join Lance to discuss how they started Aspen in 2012. Aspen Funds combines Bob's 20-year experience in finance and Jim's 30-year real estate expertise to create a less-volatile investment opportunity for investors with their note buying strategy. They dive into embracing "seconds", how they perform due diligence, and how their due diligence process helps their firm mitigate risk.
When 42 percent of Americans are not able to afford a $500 dollar emergency, that's where Veritas Impact Partners comes in. Jennifer Searles, CEO of Veritas, joins Lance to round up the mini series with Thrive FP. Veritas Impact Partners plays a crucial role in building a community that thrives and supports one another. Understanding that people face hard challenges, Veritas partners with workforce housing to provide free telehealth visits for residents, after school programming, rental assistance and many other valuable resources that fosters community, changes lives, and ultimately creates resident retention.
JP Newman joins Lance once again to dive into finding purpose in real estate investing. As JP fondly calls it, "doing good and doing well." Lance and JP discuss the importance of putting yourself in the residents' shoes and how it takes humanity to be successful in retaining long-term happy tenants. Ultimately, it's resident retention that creates higher returns for investors. What sets Thrive FP apart from others is their ability to listen to their tenants' needs and deliver on their promises.
Adrian Lufschanowski and JP Newman from Thrive FP join Lance to kick off a three part mini-series. Wondering what FP stands for? For Purpose, For Profit. JP and Adrian's mission of building community and changing lives through real estate investing is truly inspiring. They dive into how they retain their tenants, their motivation to help communities thrive and how this ultimately benefits their investors. This episode demonstrates the compassion and drive that they bring to Thrive FP daily and how partnering with Veritas Impact Partners has furthered their mission.
Vince Caviglia of San-Diego based Equity Group Investors explains his familial influence in his real estate journey and how one shouldn't be fearful of "thinking different." Vince explains how his own curiosity helps his firm mitigate risky situations, and helps build trust with his investors. Lance and Vince dive into the importance of being flexible in executing various real estate strategies, how Vince keeps up with industry changes and how he navigates the uncertainty of the ever-changing real estate market.
Jesse Fragale approaches real estate from multiple angles. Based in Toronto, he started his investing career in student rental properties before transitioning into multi-family investments. His day job at Avison Young focuses on the brokerage side of commercial real estate. He and Lance break down the unique challenges of investing in Canada versus the U.S., including stricter rent controls, a more conservative financial environment, and lower transaction volume. Buy-and-hold is the chief strategy, and Lance and Jesse dig into how value gets added and deals get structured
Mike Coen of Procida Funding manages Procida’s 100 Mile Fund, an open-ended private investment vehicle focused on deals within a 100 mile radius of New York City. As a highly data-driven team, Procida lets the numbers drive the nature of its portfolio—Lance and Mike talk about how this flexible approach helps mitigate risk. Mike preaches his team’s laser focus on local markets, and why after 40 years, this also allows Procida key advantages in mitigating risk. (The proof has come in the form of consistent returns). Mike and Lance discuss Procida's hands-on, collaborative process to dealmaking, their approach to using leverage, and the importance of day-to-day management of the assets.
Most lenders do not consider commercial real estate bridge loans under $1M. That’s where Kirkland Capital Group enters the picture. They’ve leveraged this opportunity by building the Kirkland Income Fund, delivering a “micro-balance" commercial mortgage option. Chris Carsley and Brock Freeman of Kirkland join Lance to talk about the ins and outs: how the Fund offers investors lower risk and consistent annual fixed income returns, how they approach the underwriting process, commercial mortgage brokers, and assessing borrower risk.
Larry Taylor believes the key to success and longevity in real estate is focusing on a defined geographical area. For his company, Christina, that area is the Westside region of Los Angeles. While others shy away from transacting here, Larry has been all-in for 40 years. Never-ending demand, limited supply, incredible climate, diverse industries—but not without its unique set of risks. He and Lance break it down, discussing why the value comes in owning—not necessarily selling—real estate. Christina offers investors the opportunity to participate in real estate investments with a focus on tax-advantaged wealth preservation and long-term capital appreciation. They dig into his approach to acquisition, portfolio curation, exit strategies, investor education, and much more.
Vadim Kleyner of Smartland started his career in IT and then put those skills to use in real estate. Starting the purchase of 100 off-market homes in 2008, Vadim and his team built a vertically-integrated multifamily investment company stretching from Ohio to Florida. He and Lance discuss Smartland’s laser focuses: property management and tenant happiness. If vacancy is the killer, then creating a culture tenants don’t want to leave is job one. Vadim shares his approach to providing “practical”, modern amenities, like EV stations and dog playgrounds. This hospitality-inspired strategy is something multifamily investors need to cultivate.
Ketan Patel of Mukhi Capital immigrated to the U.S. at 19, learned English, and obtained a doctorate in Pharmacy. Hardly the typical origin story of a successful multi-family investor and syndicator. His unique POV has also led him into a building a coaching practice for fellow investment pros. He and Lance dig into how he helps operators develop their mindset, embrace the journey, and reach their full potential. They also discuss Ketan’s criteria for investing in a deal, his current focus on the Southeast, and why passive investors need to develop their own system for evaluating deals.
David Hardcastle of Voyager Pacific Capital Network has been investing and developing real estate since in 1994 when he first rehabbed a bank REO. He and his team now manage more than 4,000 assets around the country. His key advice: Demonstrate the ability to close deals—backed by proper due diligence—and more deals will follow. Simple, but never easy. He and Lance break down the unique challenges, including staying on top of property taxes, local municipal laws, property management, why not all debt is created equal, and why making mistakes can be a good thing.
Spencer Gray went from entrepreneur to co-sponsor / LP to President of Gray Capital, an investment firm focused on large multifamily assets. Located in Indianapolis, he looks to take advantage of the relative lack of institutional capital flowing into the Midwest. Spencer shares with Lance his approach to sourcing deals, and why he prefers to see the value in a mismanaged property versus a distressed asset. They discuss the current state of the market, the fickle nature of IRRs, the implications of today’s political environment, and trying to deal with impatient investors to whom 10 years is an eternity.
Dr. Van Williams has a PhD in Psychology and more than 20 years of real estate investment and management experience. This gives him a unique POV as he transforms deteriorating properties into cash generating assets. He and Lance discuss his focus on social impact investing in underserved and working class areas, how he evaluates a property for ‘Impact Rate of Return,’ and the unique challenges of balancing profit with purpose.
Lacey Lewis’ career has morphed from a loan officer, to general contractor, to his current role as President of Houston-based Lin Development Group. He’s found his purpose in infill/vacant lot development opportunities in urban environments around Houston. He and Lance discuss his passion around the social impact of this type of investment, in terms of community safety, beautification, and economic reinvigoration. They also dig into the details of design, construction, and exit strategy.
Ken Gee is a former Deloitte & Touche CPA turned real estate investor at Tampa-based KRI Properties. His background in accounting has instilled in him an analytical, principled approach to deals, and a high aversion to losing someone else’s money. He and Lance discuss underwriting from the ground up—not using a back-of-the-napkin approach. Ken talks about his 90-plan for taking over a property, occupancy as a key risk mitigation strategy, and never losing sight of the most important aspect of a transaction: people.
Tom Laune of Stress-Free Planning has a unique set of tools he deploys for his clients, which he calls the Bulletproof Wealth Strategy. Tom is a student of the Austrian school of economics and the concept of Infinite Banking. He champions the use of a whole life insurance policy to create a vehicle that acts as a line of credit, essentially allowing real estate investors to act as their own banker. Lance and Tom break down how the strategy works, including the ongoing dividends, the myriad tax advantages, and the misconceptions spread by the financial media. Listen and learn!
Haley Gant of Houston-based Quest Trust Company specializes in Self-Directed IRAs, a valuable tool that most American know little about. With a Self-Directed IRA, retirement investors aren’t limited to stocks, bonds, and mutual funds—allowing you to take advantage of alternative investments like real estate. Lance and Haley discuss how and why education is critical for this product, how you can navigate the waters with a large institutional custodian, some tax nuances involved, and tips for evaluating the wide array of custodians available to you.
Savannah Arroyo—aka "The Networth Nurse”—is a Registered Nurse in Southern California. She’s taken a unique leap by bringing her organizational and communication skills in health care into the world of multi-family syndications. Early on, Savannah saw the need to create an education platform as a part of her deals. She and Lance discuss helping people move past their narrow views of wealth-building, her preferred markets (including Oregon and Atlanta), developing a boots-on-the-ground team, and why time freedom is her ultimate goal of real estate investing.
Dan Handford is the Carolinas-based managing partner of PassiveInvesting.com, a private equity real estate firm focusing on both multifamily and self-storage facilities. Dan wears lots of hats, from asset management, to acquisitions, broker relationships, and investor recruitment. Throw in his role as host of Multifamily Investor Nation, and Dan has lots of insight to share on the passive investing landscape. He and Lance dig into his audacious goals and methods—the nuances within the Class A and Class B asset classes, his portfolio model of buying self-storage assets, why he’s bullish on Boise, the up and downsides of blind pool funds, how he uses social media to grow his business, and the importance of the SWAN (Sleep Well at Night) Principle.
Frank Giudici is a former civil engineer turned Business Development Director for Bedford Cost Segregation. Cost Segregation is the not-so-secret tax weapon designed to help passive investors accelerate depreciation deductions, defer tax, and improve their cash flow. Frank joins Lance to unpack how and why it’s such a powerful, proactive tool—especially while the Tax Cuts and Jobs Act of 2017 is still in place. That said, not all Cost Segregation is created equal, and Frank breaks down the risks of un-certified Cost Segregation.
Charles Carillo is a partner at Florida-based Harborside Partners, and host of the Global Investors Podcast. Charles joins Lance to talk about his approach to helping foreign investors — and Americans — enter the U.S. real estate market. He shares key indicators for analyzing multi-family deals: the importance of boots-on-the-ground, increasing NOI without simply raising rents, and finding hidden management efficiencies. They also look ahead toward impending cap rate compression, safe harbor during inflation, and the under-appreciated industrial asset class.
James Marszalek returned from hundreds of combat missions in Iraq with a desire to feed his entrepreneurial spirit in a way the military couldn’t. He turned to real estate, and focused on the niche class of buyer he knew well: active duty military and veterans. He launched Operation Red Dot, focused on the Tacoma, Washington market, and grossed $65M in sales. He’s now launching a hedge fund—the Red Dot Income Fund—a rent-to-own product for military veterans. He and Lance talk about how he uncovered this unique opportunity, his focus on Class A properties, the wild supply and demand challenges involved, including the flood that’s coming when the Foreclosure and Eviction bans lift.
Michael Becker of SPI Advisory is a busy man. He manages more than 3000 apartment units in Texas, hosts the Old Capital Podcast and the live Multifamily Investing Show on YouTube. Lance and he discuss how he juggles it all, assesses new opportunities, and breaks down the key markets in the Lone Star State. They discuss the probability that the public markets are in a ’99-style bubble, and the FOMO and overpaying happening in private markets. How do you keep your head through it all? Keep. It. Simple.
Darris Cassidy of Fairway America is a longtime colleague of Lance, and joins to wax nostalgic about their history together, and break down the market from the view of a capital provider. They discuss the ‘Amazon effect’ on Retail, the tenuous state of Office, and the dilemma of trying to predict the market’s post-covid behavior. Darris also reveals what he likes right now, including Multi-family, Hotel Conversions, and Single-family Build-to-rent. All of these, of course, lead to “risk mitigation moments of truth” that the investor must recognize, and choose the right path.
Ryan Daigle of Carolinas-based Flywheel Equity is a former software engineer turned multi-family operator. Ryan started Flywheel with the desire to make real estate available to everyday investors, and has built a network of like-minded “technologist investors.” The unique, analytical mindset of this group requires a commitment to transparency and education, which is music to Lance's ears. He and Ryan break down Flywheel's approach, and discuss how passive investors need to question a sponsor’s criteria and methodologies before jumping in.
Scott Rerucha of Seattle-based Legacy Group Capital joins Lance once again to shoot some arrows at the banks. Legacy has worked for years with borrowers and builders on ground-up single- and multi-family projects, creating a thriving alternative to bank financing. Lance and Scott talk about Legacy’s approach to assisting custom home builders, and exploiting the many flaws in the strategy of banks, from bloated approval times to outdated regulatory approaches to misguided underwriting.
Mike Stohler is the founder of the Arizona-based Gateway Equity Group. A former airline pilot, Mike joins Lance to share how the analytical mindset of his old profession translates to his current role as an active investor. They also break down one of Mike’s core areas of focus: Hospitality. The pandemic has battered the sector, but opportunity is out there. Mike discusses his preference for limited-service “bread and butter” hotels, identifying value in the space, navigating the myriad tax advantages … and his aversion for fast-talking salespeople.
Shahin Yazdi is a Principal at LA-based George Smith Partners, and joins Lance to to talk all things financing. Shahin has deep experience negotiating and underwriting complex real estate transactions—an art that continues to evolve rapidly. He and Lance break down the nuances of Equity vs. Debt, GPs vs. LPs, Risk Tolerance vs. Return Requirements—and why, despite the innovations in the space, it still just comes down to relationships.
Kenny Wolfe of Wolfe Investments manages a range of asset types in the Texas and Ohio markets. He joins Lance to provide some sage warnings for investors as they evaluate entering the space. Are you asking the right questions, or simply taking the sponsor at face value? Are you acting as the CEO of your own money? Ultimately (as always) it comes down to transparent conversations, about everything from your goals, to more technical aspects like cap rate compression. The guys cover it all in this enlightening episode...
Ryan Parson of Heritage Capital and the Mile Marker Club joins Lance once again to nerd out on the 30,000 foot view of the alternative investment landscape. With new classes of opportunities emerging even in the past year, it’s vital to know your wealth and know what you want your ‘best life’ to look like. Ryan and Lance dig into Ryan’s five T’s of Treasury Management: Turbulence, Taxes, Timing of Cash Flow, Targets in your Portfolio, and Type of Deals. Buckle up and get ready to learn!
When it comes to the pursuit of financial freedom, we find ourselves in the middle of a big shift — a seminal, “Oh crap,” take-charge moment. Spencer Hilligoss from Madison Investing joins the show to talk about moving from ignorant to enlightened. Spencer is passionate about teaching people that true wealth doesn’t come a W2 job with a nice 401k. He and Lance talk about opening your mind to so-called “alternative assets,” getting comfortable with uncertainty, the fallacies of financial advice and do-your-own taxes, and educating yourself around disclosure risk.
Rodney Thompson of Solaris Capital is a multi-family syndicator based in Minneapolis. He made the transition from single-family years ago, lured by multi-family’s scalability and — as he sees it — lower risk profile. He and Lance discuss Rodney’s approach to analyzing markets in the Midwest and Southeast, the characteristics he looks for in properties, and the importance of having conviction.
Dusten Hendrickson is a South Dakota-based real estate investor who has built a thriving community around his concept of “mailbox money.” (i.e. passive income). Dusten began working in the roofing trade, then shifted to the front-end of real estate deals. He and Lance share their thoughts on the super-stable Dakotas markets, how he brings his tribe's money into a deal, and the importance of "knowing who you are" in real estate.
Kevin Brenner of Nimbus Capital was a captain in the US Air Force when he first read “Rich Dad, Poor Dad” and woke up to the opportunities he's pursuing today. Lance and Kevin discuss his journey from buying his first quadplex, to growing a community of military real estate investors, to fighting past the naysayers and launching a private equity fund.
Abel Pacheco is a self-described grinder. After more than a decade in the corporate and IT world, he partnered with his wife in 2008 to form 5 Talents, which now runs $93MM in corporate and multi-family assets. Lance and Abel talk about lessons learned along the way, the upside of the Texas market, and how he brings investors along for the ride through a diversified fund.
The name of Terrance Doyle’s company leaves no doubt about where his passion lies: The Value Add Real Estate Company. Terrance has $40M in multi-family assets under management in the Des Moines and Denver markets. He and Lance dig into his nuanced strategy to analyzing the hidden value of an asset through the lenses of property management, expenses, and upgrades. “Do the work as if you were going to live there.” Amen.
Adam Gower of the Gower Crowd joins Lance for a spirited conversation that keeps returning to communication as THE fundamental concern of investors. Adam is a former digital marketer who views real estate investing through the lens of the marketing funnel. He and Lance talk about the basic fears of both investor and sponsor, the scourge of the Clubhouse mentality, deal junkies, rose-colored IRRS, and much more.
Bobak Tamaddon and Mark Gagner are longtime San Francisco Bay Area multi-family investors, and join Lance to talk about the myths and realities of this one-of-a-kind market. Are the startups really fleeing for Austin and Miami? Will the chronic housing shortage here persist after the pandemic? Which submarkets offer the best opportunities for value-adds?
Brian Adams is the founder of Excelsior Capital, a Nashville-based real estate private equity sponsor. Brian talks about his focus on “transacting like a gentleman” with investors, and vital role that transparency plays. He and Lance dig into a variety of topics, like the move from co-mingled funds to direct deals, why he loves single-story flex industrial right now, and his approach to nurturing local relationships across a dozen or more markets at a time.
Daniel Holmlund of Aalon Capital works full-time as a software developer at Intel, but still runs multifamily syndications, an investing club, and an investing podcast. Real estate investing is becoming more and more a team sport, and Daniel plays it well. He and Lance discuss the opportunities and challenges in educating professionals to take control of their financial future through real estate.
Adapia D’Errico of Alpha Investing has moved from the Fintech world, into early real estate crowdfunding, into private equity investing. She shares with Lance her “devil in the details” approach to assessing the risk of institutional-quality deals, and why it’s critical to look past shiny numbers. She and Lance nerd out on their mutual passion for transparency in a post-Covid world, cautioning investors about getting bullied out of asking the right questions.
Arn Cenedella of Spark Investments joins Lance to share lessons learned from 40 years in real estate on both coasts. Arn made the switch from single-family to multi-family, moving from the Bay Area to the emerging Carolinas market. He and Lance talk about mixing old-school with new-school metrics, his approach to scaling and co-GPs, and why it’s important to recognize your weaknesses and partner accordingly.
Holly Williams made the move from advertising executive to real estate syndicator and debt fund lender, after realizing how much of her income was being sacrificed to taxes—inspiring her mantra “Keep More.” She joins Lance to break down what she’s learned by tapping into the tools and strategies of the wealthy, like private lending. They discuss why boring is good, why relationships are still critical to dealmaking, and why classic investment tools like mutual funds and 401ks are actually riskier than real estate.
Monick Halm is the founder of Real Investor Goddesses, a community of professional women creating wealth through real estate. Monick — a lawyer-turned-flipper-turned-syndicator — was inspired to start the movement after attending a real estate seminar a decade ago and seeing almost no fellow female attendees. Lance and Monick discuss the critical role that education and advocacy play in bringing new investors into the space, and her three C’s for vetting potential partners: character, commitment, capacity.
Ruben Greth of Bakerson Investments is a Multi-family investor and host of the Capital Raiser podcast. Ruben is driven by the simple truth that people won’t invest with you until they know and trust you. He and Lance talk about strategies for bringing along passive investors into the multi-family asset class, particularly Ruben’s use of social media as a platform to create exposure and build relationships.
Seth Bradley is an attorney, investor, and host of the Passive Income Attorney Podcast. He and Lance unpack the vetting process Seth deploys to evaluate a market, a sponsor, and a deal. The gut-level relationship (the “art”), is still paramount for Seth, but he’s not afraid to pick apart a flawed proforma either (the “science”). He shares his insight on both sides, and talks about the merits and flaws of the emerging “co-GP” trend.
In this episode Lance chats with John Fortes of the Fortes Company, a kindred spirit as passionate about due diligence and risk mitigation as he is. John brings passive investors into multi-family deals, but only after spending up to a year getting to know the sponsor, and performing his own brand of nuanced underwriting. He and Lance dig into the benchmarks he uses to vet a sponsor, and how to avoid confirmation bias in a bull market where every sponsor looks like a genius.
John Casmon of Cincinnati-based Casmon Capital Group is a former marketing exec turned investment sponsor, and host of the Target Market Insights podcast. He and Lance discuss the John’s belief in the “boring” fundamentals when is comes to assessing deals, markets, and partnership opportunities. This includes his focus on cash flow, developing a sound business plan, project management, and assessing the health of a market.
Rob Beardsley of Lone Star Properties is a multi-family investor and preferred equity provider, primarily in Texas and the southwest. Rob and Lance get into the technical details of the relationship between risk and return, and why not all returns are created equal. Rob also discusses the preferred equity side of his business, and the underappreciated role that pref equity can play in lower middle-market deals.
Blake Dailey of Growth Vue Properties joins Lance to talk about his approach to Multi-family syndication. Blake is an active Air Force serviceman, podcast host, and multi-family syndicator in Florida. He and Lance discuss Blake’s approach to risk, creating genuine relationships, and focus on 'BRRRR' … Build / Rehab / Rent / Refinance / Repeat.
Brian Briscoe of Four Oaks Capital is an active Lieutenant Colonel in the US Marine Corps—and a sponsor/educator in the multi-family asset class. Brian’s team focuses on Class C value-adds in the upstate South Carolina region. He and Lance discuss his unique approach to mitigating risk, rooted in disciplined and conservative underwriting, experienced property management, and being smart with renovations.
Anthony Vicino of Invictus Capital is a multi-family syndicator, based in Minneapolis. Anthony and Lance break down this strong but often misunderstood market, and how COVID has shifted Anthony’s multi-family playbook. They discuss the importance of rent analysis, streamlining operational expenses, and getting investors to buy into the narrative of a project, not just the IRR.
Self-storage is one of the hottest asset classes in real estate, and AJ Osborne of Boise’s Cedar Creek Wealth has been doing it for decades. He and Lance dispel the myth that it’s an easier, “recession-proof” vehicle. AJ shares a few key tenets, including viewing it as a business instead of a real estate investment, the critical role of supply and demand analysis, and how he’s turned data and technology into a competitive advantage.
Chris Salerno of QC Capital is a Charlotte-based broker-turned-sponsor, and joins Lance to chat about the Multi-family asset class. Chris’ group focuses on the acquisition of 100-unit projects built between 1990-2010, mitigating risk by being simple and conservative in their value-add strategy. They discuss taking a hard look at some classic red flags, like creative pro formas, inflated exit caps, and bad debt at a property.
Freddy Ellis of Watermark Properties talks to Lance about one of the hottest sectors in residential housing, single-family home rentals. Watermark develops communities that offer renters the benefits of a single-family home with the convenience and amenities of a resort. Lance and Freddy unpack all the pieces, like how to work with municipalities, creating a premium and differentiated living experience, and the amount of exit options for investors unique to this strategy
Boots Dunlap of RRA Capital, a commercial bridge loan lender, joins Lance to dig into RRA’s data-rich approach to delivering customized debt products for sponsors across the country. Boots and Lance discuss learning from the mistakes of others, why underwriters need to focus on the borrower instead of the asset, and the risks in believing that anyone with big money can be a lender.
Single-family residential is one of the most accessible, liquid, efficient asset classes an investor can own. But after a decade of growth, are we approaching the “buy low, sell high” moment? Ryan Parson of Mile Marker Club joins Lance to ask some tough questions. How long can these valuations last? How might affordability be impacted in a post-pandemic, post-stimulus economy? When and how should investors approach re-balancing their portfolio? Ryan and Lance break down the risks.
Travis Watts of Ashcroft Capital is a passive and active investor with a focus on Value-add Class B Apartments. Travis preaches “investing in what you know;” and digging into the track record of sponsors as much as the investment numbers. He and Lance talk about spotting the risks in fluffed up IRRs and over-complex sales pitches, and how he evaluates each investment as a business.
Scott Rerucha of Legacy Capital Group talks with Lance about his team’s strategic approach to their core market of Seattle. Legacy has both a lending and development arm, and Scott believes that their vertical integration and a deep focus on a single market delivers a distinct advantage to builders and investors. They discuss the risks associated with zoning complexities, surviving downturns, and adhering to a “more deals than money” philosophy.
Devin Elder of the DJE Texas Management group has built a stellar track record with a conservative, one-project-at-a-time approach to multifamily development. DJE works exclusively in the San Antonio market, and Devin believes this hyperlocal approach helps him execute more quickly and strategically. He and Lance also dig into the risks around Loan Maturity and Capitalization, and DJE’s programmatic approach to the upgrades of its properties.
Jack Martin and Nate Pattee of the Arizona-based firm 52TEN join Lance to discuss their “Give Before You Take” approach to Mobile Home Park investing. This asset class is a unique, complicated beast. Jack and Nate believe in the importance of building credibility with owners first, by investing in park culture and experience. They discuss risk mitigation as it relates to on-site management, vigilante owners, leverage and debt, as well as their exit strategies.
Gino Barbaro is an investor, educator, and podcaster who joins Lance to dive into his “Buy Right, Finance Right, Manage Right” philosophy around the Multi-Family investing. Demographic shifts accelerated by the pandemic make this strategy as attractive as ever now and moving forward. Gino covers a range of issues as they relate to the journey of the multi-family entrepreneurs, like starting small, focus, education, and the importance of due diligence.
Dylan Marma of Requity Group talks with Lance about a growing strategy in the market: Mobile Home Parks. “Manufactured Home Communities” have outperformed many asset classes in the past 20 years, but they are not necessarily the slam dunk they once were. Dylan and Lance talk about the the unique risks that proper due diligence can turn up, as well as the need for taking a resident-focused approach, through strong communication and reinvestment.
Yonah Weiss, a former teacher turned cost segregation expert, joins Lance to talk about this topic that few investors — or even accountants — fully understand. A cost segregation study can create cash flow and tax savings for investors by front-loading depreciation. But it’s not uncomplicated, and not all studies are created equal. Yonah and Lance break down the process and the risks.
Is diversification simply a vehicle for the investor who can’t make a decision? Not so fast. Lance talks to Mike Zlotnik of TF Management Group, who manages several diversified investment funds. They discuss the inherent risks, like assessing the amount of leverage in a deal, analyzing the credibility and character of the sponsor, and seeing past the “shiny object syndrome” of IRR.